CSC WINS $597 MILLION NASA SUPPORT CONTRACT...Computer Sciences Corporation has won a contract to provide supercomputing support services to the National Aeronautics and Space Administration (NASA). CSC estimates the value of the contract, which has a two-year base period and eight one-year options, to be $597 million if all options are exercised.
ACCENTURE ACQUIRES GEORGE GROUP...Accenture has agreed to acquire George Group, a privately held consulting firm specializing in helping companies and governments enhance their performance through strategic process improvements, accelerated innovation and streamlined operations. The acquisition will expand and enhance Accentures ability to help clients become high-performance businesses through the addition of George Groups specialized expertise in process improvement techniques. Terms of the agreement were not disclosed.
CONVERGYS REPORTS SECOND QUARTER RESULTS...Convergys Corporation announced earnings of $0.28 per diluted share--equal to same period last year--for the second quarter of 2007. Revenues of $707.0 million were up 2 percent compared to the second quarter of 2006 reflecting growth from the Customer Care and Employee Care segments. Operating income was $58.1 million in the second quarter compared with $62.8 million in the same period last year. Net income was $38.8 million.
Leading Peruvian private bank Interbank has selected IBM to provide services that will increase its automatic teller machine network by roughly 38 percent. Under the $4.26 million agreement signed in May, IBM will install, configure and maintain 265 new ATMs. Interbank owns the largest ATM network in Peru, with IBM as its service provider since 2002.
EDS announced an agreement with Dean Health Insurance, one of the largest and most diversified managed care organizations in the Midwest, to implement EDS' MetaVance Administration and Finance System. This agreement will allow Dean Health Insurance to improve productivity and efficiency, enable growth and ultimately improve service to its 275,000 members. Financial details were not disclosed.
Affiliated Computer Services, Inc. will provide defined benefit and health and welfare administration for Ameren Corporation, one of the nation's largest investor-owned electric and gas utilities. Under the terms of the five-year agreement, ACS will administer Ameren's pension and health plans for 24,000 participating employees and retirees. ACS will employ its proprietary benefit outsourcing technology to manage Ameren's defined benefit and health plans.
The Bank of Beirut and the Arab Countries SAL (BBAC), a leading commercial bank in Lebanon, has selected IBM software, hardware and industry expertise to create a business intelligence infrastructure designed to help the bank manage risk and boost profitability. This engagement represents IBM's first major Information on Demand project in Lebanon.
Unisys Corporation has received an extension to its IT outsourcing services contract with the City of Chicago. The extension has an estimated value of $72 million for the initial six-year term and an additional $12 million if the city exercises a one-year option. Under the extension, Unisys will expand the range of IT outsourcing services it provides the city.
Infosys Technologies Ltd has signed a multi-million dollar outsourcing contract with Royal Philips Electronics of the Netherlands. As part of the agreement, Infosys BPO will provide Finance & Accounting (F&A) services and the processing of purchasing orders. Infosys will also acquire three shared service centers located in India, Poland and Thailand from Philips. The contract is among the largest Finance & Accounting BPO engagements from India and will expand Infosys global network, particularly strengthening its European operations.
Rabobank, one of the largest financial services providers in The Netherlands, has extended its business process outsourcing contract with Unisys Payment Services and Solutions (UPSS). The extension, signed in June 2007, covers all paper-related payment transactions for two additional years through December 31, 2012.
ExcellerateHRO has signed a contract to continue providing Benefits Administration Services for TOTAL in the UK, one of the largest integrated oil and gas companies in the UK and part of the fourth-largest energy company in the world, TOTAL SA. Under the 48-month contract extension, ExcellerateHRO will provide administration services for approximately 15,000 members of the TOTAL pension plan in the United Kingdom.
Maturing Finance & Accounting Outsourcing Market
Findings from a new Everest Research Institute study reveal that among all outsourced General and Administrative functions, Finance & Accounting Outsourcing (FAO) has the highest rate of global sourcing adoption, with 77 percent of contracts having elements of offshore delivery. As operating models continue to improve and output quality rises, more global buyers are looking to source a growing number of skills from multiple regions, and suppliers are driving innovation beyond pure labor arbitrage to remain competitive.