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January 28, 2009
Top Stories
CONVERGYS ANNOUNCES 4TH QUARTER, FULL YEAR RESULTS...Convergys Corporation announced its financial results for the fourth quarter and full year of 2008. Consolidated fourth quarter 2008 revenue was $703.7 million with a net loss of $29.3 million, or $0.24 per share, including non-cash goodwill impairment in the HR Management segment of $61.1 million, or $0.43 per share, and restructuring expenses of $20.3 million, or $0.11 per share.
The company’s full year 2008 consolidated results include revenues of $2.785.8 million and net loss of $92.9 million, or $0.75 per share, including charges of $334.0 million, or $1.93 per share, related to HR Management contracts. Full year results also include restructuring expenses to streamline the businesses of $34.4 million, or $0.18 per share. Combined, these charges represent a negative impact to full year 2008 earnings of $2.11 per share.
KRAFT AWARDS HR BPO DEAL TO IBM...IBM's fast growing Managed Business Process Services (MBPS) division -an area of IBM Global Technology Services that automates and standardizes core business processes for clients in areas such as HR, accounting, mortgage origination and expense reporting - has been awarded a multi-year agreement to help transform and manage human resources services for Kraft Foods' - the world's second largest food company with annual revenues of approximately $40 billion.
As part of the agreement IBM will provide technology and support for Kraft's human resource processes including workforce administration, payroll, compensation, recruiting, learning and talent management.
PHILIPPINES EMERGING AS LEADER FOR NON-VOICE BPO...The Philippines, whose offshore market has grown 46 percent annually since 2004, is poised to emerge as a leading destination for non-voice Business Process Outsourcing (BPO) work for buyers looking beyond India to grow their offshoring footprint, according to the Everest Research Institute. The US$35 billion global BPO market has an addressable opportunity of $220-280 billion by 2012, with 90 percent of the addressable opportunity in non-voice work. Although a number of providers are leveraging the Philippines for a vast scope of non-voice functions, there is limited awareness of the Philippines’ capability in non-voice services, which has grown significantly over the past three years, according to the Institute’s study, The Silent Knight: The Philippines’ Emerging Non-Voice BPO Capability. The study includes contributions from the Business Processing Association of the Philippines (BPAP). The US$6.8 billion Philippines offshore market employs more than 450,000 people for mostly voice-based services.
To read an extract of The Silent Knight: The Philippines’ Emerging Non-Voice BPO Capability, purchase the report, or inquire about other research services, visit www.everestresearchinstitute.com, e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
WNS TRANSITION TIMETABLE...WNS (Holdings) Limited announced that co-founder and Group Chief Executive Officer Neeraj Bhargava will transition to the role of Strategic Advisor to the company, and will continue in his current role of Group Chief Executive Officer until such time that a successor is appointed. This transition is expected to take place in the second half of 2009.
AURIONPRO NAMES HEAD OF N.A. SALES...AurionPro, a leader in offshore product development and outsourcing services, announced the appointment of Sanjay Gokhru as head of North America sales. In the U.S., AurionPro provides services to deliver deep business functionality and enable customers in the banking, payments and financial services markets to differentiate their services and improve competitiveness.
Posted by jbowles at 06:42 PM
New Business
IBM has signed a multi-year information technology (IT) services agreement with Whirlpool Corporation. Under terms of the contract, IBM will provide Whirlpool with global infrastructure services in more than 40 countries. IBM will help bring global standardization of processes, enhanced speed of delivery and flexibility and scalability allowing Whirlpool to better align its IT operations to changing business needs. As part of the agreement, IBM will provide mainframe, server, storage, network, desk side support and help desk services.
Affiliated Computer Services, Inc. is extending its relationship with The Queen's Health System with a renewed information technology (IT) outsourcing contract valued at $26 million over three years. Since 2001, ACS has been providing a range of IT application and technology infrastructure services to the Honolulu-based Queen's Medical Center, which is the largest private hospital in Hawaii and an affiliate of The Queen's Health System. Under the new contract, ACS will continue IT support services for the medical center and other Queen's Health System affiliates.
Posted by jbowles at 06:42 PM
International News
Tata Consultancy Services has signed a $100 million agreement to provide a full range of managed IT services to 4UGroup, the holding company of Phones 4U and other organizations in the UK telecommunication and financial services marketplaces. Under the agreement, TCS will provide a full range of IT and business change services to 4U Group including: service management; application support, maintenance, management and development; data centre and desktop services; helpdesk; networks and communications; business support; and management of all third party contracts for the organization’s retail operations. This will enable the group to improve IT service, increase capacity, boost skills, create a more flexible IT model and ultimately enhance the business to meet current and future demands.
Grupo Nacional Provincial (GNP), one of the largest insurance companies in Mexico, has signed a five-year contract with IBM, with two optional extension years, for infrastructure and application outsourcing services. For application outsourcing, IBM will consolidate more than 700 applications and will be the only point of contact, allowing GNP to focus on its core business and the strategic impact of IT.
Outokumpu, an international stainless steel company, has awarded Accenture a five-year application outsourcing contract to provide Outokumpu with application development and application management services for its enterprise resource planning (ERP) system on a global basis. The agreement extends a contract signed in 2005 under which Outokumpu outsourced to Accenture the management and development of its finance, human resources and logistics applications on its SAP-based ERP system. The new agreement extends the scope of the work to include .NET applications for sales order management.
Posted by jbowles at 06:42 PM
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Posted by jbowles at 06:41 PM
January 21, 2009
Top Stories
IBM REPORTS STRONG QUARTER...IBM announced fourth-quarter 2008 diluted earnings of $3.28 per share from continuing operations compared with diluted earnings of $2.80 per share in the fourth quarter of 2007, an increase of 17 percent as reported. Fourth- quarter income from continuing operations was $4.4 billion compared with $4.0 billion in the fourth quarter of 2007, an increase of 12 percent. Total revenues for the fourth quarter of 2008 of $27.0 billion decreased 6 percent (1 percent, adjusting for currency) from the fourth quarter of 2007. Strategic outsourcing signings were up 20 percent worldwide, up 44 percent in North America.
BANCTEC SELLS IT SERVICES DIVISION...BancTec, Inc. a global provider of high-volume, document and payment processing services and solutions, has closed the sale of its Information Technology Service Management (ITSM) division to QualxServ, LLC. ITSM provides comprehensive deployment and maintenance services on computers, servers, printers, peripherals and networks for original equipment manufacturers (OEMs) and information technology outsourcing (ITO) service providers in North America and Europe. BankTec says sale of the division provides the company the opportunity to commit additional resources to its business process outsourcing (BPO) practice and business solutions offerings.
PELORUS ADVISORS LAUNCHES FOREX FOR OUTSOURCERS...For global outsourcing providers competing in the global outsourcing marketplace, exposure to volatile foreign currency markets is a significant source of risk. Pelorus Advisors, a leader in specialized risk management services, has introduced the Pelorus Global Forex, a foreign currency hedging solution specifically designed to meet the ever-growing hedging needs of global outsourcing providers.
SIG SUMMIT HELPS OUTSOURCING LEADERS IMPROVE BOTTOM-LINE PERFORMANCE...At its Spring Global Sourcing Summit, Sourcing Interests Group (SIG) will address how outsourcing leaders can deliver value and bottom-line savings to the boardroom. Keynote speaker Newt Gingrich, former Speaker of the House, will draw on his extensive experience to provide a clear picture of how international policy affects global markets and the supply chain. Outsourcing leaders are invited to join an exclusive group where topics such as outsourcing transition management, cutting-edge outsourcing practices, governance best practices, and BPO / ITO case studies will be discussed. SIG’s 35th Global Sourcing Summit is March 31 – April 3, 2009 at the Marriott Waterfront Hotel, Baltimore, MD. Register before February 28th to receive special rate of $995 (50% off the $1995 rate) and you’ll be invited to an exclusive roundtable luncheon with Newt Gingrich.
Posted by jbowles at 06:40 PM
New Business
CSC has won a contract from the North Carolina Department of Health and Human Services (NC DHHS) to replace the state's current Medicaid Management Information System (MMIS) with a new healthcare administration system that will manage other state agency health services in addition to Medicaid. The contract has a seven-and-a-half-year base period and a one-year option, bringing the estimated total contract value to $265 million.
Posted by jbowles at 06:39 PM
International News
IBM and BNP Paribas have signed a EUR318 million, six-year agreement for their existing joint venture, BP²I, to handle the IT infrastructure operations of the French bank's Italian subsidiary, Banca Nazionale del Lavoro (BNL). The joint venture partners claim BP²I will provide significant cost savings to the banking group by transforming BNL's IT infrastructure and aligning it with BNP Paribas' current infrastructure and standard processes.
Tata Consultancy Services has been named Technology Partner of Ducati Motor Holding SpA, the leading manufacturer of motorbikes and superbikes based out of Bologna, Italy. TCS has signed a multi-million dollar, multi-year agreement with Ducati to deliver technology-based services that will help improve customer responsiveness and business efficiency.
Posted by jbowles at 06:39 PM
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Posted by jbowles at 06:32 PM
January 14, 2009
Top Stories
PEROT SYSTEMS NAMES EVP FOR CIVILIAN AGENCIES...Perot Systems Corporation today announced that Eric Wieman has joined the company's Virginia-based Government Services Business Unit as the new Executive Vice President of its Civilian IT Division. In his new role, Wieman will be responsible for managing the delivery of Perot Systems' $300 million IT services business to federal civilian agencies. Prior to joining Perot Systems, Wieman served as the Vice President for Science and Engineering Services (SES) at CSC, where he was responsible for the leadership of a 1,200 person organization providing scientific, engineering, and Information Technology solutions and services in U.S. Federal civilian agencies. Wieman also previously spent five years at Raytheon; and also served in business development, program management, and business management roles at a number of companies including Federal Data Corporation and Northrop Grumman.
Posted by jbowles at 09:26 PM
New Business
EDS, an HP company, announced two new contracts. The Centers for Medicare & Medicaid Services (CMS) awarded EDS subsidiary NHIC Corp. a contract to administer Part A and Part B Medicare claims payments for health care providers in five northeastern states. The contract is worth $176 million if all options are exercised for the next five years. And EDS will continue managing technology infrastructure and software applications for Phoenix Life Insurance Company, a wholly-owned subsidiary of The Phoenix Companies. The seven-year, $78 million agreement replaces a previous agreement from 2004. Phoenix’s total investment in business technology with EDS, including the value of the new agreement, will be $129 million from January 2009 through 2015.
Unisys Corporation has received a one-year outsourcing contract from Dr Pepper Snapple Group, one of the largest beverage companies in the Americas. Under the terms of the agreement, which extends a relationship that began in 2005, Unisys will provide managed services for 5,000 Dr Pepper Snapple Group information technology (IT) users in the Americas. The services include service desk; field support, including information technology (IT) equipment maintenance; equipment installs, moves, adds and changes (IMACs); and deskside support for hardware and software.
TechTeam Global, Inc. announced the renewal of its Global Single Point of Contact (SPOC) contract with Ford Motor Company, under which TechTeam provides support services for Ford Motor Company's IT infrastructure. TechTeam provides service desk, deskside support, service management, infrastructure management, and identity and access management services for Ford Motor Company in North America, Western Europe and Asia, including a recent expansion into Australia and New Zealand.
Posted by jbowles at 09:25 PM
International News
IBM in Korea has renewed a ten-year outsourcing agreement with Korean Air, one of the leading airlines in Asia Pacific. Under the agreement, signed in December 2008, IBM will manage the data center for Korean Air for the next ten years. Since 1998, IBM has been providing IT management services to Korean Air which covers System z, server and storage, as well as data center and disaster recovery center operations.
Accenture has signed a seven-year, multi-million dollar application outsourcing contract with Van Lanschot Bankiers, the oldest independent bank in the Netherlands, to develop and maintain the bank’s overall core banking applications, including credit services, asset and risk management. This contract is part of an IT transformation project that the bank launched under its business transformation program, which seeks to grow its business through enhanced operational efficiency and improved customer service.
WNS (Holdings) Limited announced the signing of a five year contract with SITA, the world's leading specialist in air transport communication and information technology (IT) solutions. The new contract is a renewal of WNS' existing six-year agreement with SITA. WNS will continue to optimize supply chain management and enhance service levels for SITA, which operates in more than 140 countries.
Freeborders, Inc. announced the opening of an expanded Center of Excellence focused on AS/400 which brings all hardware and software expertise embodied within their development center in China into one resource that customers can leverage.
AurionPro Solutions Ltd. announced that its Financial Supply Chain Management (FCSM) solution has been selected by Bank of Ayudhya Public Company Limited (BAY). FSCM will help BAY achieve its goals of competitive advantage, managing working capital more effectively, improving operating efficiencies and increasing the quality level of information.
3i Infotech announced that PREMIA Lite, its Comprehensive Insurance Management System, has gone live at Titan Property and Casualty Insurance Company within six months of the project sign off. Titan Property and Casualty required a Web-based insurance management solution to help it launch products in the quickest possible time, and also to give its agents access to its portal for quoting, and in many cases, issuing policies.
Posted by jbowles at 09:25 PM
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Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)668-6908 or send an email.
Posted by jbowles at 09:24 PM
January 07, 2009
Top Stories
INDIA'S ENRON? MAJOR SCANDAL AT SATYAM...Ramalinga Raju, chairman of leading outsourcing firm Satyam Computer Services, revealed today that his company finished the September quarter with more than $1 billion in phony assets, after years of fraud.
IBM SIGNS 7-YEAR DEAL WITH SARA LEE...IBM has signed a seven-year agreement with Sara Lee Corporation to manage and maintain pieces of the consumer products company's global back office operations. IBM will manage a portion of Sara Lee's North American and European Finance (transaction processing) and Global Information Services (applications development and maintenance) groups, as well as the company's global indirect procurement activities.
WIPRO TO ACQUIRE CITI TECHNOLOGIES...Wipro Technologies will acquire Citi Technology Services Ltd., the India-based captive provider of information technology services and solutions to Citi entities worldwide, for an all cash consideration of approximately $127 million. As part of the transaction, Wipro and Citi will sign a Master Services Agreement for the delivery of Technology Infrastructure Services (TIS) and Application Development and Maintenance (ADM) services for a period of six years. The agreement provides for the delivery of at least $500 million in service revenues over the period of the contract.
In a related story, Tata Consultancy Services has completed the acquisition of Citigroup Inc.'s interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) for all cash consideration of $512 million. In addition to the sale, Citi has signed an agreement for TCS to provide process outsourcing services to Citi and its affiliates for an aggregate amount of US$ 2.5 billion over a period of 9.5 years.
SABER GOVERNMENT SOLUTIONS NOW EDS, AN HP COMPANY...Saber Government Solutions, its non-healthcare U.S. state and local government subsidiary, has become the State and Local Government division of EDS’ U.S. Public Sector business unit and will be known as EDS, an HP company, effective Jan. 1, 2009. When EDS acquired Saber in November 2007, the company became known as Saber Government Solutions, a wholly owned subsidiary of EDS. The most recent name change is part of a strategic initiative leveraging the strengths of Saber, EDS and HP to enhance the combined company’s existing offerings and expand its footprint into new areas in the state and local market.
INFOSYS WINS MAKE AWARD... Infosys Technologies Ltd (Infosys) has been recognized amongst the top 20 global companies to be listed in the prestigious Most Admired Knowledge Enterprises (MAKE) study, 2008. Infosys has won this award for organizational learning for its concerted effort over the last decade to provide an integrated knowledge management (KM) solution to meet the knowledge needs of the organization through content sharing, collaboration and professional networking. Infosys is a five-time Global MAKE Winner and one of only two Indian companies amongst global leaders to have won the award this year.
Posted by jbowles at 04:11 PM
New Business
Unisys Corporation has received a one-year outsourcing contract from Dr Pepper Snapple Group, one of the largest beverage companies in the Americas. Under the terms of the agreement, which extends a relationship that began in 2005, Unisys will provide managed services for 5,000 Dr Pepper Snapple Group information technology (IT) users in the Americas. The services include service desk; field support, including information technology (IT) equipment maintenance; equipment installs, moves, adds and changes (IMACs); and deskside support for hardware and software.
WNS (Holdings) announced a three year contract renewal with Centrica, extending an outsourcing relationship that began in 2005, with the potential to extend another two years in annual increments upon completion of the initial renewal term. Under the contract, WNS will continue to provide offshore customer service and billing support for Centrica’s subsidiaries – British Gas in the UK and Direct Energy in the United States and Canada. In addition, WNS will continue to provide finance and accounting services and support to Centrica for both their UK and US businesses.
Posted by jbowles at 04:10 PM
International News
PT Telekomunikasi Indonesia, the largest information and communication company in Indonesia with over 63 million subscribers, has renewed and expanded its contract for Convergys’ relationship management solutions. Convergys will implement its Infinys Active Mediation and Infinys Rating and Billing Manager version 3.0 to enable PT Telekomunikasi to offer its wireless customers in-demand, pre-paid, bulk purchasing and bundled services to drive increased customer loyalty and revenues.
IBM and Grundfos, one of the world's leading pump manufacturers, announced an agreement for IBM to provide servers and storage infrastructure for its two data centers in Denmark, and to deliver a new infrastructure for Grundfos' SAP environment. The solution covers capacity for operating SAP for more than 8,000 users worldwide and more than 70 SAP systems. The existing non-IBM storage and tape systems are being phased out.
Affiliated Computer Services, Inc. has acquired Grupo Multivoice, an Argentina-based customer care services provider. Financial details were not disclosed. With its headquarters in Cordoba, Argentina and additional locations in Santiago, Chile; Bogota, Colombia; and Lima, Peru, Multivoice's revenues for the 12 months ended November 2008 were approximately US $40 million. The company has approximately 6,000 employees.
ITC Infotech has been featured in the Black Book of Outsourcing 2008 Green Report, published by the Brown Wilson Group in the US, as one of the top 20 green vendors who have delivered on the triple bottom line milestones of economic gains, environmental stewardship and social improvements. The survey conducted among 4200 global outsourcing users found that 94% of American corporate leaders still consider eco friendly computing as an important element in their technology strategy and also prefer green outsourcing partners as a top IT priority.
Posted by jbowles at 04:10 PM
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Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)668-6908 or send an email.
Posted by jbowles at 04:08 PM
