December 17, 2008
Top Stories
EVEREST/BERNSTEIN WEBINAR ON THE ECONOMY AND THE SOURCING MARKET...Misconceptions, updated projections, and new strategic approaches in the sourcing market during an economic recession will be addressed in a virtual discussion panel of experts from Everest Group, Everest Research Institute and Sanford C. Bernstein & Co. The one-hour Webinar, Economic Crisis as a Market-Changer, will be held on Dec. 18 at 10:30 a.m. CST (11:30 a.m. EST, 4:30 p.m. GMT). Register for the Webinar. For more information, send an e-mail or call +1-214-451-3110.
Panelists participating in the discussion will be Peter Bendor-Samuel, CEO of Everest Group; Ross Tisnovsky, Vice President, Everest Research Institute; and Rod Bourgeois, Senior Research Analyst, Sanford C. Bernstein & Co.
CSC ACQUIRES BULGARIAN IT SERVICES FIRM...CSC announced the acquisition of Object Builder Software (OBS), a Bulgarian information technology (IT) services firm. The all cash acquisition expands CSC's global delivery capabilities and complements the company's network of lower-cost centers in Eastern Europe, providing clients with expanded industry vertical expertise, time zone coverage, and technical and language skills.
New Business
EDS, an HP company, has been awarded a $111 million contract by the U.S. Defense Information Systems Agency (DISA) to provide security readiness reviews for the Department of Defense (DoD). These readiness reviews will support DISA’s mission to provide integrated, agency-wide protection and operational restoration capability to counter security threats.
The General Services Administration (GSA) has awarded Unisys a firm fixed price contract to provide maintenance and IT support for GSA.gov, one of the federal government’s most-visited websites, and for GSA’s internal portal, GSA InSite. The agreement, a recompete of a contract that Unisys has held since April 2003, was awarded under GSA’s IT Schedule, a procurement vehicle that assists federal agencies with IT purchasing. The contract consists of one base year and four one-year options, which are exercisable at the discretion of the government.
Perot Systems Corporation announced that the Daughters of Charity Health System (DCHS) has awarded the company a contract extension for IT services. Under terms of the agreement, Perot Systems will continue to provide full IT outsourcing services to include application implementation and support, desktop support, local and wide area network design and maintenance, data center management, server design and control, help desk and incident management.
BancTec, Inc., a global provider of advanced, high-volume document and payment processing solutions and services, has signed an agreement with Concentra Inc., one of the largest providers of health care services in the U.S., to manage the receipt and data capture of Concentra’s supplier invoices. The agreement covers invoices in both paper and electronic formats, and will provide Concentra colleagues and vendors with online visibility and improved workflow capabilities.
Adecco Group North America has been awarded a multiyear recruitment process outsourcing (RPO) contract with the Corporate Executive Board. Adecco's RPO division will provide the Corporate Executive Board with a comprehensive, full-lifecycle solution for recruitment of Corporate Executive Board sales executives for worldwide deployment.
The Defense Information Systems Agency (DISA) and the Defense Information Technology Contracting Organization have awarded Unisys Corporation a task order to provide services supporting and maintaining a myriad of mission-critical Department of Defense applications at DISA’s Systems Management Center (SMC) in Ogden, Utah. The award, valued at approximately $15 million if all options are exercised, is a recompete of a contract for services Unisys has provided since 1992. The new agreement will run one base year followed by four one-year options, exercisable at the discretion of the government.
International News
Convergys Corporation announced that leading telecommunications provider Orange UK, which has over 17 million subscribers, has signed an extended contract for Convergys’ industry-leading customer management solutions. Orange UK has been working with outsourcing partners in India since 2005. In June 2008, Orange UK made a strategic announcement that it would halt the expansion of off shoring its customer service support for mobile and broadband customers to re-focus on delivering some selected customer service processes from contact centers located in the UK.
AstraZeneca has awarded Infosys a five year, multi-million dollar global sourcing deal. AstraZeneca, headquartered in London, is one of the world's leading pharmaceutical companies with sales of $29.55 billion. Under the agreement, Infosys will deliver end-to-end application maintenance services to AstraZeneca’s global operations in areas such as manufacturing, supply chain, finance, human resources and other corporate functions. The deal is a part of AstraZeneca’s transformation initiative to accelerate innovation and bring products to market faster, and will help improve its operational efficiency significantly.
IBM announced a five-year IT outsourcing agreement with Madhav Nagrik Sahakari Bank, one of the leading co-operative banks in the state of Rajasthan in India. As part of the agreement, IBM will host and manage the IT infrastructure to help the bank focus on its aggressive expansion plans while reducing its huge capital expenditure. Signed in the third quarter of 2008, this agreement is the first of its kind for IBM in Rajasthan. IBM is focused on the small and medium businesses including those based in small towns like Sirohi, where the bank is headquartered.
Atos Origin has won an outsourcing contract to provide IT support at over 120 English Heritage sites and offices across the UK from Tintagel Castle in Cornwall via Stonehenge in Wiltshire to Hadrians Wall in Northumberland.
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December 10, 2008
Top Stories
EDS ADDED TO HP'S TECHNOLOGY SOLUTIONS GROUP...EDS will become a business unit within HP’s Technology Solutions Group (TSG), providing customers with the industry’s broadest portfolio of information technology products and services. The newly combined TSG business group accounted for roughly $14.6 billion, or 43 percent, of the company’s total revenue in the fourth quarter of fiscal year 2008 and more than half of the company’s operating profit. Joe Eazor will assume the role of senior vice president of EDS with responsibility for the business unit’s operations, reporting directly to Ann Livermore, executive vice president of TSG.
EVEREST/BERNSTEIN WEBINAR TO ADDRESS ECONOMIC CRISIS AND SOURCING...Misconceptions, updated projections, and new strategic approaches in the sourcing market during an economic recession will be addressed in a virtual discussion panel of experts from Everest Group, Everest Research Institute and Sanford C. Bernstein & Co. The one-hour Webinar, Economic Crisis as a Market-Changer, will be held on Dec. 18 at 10:30 a.m. CST (11:30 a.m. EST, 4:30 p.m. GMT). Panelists participating in the discussion will be Peter Bendor-Samuel, CEO of Everest Group; Ross Tisnovsky, Vice President, Everest Research Institute; and Rod Bourgeois, Senior Research Analyst, Sanford C. Bernstein & Co. To register for the Webinar, please go here.
STATE OF MARYLAND PICKS ACCENTURE FOR TAX SYSTEM...The Maryland Board of Public Works has awarded Accenture an $87 million contract to deploy a new integrated tax system for the state. The new system is expected to significantly increase the state’s collection of tax revenues through enhanced discovery, audit and compliance programs and improved billing; streamline current processing for improved service to taxpayers; provide more efficient processing of refunds; and provide more taxpayer self-service capabilities via the Internet.
New Business
ADP Employer Services, a leading provider of HR, payroll, and benefits administration services, and Kronos Incorporated have signed a five-year contract extension for ADP to provide time and labor management software and timeclocks from Kronos under the Enterprise eTIME brand.
DHL has signed a two-year agreement with Precise Engineering, a Michigan-based global supplier of custom machined components and tooling for the automotive industry. DHL was selected as the exclusive provider of international shipping services for Precise Engineering to speed shipments between Asia Pacific and the U.S.
Affiliated Computer Services, Inc. is expanding its relationship with Ingram Micro Inc. with a renewed five-year contract for outsourced information technology services.Since 2002, ACS has been providing IT services for Ingram Micro's North American business unit and its global regions, including management of midrange, mainframe, desktop and enterprise storage operations; data center outsourcing; service desk; and wide area and local area network support and engineering.
Infocrossing, a Wipro Company, announced the completion of a large Oracle PeopleSoft 9.0 upgrade at the Department of Finance and Employee Relations for the State of Minnesota. The department has been recently renamed to Minnesota Management & Budget (MMB). MMB provides payroll and employee benefits services to approximately 50,000 state employees and retirees, with health coverage for approximately 115,000 lives.
International News
WNS (Holdings) Limited has signed a six-year contract with SAS Airlines, the largest airline company in Scandinavia. This new contact is a renewal of WNS' existing five-year agreement to provide passenger revenue accounting services for SAS. Under the terms of the new contract, WNS will transition SAS from an in-house revenue accounting system to the Sirax AirFinance Platform. The new financial management system, combined with WNS’ process expertise, staff training capabilities and technical support, will enable SAS to manage over 40 million tickets annually and is expected to enable SAS to significantly reduce spending on revenue accounting.
Convergys Corporation has signed a new five-year license agreement and support and maintenance contract with BT for Infinys’ Rating and Billing Manager. The contract carries an option for a sixth year. Convergys is BT’s strategic billing partner and Infinys is BT’s rater and biller of choice. Convergys will support BT’s major business divisions including BT Retail, BT Wholesale, and BT Global Services.
Perot Systems Corporation announced that The Hashemite Kingdom of Jordan has selected the company to manage the pilot deployment of VistA - an open source clinical and healthcare information management system - at two hospitals and a clinic in the capital, Amman. Jordan is recognized as providing one of the highest standards of healthcare in the region. It also has a rapidly growing IT sector that is gaining a reputable status in the region. King Abdullah II's vision is to continue to build on these successes by establishing an effective, integrated national healthcare infrastructure using a single software platform.
Media-Saturn IT Services GmbH, the information technology (IT)service company of Media-Saturn Group, and IBM have signed a five-year outsourcing contract. The contact is worth double-digit million Euro and includes the complete outsourcing of the data centers at Media-Saturn's locations in Ingolstadt and Munich, which have been operated centrally up to now.
IBM and leading power equipment manufacturer, ABB, have signed a three-year contract for hosting services for ABB’s SAP information system in Russia. ABB chose to partner with IBM to meet its 24/7 system availability requirements. As part of the hosting agreement, IBM will provide the hardware and software to keep ABB’s SAP information system in Russia up and running, design and deploy the SAP system landscape and help ensure day-to-day system operation and back-up.
Atos Origin, an international information technology services company and the E-Plus Group, Germany’s third-largest mobile telecommunications provider and a subsidiary of KPN, announced the renewal of their IT outsourcing agreement for a further five years. Atos Origin will provide the IT services for 21 business processes including IT infrastructure and application development services.
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December 03, 2008
Top Stories
STATE OF GEORGIA AWARDS $873 MILLION CONTRACT TO IBM...IBM has been awarded an $873 million contract by the State of Georgia for information technology (IT) outsourcing services over eight years. The contract also includes two additional one-year optional extensions. As subcontractors to IBM, Dell will update and manage the state's client systems utilizing its desktop management platform and provide service desk support. Print services will be provided by Xerox.
CAPGEMINI COMPLETES GETRONICS ACQUISITION...Capgemini has now completed the acquisition of Getronics PinkRoccade Business Application Services BV (BAS BV) from Getronics Nederland N.V. With the approval of the European Commission and the relevant Workers Council, the acquisition, announced in July 2008, was closed on December 1. BAS BV has now formally become a subsidiary of the Capgemini Group. The new organization will continue operations under the name of Capgemini BAS.
CONVERGYS SIGNS DEAL WITH FDIC...Convergys Corporation announced a new, five-year agreement to provide customer management support to the Federal Deposit Insurance Corporation (FDIC). The contract, with prime contractor Apptis, Inc., a leading IT services and solutions provider to the federal marketplace, stems from a significant increase in calls to (877) ASK-FDIC, the FDIC’s toll-free consumer assistance line, by concerned customers of the banking industry. The financial market turmoil, which has driven a huge increase in call volume at the FDIC Call Center, caused Apptis to seek a proven customer service leader able to quickly step in and provide support for the increased number of calls.
New Business
EDS, an HP company, and Virgin Atlantic Airways have signed a new information technology (IT) services agreement that extends the companies’ 25-year relationship. EDS has provided IT services for Virgin Atlantic since its inaugural flight in 1984. New to this five-year agreement, EDS will provide the next generation of its airline reservations solution, EDS Reservation Services, a part of EDS’ Transportation Applications that EDS hosts and maintains on behalf of its clients.
BPO Management Services, Inc. has signed a multi-year agreement to provide information technology outsourcing services to Forrest T. Jones & Company, Inc. (FTJ), an insurance agency and administrator. BPOMS will host and manage FTJ's IT Infrastructure environment, including monitoring, support and maintenance of all related network components and devices from BPOMS full-service, 24/7/365 support center located in Pearl River, NY.
Affiliated Computer Services, Inc. has been selected as a subcontractor to support the U.S. Food and Drug Administration's (FDA) Information and Computer Technologies for the 21st Century (ICT21) initiative, designed to modernize the FDA's information technology (IT) services. ACS' Federal Solutions line of business will work as a team member for Telesis Corporation of Rockville, Maryland, which was chosen as one of the prime contractors in the multiple award IDIQ (indefinite delivery/indefinite quantity) contract, which has a 10-year ordering period and a ceiling value of $2.5 billion.
International News
Geodis said its leading entity of SNCF Transport and logistics division acquired IBM's (IBM) internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi-year outsourcing contract. Through this contract, Geodis will be the sole lead logistics provider for IBM, managing approximately EUR1 billion per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.
Sykes Enterprises, Incorporated, a provider of customer contact management solutions and services in the business process outsourcing (BPO) arena, announced it has expanded its operations with the opening of a new 250-seat center in Brazil.
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November 26, 2008
Top Stories
EVEREST Q3 REPORT: FSO WILL REGAIN MOMENTUM IN EARLY 2009...Outsourcing in the banking and financial services sector is showing short-term signs of a slowdown for the remainder of the year due to the economic crisis, but the market will likely regain momentum in early 2009, according to the Market Vista: Q3 2008report on global outsourcing and offshoring activity by the Everest Research Institute.
Market Vista is a subscription service with four reports published per year. For information about the Market Vista: Q3 2008 report or other research services, please visit http://www.everestresearchinstitute.com, e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
SARA LEE TAPS HP...HP has been awarded a seven-year infrastructure services contract from Sara Lee Corporation to manage its global technology environment. The deal is part of Sara Lee’s global transformation to increase operational efficiencies and reduce costs across its businesses around the world. HP will extend its current agreement to 2015 and add the management of Sara Lee’s North America infrastructure technology to make this a fully global contract. HP also will transition Sara Lee’s infrastructure technology to HP’s next-generation data center in Atlanta. This automated environment will provide the latest infrastructure management and automation delivered as a service for Sara Lee.
New Business
Accenture will provide Xcel Energy with application management services under a multi-year application outsourcing agreement. Terms of the contract were not disclosed. Under the agreement, Accenture will provide application maintenance and software development for Xcel Energy’s customer care, meter systems and human resources/payroll applications. Xcel Energy will leverage Accenture’s deep experience in the utilities sector and in application outsourcing services to increase its operational performance and enhance its customer service.
EDS, an HP company, and Guthy-Renker, one of the world’s largest direct response marketers, announced a four-year, $531 million contract extension and expansion to the companies’ 13-year relationship. The new agreement for consumer direct business process outsourcing (BPO) services supports Guthy-Renker’s growing customer base in the United States, Canada, Australia, New Zealand and other international territories. Since 1995, EDS has provided Guthy-Renker with consumer direct services that span order and payment processing, warehouse and fulfillment, and call center/customer service to support its global operations and growth.
Centegra Health System and Perot Systems Corporation announced a long-term information technology services agreement in which Perot Systems will support the organization with the implementation of a range of business strategies -- including an advanced clinical system for the Illinois-based health system. Under the agreement, Perot Systems will assume responsibility for Centegra's information technology platform. Additionally, Perot Systems' deep healthcare expertise will enhance Centegra's ability to provide outstanding service for its patients, and increase the efficiency of its IT processes and support services, improving its ability to control costs.
International News
Brasil Telecom S.A., one of the largest telecommunications companies in South America, has signed a one-year agreement for Convergys’ Dynamic Decisioning Solution. Brasil Telecom is a leader in converged fixed-mobile solutions as well as a full-service telecommunications operator that has a rich voice, data, Internet, and managed services product portfolio for residential, enterprise, commercial, and government customers. Brasil Telecom has more than 8 million fixed lines in service and the second-largest broadband access base in Latin America (over 1.6 million). It has 4.5 million mobile subscribers.
Australia's BankWest has sold its 49% stake in IT outsourcing joint venture Unisys West to its tech partner. Financial terms were not disclosed. The sell-off follows the $2.1 billion acquisition of BankWest by Commonwealth Bank of Australia. However, the Perth-based regional bank had already begun to move some services back inhouse in 2006, after outsourcing most of its IT infrastructure to Unisys West in 2002. The unit has now become a wholly-owned subsidiary of Unisys Australia and will continue to provide IT services to public sector clients, says the company in a statement.
Logica, the leading IT and business services company, has been named number one European vendor of application management (AM) services in Europe. Pierre Audoin Consultants (PAC) puts Logica at the top of its table of revenues generated from standalone AM in Western Europe during 2007.
Unisys Corporation announced that its Unisys Global Services Center (UGSC) in Shanghai has earned the Capability Maturity Model Integration (CMMI) level 3 rating. This follows the center’s recent attainment of four other key industry certifications: ISO/IEC 20000, ISO/IEC 27001, SAS No. 70 and ISO 9001. The certifications further confirm UGSC as a leader in adopting industry best practices for IT outsourcing in China.
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November 19, 2008
Top Stories
EVEREST STUDY: ECONOMIC SLOWDOWN DRIVING HR WORK OFFSHORE...In an increasingly slowing economy, offshore providers of human resources services are well positioned to take market share from US-based suppliers as buyer companies are now more focused on early cost savings that can be gained from labor arbitrage, according to a new study by the Everest Research Institute.
The Institute study, Human Resources Outsourcing (HRO) Annual Report, provides comprehensive coverage of the global 2008 HRO market, including detailed analyses on market size and buyer adoption, transaction characteristics, and supplier landscape. Study scope includes focus on North America, Europe, Asia Pacific, and Latin America; suppliers having signed at least one HRO transaction; and all industries.
To read an extract, purchase the report, or inquire about other research services, please visit www.everestresearchinstitute.com, email info@everestresearchinstitute.com or call +1-214-451-3110.
MITSUBISHI MOTORS EXTENDS IBM OUTSOURCING CONTRACT...Mitsubishi Motors Corporation (MMC) has extended its strategic outsourcing contract with IBM Japan for an additional five years. The entire operation and maintenance of the company's information system will be entrusted to IBM Japan. The agreement was signed in September 2008 and will be in effect until September 2013. In addition to the management of existing IT infrastructure, application operation and maintenance, and end-user support services, the new contract will include assistance of application planning.
CSC REVENUES UP FOR SECOND QUARTER...CSC reported revenues of $4.24 billion for the second 2009 fiscal quarter, up 5.5% year over year, and earnings per share for the quarter of $2.95. Net income for the second quarter was $451.7 million, or $2.95 per share (diluted), compared to last year’s second quarter earnings per share of 43 cents.
PEROT SYSTEMS ACQUIRES TELLURIAN...Perot Systems Corporation has acquired substantially all of the assets of Tellurian Networks, Inc., a leading managed services hosting provider of Electronic Medical Records (EMR) and Practice Management (PM) applications to physician groups. Tellurian is based in Newton, NJ and has operations in New Jersey and California. Financial terms were not disclosed.
UNISYS OUTSOURCING CENTERS GET ISO CERTIFICATION...Unisys Corporation announced that five of its worldwide outsourcing centers have received the prestigious ISO/IEC 20000 certification for delivering information technology (IT) services based on best-practice global management standards. The certification is the first – and prevailing – worldwide standard for benchmarking delivery of IT services that advance clients’ enterprise business goals
New Business
IBM has signed a three-year, approximately $130 million contract extension with Fluor Corporation (NYSE: FLR) for information technology (IT) outsourcing services. As part of the agreement, IBM will continue providing help desk, data center and server services, network management, desk side support, SAP hosting, IT security and disaster recovery services. IBM's global delivery network and resources will provide services to Fluor's 74 country locations around the world with centers in Canada, the United States, India and Poland providing primary support
American Greetings has selected Capgemini as its systems integrator for a multi-year technology implementation initiative designed to strengthen the company's market leadership. American Greetings, the creator, manufacturer and distributor of social expression products, selected Capgemini for this project to help the company fully utilize its investment in an enterprise resource planning (ERP) suite and standardize many areas of operations.
Affiliated Computer Services, Inc. has signed a five-year, $48 million contract renewal with the Wyoming Department of Health to provide fiscal agent services for the state's Medicaid and Dental program. This contract, which continues fiscal agent services for the operation of Wyoming's Medicaid Management Information System (MMIS) through June 2013, further extends ACS' 15-year relationship with the state and is the third consecutive award for ACS in Wyoming.
International News
Brasil Telecom S.A., one of the largest telecommunications companies in South America, has signed a one-year agreement for Convergys’ Dynamic Decisioning Solution. Brasil Telecom is a leader in converged fixed-mobile solutions as well as a full-service telecommunications operator that has a rich voice, data, Internet, and managed services product portfolio for residential, enterprise, commercial, and government customers. Brasil Telecom has more than 8 million fixed lines in service and the second-largest broadband access base in Latin America (over 1.6 million). It has 4.5 million mobile subscribers.
Atos Worldline, an Atos Origin Company, has signed a 5-year contract with leading German health Insurance Company, Gmünder ErsatzKasse (GEK), to implement and operate the issuing and management of the new German electronic health card (eHC). In 2009, GEK plans to issue 30,000 cards per day in order to provide its 1.7 million members in Germany with the new card. One of the German public authorities’ most important IT projects, the eHealth card is an important step in the modernization of European health systems. It is designed to guarantee the simple and secure exchange of data between insured parties, doctors, pharmacists and health insurance companies.
Global information technology services provider Birlasoft has been awarded an SAP implementation contract by a global Fortune 5 client for its healthcare business in Europe. The multi-module deployment is part of the long-term strategy of the client to migrate from legacy ERP systems to a single integrated instance of SAP, globally.
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November 13, 2008
Top Stories
EBIX TO ACQUIRE CONFIRMNET...Ebix, Inc. has signed an agreement to acquire San Diego-based ConfirmNet Corporation effective November 1, 2008. The closing is expected on November 22 and is subject to the merger being ratified by the ConfirmNet shareholders. Founded in 1999, ConfirmNet offers ASP software on an SAAS (software-as-a service) basis for issuing and tracking certificates of insurance (COI). Over the years, ConfirmNet has emerged as the leader in the COI issuance industry in the United States. Before being acquired by Ebix, ConfirmNet had the second largest market share in the certificate tracking industry, in the United States. Ebix's existing BPO division, EBIXBPO has the largest market share in the certificate tracking industry, in the United States, with this acquisition strengthening its position even further. The acquisition is expected to be accretive to Ebix earnings per share (“EPS”) in the near- and long-term future.
PEROT SYSTEMS CHANGES NAME OF JJWILD...Perot Systems Corporation announced that JJWild, a company it acquired in August 2007, will fully transition its name to Perot Systems, completing an important milestone toward full integration. Perot Systems will now refer to the group as the MEDITECH Solutions Group, which reflects its ability to access the global information technology provider's deep healthcare solutions expertise to benefit hospitals utilizing MEDITECH products.
New Business
Affiliated Computer Services, Inc. has signed a new five-year, $44 million contract with Florida's Agency for Healthcare Administration (AHCA) to administer a Third Party Liability program for Florida Medicaid. With many state governments facing severe budget crises, ACS' Third Party Liability (TPL) solutions deliver potential cost savings. As part of the new contract with Florida, ACS will deploy its industry-leading business process and Web-based technologies in pursuit of Third Party recovery sources such as commercial health insurance plans, Medicare, Casualty, Estate, Trust and Annuity plans which provide opportunities to save money by assisting state Medicaid programs in proactively identifying alternate insurance sources prior to Medicaid claims payment.
FireSky, a new video game publisher dedicated to improving how gamers play together online, has signed a new contract for Convergys’ Relationship Management Solutions. Convergys will provide online-gaming consumers of the soon-to-be-released Stargate Worlds massively multiplayer online role-playing game (MMORPG) with state-of-the-art inbound customer support services. Convergys' dedicated contact center agents will initially provide customer support to English, French, and German-speaking customers for general game playing questions as well as technical, account management, or subscription-related questions.
The U.S. Department of Agriculture's (USDA) Food Safety and Inspection Service has awarded Unisys a contract to migrate the agency's data center to the USDA's new consolidated Enterprise Data Centers (EDCs). The firm fixed price contract, valued at approximately $5.5 million over a two-year period, is part of a USDA initiative to streamline IT management, reduce costs and address IT security vulnerabilities by consolidating the department's data centers into four EDC locations.
International News
Stora Enso has signed an agreement to outsource most of its financial transaction processing to Capgemini. This is a step in the restructuring of the Group's finance function that was announced on 25 October 2007 together with Stora Enso's other restructuring plans in response to increasing costs and to safeguard long-term profitability. Stora Enso's restructuring of its financial administration will be one of the most comprehensive restructurings of financial administration in the Nordic countries. It will significantly reduce the costs of the finance function and improve the quality of financial operations.
IBM and Sapa have signed an extension to an existing seven-year services contract. Sapa is the largest provider of aluminium profiles in the world, and part of the Norwegian industrial conglomerate Orkla. In terms of the new agreement, signed in October 2008, IBM will provide infrastructure services and application maintenance services for an additional 2,500 PC users in the Sapa system, double the number of users as stated in the original contract which was signed in 2007.
CSC has signed an alliance agreement with KT Corporation, the leading Korean telecommunications and networking services provider. The companies will collaborate on marketing and delivering a managed services offering called Total Corporate Data Centre (CDC) Outsourcing Service in South Korea. The offering includes IT consulting, network services, systems integration and applications development and maintenance. By combining their individual areas of expertise, the companies can help lower clients' total operating costs while increasing the scalability and efficiency of their business operations. The alliance also enhances CSC and KT's value proposition in the IT services market.
TAM Airlines has signed a contract with IBM for the management of its service desk. The solution includes installation, help desk and field support of TAM's information technology (IT) infrastructure. IBM has mobilized a team of 90 onsite professionals to support many of TAM's departments and back office. IBM's Hortolândia Service Center, located in São Paulo, will also have a team dedicated to help desk services for TAM's IT users.
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November 05, 2008
Top Stories
UNISYS REPORTS NET LOSS FOR QUARTER...Unisys Corporation reported a net loss of $34.7 million, or 10 cents a share, on revenue of $1.31 billion for the third quarter of 2008. In the year-ago quarter, the company reported a net loss of $31.0 million, or 9 cents a share, on revenue of $1.39 billion. Revenue in the United States declined 8 percent in the quarter to $560 million. Revenue in international markets declined 4 percent to $752 million.
WIPRO SETS UP SHARED SERVICES CENTER IN BRAZIL...Wipro Technologies, the global IT services business of Wipro Limited, announced that its Business Process Outsourcing division, Wipro BPO, is setting up in Curitiba, Brazil a Shared Services centre for AmBev, the largest brewery company in Latin America with leading brands like Brahma, Becks, Stella and Antarctica. The Shared Services Centre will provide services to AmBev across Latin America in the areas of Finance and Accounting, Order Management, Customer Services and HR Services.
PEROT SYSTEMS THIRD QUARTER REVENUES UP...Perot Systems Corp. reported third-quarter net income of $30 million or $0.25 per share, compared to $25 million or $0.20 per share in the comparable quarter last year. Revenue for the quarter increased 9% to $711 million from $655 million in the prior year quarter.
ATOS ORIGIN NAMES ERP VP...Atos Origin, an international IT services company, has appointed Michael van der Breggen as its new vice president responsible for the Company’s ERP Services in North America. He reports directly to Paul Stewart, Executive Vice President and CEO of Atos Origin North America. Stewart joined the company in 1997 as a senior SAP consultant. Throughout his career with Atos Origin, Steward has held many positions ranging from consultant, program manager to operations director.
CXO EXPANDS SERVICES...CXO Global Solutions, LLC, an Overland Park‐based strategic business advisory firm specializing in customer experience management today announced its expansion into complete customer lifecycle management and managed call center services. The company focuses on helping service‐oriented businesses – such as consumer products/services, financial services, direct response marketing and others – acquire, support and retain their customers.
New Business
U.S. Citizenship and Immigration Services (CIS) has awarded Unisys a $1.4 million task order under the Department of Homeland Security Enterprise Acquisition Gateway for Leading Edge Solutions (EAGLE) contract to provide secure email and identity management services supporting the agency’s 18,000 employees.
International News
HP has signed a 10-year strategic IT transformation services contract with Godrej, India’s largest engineering and consumer products company. Under the terms of the agreement, HP will lead a comprehensive infrastructure outsourcing and transformation project that will provide Godrej with a scalable and reliable service delivery structure based on Information Technology Infrastructure Library (ITIL) standards. HP will deliver infrastructure solutions, along with consulting and outsourced services, which include management for SAP, PeopleSoft and other critical business applications. Godrej’s operational team also will transition to HP, providing those employees with enhanced career opportunities.
Maersk Line, a division of the A.P. Moller-Maersk Group, and IBM announced a new agreement for IBM to provide IT services from India and Denmark. Maersk Line is one of the leading liner shipping companies in the world, serving customers all over the globe with a fleet of more than 470 container vessels and nearly 2 million containers. This new agreement covers infrastructure platform services implementing new servers, consolidating and updating of existing server platforms and upgrading of middleware software to new releases.
International IT services provider, Steria, has selected recruitment outsourcing specialist Ochre House to manage all permanent recruitment for its divisions and companies within the UK. Under the three year contract, Ochre House will be responsible for sourcing around 300 roles per year in a wide range of professional services areas from SAP consultants, project managers and practice heads to technical architects and analysts to legal and finance staff and new graduates. Ochre House will also provide consultancy services aimed at maximising the effectiveness of all Steria’s ‘talent management’ processes.
Ki Work, the marketplace for Virtual BPO, is to supply teams of data entry experts to work on a vital contract for the international shipping market. The project involves interpreting and entering information from tens of thousands of bills of lading. artnering with ki work are world-leading business process management experts PeopleForce. The project's participants will all be ki work certified professionals and experts.
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October 29, 2008
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CONVERGYS REVENUES DOWN IN THIRD QUARTER...Convergys reported consolidated revenues of $676.2 million, down 3.9 percent from the $703.7 million it achieved in the same period last year. The net loss of $140 million, or $1.15 per diluted share, was down sharply from last year’s third quarter, when the company reported a profit of $41.8 million, or 30 cents per share. The quarterly results included a pretax writedown of $272.9 million related to human-resources management contracts. Excluding the one-time charge, Convergys would have posted profits of 29 cents per share, ahead of the 25 cents expected by analysts.
UNISYS NAMES VP, OUTSOURCING GLOBAL OPERATIONS...Unisys Corporation has appointed William L. Bancroft vice president and general manager, IT Outsourcing Global Operations. In this role he will report to Tony Doye, president, Unisys Global Outsourcing and Infrastructure Services. Bancroft will oversee the strategic direction and implementation of Unisys information technology (IT) outsourcing service line, including the planning, architecture, integration and delivery of client solutions. He will have responsibility for cost-effective delivery of both managed services and technology support and maintenance services, driving innovation and global consistency in the use of tools, processes and industry standards. Most recently, Bancroft served as vice president and general manager, IT Outsourcing Operations, North America for Unisys. Prior to joining Unisys, he held executive positions in outsourced IT services delivery with CSC, GE Capital and IBM.
PEROT SYSTEMS BUILDING NEW FACILITY IN NEBRASKA...Perot Systems Corporation launched construction of its new office facility in Lincoln today at groundbreaking ceremonies at the University of Nebraska Technology Park. The new facility, developed by KDC, is one of the largest private construction projects seeking Leadership in Energy and Environmental Design (LEED) certification in the state. The majority of Perot Systems current Lincoln workforce, which totals approximately 1,000 associates, will be housed in the new facility. Construction of the project is expected to be complete by the third quarter of 2009 and will make Lincoln one of Perot Systems' largest U.S. employment locations. Perot Systems plans to begin hiring additional employees for up to 150 new high tech positions in Lincoln.
INSPIRA INTRODUCES ENTERPRISE 2.0 SUITE..The emergence of social networking has created new opportunities for enterprises to engage their employees, partners and customers, often leaving decision makers with more choices than answers. Inspira has introduced the Enterprise 2.0 solution that takes Social Media Web 2.0 technologies and adapts them for innovation and productivity in the enterprise.
New Business
CSC announced that the company had an estimated $4.3 billion in previously unannounced business orders and awards across its three primary lines of business during CSC’s fiscal 2009 second quarter ended Oct. 3, 2008.
International News
Finanz Informatik (FI), the newly-shaped information technology (IT) service provider of the Savings Banks Financial Group in Germany, has signed a comprehensive five-year extension of its strategic contract with IBM focused around streamlining FI into a new enterprise data center to help lower technology costs, reduce energy consumption, and improve overall IT performance. The contract includes IBM hardware, software and services worth triple-digit million Euros and will help Finanz Informatik to further develop and extend their services to their clients within the German Savings Banks Organization based on FI's core banking solution OSPlus.
Atos Worldline was selected by French bank LCL to develop, build, run and host a secure banking Web 2.0 messaging service dedicated to client-advisor interaction. Through the development of this innovative, secure and confidential communication channel, Atos Worldline is supporting one of the leading French bank to strengthen and widen its already existing client communication channels. The service targets a specific group of clients who have subscribed to the secure, on-line banking site LCL Interactif.
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October 22, 2008
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EVEREST: ECONOMIC CRISIS DRIVING IT OUTSOURCING M&A ACTIVITY...The slowdown of the US economy, convergence of market models for infrastructure outsourcing, and Indian suppliers' move up the ADM value chain are likely to have the most profound effects on merger and acquisition activity in the IT outsourcing (ITO) sector, according to the Everest Research Institute. The Institute study, Plugging the Gaps -- Mergers and Acquisition in IT Outsourcing, includes analysis of IT Outsourcing market changes and trends driving M&A activity, examines 114 recent M&A engagements, and leverages the Institute's database of 300 tracked captives to analyze drivers of M&A in ITO and forecast likely future acquirers and targets.
To read an extract of the Plugging the Gaps -- Mergers and Acquisition in IT Outsourcing, purchase the report, or inquire about other research services, please visit the website, email info@everestresearchinstitute.com or call +1-214-451-3110.
TATA NET RISES MODESTLY...Tata Consultancy Services Ltd., India's largest software exporter, reported that net income rose 1.2 percent to 12.6 billion rupees ($256 million), or 12.89 rupees a share, in the three months ended Sept. 30 from 12.5 billion rupees, or 12.74 rupees, a year earlier. During Q2, there was a gross addition of 9,682 employees (net 5,328) of which 6,673 were trainees and 1,587 were lateral recruits in India and 1,422 employees were added in overseas subsidiaries and branches. The total employee base is 121,610 professionals and 52% of the workforce has more than three years experience.
EDS EXPANDS MULTIVENDOR MANAGEMENT SERVICES...EDS announced the expansion of its Contact Center Managed Services to include features that integrate people, processes and technology, enabling clients to manage multiple vendors and improve the customer experience. The Multivendor Management (MVM) capabilities, an expansion of the company's Customer Relationship Management (CRM) Services, provide a framework for successfully governing multiple service providers in complex contact center environments. The company says that by addressing the challenges companies face when delivering a consistent customer experience across multiple locations, business or product groups, and contact center service providers, MVM can reduce costs, improve revenue, increase customer satisfaction and ultimately deliver a consistent customer experience.
MAHINDRA AWARDED HIGHEST HBS AWARD...Anand G. Mahindra, vice chairman and managing director of the Indian multinational Mahindra & Mahindra was among five distinguished graduates upon whom Harvard Business School conferred its highest recognition, the Alumni Achievement Award, as part of its Centennial Celebration. The other honorees were John Doerr, a partner in the venture capital firm Kleiner Perkins Caufield & Byers; Jeffrey R. Immelt, chairman & CEO of General Electric; Meg Whitman, former president & CEO of eBay; and James D. Wolfensohn, former president of the World Bank.
API OUTSOURCING LAUNCHES ENHANCED FAO PRODUCT...API Outsourcing, Inc., a leading finance and accounting outsourcing (FAO) provider of document management, accounts-payable processing solutions and billing, has launched API's Archive Link Service, a new service will enhance customers' ability to seamlessly retrieve and view their archived documents stored on API's document archive systems. This new service utilizes technology which will make document retrieval easy and efficient through any clients' ERP system. API has already implemented this service for a number of its customers with a variety of ERP systems.
New Business
EDS, an HP company, and global medical device company ConvaTec have signed a $95 million information technology (IT) services agreement. Under the new five-year agreement, EDS will manage ConvaTec's IT infrastructure and communications network, enabling the company to accelerate growth in the wound therapeutics, critical care and ostomy care markets.
The U.S. Army’s Program Executive Office, Command, Control and Communications Tactical (PEO C3T) has awarded CSC a task order to provide engineering, architecture, integration and readiness support services. The task order, which was competitively awarded under the Rapid Response Program government-wide acquisition contract, has a two-year base period and an estimated total contract value of $88 million. This contract was awarded to CSC during the company’s second quarter fiscal year 2009.
IBM has signed a global IT Services contract with Arrow Electronics, Inc. IBM will manage Business-to-Business integration for Arrow, extending an existing contract signed in 2003. The new agreement was signed on September 29, 2008.
International News
IBM announced a seven-year agreement with Van Lanschot Bankiers. The IBM contract covers infrastructure services including helpdesk, end user computing, network, telecom, mainframe, data center and transformation services using IBM's global delivery model. Van Lanschot Bankiers is the oldest independent bank in the Netherlands with a focus on high net-worth individuals and entrepreneurs.
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October 15, 2008
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IBM IS #1 IN GLOBAL APPLICATIONS OUTSOURCING MARKET...Industry analyst firm IDC has ranked IBM the worldwide leader in the application management services (AMS) market over Accenture, EDS and all Indian-based firms based on combined bundled and discrete services revenue in 2007. According to IDC estimates, IBM held a significant combined lead in application management services reflecting the company's historical growth and flexibility in evolving an application management practice that supports discrete and embedded application management solutions.
ARICENT NAMES EX-WIPRO EXEC CEO...Aricent, a global innovation, technology and outsourcing company focused exclusively on the communications industry, named Sudip Nandy as Chief Executive Officer. Nandy will also be appointed to the Board of Directors upon his arrival in October. Aricent's former CEO Ash Bhardwaj has resigned to pursue other interests. Previously, Nandy was the President of the Technology Media and Telecom Business Unit at Wipro, overseeing more than 18,000 people and a revenue run rate of US $1.3 billion per annum.
ACS PILOTS DISABILITIES PROGRAM...To seek out the best employees to serve its worldwide clients, Affiliated Computer Services, Inc. (ACS) today announced it has successfully recruited more than 135 people with disabilities in a pilot project designed to attract more Americans with disabilities. Since March, ACS has worked with approximately 300 different agencies that support people with disabilities who refer appropriate candidates to ACS for possible hiring.
New Business
CSC has signed a new information technology (IT) outsourcing contract with very light jet manufacturer Eclipse Aviation. The new agreement has a five-year base period and three one-year options, bringing the estimated total eight-year contract value to $106 million. Under the new contract, CSC will manage Eclipse Aviation’s applications development and maintenance, and IT infrastructure including, midrange computers and desktops, help desk operations, IT security, engineering computing, voice and video telecommunications, servers, and local- and wide-area networks. CSC will provide these services for Eclipse Aviation’s operations globally.
IBM announced a three-year contract renewal of mainframe and midrange hosting services for Bristol-Myers Squibb (BMS). The agreement with IBM will allow Bristol-Myers Squibb to continue benefiting from applications running on System z mainframe and midrange systems as well as business recovery services for BMS's mission critical systems. Under the agreement, IBM will provide systems monitoring and management, back-up, disaster recovery, audit support, architectural guidance and project management for the continued use and streamlining of these systems.
Saber Government Solutions, a non-healthcare U.S. state and local government subsidiary of EDS, has been awarded a $24 million contract to develop and design the new tax system for the Washington Employment Security Department (WA ESD). The Next-Generation Tax System will replace the state's antiquated TAXIS/WAGES system, which supports the unemployment insurance (UI) tax program. The UI tax program provides benefits from the UI Trust Fund to those who are temporarily unemployed.
Crestline Hotels & Resorts has selected ADP to provide its Comprehensive Outsourcing Services(COS) to Crestline's 7,000 employees as their human resources (HR) business partner. As one of the nation's largest independent hospitality management companies, Crestline Hotels & Resorts currently manages 70 hotels, resorts and conference and convention centers with nearly 14,600 rooms in 14 states and the District of Columbia.
International News
Indian Telecom Bharti Airtel announced a strategic outsourcing agreement with IBM to further enhance its customer service experience for its top-end platinum customers through process and technology innovation. The six-year Q3 contract for outsourcing contact services to IBM's Managed Business Process Services (MBPS) unit would involve augmentation of Airtel's sales, customer service, and back office capabilities.
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October 08, 2008
Top Stories
TATA ACQUIRES CITIGROUP'S INDIA BPO OPERATIONS...Tata Consultancy Services will acquire all of Citi’s interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for an all-cash consideration of approximately $505 million, subject to closing adjustments. In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of US$2.5 billion over a period of 9.5 years. The agreement builds upon the existing relationship between Citi and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi.
CGSL is one of the largest providers of business processing outsourcing services within the banking and financial services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citi’s consumer, corporate and global wealth management businesses world wide. CGSL has more than 12,000 employees located in India and expects to generate revenues of approximately $278 million in 2008.
UNISYS NAMES COLEMAN CEO AND CHAIRMAN...Unisys Corporation's Board of Directors has elected J. Edward (Ed) Coleman, 57, as the company’s new chief executive officer, effective immediately. Coleman’s election includes both the Unisys chairman and CEO roles. Henry (Ric) Duques will relinquish his non-executive Chairman title but become lead director on the Board. Coleman succeeds Joseph W. McGrath as Unisys CEO. The company announced last month that McGrath was stepping down as president and CEO. A 30-year veteran of the IT industry, he has led significant transformational and business expansion efforts at such companies as Gateway, CompuCom, and Arrow Electronics Enterprise Computing Solutions Group.
CONVERGYS ACQUIRES CEON CORPORATION...Convergys Corporation is expanding the breadth of its Business/Operations Support Systems (BSS/OSS) solutions available to clients through the acquisition of Ceon Corporation, an innovative leader in the development of product lifecycle management and multi-play fulfillment software for communications service providers.
3FORWARD INTRODUCES NEW GLOBAL ALLIANCE OFFERINGS...3forward, a Dallas-based growth services firm specializing in sales, marketing and alliances for outsourcers, BPOs and IT companies, has introduced new offerings to accelerate the creation of Global Service Delivery Alliances. These programs are designed for outsourcers, BPOs and IT companies seeking to expand existing capabilities and coverage by creating, formalizing or strengthening partner delivery models.
New Business
IBM announced it has signed a four-year, information technology (IT) outsourcing agreement with NV Energy, the electric utility for most of Nevada. As part of the agreement, IBM will supply mainframe management services to help NV Energy control costs and better provide services for its business users. Financial details were not disclosed.
Affiliated Computer Services, Inc. is extending its relationship with United Technologies Corp. with a renewed finance and accounting contract valued at $41 million over three years. The extended contract calls for ACS to continue providing domestic finance and accounting (F&A) services, including accounts payable, travel and expense reporting, payroll and related accounting functions, to United Technologies Corp. (UTC), a diversified provider of high technology products and support services to the building systems and aerospace industries.
International News
Accenture has signed a five-year, multi-million-dollar application outsourcing contract with Telstra, Australia’s largest telecommunications provider, to maintain Telstra’s customer care and billing platform, which Accenture helped design and deploy. Under terms of the contract, Accenture will be responsible for the ongoing management of the platform and ensuring that it operates effectively through further migrations and software releases.
EDS has signed an agreement with Posten, one of the Nordic region’s largest messaging and logistics operators, to host the company’s end-user computing environment. The contract will begin in July 2009. Financial terms were not disclosed. The agreement encompasses all workplaces within the Posten group, including Posten Meddelande AB, Posten Logistik AB and Strålfors. Under the agreement, EDS will host information technology workplaces, including desktop, email, service desk and other standardized services.
India-based Salient Business Solutions announced the creation of its U.S.--based division, Salient Business Solutions USA, Inc., headquartered in New York. The creation of the U.S. division enables Salient to establish a U.S. presence and provide customers with a domestic origination and delivery team, as well as local accountability.
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October 01, 2008
Top Stories
DEADLINE FOR OUTSOURCING EXCELLENCE AWARDS IS OCTOBER 15...The nomination deadline for Outsourcing Center’s annual Outsourcing Excellence Awards, which honor the most distinguished outsourcing relationships worldwide, is October 15, 2008. Everest Group and Forbes sponsor the Awards competition, which began in 1997. The industry has christened the event the “Oscars of Outsourcing.”
The coveted awards recognize outstanding examples of successful buyer-supplier outsourcing relationships in several categories, including Best Partnership, Best First Steps, and Most Strategic. An independent judging panel of industry experts evaluate each nomination on criteria that include the relationship’s mutual benefits, effectiveness, and business outcomes achieved.
ACCENTURE REPORTS RECORD RESULTS...Accenture reported strong financial results for the fourth quarter and record results for the full 2008 fiscal year, ended Aug. 31, 2008, including its highest-ever annual revenues, earnings per share, bookings, operating income and cash flow. For the fourth quarter, revenues before reimbursements were $6.00 billion, compared with $5.11 billion for the fourth quarter of fiscal 2007, an increase of 17 percent in U.S. dollars and 10 percent in local currency. Diluted earnings per share for the quarter were $0.67, compared with $0.50 in the same period last year, an increase of 35 percent. For the full fiscal year, net revenues were a record $23.39 billion, compared with $19.70 billion for fiscal 2007, an increase of 19 percent in U.S. dollars and 11 percent in local currency. Diluted earnings per share for the full year were $2.65, compared with $1.97 in fiscal 2007, an increase of 35 percent.
IT CONSULTING DRIVERS HAVE CHANGED--EVEREST/BERNSTEIN...Fundamental changes in the drivers of the IT consulting market have ushered in a new market paradigm -- manifested by healthy demand, lessened economic sensitivity, and central roles for globalization and offshoring. The shortage of IT talent in developed countries and the growing sophistication of offshore IT labor markets are supporting healthy growth in the IT consulting market, according to a market analysis and survey of 15 IT consulting companies by the Everest Research Institute and Bernstein Research. To read more about the findings of the Reading the Alphabet Soup: SI, PI, ERP, etc. -- The Changing Drivers of IT Consulting and other IT Outsourcing research studies, an extract of the report is available at www.everestresearchinstitute.com.
New Business
CGI Group Inc. has signed a three-year, multi-million dollar contract renewal with Medi-CareFirst BlueCross BlueShield to provide business process outsourcing services. As part of the three-year agreement, CGI will continue to manage Medi-CareFirst’s Medicare Part D Member Call Center, member enrollment, billing services and provide document management services from CGI’s facility in Ft. Worth, Texas. Over the last three years, CGI and Medi-CareFirst have developed and implemented a number of initiatives designed to improve member satisfaction. The results have been a reduction in the number of Prescription Drug Errors (PDEs) and a transition to a Per Member Per Month (PMPM) pricing model that is intended to help Medi-CareFirst better predict costs.
International News
British Airways, the UK’s premier airline has signed a multi-million-pound deal NIIT Technologies Limited. The three-year deal enables the support and testing of business critical applications across various business areas of the global airline.
CSC has signed a new information technology (IT) services contract with the UK’s Royal Mail to deliver a national mobile service to 25,000 delivery vehicles in its letters and parcels operation. The CSC-led team includes Blackbay, a provider of mobile workforce solutions. The service will enable Royal Mail to provide increased quality of service to customers by allowing them to view the status of their tracked deliveries in near real time via the Web. It will also enable replacement of current paper-based systems for the majority of tracked items.
Adivent, a European sales outsourcing company focused on the telecom market, announced that Aethra, a leading player in the global telecommunications marketplace, has contracted with Adivent for sales program development and execution targeted to telecom operators in Central Europe. The new partnership may extend into other areas such as Northern Europe in the future. Adivent offers a new alternative that streamlines the sales and operations process and allows telecom suppliers to quickly establish a sales presence in Europe at a fraction of the time and cost it typically takes using traditional methods
Affiliated Computer Services, Inc. (ACS) will officially open a new state-of-the-art facility in Pasay City, Philippines, expanding its global network of international capabilities. The 8,582 square meter facility will initially employ more than 1,000 people, with 2,500 square meters to expand to handle new business opportunities.
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September 24, 2008
Top Stories
UNISYS CEO TO RESIGN AT END OF YEAR...Unisys Corporation announced that Joseph W. McGrath will step down, with the concurrence of the board of directors, as president and chief executive officer, effective by year-end 2008. McGrath has served as chief executive officer since 2005. The company said the board of directors and McGrath agreed that a change in leadership would best enable Unisys to move forward on accelerating execution of the company’s strategy. McGrath will continue to lead the day-to-day operations of the company until a successor has been identified.
ARICENT GETS NEW FUNDING...Aricent, a global innovation, technology and outsourcing company focused exclusively on the communications industry, announced the signing of definitive agreements for new funding from existing investor KKR and a new investor, based in Bahrain, The Family Office. Aricent plans to use the investment capital to accelerate the momentum of engagements with leading infrastructure, application and service providers worldwide, as well as expand the company’s business activities in the Middle East.
SOFTSERVE ACQUIRES UKRAINE FIRM...SoftServe, Inc. has just announced the acquisition of business intelligence services and ETL specialist Alvion Ukraine, a transaction that adds significant technical expertise and new market opportunities to the leading multinational software development and consulting company leveraging the superior technology education and human resources of Ukraine. SoftServe aims to add to its resource pool the top-notch talent and experience in the areas of web development and online analytical processing that would help in servicing the global customers more efficiently.
New Business
Perot Systems Corporation has been awarded an extended contract with athenahealth, Inc., a leading provider of internet-based business services for physician practices. The new five-year agreement further strengthens and extends the seven year relationship between the two companies. The agreement calls for Perot Systems to provide business process services relating to revenue cycle and clinical data capture services.
Convergys Corporation announced that a leading health care provider, a Fortune Top 150 company, has renewed and expanded its existing contract for Convergys’ industry-leading relationship management solutions for another 30 months. Convergys will continue and expand the world-class customer service it currently provides to the client’s extensive network of health care professionals. Convergys estimates the value of the contract to be about $54 million.
International News
HP announced it has signed a five-year technology infrastructure agreement with Syngenta, a world-leading agribusiness. Under the terms of the agreement, HP will use its Adaptive Infrastructure as a Service solution to transform Syngenta’s current infrastructure-based services into subscription services aligned to Syngenta’s business processes. The service will be delivered from HP’s next-generation data centers in Isle D’Abeau, France, and Alpharetta, Ga.
Unisys Corporation announced that its Netherlands subsidiary is implementing a next generation foreign check processing solution for Rabobank, one of the largest financial services providers in The Netherlands. The new solution will allow the bank to process up to 200 foreign-based checks per minute. Under the terms of the contract, Unisys will modernize Rabobank’s existing check application system to achieve a more secure, cost-efficient payment platform to handle all the bank’s checks originating in foreign countries.
NIIT Technologies Ltd, the global IT services provider headquartered in New Delhi, has been awarded a global sourcing contract by American Safety Insurance Services, Inc., the Atlanta-based program manager for American Safety Insurance Group, a provider of specialty property and casualty insurance products for small and medium enterprises. As part of the agreement, NIIT will provide migration, configuration and customization support for ASI’s suite of mission critical applications. The work will be performed collaboratively in an onshore - offshore model between India and the United States.
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September 17, 2008
Top Stories
MULTINATIONAL COMPANIES EMBRACING LEARNING SERVICES OUTSOURCING...Although labor cost savings is a factor, companies – particularly large, multinational firms – are outsourcing employee training to retain focus on strategy and achieve tangible business outcomes, according to a new Everest Research Institute study. The Institute’s study, Learning Services Outsourcing (LSO): Accelerating the Learning Curve, examines a “quietly” growing but strong market in which companies adopting LSO typically gain more than 15 percent direct cost savings and, in some cases, savings in excess of 30 percent. Even more significant, companies are using LSO to produce tangible business results, such as quicker time to market. The study includes analyses of the LSO market and key business drivers, buyer trends, transaction characteristics and buyer case studies. An analysis of the supplier landscape is also available.
BT EXPANDS HP CONTRACT BY $660 MILLION...BT has signed a $660 million contract amendment with HP to extend the transformation of its technology environment, reinforcing BT’s ability to meet customer needs today and into the future, while delivering significant cost reductions. The contract extends the companies’ current agreement for the next 7.5 years, whereby HP will continue to provide, deploy and support BT’s servers and storage. Under the agreement, HP also will continue to deliver Service Desk and End User Services to a population in excess of 100,000 users across BT in the United Kingdom.
3FORWARD LAUNCHES INDIRECT SALES OFFERING...3forward, a Dallas-based growth services firm specializing in sales, marketing and alliances for IT services and outsourcing companies, has introduced new Indirect Sales offerings to help position IT Providers for increased revenues from the global outsourcing market. IT outsourcing is one of technology’s largest markets, currently estimated at $162 billion annually in the US and $517 billion globally. Despite its size, many niche or specialized Solution Providers find it difficult to penetrate this market because buyers often require capabilities and scale beyond what they alone possess. 3forward’s Indirect Sales Models create alternative paths to the outsourcing market by aligning IT Providers with global suppliers and leading outsourcers.
BPO MANAGEMENT ACQUIRES HEALTHAXIS...BPO Management Services Inc. will acquire Healthaxis, one of the industry's longest serving providers of ASP hosted healthcare IT solutions and BPO services, dating back over 30 years. As a result of the transaction, Healthaxis will become the Healthcare division of BPOMS, complementing BPOMS' existing operations for Human Resources Outsourcing (HRO) consulting, Enterprise Content Management (ECM), and IT infrastructure outsourcing (ITO). Healthaxis is an innovative provider of technology-enhanced, integrated business process solutions and services, including claims and benefit administration applications, web-enabled software solutions and outsourced claims related services for health benefit administrators and health insurance claims processors.
New Business
Perot Systems Corporation has been awarded an extended contract with athenahealth, Inc., a leading provider of internet-based business services for physician practices. The new five-year agreement further strengthens and extends the seven year relationship between the two companies. The agreement calls for Perot Systems to provide business process services relating to revenue cycle and clinical data capture services.
Convergys Corporation, a global leader in relationship management and a preferred solutions provider to the Federal Government, announced that the Pension Benefit Guaranty Corporation (PBGC), a federal corporation created by the Employee Retirement Income Security Act, has awarded Convergys a contract for its customer management solutions. Convergys will provide customer service in English and Spanish for participants whose benefits are held by PBGC. This award will require Convergys to manage the contact center operations, catalog its operating procedures, and provide ongoing consulting on customer management solutions.
WNS (Holdings) Limited, a leading provider of global business process outsourcing (BPO) services, announced a multi-year contract to provide healthcare revenue cycle management services to EBI LLC (a Biomet Inc. subsidiary, d/b/a Biomet Trauma and Biomet Spine). Under the five-year agreement, WNS will deliver service level improvements utilizing high-end analytics to optimize collections and order processes.
International News
Godiva Chocolatier, Inc. has signed a services agreement for IBM to manage Godiva's information technology (IT) infrastructure. The five-year agreement was signed on June 24, 2008. Through this agreement, IBM will support Godiva's offices in the United States; London, United Kingdom; Brussels, Belgium; Hong Kong, China; Tokyo, Japan; and Taipei, China as well as stores in North America, Europe, Japan and the Pacific Rim. IBM will provide data center services including support for IBM PowerSystems, Storage, service desk, security, messaging and data network and business continuity and resiliency services.
Sal. Oppenheim jr. & CIE., Europe's leading private bank, has extended its information technology (IT) outsourcing contract with EDS for five years. Financial terms were not disclosed. The contract extension covers the management of Sal. Oppenheim's existing IT infrastructure at all locations. Since 1997, EDS has managed and operated the entire Sal. Oppenheim IT infrastructure. EDS is responsible for managing workplace services at Sal. Oppenheim, which includes local employee support, voice, video and information services for more than 2,200 users.
Tata Consultancy Services (TCS) has signed a five-year global contract with Ericsson the global supplier in telecommunications, to deliver application maintenance and development services for Ericsson's internal IT operations. TCS has been selected as one of the two strategic partners that will deliver application maintenance services to Ericsson and a preferred supplier for application development services, said a press release.
Alliances
SAS and Wipro Technologies, one of the world’s largest IT service providers, have announced a global partnership. Together, the two companies will deliver BI and analytics software solutions to meet increasing global demand across various industries. The initial focus on banking and financial services, telco and retail will expand over time. Today’s announcement formalises joint efforts by SAS and Wipro over two years. Under the agreement, SAS and Wipro will strengthen Wipro’s Global Center for Excellence on SAS. This dedicated center, located in Kolkata, India, develops innovative solutions, processes and technology frameworks and builds competencies in BI, data integration and analytics. The center’s more than 300 trained SAS consultants will increase to more than 700 in 2009.
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September 10, 2008
Top Stories
ACCENTURE SIGNS 10-YEAR DEAL WITH BRISTOL-MYERS...Accenture has signed a new 10-year, $550 million agreement with Bristol-Myers Squibb for a range of finance and accounting and application development and maintenance services. The “bundled” services agreement extends a four-year outsourcing agreement the two companies signed in 2004 for application maintenance and accounts payable services and expands the scope to include additional application maintenance services, application development services and global financial support services. Accenture will provide these services to Bristol-Myers Squibb in the Americas, Asia, and EMEA regions in 22 languages through Accenture’s Global Delivery Network, which includes more than 50 delivery centers across five continents.
ACS EXPANDS RELATIONSHIP WITH INGERSOLL-RAND...Affiliated Computer Services, Inc. is expanding and strengthening its relationship with Ingersoll Rand (NYSE: IR) by committing to a 10-year information technology outsourcing services contract valued at $551 million. ACS, Ingersoll Rand's strategic partner since 2002, will be supporting global data centers for mainframe and midrange processing for the diversified industrial firm's business units. ACS will also be providing domestic and international wide area network (WAN) management and support. ACS' services will be delivered across Ingersoll Rand's network locations in the Americas, Europe and Asia Pacific.
CONVERGYS CLOSES INTERVOICE ACQUISITION...Convergys Corporation announced the successful closing of its acquisition of Intervoice, Inc., for $335 million in cash or $8.25 per share. Both companies are recognized leaders in their respective domains. This combination provides clients with a suite of solutions, from a single source, that enhances customer and employee interactions and simplifies operations, the company says.
WIPRO LAUNCHES DEVELOPMENT FOR HARMAN...Harman International Industries Inc. and Wipro Technologies, the global IT services business of Wipro Limited announced the launch of a joint embedded engineering center in India. The new Harman India Development Center will operate from Wipro’s existing Bangalore and Chennai facilities, complementing an earlier agreement which outsourced Harman’s global IT infrastructure services to Wipro. Beginning with about 250 employee resources through this engagement, Harman plans to grow its resource footprint in India to more than 1000 person-years by 2011, significantly strengthening its global engineering capabilities.
OPI NAMES MP OF PROCUREMENT SERVICES...Outsource Partners International, Inc. (OPI), a leading provider of finance and accounting outsourcing (FAO) as well as related services, has appointed Robert Klein as Managing Director, Procurement Services. In this role, he will have global responsibility for the growth and management of OPI's Procurement Business Process Outsourcing (BPO), Spend Analytics, and Source-to-Pay consulting offerings.
New Business
Spherion Corporation announced its recruitment process outsourcing (RPO) services division has signed a one-year contract agreement with Gerdau Ameristeel, leading mini-mill steel producer and second largest recycler in North America, to provide full end-to-end RPO services. The engagement calls for Spherion to support 400 hires for both exempt and non-exempt positions across all of Gerdau Ameristeel's locations in the U.S. Spherion RPO will concentrate its recruiting efforts in the company's corporate group and key lines of business, including steel mills, rail products and recycling.
International News
North Wales Police (NWP), of the United Kingdom, has signed an outsourcing agreement with the UK subsidiary of Unisys Corporation to upgrade, manage and maintain North Wales Police’s email infrastructure over the next three years. The email system is a mission-critical service that the 2,500-member force relies on as one of its primary communication methods across the NWP area. Unisys will use global resources, including support from its US based application management and support teams, to design and build the service.
Perot Systems Corporation has completed the successful roll-out of a Hospital Information System (HIS) in multiple hospitals and Primary Healthcare Centres (PHCs) in Abu Dhabi. In April 2007, the Health Authority of Abu Dhabi engaged Perot Systems to prepare an assessment of the project to help ensure that it would be implemented successfully and ultimately deliver the desired benefits. The goal of the program was to create a system that would provide a comprehensive Electronic Medial Record (EMR) and maximize administrative efficiency. A year later, Perot Systems has successfully overseen the HIS implementation in three PHC locations. The system now provides a comprehensive EMR, supports best practice processes in all hospitals, and enables clinical, operational and financial metric reporting.
Alliances
CompuCom Systems, Inc. announced a strategic partnership with Service-now.com, the pioneer of on-demand IT service management software, to deliver Web 2.0-based IT service management technology through efficient implementation and outsourcing services. Service-now.com and CompuCom are leading the charge in promoting on-demand IT service management, based on proven ITIL v2 and v3 processes, to help drive service consistency and automation across IT departments while reducing legacy client/server software implementation and management costs.
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September 03, 2008
Top Stories
CONVERGYS CONSIDERS SPLITTING COMPANY...Convergys Corporation announced that its board of directors and senior management team are evaluating a potential separation of the company’s Information Management business from the remaining parts of Convergys to create two strong, independent, publicly traded companies, each focused on its own set of business opportunities. The board has retained Centerview Partners as its financial advisor to assist in this process. Convergys anticipates that the board of directors and the senior management team will review the results of this evaluation and make a decision during the fourth quarter 2008.
Convergys Corporation also announced that it has accepted all shares that were tendered into its offer to purchase all outstanding common stock of Intervoice, Inc.
TECH MAHINDRA ACQUIRES STAKE IN SERVISTA...Tech Mahindra (TechM), the largest independent India-based IT services provider in the telecom space has signed an agreement to acquire a minority equity stake in Servista, a leading European Systems Integrator. As a part of the agreement, Tech Mahindra will be Servista’s exclusive delivery arm for three years and will also assist Servista in securing more large scale European IT Offshoring business. As part of this strategic partnership, TechM will have the right to nominate a member onto Servista’s board of directors. This deal will drive Tech Mahindra’s expansion into the European market place and will significantly enhance TechM’s business development capability.
IBM INDIA WINS $450 MILLION CONTRACT...IBM India has won a 10-year $450m outsourcing services contract from India-based insurance provider Max New York Life, a joint venture between New York Life and Max India. IBM will provide end-to-end back-end IT infrastructure, which it said will enable MNYL to provide life insurance policies with minimum documentation and to extend its reach in the semi-urban and rural areas. IBM will provide end-to-end back-end IT infrastructure, which it said will enable MNYL to provide life insurance policies with minimum documentation and to extend its reach in the semi-urban and rural areas.
CSC RECEIVES AWARD FOR SWISS RE RELATIONSHIP...CSC announced that it received an FSO Knowledge Xchange (FSOkx) award for its longstanding alliance with Swiss Re, one of the world’s largest reinsurers. FSOkx, a knowledge and information hub for outsourcing in the financial services industry, honored CSC with a first-place award in the “Outsourcing Relationship Excellence” category in recognition of CSC’s business process outsourcing (BPO) support for Swiss Re’s Commercial Insurance.
New Business
Belk, the nation's largest privately owned department store chain, has renewed its agreement with EDS. With the seven-year information technology (IT) services contract, EDS will continue to manage the voice and data network that connects employees at Belk's 307 retail stores, five warehouses and five offices across the southern United States, as well as to Belk vendors located worldwide. Financial terms of the transaction were not disclosed.
A leading provider of group life, health insurance and other insurance products has extended its business process outsourcing (BPO) services agreement with CSC to support a large block of individual life insurance policies recently converted from group policies. The insurer will replace its manual processes and a non-strategic system with CSC’s platforms and services, enabling the company to focus more on its core group products. This competitive win continues a 10-year relationship during which CSC has provided full BPO support, including a customer call center, policy administration and claims services for the client’s group life conversions.
Affiliated Computer Services, Inc. has won a fourth consecutive contract with the New York State Office of Temporary and Disability Assistance to manage and operate the state's child support payment processing center. The five-year contract is valued at $127 million and includes four six-month options. ACS is the nation's leading processor of child support payments and has served New York State for 16 years. Under the new contract, ACS will continue providing a full range of customer care services including a call center, and processing services including child support payment receipt, disbursement, billing statements, employer reminders, notice processing, and new hire processing.
International News
KBC Group NV, an international financial group with headquarters in Brussels, has selected the Ness Financial Data Enterprise(TM) solution as its consolidated data management platform in a large multi-year agreement. Through a combination of Ness' proprietary software and services, Ness Technologies will provide KBC Group with an end-to-end data management solution.
DGM-Sistemas Lda, an Angola-based information technology company, has awarded a three-year contract, valued at approximately $22 million, to Unisys Portugal to help develop and roll out a new citizen ID card program for the Ministry of Justice of the Republic of Angola (Civil and Criminal Identification and Archiving Department). Angola hopes to provide 20 million ID cards to its citizens by 2015 to reduce fraud and modernise the Ministry’s Criminal Registry.
Alliances
CompuCom Systems, Inc., a leading IT outsourcing company, announced that it has developed new support and activation capabilities for Intel vPro technology as part of an overall workplace automation strategy. Used as part of CompuCom’s Integrated Infrastructure Management (IIM) solution, this new technology helps reduce IT support costs, enhances security and lowers power consumption.
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August 27, 2008
Top Stories
COMPUCOM COMPLETES GETRONICS ACQUISITION...CompuCom Systems, Inc. announced the completion of its acquisition of the North American operations of Getronics. The combined entity, as of the end of each company's 2007 fiscal years, represents more than $2.1 billion in annual revenues with more than 11,000 employees. By acquiring more than $450 million of outsourcing services revenue, the collective IT services capabilities will be further enhanced on a global basis and now positions CompuCom as an over $1 billion provider of outsourcing services. CompuCom and Getronics have also signed a reciprocal global services partner agreement that allows each company to leverage their combined global capabilities.
HP COMPLETES EDS PURCHASE...HP has completed its acquisition of Electronic Data Systems Corporation (EDS), creating a leading force in technology services. With this acquisition, initially announced on May 13 and valued at an enterprise value of approximately $13.9 billion, HP has one of the technology industry's broadest portfolios of products, services and end-to-end solutions. The acquisition is, by value, the largest in the IT services sector and the second largest in the technology industry, following HP's acquisition of Compaq, which closed in 2002. The companies' collective services businesses, as of the end of each company's 2007 fiscal year, had annual revenues of more than $38 billion and 210,000 employees, operating in more than 80 countries.
RICOH BUYS IKON...Ricoh Company, Ltd. has reached a definitive agreement to acquire IKON Office Solutions, Inc. through RICOH's wholly owned U.S. distribution subsidiary, Ricoh Americas Corporation. As the world's largest independent channel for document management systems and services, IKON supplies and services a wide range of office equipment in the U.S., Canada and Western European markets. IKON also provides professional services and document outsourcing services to a wide variety of customers.
INFOSYS TO ACQUIRE AXON GROUP...Infosys is acquiring Axon Group plc, a leading UK-based SAP consulting company. Founded in 1994, Axon provides consultancy services to global companies that have chosen SAP as their enterprise platform. The company focuses on technology-enabled transformation programs by leveraging its in-depth industry expertise and functional knowledge. Infosys’ acquisition of Axon valued at £407.1 million (INR 33.1 billion; US$753.1 million) is expected to be completed by November 2008. Axon has 2,000 employees located at offices in United Kingdom, North America, Malaysia, and Australia. For the year ended 31 December, 2007, Axon reported profit after taxation of £20.2 million (INR 1.6 billion; US$37.4 million) on revenue of £204.5 million (INR 16.6 billion; US$378.3 million).
ITC INFOTECH BUYS PYXIS SOLUTIONS...ITC Infotech, a global IT services company and a fully owned subsidiary of ITC, has acquired Pyxis Solutions, a US based niche player offering Quality Assurance (QA) solutions and testing services.
SELLING IN MATURE MARKETS...3forward, a Dallas-based growth services firm specializing in sales, marketing and alliances for IT services companies, has introduced new offerings specifically to help mid-tier and emerging off-shore technology providers improve sales in mature markets such as the United States.
New Business
CSC announced that a leading provider of group life, health insurance and other insurance products has extended its business process outsourcing (BPO) services agreement with CSC to support a large block of individual life insurance policies recently converted from group policies. The insurer will replace its manual processes and a non-strategic system with CSC’s platforms and services, enabling the company to focus more on its core group products. This competitive win continues a 10-year relationship during which CSC has provided full BPO support, including a customer call center, policy administration and claims services for the client’s group life conversions.
Convergys Corporation announced that a leading Canadian company with millions of customers has awarded Convergys a new three-year contract valued at $15 million for its state-of-the-art Relationship Management Solutions. Convergys will provide top-tier customer service and technical support in two languages to the client’s B2B customers. The work will be performed in Convergys’ Canadian contact centers.
International News
IBM and Russian retail chain, LENTA, have signed a three-year information technology (IT) services contract estimated at approximately US$1 million. The contract signed in May 2008, will provide IBM support and recovery services for LENTA's entire IT infrastructure. The LENTA chain is actively expanding its operations with 31 hypermarkets throughout Russia, all open 24 hours a day, seven days a week. LENTA's rapid business growth meant the company needed to establish a professional system for IT infrastructure support in order to help ensure business continuity across the company's widespread operations.
Singapore Airlines Cargo has chosen Tata Consultancy Services (TCS) to service its cargo revenue accounting back office processes. This multi million dollar contract will be effective for 5 years. SIA Cargo has had a relationship with TCS since 2004 when TCS was entrusted with the Airline’s core critical back office revenue accounting processes. In the new agreement, taking into consideration TCS’ existing capabilities in Business Outsourcing Processes with the travel and transport industry and the Consultancy’s extensive experience in cargo revenue accounting, Singapore Airlines Cargo decided to outsource additional cargo revenue accounting processes.
Convergys Corporation announced the go-live of its Infinys billing solution for T-Home in collaboration with ActiveBilling GmbH & Co. KG, a wholly owned subsidiary of Deutsche Telekom, the project manager. Deutsche Telekom's T-Home is a leading telecommunications operator in Germany and currently provides services to some 30 million fixed line customers and 13 million broadband subscribers.
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August 20, 2008
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CSAM BECOMES WHOLLY OWNED SUBSIDIARY OF CSC...Computer Systems Advisers Sdn Bhd (CSAM), one of Malaysia’s leading information technology (IT) service providers, has become a wholly owned subsidiary of CSC in a privatization resulting from the cancellation of the remaining 50 percent of the company’s shares for $62.4 million (RM197.4 million). Established in 1971, CSAM had approximately $135 million (RM433.9 million) in revenue for fiscal year 2007 and has more than 1,200 employees located in 23 offices throughout Malaysia.
HP REVENUES UP 10% IN THIRD QUARTER...HP announced financial results for its third fiscal quarter ended July 31, 2008, with net revenue of $28.0 billion, up 10% from a year earlier and up 5% when adjusted for the effects of currency. In the third quarter, GAAP operating profit was $2.5 billion and GAAP diluted earnings per share (EPS) was $0.80, up from $0.66 in the prior-year period. Non-GAAP operating profit was $2.7 billion, with non-GAAP diluted EPS of $0.86, up from $0.71 in the prior-year period. Non-GAAP financial information excludes $161 million of adjustments on an after-tax basis, or $0.06 per diluted share, related primarily to amortization of
purchased intangibles.
INFOSYS RESTRUCTURES PROCUREMENT BUSINESS...Infosys BPO, the business process outsourcing subsidiary of Infosys Technologies has reorganised its procurement business to provide end-to-end solutions across the entire ‘source-to-pay’ cycle to broaden its service offerings and customer base.The services under the new practice include e-procurement, supplier management, contract management, strategic sourcing and spend management.
New Business
Convergys Corporation has signed a new agreement with Comcast Corporation, the nation’s leading provider of entertainment, information, and communications. Under terms of the multi-year contract renewal, Convergys will continue to provide contact center technical support services, order management, and customer care support via telephone, email, and Web channels to Comcast. The new agreement also expands Convergys’ services support to include back office processing and access to new relationship management solutions by Convergys.
Cincinnati Bell Inc., one of the United States’ most respected and best performing local exchange and wireless providers, has renewed its contract with Convergys for five years, extending the relationship the companies have enjoyed for more than 10 years. The new contract, which runs through 2013, also contains two one-year renewal options. Convergys will continue to provide state-of-the-art processing services including provisioning, activation, usage management, and billing for the wide range of services and bundled offerings Cincinnati Bell makes available to its wireline and wireless customers. Convergys will also provide wireline and wireless application development and maintenance services.
The U.S. Coast Guard (USCG) has awarded Unisys a firm-fixed price contract to provide IT support services to the USCG Finance Center, which manages financial services for the U.S. Coast Guard and multiple U.S. Department of Homeland Security (DHS) agencies. The USCG Core Enterprise Suite Support Services contract, a recompete of a contract Unisys has held since 2003, is worth approximately $24 million, if all options are exercised. The five-month contract base term has a value to Unisys of approximately $2 million, and is followed by four one-year options, exercisable at the government’s discretion. The estimated value of each option year is between $5 million and $6 million.
NWP Services Corporation (NWP) has extended its outsourcing agreement with Accenture to 2018. NWP is the leading provider of financial transaction processing solutions for resident utilities billing and payment-processing services to the multi-family housing industry in the United States. The agreement extends by three years a 10-year outsourcing agreement Accenture signed in 2005 to provide NWP with software development and software support services related to NWP’s customer care and billing information functions.
International News
Ovum, an IT analyst and research organization, has awarded EDS top status in the 2008 Ovum Navigator for European Applications Outsourcing. This recognition places EDS among the top three vendors in Europe in applications outsourcing (i), acknowledging EDS' strength in execution and strategy. The Ovum Navigator report aims to give CIOs and their teams an independent perspective on vendors who provide applications outsourcing services in Europe, and to help them determine which vendors are the best fit for them. The report evaluated 11 vendors and looks to guide potential users of applications outsourcing services.
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August 13, 2008
Top Stories
EUROPE, CAPTIVES DRIVING OUTSOURCING MARKET...Europe inked 41 percent of the outsourcing contracts during the second quarter and offshore captive growth continued to surge during the period, according to the Everest Research Institute's quarterly report on global outsourcing and offshoring activity. According to the Institute's newly released Market Vista: Q2 2008 report, 417 outsourcing contracts were signed in the first quarter. Publicly disclosed transactions during the quarter are valued at US $2.6 billion in annual contract value (ACV). Seventy percent of the contracts were for IT Outsourcing (ITO) and 28 percent for Business Processing Outsourcing (BPO) engagements.
The Institute's Q2 report also features profiles outsourcing activity in Central and South America with an analysis that concludes labor savings will not be sustainable for Brazil, Chile and Mexico in five to ten years.
ACS REPORTS FOURTH QUARTER, FISCAL YEAR RESULTS...Affiliated Computer Services, Inc., announced fourth quarter fiscal year 2008 revenues of $1.61 billion, an increase of 6% compared to the fourth quarter of the prior year. Adjusted non-GAAP diluted earnings per share for the fourth quarter of fiscal years 2008 and 2007 were $0.95 and $0.88, respectively, representing an 8% increase. Fiscal year 2008 revenues were a record at $6.16 billion, an increase of 7% compared to the prior fiscal year. Adjusted non-GAAP diluted earnings per share for fiscal year 2008 was a record at $3.53 and represents a 13% increase over fiscal year 2007 adjusted non-GAAP diluted earnings per share of $3.12.
ACCENTURE EXPANDS FOOTPRINT IN INDIA...Accenture is planning to hire 13000 employees as part of expanding its business process outsourcing (BPO) footprint in India. Apart from opening more centers in various cities, the company will increase its headcount from current 37,000 to 50,000 in the next five years.
New Business
The Hertz Corporation has selected Océ Business Services to provide global document process outsourcing services to support Hertz’s efficiency improvement and reengineering initiatives. Océ will provide a range of services that span the document lifecycle (creation through disposal). These services include mail management; document imaging; print/copy management, records management and storage; and multi-function device (print/copy/fax/scan) fleet management.
CSC is one of seven firms that have been awarded a Contract Field Teams (CFT) contract administered by the U.S. Air Force. The indefinite delivery/indefinite quantity (IDIQ) contract has a two-year base period, two two-year and one one-year options, bringing the total combined maximum ceiling value of the seven-year contract for all firms to $10.1 billion.
Exigen Services has announced a multi-year application development and maintenance outsourcing deal with IT giant, Sun Microsystems Inc. Under the terms of the agreement, Exigen Services will provide application development and maintenance services for a portfolio of products in Sun's Services division.
International News
Logica, a provider of IT and business services, has won an outsourcing contract from German Kloska Group, a service partner and system supplier for shipping, shipyard and construction industry. The five-year contract covers the provision of all required data center services as well as the network connection between all of the Kloska Group locations. Under the contract, Logica will help the Kloska Group with their work processes. The services are provided around the clock on a global basis, whereby the organization, which mainly driven from Germany, as the management of the IT required for these logistical processes.
Saint-Gobain, one of the largest industrial groups in Latin America, has signed an agreement with IBM in Brazil to outsource its entire IT infrastructure. Through the agreement, with an initial duration of five years, Saint-Gobain expects to ensure predictability of IT costs, with focus on cost reduction and strict control, as well as support the fast growth of its business in Brazil, Argentina and Chile. IBM will be responsible for storage on demand hosting services, administration, support and IT systems management. The contract also includes migration of all servers installed at Saint-Gobain headquarters in Sao Paulo to two datacenters of IBM's Global Delivery Center (GDC), in Hortolandia.
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August 06, 2008
Top Stories
COVANCE STRIKES $1.6 BILLION DEAL WITH ELI LILLY...Covance Inc., a leading provider of drug development services, will acquire Lilly's 450-acre early drug development campus in Greenfield, Indiana for $50 million and will offer employment to about 260 Lilly employees. In addition, Covance will provide Lilly with a broad-range of drug development services over the next ten years for a contract value of $1.6 billion. Under the agreement, Covance will assume ownership of the site and operations on or about October 1, 2008.
AEGIS BPO ACQUIRES PEOPLESUPPORT THROUGH MERGER...Aegis BPO, a leading global business process outsourcing (BPO) provider and part of Essar Group, one of India's largest and fastest growing business conglomerates, and PeopleSupport, Inc. announced a definitive agreement to merge through Essar Services (Mauritius), its wholly owned subsidiary, through a cash transaction with an aggregate equity value of approximately $250 million. Under the terms of the agreement, Aegis BPO will pay PeopleSupport stockholders $12.25 per share in cash through Essar Services.
CSC REPORTS Q1 EARNINGS...CSC reported revenues of $4.44 billion for the fiscal 2009 first quarter, up 15.6% year over year, and earnings per share for the quarter of 79 cents (diluted), an increase of 29.5% year over year
OPI FORMS 'SHARE AND CARE' FOUNDATION...Outsource Partners International, Inc. (OPI) announced the formation of the “OPI Share and Care Foundation,” a newly registered charitable trust set up in India to provide financial assistance and resources to those in need throughout the country. OPI, and its employees, established the Foundation as part of an ongoing corporate social responsibility program designed to aid those in India that are distressed, disabled, or otherwise challenged.
HEWITT ANNOUNCES $500 MILLION IN NEW DEBT FINANCING...Hewitt Associates, Inc. announced that it expects to finalize $500 million in new debt financing later this month. The financing consists of a $270 million five-year syndicated term loan and $230 million in privately-placed senior unsecured notes with maturities of 7 to 10 years. The weighted average pretax cost of the financing is expected to be approximately 6%
IBM TO BUILD $350 MILLION DATA CENTER IN N.C....IBM announced plans to build a $360 million state-of-the-art data center at its facility in Research Triangle Park (RTP), North Carolina. The data center will include new technologies and services that will enable IBM to deliver Cloud Computing capabilities to clients.
New Business
Affiliated Computer Services, Inc. announced a five year contract, totaling $100 million, with UMass Memorial Health Care, Inc., a Worcester, Massachusetts-based hospital system, to provide extensive information systems services. The contract will extend an existing six-year business relationship. Under the terms of the agreement, ACS will provide a cost-effective method of expanding UMass Memorial's IT systems through planned deployment of servers and data storage based on the hospital system's specific IT infrastructure needs. ACS will provide networking, data systems, data center hosting, desktop, help desk, telecommunications, disaster recovery, and resource planning services.
International News
Sal. Oppenheim jr. & CIE., Europe's leading private bank, has extended its information technology (IT) outsourcing contract with EDS for five years. The contract extension covers the management of Sal. Oppenheim's existing IT infrastructure at all locations. Since 1997, EDS has managed and operated the entire Sal. Oppenheim IT infrastructure. EDS is responsible for managing workplace services at Sal. Oppenheim, which includes local employee support, voice, video and information services for more than 2,200 users. EDS will also continue to manage Sal. Oppenheim's information storage, servers and mainframe computers, as well as the company's communications network. Services also cover IT procurement, housing and services for terminal servers, document management and the bank's SAP human resources system.
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July 30, 2008
Top Stories
CAPGEMINI TO ACQUIRE GETRONICS PINKROCCADE...Capgemini has reached an agreement in principle with Getronics PinkRoccade (GPR) for the acquisition of Getronics PinkRoccade Business Application Services BV (BAS BV). This division regroups GPR’s applications services activities (applications development, maintenance and management) in the Netherlands. Through this acquisition, Capgemini says it will reinforce its leadership position in one of its key markets, while developing a stable portfolio of long-term applications management contracts in the public sector. The acquisition amounts to an equity value of €255 million paid in cash on Capgemini own resources and should be finalized by the end of the year, subject to the approval of the European Commission and to the consultation of the relevant Workers Council.
UNISYS REVENUES DOWN, PROFITS UP... Unisys Corporation reported that its second-quarter 2008 operating profit increased to $22.6 million compared with an operating profit of $2.5 million in the year-ago period. Revenue for the second quarter of 2008 declined 3 percent to $1.34 billion from $1.38 billion in the year-ago quarter. Foreign currency exchange rates had an approximately 4 percentage-point positive impact on revenue in the quarter.
BIRALASOFT NAMES NEW CEO...J Ramachandran (Ram) has taken over as the Chief Executive Officer of Birlasoft. Ram joined Birlasoft in July 2006 and was currently serving as its Chief Delivery Officer. Prior to joining Birlasoft, Ram had been with IBM Global Services for 11 years. With
over 20 years of industry experience, Ram has a proven track record in the complete lifecycle of IT outsourcing and has led large value initiatives spanning multifarious industry verticals. He holds a masters degree from Indian Institute of Technology, Kanpur.
WIPRO IMPLEMENTS MICROSOFT DYNAMICS AX...Wipro Technologies, the global IT services business of Wipro Limited and Microsoft announced the successful implementation of Microsoft Dynamics AX at the Microsoft Business Solutions division. This project involved a transformational global Implementation serving 242 countries through five locations across the world, leading to standardization and harmonization of business processes across the organization.
COMPASS BPO INCLUDE IN FAO PUBLICATION...Compass BPO announced the inclusion of their case study in the FAO publication report on How to leverage Finance outsourcing. This report published by FAOresearch details 10 current outsourcing engagements and analyzes the critical factors driving successful attainment of contract goals to increase efficiency and address specific business pains.
CONVERGYS NAMED TO TRAININGOUTSOURCING.COM'S TOP 20... TrainingOutsourcing.com named Convergys to its fifth annual “Top 20” list among companies specializing in Business Process Outsourcing (BPO) in order to “create a more efficient marketplace for learning.” In addition, it continued to stress the importance of innovative methods in learning analytics and evaluation methods used to assess the impact of learning on business performance.
New Business
Affiliated Computer Services, Inc. announced a renewed contract with the Apollo Group, Inc. providing student financial aid business process outsourcing (BPO) services for the University of Phoenix (UPX) and Western International University (WIU). The renewed three-year contract is valued at $120 million. The Apollo Group is the parent company of UPX and WIU, UPX is the largest private university in North America, and WIU is an affiliated university. ACS has been providing a host of BPO services for the Apollo Group since May of 2002.
Americo of Kansas City, Mo., has signed a 15-year contract for CSC’s business process outsourcing (BPO) services. Under the contract, CSC will manage a closed block of approximately 100,000 individual life and annuity insurance policies that Americo gained through the acquisition of Financial Industries Corporation (FIC). CSC will perform full back-office services, including end-to-end contract administration, a customer call center, financial reporting and payment processing. The new contract expands a 16-year relationship between the two companies during which CSC has provided application management and production support services for existing blocks of business.
International News
Dutch airline Martinair has chosen Getronics and IBM to manage part of Martinair's IT organization. In terms of the five-year agreement, Getronics and IBM will manage part of Martinair's front and back office applications. From its Aviation Competence Center in Amsterdam, IBM will also help the airline to develop new services that will benefit its cargo and passenger customers. The joint contract is worth 23 million euro, of which IBM will receive 6 million euro.
Retail company neckermann.de has signed an eight-year IT service agreement with Atos Origin, a provider of management consulting and IT services. Under the terms of the agreement, Atos Origin has been entrusted with all neckermann.de's IT services including computing centre and desktop services as well as application development and user support.
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July 23, 2008
Top Stories
CONVERGYS POSTS SECOND-QUARTER INCREASE...Convergys Corp. posted second-quarter net income of $40.5 million, or 32 cents per share, up from $38.8 million, or 28 cents per share in the year-ago quarter. Revenues fell to $689.5 million from $707 million. For the first half of 2008, Convergys reported net income of $76.4 million, or 60 cents per share, versus $82.4 million, or 59 cents per share, in the same 2007 period. Revenues were down slightly, to $1.4 billion from $1.43 billion. The company said it expected full-year consolidated revenues at the lower end of its forecast of $2.85 billion to $3 billion, and earnings per share of $1.15 to $1.20.
LUXOFT ACQUIRES ROMANIAN OUTSOURCER...Luxoft, a global provider of high-end application and product development services, has acquired Bucharest-headquartered ITC Networks (ITCN), a leading Romanian software outsourcing provider specializing in the telecommunications industry. The combined company will have more then 3000 employees worldwide and an annual revenue run rate of over $150 million.
IBM OPENS EXCELLENCE CENTER IN PUNE...IBM has opened the IBM Service Management Center of Excellence in India which will act as the regional hub for IBM Tivoli service management software and strategy. The Center has been designed to develop specialized focus and skills in high value areas such as telecom, security, automation and asset management. This first of its kind Center has been established in Pune.
WNS DEAL WITH AVIVA (Corrected) ...WNS (Holdings) Limited (NYSE: WNS), a leading provider of global business process outsourcing (BPO) services, has entered into a transaction with Aviva, the world’s fifth largest insurance group with $95 billion revenue in 2007 to acquire Aviva’s offshore operations which run a number of its critical business processes for approximately £115 million ($228 million), subject to adjustments for cash and debt. Under agreement, which is of eight years and four months’ duration, WNS will be the long-term strategic BPO services provider to Aviva’s UK, and Canadian businesses--a deal that WNS estimates could generate approximately $1 billion in revenues over the life of the contract.
EVEREST RESEARCH SCHEDULES MSA WEBINAR...The Everest Research Institute will host a Webinar to discuss Master Service Agreement (MSA) and Service Description design for outsourcing engagements, why the MSA and Service Description structure is preferred, and best management practices that enable clients and suppliers flexibility when business needs change. The Webinar will be held on July 29 at 10 a.m. CDT. To register, please visit www.everestresearchinstitute.com/Events/Webinars.
New Business
EDS has signed a seven-year agreement with the CAT Group, a worldwide provider of transport and logistics services, to develop, integrate, deploy and support the company's software applications. Financial terms were not disclosed. This contract builds upon an information technology (IT) infrastructure agreement CAT Group awarded to EDS in 2005. Under that agreement, which includes network management and governance and continues through 2015, EDS manages the CAT Group's entire IT infrastructure, which includes 2,000 work stations at 131 sites in 19 countries.
Affiliated Computer Services, Inc. announced a multi-year extended contract with the city of Riverside, California to provide information technology outsourcing to support the city's computer operations and geographic information services. The total value of the extended IT contract is $50 million, if all option years are exercised.
International News
Logica, the European IT and business services company, has won a three year contract with global tyre manufacturer Michelin. Logica will be Michelin’s applications services partner for its Finance and Purchase Reporting Group, Supply Chain Management, Marketing and Sales (Customer Relationship Management) and Demand to Cash domains across Europe and North America. The contract, which has an option of being renewed for an additional three years, includes consulting services and systems implementation.
The UK subsidiary of Unisys Corporation has won an outsourcing contract worth approximately $USD 63 million (£GBP 32 million) to create and manage a public information network and security service until late 2012 for Kent County Council, the authority that governs the majority of the county of Kent in England. One of the largest county councils in the UK, Kent County Council is looking to enable cost-effective communications and collaboration among local government agencies, while providing new information services to residents. The network will initially connect approximately 1,100 public sector establishments, including schools, council offices and libraries.
CSC has extended its information technology (IT) outsourcing contract with Swiss bank Zuger Kantonalbank. The new, seven-year contract, which is valued at $33 million (34 million Swiss Francs) is an early renewal of a previous eight-year contract signed in 2002.
Banco Espírito Santo (BES), one of the major multi-specialist financial groups in Portugal and IBM announced a seven-year outsourcing services agreement for IBM to manage the bank's information technology (IT) infrastructure. The agreement, signed in June 2008, expands the scope of a previous contract signed in 2006.
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July 16, 2008
Top Stories
CONVERGYS ACQUIRES INTERVOICE FOR $335 MILLION...Convergys Corporation will acquire Intervoice for $335 million in cash or $8.25 per share. The consideration represents a premium of 24 percent to Intervoice’s closing stock price on July 15, 2008, the last trading day prior to the announcement of the agreement. Convergys expects the acquisition to be accretive beginning in 2009 on a non-GAAP basis, excluding amortization and one time costs. With its strong global brand, innovative technology, and large and loyal customer base, Intervoice is a leader in the software-based interactive voice response, contact center, and mobile messaging technology and applications markets.
WNS ACQUIRES AVIVA BPO; TAKES OVER $1 BILLION IN CONTRACTS...WNS Holdings has acquired Aviva Global Services, the UK-based insurance giant’s captive BPO in India and Sri Lanka, for $230 million. WNS Holdings will also take over $1 billion of contracts to be completed over eight years that Aviva's unit had won.
HCL ACQUIRES BRITISH BPO FIRM...HCL Technologies has agreed to acquire Liberata Financial Services (LFS), a UK-based business process outsourcing (BPO) firm, for an undisclosed amount. The acquisition of LFS, a wholly-owned subsidiary of Liberata Ltd, which provides end-to-end administrative and customer services for the life and pensions Industry, is expected to help HCL enter the British life and pensions industry.
ISS GOVERNANCE RECOMMENDS HP ACQUISITION OF EDS...ISS Governance Services (ISS) has published its report recommending that EDS stockholders vote to approve the Agreement and Plan of Merger under which EDS would be acquired by Hewlett-Packard Company. The company's special stockholders meeting regarding the vote is scheduled for July 31. ISS, a unit of RiskMetrics Group, is a leading independent proxy advisory firm whose voting analyses are relied upon by hundreds of institutional investment funds, mutual funds and fiduciaries.
SIG HELPS LEADERS STAY AHEAD OF THE PACK...At its Fall Leadership Summit, Sourcing Interests Group (SIG) will address global outsourcing issues and how leaders can stay ahead of the pack in tough economic times. Robyn Meredith, veteran journalist and author of The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us, is the summit’s keynote speaker. Outsourcing leaders are invited to join an exclusive group, where topics such as outsourcing transition management, cutting-edge outsourcing practices, governance best practices, BPO / ITO case studies, and Eastern Hemisphere outsourcing alternatives will be discussed. SIG’s 34th Leadership Summit is September 24-26, 2008 at The Ritz-Carlton, Lake Las Vegas, NV. Register before August 1st to receive a free copy of Meredith’s book.
New Business
CSC announced that the U.S. Department of Homeland Security (DHS) has awarded the company a task order to provide secure managed data center services. The contract has a six-month base period and six one-year options. A two-year option may be exercised in place of the sixth one-year option, bringing the estimated total contract value to $391 million.
International News
IBM and Thanachart Bank Public Company Limited have signed a two billion baht (approximately US$60 million) agreement for a seven-year information technology (IT) Outsourcing Services contract to enhance the Thai bank's IT capacity, increase client satisfaction and address progressive growth with world class standards. The agreement also covers the delivery of services to Thanachart Group including Thanachart Securities Public Co. Ltd., Thanachart Fund Management Co. Ltd., Thanachart Life Assurance Co. Ltd. and Thanachart Insurance Co. Ltd.
BancTec, a global provider of complex business process automation solutions, has extended the reach of its BPO offerings through a new, ten-year agreement with EDB, one of the largest providers of IT services in the Nordic region. The BPO partnership agreement, worth more than $52 Million, includes the outsourcing of EDB's Document Imaging and Processing business to BancTec Sweden.
Logica is providing KPN with HR management information services. As part of this outsourcing contract five KPN employees will transfer to Logica’s offices in Rijswijk, The Netherlands. The 6.5 year contract has a value of € 2.8 million. Logica is now responsible for the management reports used by KPN’s HR managers, covering recruitment and attrition information and employee sickness leave.
Axel Springer AG is extending its existing outsourcing contract with Siemens IT Solutions and Services by another five years. Throughout Germany, Siemens operates and maintains around 12,000 computers and the corresponding software for one of Europe’s leading media companies.
Everest Offers Free Outsourcing Quarterly Market Vista Report
The first issue of Market Vista, a new quarterly report on global outsourcing and offshoring activity and trend insights published by the Everest Research Institute, is available at no cost by request. To request a free copy of Global Sourcing Market Vista: Q1 2008, please visit www.everestresearchinstitute.com.
The Market Vista reports provide data and analysis across multiple dimensions, including deal trends in the outsourcing and offshoring market; captive model analysis including new center announcements, expansion and divesture; current and emerging location analysis including risks and opportunities and government initiatives; key supplier developments including transaction activity, changes in delivery footprint, M&A and alliance activity; and analysis of key developments across the top 20 financial services companies globally. The Q1 2008 Market Vista report features focus analyses of Eastern European cities and the Chinese supplier landscape.
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July 09, 2008
Top Stories
CSC SIGNS $150 MILLION DEAL WITH EXELON...CSC has signed an information technology (IT) services agreement with Exelon Corporation, one of the nation’s largest electric utilities. The contract, which has a five-year base period, and three one-year options, is valued in excess of $150 million. CSC will provide Exelon with a broad spectrum of infrastructure support services, including help desk, desktop support, database administration, telecommunications and data network support, and server management services. Work will be performed at various locations in the U.S. as well as CSC’s World Sourcing delivery centers in Malaysia and India.
ACCENTURE OPENS NEW DELIVERY CENTER IN DELHI...Accenture has expanded its Global Delivery Network with the opening of the Accenture delivery center in Noida in the National Capital Region of Delhi, India, strengthening the outsourcing capabilities it provides to clients globally. The delivery center in Noida offers cross-industry BPO services in finance & accounting, human resources, learning, procurement and customer care, as well as industry-specific services focusing on the insurance, healthcare, pharmaceutical and utility industries.
EVEREST OFFERS NEW OUTSOURCING SUPPORT SERVICES...To help companies leverage and extend their expertise, Everest’s Outsourcing Support Services includes a full menu of tools, decision support, and training & workshops. These services are designed to help companies gain many of the benefits an outside sourcing advisor – without committing to a team of full-time consultants. A link to the complete OSS Offering and Price List can be found here.
NEW SOLUTION FROM VENGROFF, WILLIAMS...Vengroff, Williams & Associates, Inc., a global provider of receivables management and business process outsourcing solutions, announced a new low-cost in country solution for small to midsized corporations. The new solution, called Source MPO, provides fast-growth global companies with access to vast industry and business process expertise With best-of-breed technology and services to achieve critical business objectives such as optimal business performance, increased revenue, and productivity.
New Business
Unisys Corporation announced that its Canadian subsidiary, Unisys Canada, has won a contract from NEC Corporation of America to provide outsourced IT support services for 470 7-Eleven® retail convenience stores throughout Canada. The Unisys contract is valued at approximately $USD 6 million over a three-year term. NEC Corporation of America is the prime contractor in the engagement, managing applications development and support for 7-Eleven, Inc.
CSC has signed a new information technology (IT) outsourcing contract with Urenco, a leading supplier of enriched uranium to nuclear power utilities worldwide. The new six-year agreement, which is valued at $22 million (£10.9 million), follows a seven-year, $45 million (£23 million) IT outsourcing contract Urenco awarded to CSC in March 2007.
International News
IBM has signed two strategic outsourcing contracts in emerging markets of South America. In Venezuela, Banco Fondo Comun (BFC), a universal bank offering its customers leading customer service through its more than 170 national branches, signed a five-year agreement with IBM. The agreement with BFC includes the following information technology services: data center outsourcing, technical support and database management operations, the infrastructure of IBM's Business Innovation Center (BIC), planning services, and computer hardware relocation.
In Brazil, Panarello, a leading distributor of healthcare products, with 93% of the potential market of this segment, has expanded the scope of its outsourcing agreement with IBM and signed a new contract for a ten-year term. In 2004, the company transferred the responsibility of managing its IT infrastructure to IBM. Through a contract expansion, Panarello will integrate the group's financial, human resources, legal and procurement processes. The company expects significant cost reduction as a result of the implementation of a shared services model and the integration of its entire IT infrastructure.
Siemens IT Solutions and Services will take over operation of the IT facilities for the Berlin-based nonprofit housing development and construction company GSW Immobilien GmbH. The order has a TCV of 13 million euros and is set to run for five years.
Logica has signed five important outsourcing contracts in Sweden in the last months. The new customers include UC, Sweden's largest business and credit information agency; De Lage Landen International BV, a global provider of leasing, business and consumer finance solutions; Ålö AB, a world leading manufacturer of front loaders and the municipality of Boden in the North of Sweden. In addition, Logica has recently signed an outsourcing contract with Danish home furnishing chain ILVA, to manage and monitor the operation of all of ILVA’s IT-platforms.
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July 01, 2008
Top Stories
ACCENTURE REPORTS STRONG THIRD QUARTER...Accenture reported strong financial results for the third quarter of fiscal 2008, ended May 31, with net revenues of $6.10 billion, a year-over-year increase of 20 percent in U.S. dollars and 12 percent in local currency and the highest quarterly net revenues in the company’s history. Consulting and outsourcing revenues were both quarterly records, growing by double digits in U.S. dollars and local currency. Earnings per share were $0.74, the highest for any quarter in the company’s history and an increase of 36 percent over the third quarter of fiscal 2007, driven largely by strong growth in revenue and operating income. In addition, the company has again raised its outlook for earnings per share for the full fiscal year 2008, to a range of $2.63 to $2.65 from its previously guided range of $2.55 to $2.60.
COMPUCOM ACQUIRES GETRONICS N.A. OPERATIONS...CompuCom Systems, Inc. has entered into a definitive agreement to acquire the North American operations of Getronics, a global provider of IT services. The combined entity would have had pro-forma 2007 revenues of approximately $2.1 billion. Getronics’ North American activities consist of the operations in the United States, the operations in Canada and the certified Global Service Centre in Mexico, for a combination of cash and equity issued by CompuCom.
EVEREST, BERNSTEIN WEBINAR ON IT OUTSOURCING...The strategic dilemma facing Infrastructure Outsourcing (IO) suppliers – caused by the convergence of ‘traditional’ (multinational) and offshore suppliers’ value propositions, a maturing remote infrastructure management delivery model, and adoption of labor arbitrage by traditional suppliers – will be discussed in a one-hour Webinar hosted by analysts from the Everest Research Institute and Sanford C. Bernstein & Co. During the last decade, the emergence and rapid growth of new models of infrastructure services delivery, such as Remote Infrastructure Management (RIMO) and Information Management Services (IMS), are showing signs of convergence with more traditional ways of delivering infrastructure service. The Emerging Supplier Dilemma in the Remote Infrastructure Management Market report will be discussed in a one-hour Webinar on July 10 (10 a.m. CDT; 11 a.m. EDT).
GENPACT VP NAMED THOUGHT LEADER...Genpact Executive Vice President VN “Tiger” Tyagarajan was named Thought Leader of the Year by FAO Today magazine. This is the second consecutive year that Tyagarajan has been recognized by the publication for his outstanding contributions to Genpact and to the global finance and accounting outsourcing industry.
New Business
EDS has been awarded a $42.8 million, four-and-a-half year contract by the Ohio Department of Taxation to modernize the Ohio State Tax and Revenue System. The new State Taxation Accounting and Revenue System (STARS) will simplify and streamline tax services to Ohio’s citizens and collect state taxes more efficiently. EDS’ U.S. state and local government subsidiary, Saber Government Solutions, will provide the contract services and solutions.
The U.S. Department of Justice (DOJ) has awarded Unisys three task orders to provide professional and technical services – including investigative services, training, and program analysis – in support of the DOJ Asset Forfeiture Program (AFP). The task orders, part of a $475 million multi-vendor, indefinite delivery/indefinite quantity Professional Assistance Contract 2 (PACS 2) awarded in March 2008, enable Unisys to continue and expand its longstanding support of the DOJ and its enforcement efforts.
CSC has signed a new information technology (IT) outsourcing contract with aircraft manufacturer Hawker Beechcraft Corp. The nine-year agreement is an extension of services that began in 2002. Under the new contract, CSC will continue to manage Hawker Beechcraft's IT infrastructure, including midrange computers and desktops, help desk operations, IT security, engineering computing, voice and video telecommunications, servers, and local- and wide-area networks. CSC will provide these services for Hawker Beechcraft's operations globally.
The U.S. Centers for Medicare & Medicaid Services (CMS) has awarded EDS subsidiary, NHIC, Corp., a $148 million contract to administer Part A and Part B Medicare claims payments to health care providers in four northwestern states. The contract is for one year with four 1-year options and will serve approximately 54,000 physicians and practitioners and 233 Medicare hospitals within Alaska, Idaho, Oregon and Washington.
International News
Storebaelt Ltd., the company managing the toll bridge connecting central parts of Denmark, has signed a three year agreement with IBM for IBM to manage Storebaelt's information technology (IT) infrastructure and services. The Great Belt Fixed Link, opened in 1998, is the largest engineering project in the history of Denmark. The Link consists of a 6,790 meter long suspension bridge linking Zealand -- where the Danish capital Copenhagen is located -- and the small island of Sprogoe, a 6,611 meter combined rail and road bridge between Sprogoe and Funen, and a 8,000 m rail tunnel between Zealand and Sprogoe. At 254 meters above sea level, the East Bridge's two pylons are the highest points in Denmark.
HP has signed a five-year contract with Ericsson to provide global IT outsourcing services. HP Services will provide solutions based on HP's Adaptive Enterprise strategy, designed to help companies measure, architect and manage change by creating a tighter linkage between business and IT. HP Services will take responsibility for Ericsson's global IT infrastructure and will consolidate and optimize their IT environment.
Everest Offers Free Outsourcing Quarterly Market Vista Report
The first issue of Market Vista, a new quarterly report on global outsourcing and offshoring activity and trend insights published by the Everest Research Institute, is available at no cost by request. To request a free copy of Global Sourcing Market Vista: Q1 2008, please visit www.everestresearchinstitute.com.
The Market Vista reports provide data and analysis across multiple dimensions, including deal trends in the outsourcing and offshoring market; captive model analysis including new center announcements, expansion and divesture; current and emerging location analysis including risks and opportunities and government initiatives; key supplier developments including transaction activity, changes in delivery footprint, M&A and alliance activity; and analysis of key developments across the top 20 financial services companies globally. The Q1 2008 Market Vista report features focus analyses of Eastern European cities and the Chinese supplier landscape.
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June 25, 2008
Top Stories
FIDELITY TO HANDLE TI'S BENEFITS ADMINISTRATION...Fidelity Investments been chosen by Texas Instruments to provide the company with benefits administration. Under the five year agreement, which will commence in January 2009, Fidelity will provide health and insurance administration, health management tools, as well as recordkeeping services, for Texas Instruments’ (TI) defined contribution and defined benefit plans. More than 13,000 active TI employees, as well as retirees and their families, will have access to Fidelity’s health and financial benefits platform.
INFOSYS WINS SUPPLIERS AWARDS...Infosys Technologies has been recognized as a top supplier by a number of customers in recent months. Eastman Chemical has awarded Infosys its Supplier Excellence Award for the second year running, which “recognizes the breadth of IT services and capabilities provided as well as the significant contribution to customer satisfaction and overall collaboration”, according to Keith Sturgill, VP & CIO. The Boeing Company awarded Infosys a 2007 Boeing Performance Excellence Award (BPEA) for achieving gold level of performance. Infosys was one of fewer than 50 companies out of approximately 10,000 Boeing suppliers worldwide. Cummins Inc. selected Infosys as a Global Preferred Vendor for Information Technology. The Cummins and Infosys teams will deploy IT solutions that will help Cummins grow to more than $20 billion in revenue over the next several years. Here’s the press release:
ACCENTURE, AVANDADE WIN MICROSOFT PARTNER AWARD...Accenture and Avanade has won the 2008 Microsoft Enterprise Alliance Partner of the Year Award, it was announced today. The companies were chosen from an international field of top Microsoft partners who deliver market-leading customer solutions built on Microsoft technology.
New Business
Missouri Employers Mutual (MEM) has selected HCL as the systems integrator for implementing Guidewire ClaimCenter as its new claims system. HCL will assist MEM in the configuration, integration, data conversion and claims reporting aspects of the Guidewire ClaimCenter implementation, serving as the firm's IT partner and driving its transformation in claims processing.
International News
CSC has signed a two-year information technology contract extension with the Australian Department of Immigration and Citizenship (DIAC). The estimated value of the contract, which now runs through 2011, is $103 million (AUD$110 million).
Convergys Corporation has signed two transformational consulting contracts with Advanced Info Service PLC (AIS), the largest wireless operator in Thailand. Under the terms of the multi-year contracts, Convergys will provide advisory services to transform AIS’ customer relationships, using relationship management insight and technologies developed and applied as one of the world’s largest outsourced contact center companies.
IBM announced an expansion and extension of its current service agreement to manage Manulife Financial's information technology operations. The current agreement, which remains in effect until March 31, 2012, includes services for mainframe, midrange and desktop computers, as well as helpdesk support, business continuity and disaster recovery. The value of the expanded agreement to March 31, 2012 was not released.
IBM has signed a global five-year IT Services contract with Ericsson. IBM will manage application maintenance, development and operation for Ericsson, extending an existing contract signed in 2003.
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June 18, 2008
Top Stories
BOMBARDIER RENEWS $1.2 BILLION CSC AGREEMENT...CSC has renewed its information technology (IT) outsourcing agreement with Bombardier Transportation, an operating group of Bombardier Inc. The new seven-year, $1.2 billion (€765 million) contract, which has an incremental value of approximately $944 million (€610 million), is an extension and expansion of services that began under a 2002 contract that was valued at $700 million over seven years. Under the new agreement, CSC will continue to provide Bombardier Transportation with a full range of infrastructure outsourcing services. These include desktop, service desk, network and application management services for more than 20,000 users at sites across 33 countries around the world.
WNS ACQUIRES BIZAPS...WNS (Holdings) Limited, a leading provider of global business process outsourcing (BPO) services, has acquired Business Applications Associates Ltd. (BizAps), a provider of SAP solutions to optimize ERP functionality for finance and accounting processes. The acquisition of BizAps will enable WNS to further assist global customers in transforming shared services finance and accounting functions, such as purchase-to-pay and order-to-cash. Based in the UK and U.S., with development capability in China, BizAps offers SAP optimization services and SAP certified solutions designed to simplify SAP roll-out and enhance functionality for internal and outsourced shared services centers.
NEUSOFT LAUNCHES NEW SOFTWARE PARK IN CHINA...Neusoft Corporation, the largest offshore software and service outsourcing provider in China, inaugurated another software park at the Dalian High-tech Industrial Zone. Designed to expand its operations and accelerate its globalization process, this facility, the second of its kind invested in by Neusoft in
Dalian, may house 10,000 engineers and will become, combined with the previous one, a software & service global delivery center to facilitate its
fast-growing offshore-outsourcing operations.
International News
Meggitt PLC has selected EDSto host and manage Meggitt’s new SAP system. The SAP system will serve as Meggitt’s standard, global enterprise resource planning (ERP) platform. Headquartered in the UK, Meggitt is an international group which designs and manufactures high performance components and systems for aerospace, defence and energy markets. The group employs over 8,000 people. Financial terms of the agreement are not being disclosed.
BancTec, a global provider of advanced, high volume document and payment processing solutions and services, has been selected by EDS to provide it with an outsourced check clearing platform in the United Kingdom. BancTec will provide the clearing solution in partnership with EDS over the next 10 years, jointly providing a service for one of the world's largest financial services firms.
Alliances
BPO Management Services has signed a strategic relationship agreement with Tectura, a Microsoft partner and global services company providing Microsoft-based technology solutions. Under the terms of the agreement, BPO Management Services (BPOMS) will make its human resources outsourcing solutions available to Tectura's North American clients, which are mid-market companies as well as divisions of larger enterprises.
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June 11, 2008
Top Stories
BT SIGNS $650 MILLION DEAL WITH P&G...BT has signed a five year contract with Procter & Gamble (P&G) to provide and manage a broad and integrated portfolio of services in support of P&G's information technology (IT) requirements. The agreement is valued at 650 million USD. With the agreement, BT will provide and manage P&G's local and wide area network infrastructure across more than 1,100 locations in more than 82 countries. In addition, BT will migrate these services to a state-of-the-art, high-speed, Internet Protocol (IP)-based global MPLS (multiprotocol label switching) infrastructure. BT will also provide and manage perimeter security and firewall services, conferencing, remote access, voice and IP telephony services, and Internet services to support P&G's IT requirements.
COGNIZANT ACQUIRES CONSULTING FIRM...Cognizant announced the acquisition of substantially all of the assets of Los Angeles, CA-based Strategic Vision Consulting, Inc. (SVC), a leading management and technology consulting firm with over 60 employees serving the media and entertainment industry. Terms of the transaction were not disclosed. SVC focuses on high-impact consulting and systems implementation for leading media and entertainment companies, including the major studios,
broadcasters, post-production facilities and interactive media companies.
GENPACT LAUNCHES IT TRAINING JV...Genpact and NIIT, a leading Global Talent Development Corporation, announced the launch of a joint venture — NIIT Institute of Process Excellence Ltd — to address the increasing demand for skilled workers in the business & technology services industry by providing training programs in relevant areas. The new company will initially offer training programs in areas such as business processes, language skills and business communication, and intends to add additional offerings in other areas including finance and accounting, banking, insurance and supply chain.
New Business
IBM announced a 10-year, $324 million Business Transformation Outsourcing (BTO) agreement with Bristol-Myers Squibb to transform and support many of the company's global human resource (HR) functions. The contract with IBM will allow Bristol-Myers Squibb to provide flexible and available HR services to ensure that its employees across the globe have access to information and services wherever they may be.
ICAP plc, the world’s premier interdealer broker, has selected Accenture to develop and maintain its European Union credit-trading platform under a five-year application outsourcing agreement. Accenture will provide technology development and outsourcing services to ICAP through its Global Delivery Network, which includes more than 50 delivery centers across five continents.
International News
Orange Business Services signed a €160 million, 7-year outsourcing agreement with Numonyx, a leading flash memory provider, to implement and manage a significant part of its information and communications technology (ICT) infrastructure. Launched March 31, Numonyx is the result of the merger of the non-volatile Flash memory activities of Intel and STMicroelectronics and is headquartered in Switzerland.
Orange Business Services implemented the messaging and Web services infrastructure in only a few months to be ready for the company’s launch and is now connecting approximately 7,000 Numonyx employees across 20-plus sites, with major locations in China, Israel, Italy, Malaysia, Philippines, Singapore and the U.S. At launch date, the data center for the core financial and HR business applications was fully operational, allowing Numonyx to manage its financial and HR information independent from the parents.
Capgemini has signed a two-year contract extension with Hydro One Networks Inc., a large North American transmission and distribution electric utility, to provide Smart Metering services for the company’s Automated Metering Infrastructure (AMI) program, including, program management, process design, systems, integration and infrastructure management. This contract reinforces Capgemini’s in-depth knowledge of the market and its industry-leading experience with Smart Metering implementation across North America.
Alliances
BPO Management Services, Inc., a full-service business
process outsourcing company focused on serving middle-market enterprises, signed a strategic relationship agreement with Tectura Corp., a leading Microsoft partner and global services company providing
Microsoft-based technology solutions.Under the terms of the agreement, BPOMS will make its human resources
outsourcing solutions available to Tectura's North American clients, which are mid-market companies as well as divisions of larger enterprises.
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June 04, 2008
Top Stories
ACS COMPLETES TMS ACQUISITION...Affiliated Computer Services, Inc. has successfully completed the acquisition of Transportation Management Systems (TMS), a business unit of Orbital Sciences Corporation for $42 million which was funded with cash on hand. The acquisition allows ACS to expand its global public transit service capabilities with TMS, the nation's leading provider of Global Positioning System (GPS)-based fleet management systems. ACS is now the only company capable of providing both fare collection and fleet management system capabilities for governments and enterprises in the fastest-growing segment of the transit market.
WNS NAMES NORTH AMERICA MD...WNS (Holdings) Limited., a leading provider of global business process outsourcing (BPO) services, announced the appointment of Steve Reynolds as Managing Director, North America, a new position created to further drive sales and revenue growth in the North American market.
WIPRO GOES CARBON NEUTRAL...Wipro Technologies, the global IT services division of Wipro Limited hosted the first ever Carbon Neutral event by an Indian IT company at Florida recently. Wipro as a responsible and an ecologically conscious organization made Mandala 2008, an annual customer forum event, completely carbon neutral.
New Business
Accenture is part of the Lockheed Martin team to which the Federal Bureau of Investigation awarded a 10-year contract worth potentially $1 billion to develop and implement the FBI’s Criminal Justice Information Services (CJIS) Division’s Next Generation Identification (NGI) Program, an enhanced identification system utilizing biometric technology. As a team member, Accenture will provide its knowledge and experience in business architecture, training, service-oriented architecture and biometric interoperability to help the Lockheed Martin team provide the FBI with a holistic NGI solution designed to address people, processes and technology.
Perot Systems Corporation announced a Revenue Cycle Outsourcing agreement with Hawaii Medical Center, LLC. Perot Systems will assist Hawaii Medical Center with its goal of improved financial results while simultaneously allowing Hawaii Medical Center to focus on its core mission of providing superior healthcare. Financial details of the agreement were not disclosed.
CSC is one of 14 large firms that have been awarded the ENCORE II contract from the Defense Information Systems Agency (DISA) to provide a comprehensive range of information technology (IT) support services. The new agreement has a five-year base period and five one-year options, bringing the total combined ceiling value of the contract for all 14 large and 12 small business firms to $12.225 billion.
EDS has also been contracted to support the DISA ENCORE II contract by providing net-centric services. EDS is one of 26 companies that may compete for task orders under the $12.22 billion multiple-award, Indefinite Delivery/Indefinite Quantity contract.
Sinai Health System, located in Chicago has extended its relationship with the global information technology provider. Perot Systems began its revenue cycle outsourcing relationship with Sinai Health System five years ago, and in that period of time its team of revenue cycle professionals has enabled Sinai Health System to achieve significant financial and operational improvements.
International News
Sunrise, the second largest telecommunications provider in Switzerland, is outsourcing the operation of its mobile, fixed and data networks to Alcatel-Lucent as of August 1, 2008. By turning over its network to Alcatel-Lucent, Sunrise expects to ensure the long-term high quality deployment and management of the network as well as significantly save operational costs. The contract includes the transfer of 290 employees. The value of the agreement is approximately 340 million euros over 7 years, depending on the final scope of the project.
Orange Business Services signed a €160 million, 7-year outsourcing agreement with Numonyx, a leading flash memory provider, to implement and manage a significant part of its information and communications technology (ICT) infrastructure. Launched March 31, Numonyx is the result of the merger of the non-volatile Flash memory activities of Intel and STMicroelectronics and is headquartered in Switzerland.
Verizon Business and Swisscom, Switzerland's leading telecommunications provider, announced an alliance that will provide enhanced global service and support capabilities to Swiss multinational companies and companies with operations in the Swiss market. Under the alliance, a specialist team drawn from both companies will be created to serve joint Swisscom and Verizon Business multinational customers. The new team will offer customers a single point of contact to fulfill both their local and global communications requirements.
ITC Infotech is rapidly increasing its portfolio of services and solutions for the Media and Entertainment industry. ITC Infotech delivers its outsourcing model and comprehensive suite of solutions to enable media and entertainment houses effectively monetize and deliver their media assets over multiple distribution channels. The ‘ITC Infotech Information Architecture and Design’ service caters to the needs of the Media and Entertainment industry to accurately describe and catalog vast repositories of digitized but unstructured assets.
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May 28, 2008
Top Stories
FAO MARKET GROWING AT DOUBLE DIGIT PACE...Continued expansion of Finance and Accounting Outsourcing (FAO) service providers, broader acceptance of the value proposition, and existing success stories are driving a strong FAO market that grew 22 percent in 2007 and is predicted to maintain a double-digit growth pace, according to the Everest Research Institute’s annual study of the FAO market. Future growth in the FAO market will also be driven by a combination of expanding supplier capabilities and the expansion of FAO buyer segments.
CSC REPORTS RECORD REVENUES...CSC reported record annual revenues of $16.5 billion for fiscal year 2008, up 11% year over year. Additionally, the company reported record earnings per share for the fiscal year ended March 28, 2008. Net income for the fourth quarter was $181.7 million, or $1.15 per share (diluted), including special charges related to the restructuring program announced in April 2006 of $45.6 million after tax, or 29 cents per share. Diluted earnings per share, excluding the special items, were $1.44 compared to last year’s fourth quarter earnings per share of $1.58, excluding special items. For the year ended March 28, 2008, net earnings were $544.6 million, or $3.20 per share (diluted), including an after-tax net special charge of $108.2 million, or 64 cents per share (diluted), related primarily to the restructuring charge mentioned above. Excluding the special items, the $3.84 of diluted earnings per share for fiscal 2008 compares to $3.67 for fiscal 2007.
EPAM RAISES $50 MILLION IN CAPITAL...EPAM Systems, Inc., a leading software engineering and IT Outsourcing (ITO) provider with delivery centers in Central and Eastern Europe (CEE), has completed an oversubscribed US$50 million minority investment round with three global institutional investors. Renaissance Capital, a leading investment banking firm focused on Europe, the Middle East and Africa (EMEA), acted as sole advisor on the transaction. Renaissance Investment Management and Da Vinci Capital acted as lead investors (Renaissance Capital and Renaissance Investment Management are part of the Renaissance Group) with additional capital raised through Euroventures Capital.
OPI FOUNDER NAMED FAO SUPERSTAR...Clarence T. Schmitz, Chairman and Chief Executive Officer, has been named a 2008 Superstar of the finance and accounting outsourcing (FAO) industry. This marks the fourth consecutive year that Schmitz has been selected by FAO Today magazine for this honor. Schmitz is credited by FAO Today magazine as a pioneer who, “proved that OPI could provide the global business model for FAO in both the enterprise and middle markets.” While most providers developed offerings appropriate for larger enterprise companies, OPI built a customized approach that has delivered value to companies both large and small.
New Business
Kellwood Company has renewed its long-term information technology (IT) services relationship with EDS. With the seven-year agreement, EDS will continue to provide a full package of leveraged IT services to support the marketer of apparel and consumer soft goods’ future strategy. New to the agreement is a process for innovation in which EDS and Kellwood technical and business team members will collaborate to share, review and prioritize innovative ideas. The ultimate objective is to help Kellwood reduce costs and improve overall business operations.
The U.S. Defense Information Systems Agency (DISA) contracted with EDS to support the DISA ENCORE II contract by providing net-centric services. EDS is one of 26 companies that may compete for task orders under the $12.22 billion multiple-award, Indefinite Delivery/Indefinite Quantity contract. The ENCORE II program will provide global net-centric capabilities, services and solutions to all branches of the U.S. military, the Department of Defense (DoD) and other agencies of the federal government. This contract has a five year base followed by five 1-year option periods.
Unisys has also been awarded a DISA contract to compete for task orders to provide information technology (IT) solutions to military agencies, Department of Defense (DOD) and other federal agencies under the $12.225 billion ENCORE II multiple award indefinite delivery indefinite quantity contract.
International News
Tata Consultancy Services, a leading IT services, business solutions and outsourcing firm today announced a five year contract to deliver end-to-end global IT applications services to NXP Semiconductors B.V, a top 10 semiconductor company founded by Philips more than 50 years ago. The contract is worth $100 million and TCS will provide high end consulting services as well as application management, development and support services across NXP's supply chain operations.
WNS (Holdings) Limited announced a strategic partnership with Exchange Solutions Inc. (ESI), which creates and hosts interactive sales and marketing solutions designed to allow businesses to engage consumers earlier in their decision-making process to increase share of wallet. Toronto-based ESI has developed a web-based marketing platform that allows businesses to connect directly with customers to offer additional products and services. One feature of the ESI platform includes a real-time, decision-making platform that allows a company’s customers to see how they can get more value by consolidating more of their business with the company. With deep domain knowledge in several industries, such as financial services and travel, WNS will provide customer contact, fulfillment support and other services through its global delivery model.
Accenture has expanded its Global Delivery Network with the opening of a delivery center in Monterrey, Mexico, strengthening the systems integration and outsourcing capabilities it provides to clients in North America. The delivery center in Monterrey supports a variety of technologies and technology platforms, including JAVA/J2EE, Microsoft.Net, mainframe, SAP and Oracle. It is Accenture’s second delivery center in Mexico, joining one in Mexico City, which opened in 2004.
Atos Origin has been awarded an SAP Global Pinnacle Award in the area Outsourcing Hosting. SAP Pinnacle Awards were granted to leading SAP partners that have excelled in enhancing the customer experience by teaming with SAP to help customers address critical issues such as accelerating innovation and improving return on investment. Winners were selected based on nominations received from partners and SAP employees. Atos Origin received the award at a special awards ceremony held on the eve of SAPPHIRE Berlin, SAP’s international customer conference May 19 – 21.
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May 21, 2008
Top Stories
OUTSOURCING CENTER NAMES 2008 OUTSOURCING EXCELLENCE WINNERS...Outsourcing Center, one of the leading sources of information about outsourcing, has announced the winners of the 2008 Outsourcing Excellence Awards:
Best Partnership Harvard Pilgrim Healthcare and Perot Systems Corp.
Best EU Universal Music Group and buyingTeam
Best ITO Touro Infirmary and Siemens Medical Solutions USA, Inc.
Best BPO ENMAX Energy Corporation and Cognera Corp.
Best Financial Services Royal Bank of Canada (RBC Financial Group) and iGATE Global Solutions
Best First Steps National Life Group and Perot Systems Corp.
Most Strategic Microsoft Corporation and Accenture
Most Flexible Lloyds TSB Bank plc and Firstsource Solutions Ltd.
An independent panel of industry experts evaluated numerous nominated relationships worldwide. The August issue of the Outsourcing Journal will feature in-depth articles on each award-winning relationship. Forbes magazine will highlight the winners in its June 2 issue.
ACCENTURE ACQUIRES BRAZILIAN FIRM...Accenture has agreed to acquire ATAN, a privately held provider of industrial information technology (IT) and automation solutions based in Belo Horizonte, Brazil. The acquisition is designed to accelerate Accenture’s expansion into automation and industrial IT services globally and further enhances the company’s capabilities in management consulting, systems integration and technology consulting within the global metals and mining, energy and utilities industries.
HP REVENUES UP IN SECOND QUARTER...HP announced financial results for its second fiscal quarter ended April 30, 2008, with net revenue of $28.3 billion, up 11% from a year earlier and up 5% when adjusted for the effects of currency. GAAP operating profit was $2.6 billion and GAAP diluted earnings per share (EPS) was $0.80, up from $0.65 in the prior-year period.
CONVERGYS EXPANDS IN PHILIPPINES...Convergys Corporation will expand operations in the Philippines by nearly 50 percent with the addition of five new integrated contact centers throughout the country. The five new sites will bring the total number of Convergys contact centers in the Philippines to 14. At capacity, the new state-of-the-art facilities will employ up to an additional 7,000 talented individuals, bringing Convergys’ total employment in-country to approximately 20,000.
ORACLE SIGNS PARTNERS FOR BPO INITIATIVE...More than 15 business process outsourcing providers have signed on to provide BPO services through the new "BPO Powered by Oracle" global program. Oracle Business Process Outsourcing (BPO) is a sell-through partner program that makes the complete Oracle stack of applications, database and middleware products available to service providers.
New Business
The State of Maine Department of Health and Human Services (DHHS) has awarded Unisys a $179 million, seven-year, firm-fixed-price contract to provide a new Medicaid Management Information System (MMIS) to manage Maine’s current and future Medicaid program.
Computer Sciences Corporation announced that The Phoenix Companies, Inc. has licensed CSC’s Customer Service Accelerator software to improve customer service for its 650,000 life insurance and annuity policyholders and the financial advisors who distribute its products.
The U.S. Defense Information Systems Agency (DISA) has awarded Unisys a contract to compete for task orders to provide information technology (IT) solutions to the Department of Defense (DOD) and other federal agencies under the $12.25 billion ENCORE II multiple award indefinite delivery indefinite quantity contract.
International News
Satyam Computer Services Ltd., a leading global consulting and information technology services provider, and GE Healthcare, announced a comprehensive agreement to support customers deploying healthcare IT solutions based on GE Centricity Enterprise software. The companies will join forces to plan, design, and implement infrastructures for global healthcare providers of all sizes -- from the smallest polyclinics to the largest hospitals. They will also perform application integration and tailor solutions for providers, as needed.
Harman International Industries, Incorporated has signed an agreement with Wipro Technologies to transfer responsibility for Harman’s Information Technology infrastructure to the solutions provider. Phased implementation of the initiative is expected within six months. The agreement will impact Harman information technology operations in ten countries across the Americas, Europe and Asia. Wipro’s initial scope of supply will include help desk operations plus administration of desktop systems, servers and networking.
India's largest private telecom operator Bharti Airtel has signed a three-year outsourcing deal with BPO firm Firstsource Solutions to offer voice and back office operations to its 66 million mobile customers. , Firstsource will provide BPO services covering both voice and back office in areas such as customer accounting, VAS provisioning, fraud and credit monitoring, customer service, collections, customer retention and from its centres in Chennai and Mumbai.
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May 14, 2008
Top Stories
HP TO ACQUIRE EDS FOR $13.9 BILLION...HP and EDS have signed a definitive agreement under which HP will purchase EDS at a price of $25.00 per share, or an enterprise value of approximately $13.9 billion. The terms of the transaction have been unanimously approved by the HP and EDS boards of directors.
The transaction is expected to close in the second half of calendar year 2008 and to more than double HP's services revenue, which amounted to $16.6 billion in fiscal 2007. The companies' collective services businesses, as of the end of each company's 2007 fiscal year, had annual revenues of more than $38 billion and 210,000 employees, doing business in more than 80 countries.
HP intends to establish a new business group, to be branded EDS - an HP company, which will be headquartered at EDS's existing executive offices in Plano, Texas. HP plans that EDS will continue to be led after the deal closes by EDS Chairman, President and Chief Executive Officer Ronald A. Rittenmeyer, who will join HP's executive council and report to Mark Hurd, HP's chairman and chief executive officer.
PEROTSYSTEMS BUYS ORIGINAL SOLUTIONS...Perot Systems Corporation has acquired Original Solutions Limited (Original Solutions), a professional IT services firm providing applications development and management services to clients in Ireland and the United Kingdom. Financial details of the acquisition were not disclosed. Original Solutions' competencies include web applications and client server development, enterprise integration and legacy systems re-engineering, as well as significant expertise in IT Service Management and IT Infrastructure Library process management. Based in Limerick and Dublin, Ireland, Original Solutions employs approximately 90 people and reported revenues of euro 9 million in 2007.
New Business
The Hertz Corporation has expanded its relationship with IBM, signing a five-year contract for global information technology to support Hertz's overall reengineering and efficiency improvement efforts. Under the contract, IBM will expand its services to provide application maintenance and development services and management for the Company's rent a car technology systems, support and operations for mid-range hardware and software and will establish operations for a global help desk for internal Hertz support. In addition, IBM will continue to provide Hertz with application maintenance and development services for the Company's equipment rental and claims management divisions and will continue to provide technical support and operations of the IBM mainframe system.
Accenture has been selected by Continental Casualty Company, a principal insurance company subsidiary of CNA Financial Corporation to administer, under a five-year business process outsourcing (BPO) agreement, certain annuity and retirement-related products that CNA no longer underwrites, markets or promotes. The administration of these products includes the handling of customer inquiries, requests and payments on a number of policy administration platforms, including the Accenture Life Insurance Platform.
Convergys Corporation announced that a leading U.S. communications company with millions of subscribers has extended and expanded its agreement with Convergys for its state-of-the-art Relationship Management Solutions. The expanded contract includes a 12-month extension of Infinys license support and maintenance and an agreement for consulting services.
The U.S. Department of Veterans Affairs (VA) has selected EDS to provide outbound calling services
and inbound callback support to facilitate the Combat Veteran Call Center outreach and education campaign to make combat veterans more aware of health care services and benefits available from the VA. Financial terms of the contract were not disclosed. The Combat Veteran Call Center will increase awareness of the extension of health care and benefits eligibility for veterans of the war in Iraq and Afghanistan. It is the first task order awarded under the General Services
Administration's $2.5 billion USA Contact contract vehicle.
Affiliated Computer Services, Inc. announced a renewed contract with Weld County, Colo., to provide information technology (IT) services. The contract has a length of up to 15 years and a total value of $60 million if all options are exercised.
International News
Computer Sciences Corporation has signed a new, seven-year information technology (IT) applications outsourcing agreement with TDC, the largest telecommunications company in Denmark. The contract is valued at approximately $413 million. CSC has supported TDC since 2003. The new agreement follows last year’s $330 million, seven-year award, which expanded the scope of infrastructure services CSC was providing. Under the new contract, which substantially expands CSC’s application services support, CSC will manage TDC’s legacy application portfolio, providing application development and maintenance services for more than 500 applications and supporting approximately 17,000 users.
BT has signed an agreement with Thomson Reuters to manage the WAN (wide area network) element of its internal IT infrastructure in an eight year outsourcing deal. BT will transform Thomson Reuters’ existing WAN into a high-speed, IP based global infrastructure that will encompass 323 locations across 100 countries including six applications hosting data centres. This win follows a 10 year plus deal BT reached with Reuters in 2005 to transform and manage the global network Thomson Reuters uses to deliver services to more than 330,000 financial market professionals across the world.
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May 07, 2008
Top Stories
ZURICH FINANCIAL EXTENDS CSC CONTRACT...Computer Sciences Corporation has signed an information technology (IT) desktop services outsourcing contract expanding the scope of services CSC provides to Zurich Financial Services Group (Zurich), a world-leading, insurance-based financial services provider. The new agreement has a six-year base period at an estimated value of $399 million with a two-year extension option. Under the contract, CSC will assume responsibility for the provision of Zurich’s electronic Workplace (eWP) desktop services to its businesses in the United States, Canada, the United Kingdom, Switzerland, Germany, Italy and Spain.
ACCENTURE ACQUIRES FREIGHT-MANAGEMENT COMPANY...Accenture will acquire the business of AddVal Technology Inc. (AddVal), a privately owned provider of end-to-end shipment-management products and services to global freight-management and airline-cargo companies. Based in Cupertino, Calif., AddVal has a software development center in Chennai, India. The acquisition would provide Accenture with AddVal’s industry-leading technology platform for freight order management and strengthen Accenture’s Freight and Logistics practice, which provides a wide variety of services to the global freight-management industry.
DARWINSUZSOFT REBRANDS AS DEXTRYS...Dextrys, a US-based China outsourcing firm delivering Product Engineering and Application Services, formally unveiled its new corporate identity. The rebranding evolution from DarwinSuzsoft to Dextrys is a reflection of the company's new ownership, new management, and refined business strategy.
New Business
Computer Sciences Corporation has signed an amendment to extend its information technology (IT) outsourcing agreement with Nortel by two years. The amendment extends the contract through November 2011. CSC will continue to provide applications support and IT call center services to Nortel’s global user community. These services leverage CSC’s World Sourcing delivery centers from around the globe to provide Nortel with a high-quality, low-cost solution.
Affiliated Computer Services, Inc. announced a renewed contract with Weld County, Colo., to provide information technology (IT) services. The contract has a length of up to 15 years and a total value of $60 million if all options are exercised. The contract provides technology services including application support, help desk, personal computers, Geographic Information Systems, web development and network support. This contract renewal was reflected in ACS' third quarter fiscal year 2008 results.
International News
C. Hoare & Co, England's oldest privately owned bank, has signed a five -year outsourcing deal with Capgemini to host its IT infrastructure. The deal will begin in June following a short transition, where the bank's main IT hardware will be moved from its headquarters in Fleet Street to a UK-based Capgemini data centre.
Unisys Corporation announced that its Hong Kong subsidiary has signed an IT outsourcing services contract with Hong Kong Judiciary, the institution responsible for the administration of justice in Hong Kong. Unisys was awarded the five-year contract, with an additional two-year option. The new contract, signed during end of 2007, replaces an earlier contract between Unisys and the Judiciary, which had been in place since 2001. Under this new contract, Unisys will deliver IT outsourcing services, including ongoing application support and maintenance, network infrastructure, office automation and other IT services.
WNS and Advanced Contact Solutions, (ACS) Inc. have formed a joint venture company - WNS Philippines, Inc. offering contact center services to global clients across industries. The Philippines is the third largest English-speaking nation in the world and produces 350,000 college graduates each year, thereby providing a highly-educated talent pool for the delivery of BPO services. The country's business-friendly environment and its time zone advantages make the Philippines a natural choice for providing 24x7 service to global companies, particularly those based in United States. The WNS delivery center is located in the capital city of Manila and intends to initially scale to 200 seats.
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April 30, 2008
Top Stories
ACS WINS 5-YEAR-EXTENSION FROM NIKE...Affiliated Computer Services, Inc. has been awarded a five-year contract extension to provide comprehensive information technology outsourcing services to NIKE, Inc., the world's leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Under the terms of the deal, ACS will supply end-to-end infrastructure services, including global datacenter, network, security, mainframe, midrange and messaging from strategically located ACS delivery centers in the United States, Asia and the Americas, including ACS' Northwest Regional Datacenter located in Hillsboro, Oregon. Additionally, ACS will provide services from NIKE datacenters located in Andover, Mass., Memphis, Tenn., and Hilversum, the Netherlands.
CONVERGYS REPORTS FIRST QUARTER...Convergys Corporation reported revenues of $716.4 million in the first quarter of 2008 compared with $719.9 million in the same period last year. EPS were $0.28. Operating income in the first quarter was $38.9 million compared to $65.2 million in the same period a year ago. The company confirmed its 2008 guidance of revenues of $2.85 to $3.0 billion and GAAP earnings of $1.31 to $1.36, per diluted share.
UNISYS REPORTS FIRST QUARTER LOSS...Unisys Corporation reported a loss of $23.4 million, or 7 cents per share, compared with a profit of $3.6 million, or a penny per share, in the year-ago period. The company's revenue dropped to $1.3 billion from $1.35 billion. Foreign currency exchange rates had an approximately 5 percentage-point positive impact on revenue in the quarter.
HEWITT ASSOCIATES ACQUIRES LCG...Hewitt Associates is expanding its suite of HR outsourcing solutions through the acquisition of LCG and its wholly-owned subsidiary, Disability Management Alternatives, LLC, an expert in employee absence management. Under the terms of the agreement, Hewitt will acquire LCG, which provides an array of integrated disability, leave and absence management solutions for mid- to large-sized employers.
CAPGEMINI NAMES NEW CMO... Christopher K. Williams has been appointed vice president and North America chief marketing officer (CMO) of Capgemini. Williams is responsible for leading the strategic positioning of the company, driving marketing and communication strategy and leveraging the company’s strong focus on innovation across the company’s consulting, technology and outsourcing services in North America.
New Business
Symcor Inc., a North American leader in payment financial transaction processing and SunTrust Banks, Inc., one of the largest financial institutions in the United States, today announced they have signed an agreement under which a significant portion of SunTrust's back-office banking operations will be outsourced to Symcor. Under the terms of the 10-year agreement, Symcor will handle SunTrust’s check clearing, lockbox processing and statement production.
EDS has been awarded a seven-year, $391 million contract by the state of Georgia to design, develop and implement a new-generation Medicaid Management Information System (MMIS). The new system will provide fiscal agent and enrollment broker services and establish electronic health records (EHRs) for Medicaid recipients. The contract was awarded in the first quarter of 2008.
The Hertz Corporation has signed a five-year contract with ICG Commerce, a leading procurement services provider, for procurement outsourcing services to support Hertz’s broader efficiency improvement and reengineering efforts. Under the contract, ICG Commerce will provide comprehensive procurement outsourcing services for Hertz’s North American and European operations. These services will help Hertz drive greater control over expenditures in buying categories including professional services, equipment and automotive, facilities, transportation, IT, benefits and marketing.
International News
Accenture has completed its acquisition of SOPIA Corporation, a privately held, Tokyo-based consulting and Information Technology solutions company specializing in Oracle systems integration. SOPIA is now part of Accenture in Japan.
Country Energy, manager of Australia’s largest power network, and IBM will work together to develop an intelligent utility network in Australia. Based on open standards, this digital system provides near real-time data and information that a utility can use to manage its grid, minimize outages, improve customer service, and source and deliver power more efficiently. It also allows customers to exert greater control over their power use.
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April 23, 2008
Top Stories
CSC ANNOUNCES $915 MILLION IN NEW CONTRACTS...Computer Sciences Corporation announced that since Jan. 1, its North American Public Sector (NPS) business unit has signed 71 previously unannounced contracts and subcontracts during its fiscal 2008 fourth quarter, which ended March 28. These contracts have a total estimated value of approximately $915 million if all contract options are exercised. The performance periods for the contracts range from one month to ten years. Civil agencies accounted for 31 awards with a total value of approximately $416 million. The Defense Department and its agencies accounted for 40 awards with a total value of approximately $499 million.
CSC LAUNCHES NEW HEALTHCARE SECTOR...Computer Sciences Corporation announced the launch of the company's new Healthcare Sector, a dedicated vertical business unit serving healthcare providers, health plans, pharmaceutical and medical device manufacturers and allied industries globally. Healthcare Sector offers clients onshore and offshore expertise with the major clinical information systems, claims processing systems and enterprise content management systems used by the healthcare industry. In addition, application management services and business process outsourcing
(BPO) offerings are supported from CSC's healthcare centers in Bangalore and Chennai, India.
TRINET ACQUIRES LMC RESOURCES...TriNet, a nationwide provider of human resources outsourcing services for small and medium-sized companies, has signed a definitive agreement to acquire the customer and other assets from LMC Resources, Inc., a Professional Employer Organization (PEO) based in Denver, Colorado. With this transaction, TriNet continues its strategy to augment the substantial organic growth it has experienced with acquisitions that strategically expand its customer base.
SAAS.COM ENTERS HRO SPACE...WebApps, Inc. a.k.a. SaaS.com, a leading provider of Software as a Service (SaaS) with a major push in Workforce Management Solutions, exhibited at the 2008 HRO World Conference, a human resources outsourcing (HRO) industry event. As a new member of the Human Resources Outsourcing Association (HROA), the primary association linked to the event, HRO World acted as SaaS.com’s debut into the HRO space.
New Business
Sara Lee Corporation has renewed its infrastructure outsourcing services contract with HP for additional seven years and has extended management of operations in 10 countries to more than 35. As part of the new agreement, HP will supply Sara Lee with infrastructure outsourcing services, including central and local end-user support services. HP also will provide Sara Lee with data center and network services in Europe, the Middle East and Africa, Latin America and Asia.
Convergys Corporation has signed contract renewals and expansions with two leading financial services companies. Under terms of these renewed and expanded contracts, Convergys will provide additional live-agent support for on-going customer service, retention programs, and back office solutions, including multi-language customer care for client customers speaking Spanish, Cantonese, Korean, Japanese, Mandarin, and English. Cumulatively, the contracts are valued at more than $85 million over the next three years.
International News
IBM Japan has signed an extension to its outsourcing contract with Mazda Motor Corporation to support the automaker's global operations. The agreement extends the previous contract for the December 1999 to May 2010 period by five years, and runs through 2015. The modified strategic outsourcing contract period will take effect in April 2008 for seven years through 2015. The new agreement differs from the original in that it covers not only the development, maintenance and operation of information systems, but also prioritizes human resources development to enhance Mazda's business and systems know-how. It will also strengthen the strategic relationship between the two companies.
Bharat Sanchar Nigam Limited (BSNL) has signed a multi-year licensing, support, and maintenance contract for Convergys’ Infinys rating and billing solution. BSNL will replace its legacy billing systems with the Convergys solution to reduce IT costs and to facilitate the introduction and deployment of new convergent services. BSNL is India’s largest and the world’s seventh largest telecommunications company providing a comprehensive range of telecom services.
Luxoft, a global provider of high-end software application and product development services to clients such as Deutsche Bank, Boeing, IBM, UBS and others, today announced it has opened a new delivery center in Ho Chi Minh City, Vietnam. The opening marks the first time an Eastern European software service provider has established a presence in Vietnam. It also makes Luxoft the first outsourcing provider in its region to offer a truly global delivery model.
Croydon Council has signed an extension to its IT outsourcing deal with Capgemini, worth an estimated £83m over five years. The new deal runs until 2013 and covers all the council's IT and telecoms infrastructure and networks, 4,000 desktop PCs and key business applications, including finance, procurement and customer service.
Offshore Management of IT Infrastructure Hot, Traditional Outsourcing Still Dominates Market, According to Everest Annual Report
Remote Infrastructure Management Outsourcing (RIMO) continues to be the darling model of the sluggish Infrastructure Outsourcing (IO) market, according to the Everest Research Institute’s IT Infrastructure Outsourcing (ITO) Annual Report. Despite the overall IO market’s slow growth, predicted to crawl at a 4 percent (CAGR) growth pace over the next five years, RIMO adoption is growing at approximately 60 percent annually and is predicted to reach US $8.6 billion by 2010. Although RIMO’s adoption rate is soaring, RIMO only comprises one percent of the overall IO market with the slow-growing traditional solutions making up 75 percent of all infrastructure outsourcing arrangements.
To read more about the findings of the IT Infrastructure Outsourcing (ITO) Annual Report, an extract of the report is available at www.everestresearchinstitute.com. To purchase the report or receive more information about other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
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April 16, 2008
Top Stories
COMPUCOM ACHIEVES ISO 20000...CompuCom Systems has achieved International Organization for Standardization (ISO) 20000 certification, the international standard for IT Service Management (ITSM). Based on the adoption of Information Technology Infrastructure Library (ITIL) best practices, the ISO 20000 certification is one of many standards and framework components CompuCom follows and benchmarks the company’s industry-leading delivery of IT services. Currently, CompuCom is one of a select few companies registered in North America.
PROCUREMENT OUTSOURCING ON A 'SEE-SAW," EVEREST STUDY FINDS...Outsourcing of procurement functions is on a “see-saw” growth path fueled by an enhanced value proposition and strong movement towards global sourcing and offshoring, according to an Everest Research Institute study of the procurement outsourcing (PO) market. Companies signed fewer procurement outsourcing deals in 2007, a number slightly below the landmark 2006 figures; however, market growth was evident as managed, non-core PO spend crossed $50 billion (US) last year, according to the Institute’s study, Procurement Outsourcing (PO) Annual Report.
SCRIPPS TAPS ADP FOR HR SERVICES...The E. W. Scripps Company (Scripps) has selected ADP to provide comprehensive HR, payroll, benefits, pre-employment and related services to support its more than 9,000 employees. Scripps is a diverse media corporation with interests in national lifestyle cable networks, newspaper publishing, broadcast television stations, electronic commerce, interactive media, and licensing and syndication.
WNS ACQUIRES UK AUTO-INSURANCE PROCESSING FIRM... WNS(Holdings) Limited has acquired Call 24/7 Ltd., an auto insurance-claims-processing services provider in the United Kingdom. WNS will integrate Call 24/7 into WNS Assistance, a division of WNS Global Services Ltd. UK, and a subsidiary of WNS. The deal will enable WNS to extend its market leadership position in accident claims management in the UK.
TRIZETTO GROUP ACQUIRED; WILL GO PRIVATE...The TriZetto Group, Inc. has entered into a definitive agreement to be acquired and taken private by funds advised by Apax Partners, a growth-focused, global private equity firm with $35 billion in funds under advice and significant expertise in healthcare and technology. Under the terms of the agreement and plan of merger, TriZetto shareholders will receive $22.00 per share in cash, representing a 29% premium over the 30 calendar-day average closing price of the company’s stock. The transaction is valued at approximately $1.4 billion, including consideration for stock options and shares related to TriZetto's outstanding convertible notes. BlueCross BlueShield of Tennessee and The Regence Group, both customers of TriZetto, are providing a portion of the funding for the transaction and will be equity investors in the newly private company.
EQUIFAX BUYS RUSSIAN FOOTPRINT...Equifax Inc. has agreed to acquire a 28 percent equity stake in Global Payments Credit Services LLC (GPCS), a leading credit information company in Russia, from Global Payments Europe, s.r.o., a subsidiary of Global Payments Inc. (NYSE: GPN),and Home Credit and Finance Bank of Russia (Home Credit).
SATYAM WINS GLOBAL AWARDS...Satyam BPO, the business process outsourcing arm of Satyam's global business and IT services company, has won two prestigious Shared Services Excellence awards from the International Quality and Productivity Council. The company was honored in Orlando, Fla, during Shared Services Week, a conference organized by IQPC. Satyam BPO was a winner in the 'Best Business Process Outsource Provider' and the first runner-up in the 'Best Customer Service Delivery Framework' categories.
New Business
The U.S. Department of Justice (DOJ) has awarded Unisys a contract to provide professional and technical services supporting the DOJ’s Asset Forfeiture Program (AFP), a nationwide law enforcement program that manages assets forfeited in the prosecution of criminals and criminal enterprises. Unisys is one of four companies to be awarded an indefinite delivery/indefinite quantity (IDIQ) contract.
Xerox Corporation has won a five-year blanket purchase agreement on an estimated $400 million U.S. Air Force contract for the placement of Xerox multifunction printers, network copiers and supplies. Xerox will provide technology and services to help the Air Force reduce expenses, consolidate equipment and achieve global standards in its document management operations.
International News
The Flemish Public Employment Service (VDAB) agency has selected EDS as its new partner to manage its information communication technology (ICT) infrastructure. The contract has a six-year term and is worth approximately €50 million (US$74 million). Under the contract, EDS will provide a range of infrastructure services, including user support, user infrastructure management and maximum availability of the ICT environment for the agency's customers and partners. EDS will provide desktop support to more than 5,000 users in 200-plus locations and manage approximately 100 servers.
HP and BT have signed a contract with Nycomed, an international pharmaceutical company headquartered in Switzerland, to outsource its infrastructure services over the next five years. Nycomed engaged the BT HP Alliance to support its infrastructure, which must handle the rapid exchange of critical real-time information across international networks. Under the terms of the agreement, HP will manage Nycomed’s data centers, including more than 450 servers and 120 terabytes (TB) of storage and back-up facilities. HP will also deliver end-user workplace solutions for 10,000 workstations in more than 50 countries. Finally, HP will be responsible for a complete migration of 13,000 mailboxes to the new company standard, Microsoft Exchange 2007.
TRANSALLIANCE, a major European operator for transport and logistics markets based in Nancy, France, announced an agreement with IBM to host its servers, manage its information technology (IT) security and its databases. The four million euro contract will run for the next five years. IBM will provide IT governance for TRANSALLIANCE's companies as well as the management and administration of its entire IT infrastructure on two secured remote sites. The availability of a responsive IT system with on-demand storage capacity was a key factor in TRANSALLIANCE's decision.
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April 09, 2008
Top Stories
PEROT SIGNS $1 BILLION RENEWAL WITH HARVARD PILGRIM...Perot Systems Corporation and Harvard Pilgrim Health Care have extended their IT and Business Process Services Relationship through 2021. Under this new 13-year, $1 billion contract, Harvard Pilgrim will realize approximately $150 million of administrative cost savings over the life of the agreement through the consolidation and leveraging of technology, administrative functions and redesign of administrative operations. Perot Systems will operate and support Harvard Pilgrim's information technology infrastructure, business applications, and administrative business operations.
HP WINS 7-YEAR BPO DEAL WITH TRIBUNE PUBLISHING...HP has been awarded a seven-year business process outsourcing (BPO) contract with the Tribune Publishing subsidiary of Tribune Company, one of the United States’ top media companies. HP has already begun delivering a full scope of finance processes, including cash application, credit, collections and customer service, for many of Tribune Publishing’s advertisers. Additionally, HP is deploying applications to boost the value, efficiency and quality of the company’s business processes. The implementation of the contract will occur in phases, supporting seven of Tribune Publishing’s major metropolitan newspapers and the company’s related interactive websites. It is expected to be completed by summer.
CSC SIGNS MAJOR IT DEAL WITH CHRYSLER...Computer Sciences Corporation has signed a multi-year information technology (IT) services agreement with Chrysler LLC. Under the contract, CSC will provide mainframe, server and storage services for all of Chrysler’s worldwide locations. CSC will also provide applications support, maintenance and development services for a portion of Chrysler’s application portfolio. Financial terms were not disclosed.
EDS BUYS UK SECURITY SERVICES FIRM...EDS has acquired UK-based Vistorm Holdings Limited, a leading provider of information assurance and managed security services. Financial terms were not disclosed. Vistorm provides information assurance and managed security services in the UK and globally and serves organizations of all sizes, particularly commercial and financial services firms.
ACCENTURE STRENGTHENS GLOBAL DELIVERY NETWORK...Accenture has strengthened its systems integration and outsourcing capabilities for European clients with the integration of its delivery center in Casablanca into its Global Delivery Network. The Accenture Global Delivery Network comprises 76,000 professionals at numerous delivery centers and other Accenture and client locations around the world.
New Business
Affiliated Computer Services, Inc. has been awarded a contract to provide business process outsourcing (BPO), information technology outsourcing (ITO), and customer care services for CAQH, the Council for Affordable Quality Healthcare. The multi-million dollar deal has a five and one-half year term with two one-year options, including a six-month implementation period. CAQH is a nonprofit alliance of health plans and trade associations collaborating on initiatives that simplify healthcare administration for health plans and providers, resulting in a better care experience for patients and caregivers.
International News
MakeMyTrip, India's leading travel company, announced a strategic agreement with IBM to further enhance its customer service experience through process and technology innovation. The five-year contract for outsourcing contacts services to IBM Daksh will involve augmentation of MakeMyTrip's sales, customer service, and back office capabilities. MakeMyTrip recorded sales of Rs. 1,000 crores in F.Y.E March 2008, making it India's largest travel site, with a forty percent market share.
Computer Sciences Corporation has signed a four-year, $20 million information technology (IT) services agreement with the Danish Central Office of Civil Registration (CPR Office), located within the Ministry of Social Welfare Department. CSC will provide operation and maintenance support services for the CPR system, the Danish Civil Registration System that supplies public authorities and private sector companies with each Danish citizen’s basic personal information.
Globalization and Sustainable Development in the Information Age
The Global Sourcing Council (GSC) at The Howe School of Technology Management, Stevens Institute of Technology, has announced the next meeting of the GSC, “Globalization and Sustainable Development in the Information Age” on Wednesday, April 16 at 4 pm at The Philippine Center, 556 Fifth Avenue, New York. The keynote speaker is Sarbuland Khan, Executive Coordinator for the UN Global Alliance for ICT and Development (UN G@ID), a partnership and network supported by the United Nations, which is actively pursuing the goal of a better, more peaceful world through the use of ICT as an instrument for overcoming poverty. In addition, Steve Kloeblen, Vice President, IBM will discuss the IBM World Development Initiative, which is focused on finding business opportunities for IBM in meeting the needs of people at the “base of the socioeconomic pyramid.” For more information, contact Sharen.Glennon@stevens.edu or visit http://howe.stevens.edu
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April 02, 2008
Top Stories
EDS SIGNS $1 BILLION DEAL WITH ROYAL DUTCH SHELL...EDS has signed a five-year, US$1 billion IT Master Services Agreement (MSA) with Royal Dutch Shell (Shell). Today's agreement with EDS is one of three IT outsourcing agreements between Shell and three key suppliers, (AT&T and a Deutsche Telekom unit won five-year contracts worth around $1.6 billion each to provide communications and technology services)and is expected to deliver Shell a substantial business improvement over the five year initial term of the contract. Under the terms of the agreement, EDS will manage Shell's end-user computing services including desktop, service desk, on-site services, back-up and disaster recovery, mobile information protection and managed messaging services, for 150,000 users in over 100 countries across its global operations. To reduce management complexity for Shell, EDS will also act as operational integrator, collaborating closely with Shell’s other key IT suppliers.
New Business
The New York City Department of Information Technology and Telecommunications (DoITT) has awarded Accenture a new $79.6 million, three-year contract to provide technology and business process support to the Health and Human Services Connect (HHS-Connect) program.
EDS and Blue Cross Blue Shield of Arizona (BCBSAZ)have renewed their 20-year relationship. The five-year agreement for the MetaVance Administration and Finance System will allow BCBSAZ to continue to meet industry mandate terms and improve claims processing accuracy and speed, ultimately lowering costs and improving customer satisfaction for its providers and members. Financial terms of the agreement are not being disclosed.
Affiliated Computer Services, Inc. has been awarded a contract to provide business process outsourcing (BPO), information technology outsourcing (ITO), and customer care services for CAQH, the Council for Affordable Quality Healthcare. The multi-million dollar deal has a five and one-half year term with two one-year options, including a six-month implementation period. CAQH is a nonprofit alliance of health plans and trade associations collaborating on initiatives that simplify healthcare administration for health plans and providers, resulting in a better care experience for patients and caregivers.
Computer Sciences Corporation has been awarded a Software Engineering and Specialized Scientific Support blanket purchase agreement to provide information technology (IT) and information management services to the U.S. Environmental Protection Agency’s (EPA) Office of Research and Development (ORD). CSC estimates the value of the agreement, which has a one-year base period and six one-year options, to be $110 million if all options are exercised.
IBM Lender Business Process Services, Inc., , a wholly owned subsidiary of IBM, announced that Coastal Federal Credit Union has entered into a five-year contract whereby IBM will provide comprehensive private label mortgage loan fulfillment services. Coastal Federal Credit Union, based in Raleigh, NC, is a not-for-profit, member-owned, financial cooperative with nearly 172,000 members and approaching $2 billion in assets.
International News
BT announced a £62 million, five-year outsourcing agreement with KPMG practices in the UK and Germany – which together form KPMG Europe LLP, the largest integrated accountancy firm in Europe. BT will assume delivery responsibility for services that include Wide Area Network (WAN), Local Area Network (LAN) refresh and management, deployment of Cisco IP Telephony, integration with an existing Microsoft Office Communications Server (OCS) platform, provision of managed video and audio conferencing, provision of fixed voice and management of existing Time-Division Multiplexing (TDM) telephony in the pre-transformed state.
IBM and Telefónica Argentina, Chile, Colombia y Perú have extended their information technology (IT) services contract. As part of the contract, IBM will operate and provide technical support for mainframe servers as well as a capacity backup upgrade for high availability and disaster recovery, until year 2011. IBM will provide server support at Telefónica Argentina, Chile, Colombia y Perú’s offices and from an IBM data center in Argentina.
Computer Generated Solutions, Inc. (CGS) announced that its long term services relationship between CGS Romania, a wholly-owned subsidiary, and AOL L.L.C., was recognized by FAO Research in a report published last week for having achieved value beyond initial contract expectations.
Compass BPO, a global organization providing F&A and IT outsourcing solutions announced that its submission to the FAO awards of Distinction has been nominated and is recognized in the category of Companies with greater than $5 million in Revenue. Compass BPO got a special mention as a company with a "FAO 2.0" FAO Research, annual awards of distinction recognizes outsourcing buyers and service providers collaborating to provide industry leadership in improving F&A operations for competitive advantage.
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March 26, 2008
Top Stories
SODEXO TAPS ADP FOR HR SERVICES...Sodexo Inc. has selected ADP as its human resources (HR) business provider to deliver payroll and related services directly to Sodexo's 100,000 U.S.-based employees. Sodexo, a leading provider of integrated food and facilities management services worldwide, sought a domain expert that could directly support all of its U.S.-based employees while complementing and integrating with Sodexo's broader HR initiatives. This included interacting with Sodexo's proprietary time and labor management (TLM) system, which captures time details from more than 9,000 business units every pay period.
LOGICA NAMES FORMER-EDS EXECUTIVE HEAD OF N.A. SALES...Josh Strasner has been appointed Senior Vice President of Sales at Logica, where he will be responsible for developing and executing the international IT services company’s sales growth in the North American market. In his 23-year career, Strasner has held a variety of sales executive and management positions. Most recently he was Client Sales Executive at EDS.
OPI OPENS DELHI SERVICE CENTER...Outsource Partners International, Inc. (OPI) has opened a new service center in Delhi, India. The service center will house 200 professional staff dedicated to the delivery of high-end, finance related research and analytics (R&A) outsourcing.
New Business
Computer Sciences Corporation announced a five-year, multimillion dollar information technology (IT) services contract with Eaton Corporation. Under the agreement, CSC will provide service desk support for all of Eaton's worldwide locations.
EDS has been selected by the U.S. General Services Administration (GSA) to provide call center services for all federal government agencies under the newly awarded USA Contact contract. EDS is one of nine companies that may compete for task orders under the $2.5 billion Indefinite Delivery/Indefinite Quantity contract. EDS will furnish facilities, personnel, equipment, supplies and services to meet the requirements of the task orders received from agencies using the USA Contact contract.
Computer Sciences Corporation has been awarded a task order from the Centers for Disease Control and Prevention (CDC) to continue developing and supporting the National Electronic Disease Surveillance System (NEDSS) Base System (NBS). The system helps the CDC manage and enhance public health surveillance at federal, state and local levels through electronic data exchange.
International News
Unisys Belgium has signed an agreement to provide an expanded range of outsourcing services to BD (Becton, Dickinson and Company), a global medical technology company. For the past four years, Unisys has managed BD’s European service desk. This new agreement expands the relationship between the two companies, both in terms of services and geographies. Unisys will now provide service desk and desk-side support, in whole or in part, for Europe, Asia Pacific and North America, including Canada.
RAG AG has commissioned Siemens IT Solutions and Services to take over and operate large portions of its IT and telecommunication infrastructure (ITC) in Germany. The outsourcing contract will run for four years and is worth some 35 million euros. Siemens subsidiary SBI Ruhr will operate the entire network and telecommunication infrastructure at the locations in Germany. This includes the headquarters of RAG in Herne, mines and a coking plant.
Avon and Somerset Police Authority has joined Southwest One, a joint venture to transform the services provided to the Constabulary and the communities it serves. In an agreement worth up to £185 million over ten years, the Police Authority joins the joint venture with IBM, Somerset County Council and Taunton Deane Borough Council, which linked up in October last year. The joint venture aims to establish a unique shared services approach to managing service delivery to approximately 1.5 million residents and lead to cost savings and improved efficiency in the delivery of services, including customer services and access, workforce development and procurement.
Perot Systems Corporation and ChinaSoft International announced that they have agreed to cooperatively develop mutually beneficial opportunities in the Chinese Healthcare market. ChinaSoft International Ltd., is a Hong Kong-listed public company which is one of the largest China-based information technology outsourcing (ITO) service and software companies, with over 4,600 employees worldwide.
CompuCom Systems, Inc. announced that its Canadian subsidiary, CCSI Technology Solutions Corp., has acquired SaltSpring Software Inc. of London, Ontario, a dedicated hardware and software reseller with Microsoft Large Account Reseller (LAR) status.
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March 19, 2008
Top Stories
EDS ACQUIRES ASSETS OF UK NETWORK SERVICE FIRM...EDS has acquired the assets of Nexagent, a Reading, UK-based provider of innovative hardware and software solutions for network service provisioning and advanced IP-based services across multi-network environments. Financial terms of the transaction were not disclosed. The transfer of assets is effective immediately. The acquisition builds upon EDS’ ongoing investment in the company’s networking services capabilities and the EDS Global Services Network, which connects more than 500 EDS service delivery sites worldwide to clients though a single, secure, fully redundant network.
TATA OPENS LARGEST U.S. CENTER...Tata Consultancy Services (TCS) unveiled its largest campus in America this week in a suburb of Cincinnati. TCS is investing around $20 million in the campus called Seven Hills Park, while also taking advantage of tax incentives of a similar amount from the state of Ohio. TCS will employ about 1,000 locals and use campus to service its North American customers, especially the Nielsen Company, with which it signed a $1.2 billion outsourcing deal last year.
COMPUCOM SEEN AS BEST-IN-CLASS...CompuCom Systems, Inc. announced that its clients have positioned CompuCom at the forefront of companies offering superior service quality and delivery in the recent Aberdeen Analyst Insight entitled “CompuCom vs. Best-in-Class: A Focus on Service Quality and Delivery in 2008.” The finding was derived from research collected from more than 280 global organizations that participated in a recent study by Aberdeen, a Harte-Hanks Company entitled, “ITSM: IT Transforms Itself into a Service.” CompuCom clients were benchmarked against other best-in-class organizations surveyed in the original report to chart how both organization subsets are leveraging multiple capabilities and technology enablers to develop strategic ITSM solutions.
SUTHERLAND ACHIEVES P-CMM LEVEL 5...Sutherland Global Services has become the first pure-play BPO to be assessed at maturity level 5 of the P-CMM (People Capability Maturity Model. The P-CMM framework was developed by Carnegie Mellon University to define the organizational maturity of people processes and practices. It is the only framework that addresses the needs of employees, their competencies, and the processes that need to be in place to ensure an organization is continuously improving and able to meet business needs effectively and efficiently and ranks on a scale of 1 to 5, with 5 being the highest achievable maturity level.
COMPASS BPO NAMED TO GLOBAL SERVICES 100...Compass BPO, a global organisation providing F&A and IT outsourcing solutions was named to the 2008 Global Services 100, an annual listing of the world's 100 most innovative service providers, as compiled by Global Services magazine and consulting firm neoIT.
New Business
Stanley, Inc., a leading provider of systems integration and professional services to the U.S. federal government, was awarded a five-year, $570 million contract to continue support of the U.S. Department of State, Bureau of Consular Affairs/Passport Services Directorate. Services include production, operational and business process support training, procurement, administration and evaluation of critical supplies, and facilities management support at the four Passport Centers and 14 Passport Agencies nationwide along with the Headquarters' support offices.
ACI Worldwide, Inc., a leading international provider of software for electronic payment systems, today announced an agreement to outsource its internal information technology (IT) services to IBM. As part of the agreement, IBM will provide ACI with global infrastructure services including management of ACI's mainframe, storage and related server platforms, data network monitoring and management, and end-user support services. ACI will retain responsibility for its security policy management and on-demand business operations. The seven-year agreement is estimated to deliver operating cost savings for ACI of $25 million to $30 million over the course of the contract, providing the company with advanced technology and enhanced service capabilities.
Computer Sciences Corporation has won a contract to expand the scope of its SureTrak surveillance system for the Naval Air Systems Command, located in Lexington Park, Md. CSC estimates the value of the five-year contract to be approximately $45 million. This award follows and is incremental to a contract CSC signed with the command in May 2006.
International News
Capita announced the closure of a $1.5 billion (£745 million) business process outsourcing (BPO) deal with Prudential UK involving the delivery of life and pension sales and administration services over a 15-year period. Building on an existing relationship with the financial services company since 2003, this new deal includes the provision of Prudential UK's life insurance intermediary administration services, the transfer of over 3,000 employees in the UK and India, and the sale of Prudential UK's Mumbai-based captive operation.
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March 11, 2008
Top Stories
COGNIZANT WINS $95 MILLION ASTRAZENECA DEAL...Cognizant announced an agreement with AstraZeneca to support the company’s drive for greater efficiencies in Clinical Data Management. AstraZeneca is one of the world’s largest pharmaceutical companies, widely recognized for its life-changing medicines. The contract is for a period of five years with anticipated revenues of approximately $95 million. Cognizant will provide a broad spectrum of centralized data management services for AstraZeneca’s global clinical development programs, including data management planning, clinical study set-up for electronic data capture, medical coding, adverse event reconciliation, clinical data management, and training for the clinical sites and investigators.
EDS TO OFFER MICROSOFT CRM...EDS will offer Microsoft Dynamics CRM as an EDS enterprise application solution to its clients globally. With this announcement, EDS becomes Microsoft’s enterprise partner to deliver Microsoft Dynamics CRM consulting and solutions that will reduce time-to-market, lower total cost of ownership and give clients a competitive edge. EDS’ services, which include consulting, implementation, integration, management hosting, contact center outsourcing and managed services, will allow clients to confidently purchase and deploy Microsoft Dynamics CRM in enterprise scenarios, such as contact centers and sales force automation.
BANCTEC ACQUIRES BPO SERVICES PROVIDER...BancTec has acquired DocuData Solutions, an imaging, content management and media storage business process outsourcing (BPO) services provider with operations centers throughout Texas. The acquisition supports BancTec’s strategy to expand its BPO business worldwide, adding 3 Texas processing centers to its 4 existing U.S. sites and 11 European sites.
MERCER NAMES HEAD OF US OPERATIONS...Jocelyn Purtell has joined Mercer’s outsourcing business as Head of US Operations, effective April 1, 2008. In this role, she will be responsible for running all of Mercer’s US operations, with a primary focus on transforming Mercer’s operational platform and processes in order to optimize service delivery and efficiencies for clients. She will be based in Mercer’s Deerfield, Illinois office. Purtell has more than 22 years of experience in the human resources outsourcing industry. Prior to joining Mercer, she spent her career at Hewitt Associates, which she joined in 1985 and where she rose to Senior Vice President, North America Operations Outsourcing Leader, managing Hewitt’s 10,000+ employee North American Operations group and responsible for servicing more than 400 large-market clients.
Interested in expanding your knowledge of FAO Governance? Complete this Everest Research Institute survey to share your learnings on governance team size, capabilities, and maturation in F&A outsourcing relationships. Complimentary copy of results provided to participants. Click here to take this 5-7 minute survey.
New Business
EDS has been awarded a contract to provide information technology support services to the Defense Manpower Data Center (DMDC), the Defense Department’s primary source of identity management and personnel benefits data. The contract, which runs one year followed by four one-year option periods, extends a relationship between DMDC and EDS that has spanned nearly 30 years. The contract is worth $179 million if all options are exercised.
Affiliated Computer Services, Inc. has been awarded a seven-year, $41 million contract to provide information technology outsourcing (ITO) services to Parkland Health & Hospital System, a Dallas-based public hospital system. Under the terms of the agreement, ACS will supply comprehensive infrastructure services, including data center operations, network monitoring and management, asset tracking, and help desk support services.
International News
Accenture has been selected to provide the next-generation digital supply chain for the international division of Universal Music Group, the world’s largest music company. The long-term agreement is designed to help Universal Music further adapt its business processes and systems to continue to stay ahead of the explosive demand for digital content and services. Accenture will provide a managed digital supply service that Universal Music will operate in all geographies outside of North America. Digiplug S.A.S, which Accenture acquired last year and integrated into its Digital Media Services business, will collate and store Universal Music Group’s audio and video content, artwork and metadata to distribute to the music company’s mobile and digital business partners.
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March 05, 2008
Top Stories
EDS WINS $1BILLION DEAL FROM SINGAPORE GOVERNMENT...Infocomm Development Authority of Singapore (IDA) announced the award of an eight-year information technology (IT) services deal worth approximately US$1 billion to EDS, leader of the oneMeridian consortium. This deal represents one of the largest IT projects ever undertaken in Asia. The agreement will help the Singapore government achieve a standard desktop, network and messaging/collaboration environment across its public sector by the end of fiscal year 2010. Called the Standard ICT Operating Environment (SOEasy) project, the Singapore government’s overall goal is to help public sector employees work more efficiently and improve the public sector’s agility and ability to deliver quality services to the country’s citizens and businesses.
MOTIF NAMES PRESIDENT OF U.S. OPERATIONS...Karl Wiley has joined Motif, Inc. as President of U.S. operations. Wiley will be responsible for all of Motif’s U.S. based operations, including corporate strategy, sales & marketing, key account management and M&A. He will be focused on driving accelerated growth for Motif by attracting new clients, expanding into additional industries and service lines, and growing activity from Motif’s current client base.
Wiley joins Motif after more than six years as an executive with eBay. Most recently he served as the Chief Operating Officer of MicroPlace, eBay’s start-up initiative providing a retail investment marketplace in the Microfinance industry. Prior to that, he was the general manager of eBay’s $5+ billion Technology and Media categories, and led eBay’s B2B wholesale initiative. In these roles, Wiley was responsible for strategy, consumer marketing, product management and customer service, and managed eBay’s relationship with many major branded retailers and manufacturers. He earned his MBA with honors from Harvard Business School and graduated magna cum laude from Duke University.
NCO GROUP ACQUIRES OUTSOURCING SOLUTIONS...NCO Group, Inc. a provider of business process outsourcing, has completed the acquisition of Outsourcing Solutions Inc., also a leading provider of business process outsourcing, primarily accounts receivable management services, for $325.0 million in cash, subject to certain post-closing adjustments.
COMPUCOM IN MAGIC QUADRANT...CompuCom Systems, Inc. has been positioned by Gartner, Inc. in the leaders quadrant in both analyst reports, “Magic Quadrant for Desktop Outsourcing Services, North America, 2008” and “Magic Quadrant for Help Desk Outsourcing, North America, 2008.” Authored by Richard Matlus and William Maurer, the two reports position external service providers (ESPs) based on their ability to execute and their completeness of vision. CompuCom has delivered industry-leading service quality for more than two decades.
New Business
Affiliated Computer Services, Inc. has been awarded a renewed contract by Northrop Grumman Information Technology to provide electronic benefit transfer (EBT) services to the Department of Human Services for the State of Illinois. The five-year contract has a value of $36 million to ACS, and was reflected in ACS' second quarter fiscal year 2008 renewals. As a sub-contractor to Northrop Grumman, ACS provides retail management and software support services for the state's Illinois Link program, which enables food stamp and cash assistance recipients to receive benefits electronically through the use of a LINK debit card at a retail store. ACS has served the state since 2001.
International News
Deutsche Telekom's enterprise customer division, T-Systems, and global IT services provider, Cognizant have entered into a global Systems Integration alliance primarily aimed at catering to European corporations with global delivery requirements for system integration services. This unique partnership—between a global delivery IT powerhouse and a European giant—will enable customers to leverage the benefits of global delivery.
VanceInfo Technologies Inc., an IT service provider and one of the leading offshore software development companies in China, announced its unaudited financial results for the fourth quarter and full year ended December 31, 2007:
-- Net revenues for the fourth quarter were US$19.3 million, up 96.1% from the fourth quarter 2006.
-- Net revenues for the year 2007 were $62.7 million, up 115.9% from 2006.
-- Gross margin was 38.6% in the fourth quarter of 2007 and 38.5% for the year, up from 37.2% and 38.2%, respectively, for the same periods in 2006.
-- Net income for the fourth quarter was US$3.1 million, up 136.3% from the fourth quarter of 2006.
-- Net income for the full year 2007 was US$9.6 million, up 118.7% from 2006.
-- Employees at year end 2007 totaled 3,675, up 60.5% from year end 2006. Of these, billable professionals totaled 3,224, up 64.3% from year end 2006.
“Life after Mega-deals in the IT Outsourcing Market” Webinar on March 12 to Be Presented by Everest Research Institute and Bernstein Analysts
Analysts from the Everest Research Institute and Sanford C. Bernstein & Co. will hold a one-hour Webinar to discuss the new challenges in the Information Technology Outsourcing (ITO) market stemming from a decrease in the mega-deals segment of the ITO market, lack of traction in the Small and Medium Business (SMB) segment, and the emergence of the Large Enterprises as a key driver of growth in the ITO. The Webinar, “Life after Mega-deals in the IT Outsourcing Market,” will be held March 12, 10 a.m. CDT/11 a.m. EDT.
To register, please visit: www.everestresearchinstitute.com/Events/Webinars. For more information about this Webinar or other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
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February 27, 2008
Top Stories
HP SIGNS GLOBAL SERVICE CONTRACT WITH KONECRANES...HP and world-leading provider of lifting solutions and services Konecranes have signed a 5-year global service contract that covers global workstation management and support services in 37 countries. The financial details of the contract were not disclosed. The agreement includes Service Desk services in seven languages, data security solutions, as well as on-site support, installation, maintenance, lifecycle management and application management services for the workstations. HP will harmonize the desktop computer environment within the whole Konecranes Group, and Konecranes employees at 350 sites will start using HP’s desktops and laptops by May 2009. According to the agreement 16 Konecranes employees, seven of which in Finland, will join HP’s staff.
SIEMENS PLANS RESTRUCTURING, LAYOFFS...Siemens Enterprise Communications, a wholly owned subsidiary of Siemens AG, plans extensive restructuring activities to accelerate the company’s transformation from a hardware supplier to a software and solutions provider. Planned sales or solutions involving a third party would affect roughly 3,000 employees worldwide, of whom about 1,200 are in Germany. In addition, Siemens plans to cut 3,800 jobs worldwide, including up to 2,000 in Germany. In Germany, SEN’s headquarters and other administrative and support functions are expected to be affected the most.
New Business
R.R. Donnelley & Sons Company has been awarded an $800 million contract by McGraw-Hill Education, a leading provider of resources that address virtually every aspect of the education market from pre-K through professional learning. The seven year agreement includes a wide range of products including textbooks, workbooks, testing materials, teachers’ editions and ancillary products.
Convergys Corporation has upgraded Nawras’ billing and customer care system to a newer version of the Convergys Infinys [r] solution. Nawras, winner of the CommsMEA 2007 Middle East Mobile Operator of the Year, provides 96 percent countrywide coverage in Oman, and has over one million customers. The system upgrade from Convergys is providing Nawras with expanded capabilities to launch converged voice and data services to both pre- and post-paid customers. These include next generation services based on IP and bundles of voice, data, and video with cross-product discounts. The upgrade follows Convergys’ product road map for wireless operators and was completed on time and within Nawras’ budget.
International News
EDS announced a six-year, information technology (IT) services agreement with SR Technics, one of the world’s leading independent providers of technical services for the civil aviation sector. Financial terms of the agreement are not being disclosed. Under this agreement, EDS will provide service desk support, workplace management, hosting, storage, backup and archiving, as well as network services for major locations of SR Technics in Switzerland, United Kingdom, Ireland and Bahrain, with a total of more than 4,000 users. As part of the agreement, EDS and SR Technics renewed an applications services agreement, which was first signed in 2001. Under this renewal, EDS will host SR Technics SAP, SAS and Maintenance and Engineering Document Systems.
Unisys Corporation announced that its Australian subsidiary has signed a contract with the Australian Department of Defence to provide a range of IT support services to 460 Defence locations across Australia. The contract, with an initial term of five years following a transition period of an estimated 18 months duration, has a value estimated at approximately US$225/A$240 million, with the potential for two future contract extensions, each of two years duration. Under the contract, Unisys will provide a range of IT support services, including network security and infrastructure support, server and desktop support to all sections within the Australian Defence Force. Unisys will also standardize IT support processes nationally. These IT services support key operations of Defence, including the Australian Defence Force.
Cummins Inc.,which designs, manufactures and sells diesel engines and related technologies, has named Infosys as one of three Global Preferred Vendors (GPVs) for IT application outsourcing and business consulting services. This new partnership will bolster Cummins operations so it may handle the growing global demand for power technologies and components.
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February 20, 2008
Top Stories
OFFSHORE CALL CENTER OUTSOURCING GROWING RAPIDLY...Outsourcing call center work to offshore destinations is in a rapid growth phase with key delivery centers such as India, Philippines and central and Eastern Europe experiencing annual growth rates in excess of 30 percent, according to a new Everest Research Institute study. Consolidation of processes within the customer management function and across buyers’ business units has become the primary focus of Contact Center Outsourcing (CCO) solutions with investment in technology solutions and global delivery mechanisms serving as catalysts, according to the study.
HP FIRST QUARTER EARNINGS UP...HP announced financial results for its first fiscal quarter ended Jan. 31, 2008, with net revenue of $28.5 billion, up 13% from a year earlier and up 8% when adjusted for the effects of currency. In the first quarter, GAAP operating profit was $2.6 billion and GAAP diluted earnings per share (EPS) was $0.80, up from $0.55 in the prior-year period. Non-GAAP operating profit was $2.8 billion, with non-GAAP diluted EPS of $0.86 up from $0.65 in the prior-year period.
COMPUCOM OPENS NOC IN DALLAS...CompuCom Systems, Inc. announced the opening of a newly expanded Network Operations Center (NOC) located in Dallas to include remote monitoring and management services for its growing client base. Through its new facility, CompuCom offers a comprehensive suite of network, server, wireless, security, database, application and 7x24x365 network performance management services and user administration capabilities. The Dallas-based location is part of CompuCom’s network of Certified Delivery Centers that provide a broad range of onshore, nearshore and offshore infrastructure management capabilities.
THE RIGHTTHING ACQUIRES AIRS...The RightThing, a leader in customized recruitment process outsourcing (RPO) announced the acquisition of AIRS, a recruitment training and sourcing technology company, based in Wilder, VT. The acquisition will enhance The RightThing’s services by integrating AIRS recruitment sourcing software as well as training solutions, delivering customers a comprehensive suite of tools.
New Business
Computer Sciences Corporation has won an outsourcing contract from the U.S. Air Force to provide aviation maintenance support services for the 57th Maintenance Group at Nellis Air Force Base, Nevada. CSC estimates the value of the contract, which has a 15-month transition period, an eight-month base period and five one-year options, to be $211 million if all options are exercised.
Yoh has signed a three-year recruitment outsourcing agreement with Syngenta Inc. to identify, attract, and hire high-impact talent for nine Syngenta locations. Yoh HR Solutions will provide end-to-end Recruitment Process Outsourcing (RPO) services that will help the U.S. division of the $8.1 billion global agribusiness improve time-to-fill, reduce cost-per-hire, and free Syngenta’s leadership to focus on business-critical issues, rather than hiring.
International News
Eisai Co., Ltd. and Accenture Japan., Ltd. announced that under the global outsourcing agreement signed between Eisai Medical Research Inc. and Accenture LLC, Accenture will provide Eisai with clinical data management services through its delivery center in Chennai, Tamil Nadu, India. Starting full operation from February 13, 2008 the service will cover Japan, the United States, and Europe. This is the first time a major Japanese pharmaceutical company has outsourced clinical data management services as a Business Process Outsourcing to India.
Siemens IT Solutions and Services has won orders to improve the IT infrastructure of India's two largest TV stations. For market leader Star Group, Siemens will implement a Pilot broadcasting management system the channel Star One. They will also supply an IT solution for customer and financial management for Sun Direct TV, a pay-TV offshoot of the country's second largest television company Sun Network. The two orders have a joint value of several million euros.
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February 13, 2008
Top Stories
HP WINS $675 MILLION UNILEVER EXTENSION...HP and Unilever announced an extension of their relationship with the signing of a seven-year, $675 million outsourcing contract for the management of Unilever’s technology infrastructure in the Americas, Asia, Africa, Turkey and Middle East. HP will provide an infrastructure designed to quickly adapt to the changing needs of Unilever’s business by standardizing, virtualizing and optimizing Unilever’s enterprise computing environment in the regions above as well as its client services environment in Asia Pacific, Africa, Turkey and the Middle East.
EDS QUARTERLY REVENUES UP...EDS reported fourth quarter 2007 adjusted net income of $295 million, or 55 cents per share, versus fourth quarter 2006 adjusted net income of $254 million, or 47 cents per share. Fourth quarter 2007 net income, in accordance with U.S. GAAP, was $189 million, or 36 cents per share, versus $217 million, or 40 cents per share, in the prior year's fourth quarter (A statement reconciling GAAP and adjusted results is included in this release). Fourth quarter revenue increased 2 percent to $5.83 billion from $5.70 billion in the year-ago quarter(1). Fourth quarter revenue decreased 3 percent on an organic basis, which excludes the impact of currency fluctuations, acquisitions and divestitures.
New Business
Computer Sciences Corporation has won a contract to provide technical support services for the U.S. Air Force Air Education and Training Command at Vance Air Force Base in Enid, Okla. CSC estimates the value of the contract, which has a six-month base period and six one-year options, to be $482 million if all options are exercised.
CSC has also won a contract to provide information technology (IT) infrastructure operations support to Pension Benefit Guaranty Corporation (PBGC). CSC estimates the value of the contract, which has a one-year base period and four one-year options, to be $70 million if all options are exercised.
Affiliated Computer Services, Inc. announced an amended contract with Solano County, California, to establish and operate a 311 customer service center within the county. The 3.5-year contract has a value of $4 million. ACS will provide implementation services, including development of a knowledge database and service request workflow. ACS employees will manage and staff the customer service center.
International News
Atos Origin, an international IT services company, announced 2007 fourth quarter revenue at EUR 1 548 million representing a +8.6% year-on-year growth and an organic growth of +5.3% at same scope and exchange rates. For the total year 2007, revenue was EUR 5 855 million representing a +8.5% top line growth and a +4.3% organic growth at same scope and exchange rates.
Tata Consultancy Services has announced plans to organize its global operations into integrated, customer-centric units to enhance customer focus, drive operational agility and address new growth opportunities in the market. The new global operating model will provide customers with a single view of TCS encompassing project delivery and relationship management and enable a sharper focus on the customer.
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February 06, 2008
Top Stories
CSC TO RELOCATE CORPORATE HQ TO VIRGINIA...Computer Sciences Corporation announced that its Board of Directors has approved a decision to relocate corporate headquarters to Falls Church, Va., from El Segundo, Calif. The relocation will consolidate into one geographical location the corporate executive leadership with the company’s global operational headquarters.
CONTINENTAL ADDS EDS AIRLINE SOLUTION...EDS has reached an agreement with Continental Airlines to provide the airline with EDS Electronic Fares Services, one solution of a broad suite of leveraged passenger airline industry applications available from EDS. This agreement is an addition to the information technology (IT) outsourcing agreement EDS and Continental announced on October 23, 2007. The add-on agreement was signed in the fourth quarter of 2007 and financial terms of the agreement are not being disclosed.
IBM OPENS NEW GLOBAL DELIVERY CENTER IN INDIA...IBM significantly expanded its operations in the state of Uttar Pradesh with the inauguration of a new Global Delivery Center in Noida, India. This is IBM Global Business Services' first such center in Noida; and, in phase two of the expansion, IBM will open another center in the vicinity, which is expected to be fully operational by mid-2008. Both the centers will house close to 3000 employees once fully staffed.
ADP TOPS 100 LIVE BPO CLIENTS...ADP Employer Services has achieved a significant milestone for its Business Process Outsourcing (BPO) solutions, topping 100 live clients as of January 2008. In the past 12 months alone, ADP has implemented 34 new clients.
COMPUCOM ACHIEVES CERTIFICATION FOR TENTH YEAR...CompuCom Systems, Inc. announced that its Service Desk offering has achieved certification under the prestigious Service Capability & Performance (SCP) Certification program for the tenth consecutive year. CompuCom achieved certification in its Dallas and Canadian Certified Delivery Center locations in 2008. The SCP Standards quantify the effectiveness of client service based upon a stringent set of performance standards and best practices in the industry.
New Business
Convergys Corporation has renewed an $80 million, four-year contract to provide customer care for a leading U.S. mass merchant, a Fortune Top 50 company. Under the terms of the contract renewal, Convergys will provide Customer Relationship Management support and perform double the volume of work for the client going forward. Convergys is providing live-agent and email support handling product and information requests, billing and payment inquiries, customer save functions, service installation assistance, product recall issues, and inbound and outbound lead generation campaigns.
Computer Sciences Corporation has received a $22 million modification to the National Aeronautics and Space Administration (NASA) Shared Services Center contract to provide additional support services to NASA employees at Stennis Space Center, Miss.
Pearson plc, the international education and information company whose businesses include the Financial Times Group, Pearson Education and the Penguin Group, has chosen Ness Technologies, Inc. as its product development partner in a three-year agreement that will expand Pearson's engineering capacity substantially. Ness will establish and operate an India Development Center in Mumbai for Pearson to enable close collaboration on end-to-end product engineering for Pearson's next-generation products and systems.
Capgemini has signed a five-year agreement with Tenneco Inc., one of the world's largest designers, manufacturers and marketers of emission control and ride control products and systems for the global automotive original equipment market and the aftermarket, to provide a range of applications management and development and asset management services.
International News
Accenture will provide South West Water with customer-care and billing services and manage South West Water’s back-office operations under a 10-year outsourcing agreement the two companies signed recently. Under the agreement, Accenture will help South West Water enhance its technology, business processes and workforce performance to improve service levels for its customer base in Devon, Cornwall and parts of Dorset and Somerset counties in England while controlling service-delivery costs.
WM-data will be running core parts of the IT systems for one of Norway’s largest IT users, the Norwegian Department of Labour and Welfare, NAV. The contract covers the hosting and monitoring of more than 400 servers, data management and backup, consultancy regarding the change processes and reporting. This contract means an extension of existing contracts already covering products, onsite services and a general frame agreement for consultancy. NAV highlighted WM-data’s quality of services and its solid business model as the main reasons behind its choice of service provider.
In addition, as part of the contract win with the Department of Education in Oslo, WM-data will be running the joint IT systems for all of Oslo’s primary and secondary schools. The solution covers the running of more than 350 servers ensuring that all 170 schools in Oslo with more than 28,000 clients and 75,000 users have a high performing core infrastructure including desktop service, service desk, mail solution, firewalls with virus protection and the learning platform Fronter for all students.
Outsourcing of Procure-to-Pay Processes Gains Traction as Companies Expand Their Focus beyond AP, Says Everest Research Institute
A new study by the Everest Research Institute revealed a strong link between successful accounts payable (AP) outsourcing and the move towards Procure-to-Pay (P2P) outsourcing. Nearly 50 percent of respondents to a recent executive survey conducted by the Institute indicated interest in exploring how to expand their current AP outsourcing initiatives to include a broader Procure-to-Pay (P2P) scope within the next year to three years.
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January 30, 2008
Top Stories
UNISYS REPORTS FINANCIAL IMPROVEMENT...Unisys reported fourth-quarter 2007 operating income of $69.4 million, which included $55 million of net cost reduction charges and $11.6 million of retirement-related expense. These results compared with fourth-quarter 2006 operating income of $68.6 million. For the full year of 2007, the company reported operating income of $85.9 million compared with a full-year 2006 operating loss of $326.8 million, a year-over-year improvement of $413 million.
LOGICACMB CREATES NEW OUTSOURCING SERVICE DIVISON...LogicaCMG is creating a new Outsourcing Services division, which develops its existing outsourcing model, in response to customer demand across Europe. Jim McKenna, currently Chief Operating Officer, will lead the creation of the new division. It will become operational in key European geographies from Q1 2008 and will be in place across the whole organisation by 2009.
OPI HITS 2000-EMPLOYEE MILESTONE...Outsource Partners International, Inc. (OPI), a leading provider of finance, accounting, and tax business process outsourcing (BPO) and related services, announced that it recently achieved a major company milestone with the hiring of its 2,000th employee worldwide. This notable figure represents employee growth of 48% during 2007.
New Business
Unisys Corporation has received a five-year contract to provide IT outsourcing services to the city of Minneapolis. The contract has a value of $48 million, assuming the contract runs for its full five-year term. Unisys will provide the city with outsourcing services through 2012, continuing a relationship that began in 2003. Unisys will provide a full range of outsourcing services to manage the city’s complete IT infrastructure, from the data center to desktops and mobile devices.
EDS announced a five-year, server management services agreement with Susan G. Komen for the Cure, the world’s largest and most progressive grassroots network of breast cancer survivors and activists. The contract was signed in the fourth quarter of 2007, and financial terms of the agreement are not being disclosed. Under this new agreement, EDS will manage Komen for the Cure’s server environment, including planning, configuring, hosting and ongoing server support, allowing the organization to remain focused on being the global leader in the fight against breast cancer.
State Street Corporation has been appointed to provide a range of custody, accounting and fund administration services to Columbia Management’s Excelsior Funds, which have approximately $20 billion in assets. With the new mandate, State Street now services a total of approximately $320 billion in assets for funds sponsored by Columbia Management, Bank of America’s asset management arm.
Affiliated Computer Services, Inc. announced a renewed contract with Northampton County, Pa., to provide information technology (IT) services. The contract has a length of up to six years and a total value of $13 million if all options are exercised. ACS has provided IT services to Northampton County since 1979. The company was awarded the renewed contract through a competitive bid process.
International News
Diligenta, a subsidiary of Tata Consultancy Services, has won a contract to deliver Business Process Outsourcing services to support Sun Life Financial of Canada UK’s (SLF UK) operations. The services, expected to commence in May 2008, are estimated to be worth £100 million (over US$200 million) over the life of the contract. Diligenta has been working with SLF UK as preferred supplier since October 2007, following a competitive tender which came towards the natural end of SLF UK’s existing outsourcing agreement. Diligenta will continue to run the operation in Basingstoke where SLF UK’s Head Office is based.
Deutsche Post World Net, the world’s leading logistics group, and HP have signed a letter of intent to transfer responsibility for parts of Deutsche Post World Net’s global IT operations to HP Services. Under the terms of the agreement, Deutsche Post World Net expects to save at least 1 billion euros over the next seven years by driving down overall IT costs and better leveraging IT resources needed to run its business and service customers. The companies expect to reach a definitive agreement by mid-2008. If an agreement is reached, HP would take over the approximately 2,500 employees who currently provide the services for Deutsche Post World Net’s data center operations -- including information & data management, infrastructure & network management, and application management.
Capgemini has signed a six year, £23m IT outsourcing contract with UK-based psychometrics company SHL. The deal is aimed at improving the flexibility and cost-effectiveness of SHL's service. The deal will see Capgemini upgrade and maintain the entire IT infrastructure at SHL, covering about 1,000 desktops across 35 locations in the Americas, Europe, Africa and Asia Pacific.
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January 23, 2008
Top Stories
EDS SIGNS IT INFRASTRUCTURE CONTRACT WITH R.J. REYNOLDS...EDS and R.J. Reynolds Tobacco Company have signed a new services contract under which EDS will manage the company’s information technology (IT) infrastructure environment. The contract was signed in the fourth quarter of 2007 and financial terms of the agreement are not being disclosed. Beginning in August 2008, EDS will manage R.J. Reynolds’ IT infrastructure environment, including mainframes, mid-range servers, databases and data centers all housed at R.J. Reynolds’ facilities in North Carolina. EDS will also provide field-level and help-desk support for the R.J. Reynolds network and computing environment, which includes WAN/LAN, video conferencing, telephones, PCs and laptops for its employees nationwide.
ACCENTURE EXPANDS CANADIAN OUTSOURCING CAPABILITY...Accenture has expanded its operations in Canada with the opening of a new delivery center in Mississauga. Professionals in the Mississauga facility, which is part of Accenture’s Global Delivery Network of more than 40 centers, will provide clients a variety of systems integration, application development and maintenance, technology consulting and infrastructure outsourcing services. The clients to be served from the Mississauga delivery center include companies in the telecommunications, financial services and utilities industries, among others.
UNISYS WINS NASA AWARD...NASA’s Langley Research Center has honored Unisys Corporation with its Large Business Contractor of the Year award, the company announced today. Criteria for Unisys selection included technical performance; administrative management and outreach - including Unisys mentoring activities on behalf of small businesses and/or minority contractors.
New Business
Affiliated Computer Services, Inc. announced the Tennessee Bureau of TennCare's intent to award a new contract for the TennCare Management Information System (TCMIS). The proposed contract has a length of five years and an evaluated total value of $156 million, and must be negotiated and executed prior to ACS commencing operations. The proposed contract calls for ACS to assume responsibility for the current TCMIS used by the state for the management of its Medicaid program.
ACS announced earlier this announced that it has been awarded a seven-year, $130 million contract to provide information technology outsourcing (ITO) services for Allergan, Inc., a premier, global multi-specialty healthcare company. Under the terms of the contract, ACS will supply comprehensive infrastructure services, including data center operations, network monitoring and management, and end-user support services. The ACS-designed solution will provide the scale necessary to meet Allergan's growth, as well as access to new technology to support its unique industry needs.
International News
Bharti Airtel Limited, a group company of Bharti Enterprises and India's leading integrated telecom services provider, has strengthened its existing relationship with IBM. IBM will bring in its global expertise in areas including the telemedia business, distribution, enterprise segments and business resilience. The new agreement is estimated to be US$150 million.
EDS was awarded a 12-month contract with the Victorian Department of Infrastructure to run a pilot program to trial new technology designed to dramatically increase cargo movement for the Port of Melbourne by integrating information from thousands of users into one online system. The program aims to replicate the success of Spain’s Port of Valencia, one of the first in the world to successfully integrate a port’s supply chain into a single information portal.
Experian has selected Perot Systems to support, maintain and develop its legacy applications and also includes new product development. Financial details of the multi-year agreement were not disclosed. The business relationship includes applications development, legacy systems, applications maintenance & support, and testing services for Experian’s ISDD (Information Solutions Design and Delivery) applications portfolio which spans across new applications technologies, mainframe technologies and legacy applications. These services and solutions will be developed in Perot Systems India and Experian UK.
R.R. Donnelley & Sons Company has been awarded a new multi-year agreement to produce nearly 350 telephone directory titles annually for pan-European distribution by European Directories S.A., which is among Europe’s top five directories companies. The agreement is valued at approximately $200 million. Serving approximately 700,000 customers, European Directories is a geographically diversified directories group, with number one or strong positions in several markets across Europe, including The Netherlands, Finland, Denmark, Poland, Austria, Czech Republic, Sweden, Gibraltar and Slovakia.
IBM announced three new services agreements in Australia--National Australia Bank, Commonwealth Bank of Australia, Queensland State Government of Australia.
The Netherlands’ Government Agency for Social Services, UWV KCC’s Customer Service Operations, successfully completed certification to the COPC (Customer Operations Performance Center Inc.) Customer Service Provider Standard. UWV is the first government agency to receive certification in customer service operations.
Outsourcing Center Announces Finalists for 12th Annual Outsourcing Excellence Awards Finalists
Outsourcing Center has announced 23 outsourcing relationships held by 46 companies are finalists for the 12th Annual Outsourcing Excellence Awards. Final winners will be announced in May.
The coveted awards recognize the most distinguished examples of successful buyer-supplier outsourcing relationships in several categories, including Best Partnership and Most Strategic. An independent judging panel of industry experts will now evaluate the finalists on criteria including the relationship’s mutual benefits, effectiveness and business outcomes achieved.
Finalists for the awards are:
• Allied Irish Banks p.l.c. and ABN AMRO Bank
N.V.
• AOL BB and Wipro BPO Solutions Ltd.
• Best Buy Co., Inc. and Accenture
• Bharti Airtel Ltd and HTMT Global Solutions
Ltd.
• Bharti Airtel Ltd and IBM India Private
Limited
• BT plc and Accenture
• Continental Automotive India Pvt Ltd. and KPIT Cummins Infosystems Ltd.
• ENMAX Energy Corporation and Cognera Corp.
• Harvard Pilgrim Health Care and Perot Systems
Corporation
• ING North America Insurance Corporation and
Hewitt Associates
• KB Home and Perot Systems Corporation
• Lloyds TSB and Firstsource Solutions Ltd.
• Microsoft Corporation and Accenture
• National Life Group and Perot Systems
Corporation
• Nuance Communications Inc. and Hewlett Packard
• Ping Identity Corporation and Luxoft
• Royal Bank of Canada (RBC Financial Group) and
iGATE Global Solutions
• Royal Mail Group and Atos Healthcare Ltd
• Sun Microsystems, Inc. and Computer Sciences
Corporation
• Touro Infirmary and Siemens Medical Solutions,
USA, Inc.
• Universal Music and buyingTeam
• Virgin Atlantic Airways Ltd and WNS Global
Services (UK) Ltd
• Visteon Corporation and Manpower Business
Solutions
Members of the judging panel are Rod Bourgeois, Senior Research Analyst - Technology Services, Sanford C. Bernstein & Co., LLC; John A. Funk, Morgan Lewis & Bockius LLP; Russ Taruscio, FC&A Procurement Director, BP America Inc.; Ed Davis, Oliver Wight Professor, Darden School of Business, University of Virginia and Dawn Evans, President and CEO, Sourcing Interests Group and Peter Bendor-Samuel CEO of Everest Group.
“We have a daunting task ahead of us as we evaluate these outstanding outsourcing engagements to select final winners,” said Bendor-Samuel.
Award winners will be featured in the annual Awards issue of the Outsourcing Journal (www.outsourcing-journal.com) as well as Forbes’ “Special Section” on outsourcing. Winners will also be invited to an elite celebration evening on the Forbes Highlander yacht, participate in an exclusive educational event that shares lessons and insights from each winner, and attend a black-tie gala and awards presentation at the “Oscars” of Outsourcing in New York City. Additionally, the Outsourcing Journal will feature stories throughout the year that profile award finalists.
Previous award winners include many of the world’s leading companies in every industry and demonstrate the importance of outsourcing in their strategies for business success. A list of all winners since 1997 is displayed at www.outsourcing-awards.com.
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January 16, 2008
Top Stories
IBM EARNINGS UP...IBM announced fourth-quarter 2007 diluted earnings of $2.80 per share from continuing operations, an increase of 24 percent, compared with diluted earnings of $2.26 per share in the fourth quarter of 2006. The company also reported fourth-quarter revenue of $28.9 billion, an increase of 10 percent as reported, including 6 points of currency benefit, compared with the fourth quarter of 2006. IBM reported full-year 2007 diluted earnings of $7.18 per share, including 5 cents per share relating to the sale of the Printing Systems Division in the second quarter, an increase of 18 percent, compared with diluted earnings of $6.06 per share in 2006. The company also reported full-year revenue of $98.8 billion, an increase of 8 percent, including 4 points of currency benefit.
ACS ACQUIRES UK-BASED ITO PROVIDER...Affiliated Computer Services, Inc. has acquired Syan Holdings Limited, a U.K.-based provider of information technology outsourcing (ITO) services and one of the United Kingdom's largest IBM Business Partners, for approximately $60 million (30.5 million pounds Sterling). Syan's trailing twelve-months revenue was approximately $75 million. The transaction will be funded entirely with existing cash on hand.
CSC COMPLETES FIRST CONSULTING ACQUISITION...Computer Sciences Corporation announced that the company has completed its acquisition of First Consulting Group for $13.00 per share, or approximately $365 million, in an all-cash transaction. Approximately 2,500 FCG employees are expected to transition to CSC. Of these, approximately 1,200 will be located in offshore locations, including India and Vietnam. The remainder will be located in the U.S. and Europe.
NOVUSSTS PIONEERS ONSHORE RPO...NovusSTS is pioneering the unique strategy of onshore RPO by opening a cost-cutting outsource facility in Valdosta, Georgia. In addition to keeping more jobs within the United States, this facility will enable customers to cut costs while retaining a high level of quality, foster communication, and ensure timely delivery of services. NovusSTS works closely with India-based firms who are looking to build facilities in the US and jointly with the city of Valdosta to bring a comparable cost-savings model to customers who want to keep their business closer to home and still enjoy nearly the same savings benefit of going overseas.
New Business
Comerica Incorporated has awarded a procurement services contract to Accenture. Financial terms of the seven-year business process outsourcing agreement were not disclosed. The agreement is designed to reduce Comerica's costs for purchased goods and services through improvements to supplier relationships, procurement operations and technology, and spend management.
EDS, Indiana’s Medicaid partner since 1991, has been awarded a $209.9 million, six-and-a-half-year contract to upgrade and continue to maintain the state’s Medicaid Management Information System. The new contract will leverage EDS’ leading-edge interChange Health System, which serves as an industry model and is in operation or being implemented in more than a dozen states, including Kansas, Oklahoma, Pennsylvania and Kentucky. Among the upgrades are a Web-based tool that will enable health care providers to electronically enroll in the Medicaid program as well as a number of internal processes.
Computer Sciences Corporation has won a contract to provide facility support services at the National Aeronautical and Space Administration (NASA) Johnson Space Center (JSC), located in Houston. CSC estimates the value of the contract, which has a two-year base period, two one-year options and six one-year performance-based award terms to be $544 million if all options are exercised.
International News
WNS (Holdings) Limited announced the launch of a new delivery center in Bucharest, Romania. The 150 seat facility in Bucharest expands WNS’ global delivery capability and serves as a nearshore delivery center for global clients with European operations. The center is able to provide multi-lingual services in French, German, Italian and Spanish for clients across a range of industries. At the outset, the center will deliver finance and accounting (F&A) and customer support services. With the launch in Romania, WNS has expanded its global delivery footprint to 14 delivery centers and is developing plans for additional centers in the region.
Capgemini Outsourcing BV, has been selected to manage the IT activities for Maxeda, the largest non-food retailer in the Netherlands. This five-year agreement is for both infrastructure and application management services. The purpose of this agreement is to help Maxeda in achieving its international growth objectives. Furthermore, it strengthens Capgemini's position in the retail sector.
Standard Bank's Argentine branch signed a technology services agreement with IBM which includes hosting, operation and recovery services as well as hardware provision to help the bank update its technology processes. The new agreement covers mainframe, disk drives, tape, recovery services featuring dedicated and enhanced equipment, SNA network operation, and Web Hosting services also provided with new, larger capacity equipment. In addition, this contract led to the signing of an agreement for the purchase and support of distributed software licenses which include IBM Information Management, Tivoli and WebSphere products.
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January 09, 2008
Top Stories
CSC ANNOUNCES $1.1 BILLION IN NEW CONTRACTS...Computer Sciences Corporation announced on Tuesday that since Oct. 1, its North American Public Sector business unit has signed 72 previously unannounced contracts and subcontracts during its fiscal 2008 third quarter, which ended Dec. 28, with a total estimated value of approximately $765 million if all contract options are exercised. On Monday, the company announced that its Americas commercial business units have signed three previously unannounced contracts during CSC’s fiscal 2008 third quarter, with a total estimated value of approximately $370 million if all contract options are exercised.
KEY MANAGEMENT CHANGES AT UNISYS...Randy J. Hendricks has been promoted to executive vice president and president of Unisys Global Industries. Hendricks was previously senior vice president and president of Unisys Global Outsourcing and Infrastructure Services, where he grew the company’s outsourcing business to Unisys largest services business. Anthony (Tony) P. Doye has joined Unisys as senior vice president and president of Unisys Global Outsourcing and Infrastructure Services, where he will be responsible for driving growth in the company’s outsourcing and infrastructure services businesses. Doye was previously group president of Strategic Programs and the Technology Management Group at Computer Sciences Corporation, where he held numerous global leadership roles in IT services, IT outsourcing, application outsourcing and consulting services.
THERIGHTTHING EXPANDS, LAUNCHES GLOBAL SERVICE CENTER...With increasing client demand, year-on-year double digit revenue growth and recent global initiatives in the Recruitment Process Outsourcing (RPO) industry, The RightThing, Inc. has broken ground to expand its headquarter facilities in Findlay, Ohio. The new structure, scheduled to open in June 2008, will be located next to the company’s current facility with an enclosed walkway connecting the two. The 35,000 square foot expansion will house up to 320 employees and feature a 200 seat auditorium.
LUXOFT CANADA MARKS FIRST ANNIVERSARY...Luxoft, a global provider of IT outsourcing services to clients like Boeing, Deutsche Bank, IBM, Dell, UBS, T-Mobile, Alcatel, and Areva,announced 123 percent revenue growth in Q3 FY07 (ending December 2007) for its Vancouver, British Columbia office which celebrates its first anniversary this month.
SOFTTEK OFFERS ABERDEEN REPORT...Softtek, a global provider of IT and business process solutions and the largest private IT service provider in Latin America, is making the Aberdeen Group’s newly released benchmarked report, “Strong SLA Management Causes Increased Customer Satisfaction,” available for complimentary download at its website.
New Business
Affiliated Computer Services, Inc. has been awarded the E-ZPass New York Customer Service Center contract with the MTA Bridges and Tunnels, the New York State Thruway Authority, and the Port Authority of New York and New Jersey. ACS was the incumbent vendor in this procurement. The new 10-year contract allows for one additional three-year option to be exercised for a total contract length of 13 years. The contract value
for the base 10-year contract is more than $500 million.
EDS, Indiana’s Medicaid partner since 1991, has been awarded a $209.9 million, six-and-a-half-year contract to upgrade and continue to maintain the state’s Medicaid Management Information System. The new contract will leverage EDS’ interChange Health System, which serves as an industry model and is in operation or being implemented in more than a dozen states, including Kansas, Oklahoma, Pennsylvania and Kentucky. Among the upgrades are a Web-based tool that will enable health care providers to electronically enroll in the Medicaid program as well as a number of internal processes.
EDS has been awarded a $76 million, six-year contract to assist in modernizing applications technology for the California Department of Motor Vehicles (DMV). The Information Technology Modernization (ITM) project will update the DMV's legacy software application technology to more current application and database structures. The contract was awarded to EDS at the end of the fourth quarter of 2007.
International News
Watson Wyatt Australia announced a long-term Business Transformation Outsourcing (BTO) Services agreement with IBM. Under the terms of the agreement, signed in the fourth quarter of 2007, IBM will assume operation of the administration of Watson Wyatt's corporate superannuation client back-office functions in Australia. The agreement with IBM will involve the transition of the Watson Wyatt back-office processing business, currently outsourced to CitiStreet, to IBM. A number of CitiStreet employees currently dedicated to the Watson Wyatt account will transition to IBM.
WM-data, a LogicaCMG company, announces that it will deliver IT services to the administrative sector of Transport and Communications in Finland, the Finnish Road Administration, the Finnish Maritime Administration and the Finnish Rail Administration. The contract running from 2008 until 2010 is worth approximately 10 million Euros. An option to extend the agreement by three years is included in the contract. This is one of the most significant integrated IT services contracts encompassing several public sector organisations in Finland which will improve efficiency and lead to cost savings.
IBM has signed an agreement with Unilever to transform and manage strategic sourcing and procurement operations for the company's Latin American operations. The five-year agreement is an expansion of an existing global agreement in which IBM manages Unilever's procurement operations in North America, Asia, Africa, the Middle East and Turkey and for Unilever Central Information Technology (IT).
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