Accenture is a global management consulting, technology services and outsourcing company, with more than 190,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009.

Financial Highlights

•Revenues increase 8% in U.S. dollars and 4% in local currency, to $5.57 billion
•EPS up $0.05, to $0.73
•Operating income increases 10%, to $804 million, with operating margin of 14.4%
•Company achieves bookings of $6.43 billion, with consulting bookings of $3.18 billion and outsourcing bookings of $3.25 billion
•Operating cash flow for the third quarter is $961 million
•Total cash balance at May 31, 2010 is $4.31 billion, compared with $4.54 billion at Aug. 31, 2009

Business Outlook

Fourth Quarter Fiscal 2010

Accenture expects net revenues for the fourth quarter of fiscal 2010 to be in the range of $5.15 billion to $5.35 billion. This range assumes a foreign-exchange impact of negative 5 percent compared with the fourth quarter of fiscal 2009.

Full Fiscal Year 2010

Accenture continues to expect net revenue growth for the full fiscal year to be at the low end of its previously guided range of negative 3 percent to positive 1 percent in local currency. The company now expects diluted EPS for the full fiscal year to be in the lower half of its previously guided range of $2.61 to $2.69. Accenture now expects operating margin for the full fiscal year to be 13.5 percent, a 10-basis-point increase from its previously guided range.

The company now expects operating cash flow to be in the range of $2.5 billion to $2.7 billion and free cash flow to be in the range of $2.3 billion to $2.5 billion, an increase of $200 million over its previously guided range.

http://newsroom.accenture.com/article_download.cfm?article_id=5023

Seeking an outsourcing partner is not easy. Navigating through the cultural, geographic, and timezone issues, not to mention the time necessary to do the appropriate due-diligence from selection to negotiating the best contract is all time consuming work.

Here are two key reasons we believe you need an oursourcing advisor to help you:

1. Reducing the time to market: Outsourcing partner selection can be a long drawn out process, sometimes taking 12 to 14 months from start to finish. Your team may not have the time or the expertise in dealing with vendors in a foreign country. They may also not have the market knowledge or the experience in negotiating an outsourcing contract of such a magnitude. An outsourcing advisor can help cut through the government red-tape, bring in prior experience, and also help negotiate a contract that is more in tune with local market rates. A sourcing advisor in essence, levels the playing field due to market knowledge in this domain.
   
   
2. Ongoing contract management:Once negotiated, many contracts become obsolete within the first year or two due to multiple reasons but primarily due to changing scope, new skill set requirements, etc. An outsourcing advisor can make sure that contracts are kept up to date with continuous review and updates to ensure that you benefit from ongoing, recurring savings on your outsourcing investment.

A sourcing advisor who hand-holds you through that process can bring in significant value in many ways, including monetary savings in the long run. Contact us today to see how we can help you benefit from our outsourcing advisory services.

Deals

Hong Kong Housing Authority Selects Accenture to Design, Deploy and Maintain New Enterprise Resource Management System
The Hong Kong Housing Authority has awarded Accenture an eight-year, USD$30 million contract to design, develop and maintain a new enterprise resource management (ERP) system for the agency.
http://newsroom.accenture.com/article_display.cfm?article_id=5011

Unisys Wins Renewal of Outsourcing Contract with The Co-operative Bank
Unisys to continue cheque processing services through 2015 to help bank increase efficiency and contain costs.
http://www.unisys.com/unisys/news/detail.jsp?id=1120000970003310109

Intelenet bags UID call centre deal; outbids Wipro, Genpact
Back office firm Intelenet Global Services has outbid bigger rivals such as Genpact and Wipro BPO to win the tender for providing outsourcedcall centre services for the prestigious Unique Identification Authority of India (UIDAI) project.
http://economictimes.indiatimes.com/infotech/ites/Intelenet-bags-UID-call-centre-deal-outbids-Wipro-Genpact/articleshow/6034730.cms

M&A, Partnerships, JV

Essar group to acquire avaya’s stake in agc networks for $44.5 million
Deal to catapult the Indian company into top tier of solution integrators space.
http://www.aegisglobal.com/article.aspx?cont_id=ahnmX+nmW5s=

Aditya Birla Minacs acquires US based Bureau of Collection Recovery
Aditya Birla Minacs acquired (through its US subsidiary) of US-based Bureau of Collections Recovery (BCR), a leading accounts receivables management company.
http://www.minacs.adityabirla.com/common/document_display.cfm?doc_bin_id=12363&type=PDF

Japan’s JR Kyushu and Patni sign JV pact
The JV is aimed at providing high quality, cost effective IT and product engineering services to the Japanese enterprise market.
http://www.patni.com/press-release/2010/japans-jr-kyushu-and-patni-sign-jv-pact.aspx

News & Events

Keshav Murugesh, Group CEO, WNS Global Services Re-appointed Chairman of SIFE India
WNS Global Services (NYSE: WNS) CEO, Keshav Murugesh, has been re-appointed Chairman of the Board of Students In Free Enterprise (SIFE), India for a three year term.
http://ir.wns.com/phoenix.zhtml?c=200768&p=irol-newsArticle&cat=news&id=1436199

HCL Technologies announces Enhanced focus on IT Infrastructure Services in Brazil
HCL announced plans to expand its infrastructure footprint in the region by setting up a multilingual service desk facility to support its global and local customers in Rio Grande do Sul.
http://www.hcltech.com/media/press-releases/2010/06/09/

Awards

Infosys BPO Wins Royal Philips Electronics Breakthrough Award 2009
The awards acknowledge the critical role that suppliers’ plays in helping the company meet the challenge of ensuring supply continuity and delivering innovative, cost-effective products of unequalled quality to fulfill the growing demands of the company.
http://www.infosys.com/newsroom/press-releases/Pages/breakthrough-award-2009-bpo.aspx

Tata Consultancy Services Ranked Fifth in Bloomberg Business week’s Tech 100
Tata Consultancy Services, is ranked fifth overall, and topped the list for IT services, in Bloomberg Business week’s 12th annual “Tech 100”, a ranking of the world's best performing tech companies.
http://www.tcs.com/news_events/press_releases/Pages/TCS-Ranked-5th-Bloomberg-Businessweek-Tech-100.aspx

Wipro’s Identity Management Solution wins Kuppinger Cole Best Innovation Award
Wipro Identity Access Management (IAM) Solution IDAM-in-a-Rack has been honored with the ‘Best Innovation Award in Identity Access Management Category’ by the analyst group KuppingerCole.
http://www.wipro.com/corporate/media/newsdetail.aspx?id=1618

Syntel Named a Leader in Healthcare IT Services
Syntel, Inc. (Nasdaq:SYNT), has been ranked #58 on the 2010 "Healthcare Informatics 100," a list of the 100 leading global healthcare IT providers.
http://files.shareholder.com/downloads/SYNT/896486559x0x379792/b61ea813-0f87-4bec-b2ee-21cfa4b5672f/SYNT_News_2010_6_3_General.pdf

Analyst/Reports

Market Insight: Outsourcing Contract Signings; 1Q10 Review Shows Slow Uptake at the Beginning of the Year
The report is a 1Q10 review of IT outsourcing and business process outsourcing deal signings. Compared with 1Q09, it saw a slower start to the year in terms of reported contract signings.
http://www.gartner.com/DisplayDocument?id=1378115

ITO Request for Information 2010 - A Market Insights Report
This report discusses key messages from the IT Outsourcing RFI 2010 and presents conclusions on the market trends in ITO during 2009 and its key market segments: Infrastructure Outsourcing (IO), Applications Development and Maintenance (ADM) and Bundled ITO deals.
http://bit.ly/bEBAvb

Outsourcing is no longer a hands-off relationship, as enterprises look forward to do more than just transfer existing processes and ask vendors to achieve the SLAs. They rather aim at partnership development and strategic alignment with their vendors. Managing the Vendor Relationship becomes more important when clients expect their provider to deliver long-term business value. 

SLA’s as a performance driver – A Myth

SLAs/Metrics are ingenuous tools for measuring the overall success of an Outsourcing contract; they are too many and too detailed to be truly meaningful. These should be aided by rigorous governance structures on both sides; ongoing performance reviews; and continual refinement of the Outsourcing contract goals. Linking business goals to the SLA metrics can get both parties much more focused on the key aspects of the operational and relationship aspects of the deal which benefits both.

A Vendor Management Framework enables the organization to continually improve its IT and Business operational capabilities throughout the relationship with its vendor. Its key takeaways are:

Vendor Relationship Management

Ensures business strategy and IT strategy are translated and communicated to vendors with respect to services and projects they deliver, thereby ensuring that the organization drives maximum business value from its Outsourcing arrangement. IT Managers need to create an environment that encourages both the vendor and customer to suggest improvements and two way exchange of ideas/concerns.

Communication Management

Communication is a crucial factor in achieving performance and process improvements across the Outsourcing lifecycle. When the communication channels between the vendor and his client are fully open, and when there are right people on both the sides, it is possible to achieve better results and add value by bringing out areas of concern and suggesting areas for improvement. This also helps address certain intangible risks involved due to information loss and mismanagement.  The vendor should also utilize practical experience learned from one client to other deals of similar nature.

Vendor Performance Management

Ensures adequate measuring and monitoring of services delivered and prompt resolution of issues faced.  It also includes on-going reviews of vendor contribution to the business and the delivery of assured business value. Relationship Management Scorecard is a strategic Vendor Governance tool that conducts regular health checks on the vendor performance and outsourcing relationship.

Vendor Financial Management

Validates, manages and monitors economics of the Outsourcing contract. It manages financial risks associated with the contract, ensures accuracy and audit-ability of all financial transactions and places proper financial controls across the agreement lifecycle.

Vendor Service Agreement

Ensures that vendor’s services are properly aligned and integrated into the organization’s IT service portfolio. It works with the organization’s service and process owners to continually improve IT services underpinning business processes. It facilitates business transformation by driving the approach to systematically integrate the vendor’s advancements into its internal IT service and process structure.

An Advisor can help you navigate the Outsourcing Contract maze by:

• Providing an actionable plan through an objective evaluation of vendor’s offerings
• Setting timeframes and provide a proven roadmap for business target realization
• Navigating clients through a pragmatic, fact based process
• Leading or supporting negotiations with a focus on key elements of the contract to ensure a smoother long term sustainable relationship with the   vendor
• Building a strong foundation for on-going vendor governance
• Using a pragmatic yardstick to evaluate outsourcing outcomes

Ok so there's a lot of talk about Vendor Management and its benefits and how it can be implemented, etc. So when looking for vendors to incorporate in your pool of strategic or short-term vendors:

1. Do interview more than one and fewer than 10 vendors in a particular area of need
2. Don't single-source just cause its easier, faster, or because it seems like a good deal
3. Do ask about their expertise, experience, team, clients, case studies.
4. Don't just look at the hourly rate or project cost, also understand "total" cost of involvement/deliverables
5. Do ask how the company will provide continous innovation and ideas to help save you money long-term, not just one-time
6. Don't ask them how they perform when compared to their nearest competitor. Do you really think you are going to get an honest answer?
   
7. Do share an overall range of budget tha want to be in
8. Don't tell them your exact budget figures
9. Do ask about performance measurement, metrics, reporting, and all things that are done post-project
10. Don't threaten or bribe them with future business to get a short-term unreasonable pricing

MphasiS is a leading provider of applications services, remote management services and BPO services. The company delivers real improvements in business performance for clients through a combination of technology know-how, domain and process expertise. With currently over 37,000 people, MphasiS services clients in financial services, healthcare, communications, transportation, consumer & retail industries and to governments around the world.

Financial Highlights – Second Quarter 2010

•Consolidated revenue was at Rs 1,220 crores for the quarter ended 30 April, 2010 as compared to Rs 1,048 crores in the same quarter last year clocking a growth of 16.4%
•Net profit increased by 19.2% from Rs 224 crores for the quarter ended 30 April, 2010 to Rs 267 crores in the same quarter last year
•Operating Profit during the quarter ended 30 April, 2010 was Rs 274 crores a growth of 21.3% over the same quarter last year
•EPS moved up from Rs 10.74 to Rs 12.73 (Year-on-Year)
•Operating and net margins for the quarter ended 30 April, 2010 were 22.5% and 21.9% respectively

Business Highlights

•During the quarter ended 30 April, 2010, the Group added 22 new clients
•The Group added net headcount of 1,429 during the quarter. The Group headcount stood at 37,119 as of 30 April, 2010
•The Group acquired Fortify Infrastructure Services, a global provider of offshore based Remote IT Operations and Management (ROM) Services

http://www.mphasis.com/pdfs/PressReleaseINRQ2FY10_may26.pdf

Deals

MindTree to manage Carlyle's IT infrastructure
MindTree will provide IT infrastructure management and support services for Carlyle's global data centers.
http://www.mindtree.com/newsandevents/mindtree-selected-as-infrastructure-management-partner-of-the-carlyle-group/

Brazilian Credit Union SICREDI Announces Strategic IT Agreement with Accenture
SICREDI, one of Brazil’s leading credit unions, has engaged Accenture to provide information technology (IT) support and systems development services under a strategic outsourcing contract.
http://newsroom.accenture.com/news/brazilian+credit+union+sicredi+announces+strategic+it+agreement+with+accenture.htm

SimplexGrinnell Selects Infosys' Supply Chain Visibility & Collaboration Product Suite
SimplexGrinnell has signed a product license and services agreement to implement the Infosys Supply Chain Visibility & Collaboration Suite as part of its enterprise-wide sourcing business intelligence and spend analysis initiative.
http://www.infosys.com/newsroom/press-releases/Pages/scv-collaboration-suite.aspx

M&A, Partnerships, JV

IBM Teams With Hildebrand to Bring Smart Metering to Homes Across Britain
Information and Analytics Help Consumers Make Better Decisions About Energy Usage While Reducing Costs
http://www-03.ibm.com/press/us/en/pressrelease/31690.wss

IBM Agrees to Acquire Sterling Commerce from AT&T for $1.4 Billion
The acquisition of Sterling Commerce will expand IBM's ability to help organizations create more intelligent and dynamic business networks by simplifying and automating the way they connect and communicate with customers, partners and suppliers both on-premise or through cloud computing delivery models.
http://www-03.ibm.com/press/us/en/pressrelease/31742.wss

News & Events

Convergys Receives Patent for Major Innovation in Scalability and Timing of Software Development
Convergys Corporation, has received a new patent from the United States Patent and Trademark Office (USPTO) for a major innovation that improves the scalability and timing of software development
http://www.convergys.com/company/news-events/newsroom/news_release.php?newsid=4768

Awards

IBM Awarded 2010 SAP Pinnacle Awards
Recognized as Leader in Customer Satisfaction and as Global Technology Partner of the Year.
http://www-03.ibm.com/press/us/en/pressrelease/31724.wss

Wipro Awarded Two 2010 SAP® Pinnacle Award
Recognized for Delivering Operational Transformation to its Clients; Wins Pinnacle Awards in “IT Outsourcing Partner of the Year” and “Run SAP Partner of the Year” Categories.
http://www.wipro.com/corporate/media/newsdetail.aspx?id=1616

Analyst/Reports

HRO Supplier Profile Compendium - Comprehensive Look at MPHRO Suppliers
The report provides accurate, comprehensive, fact-based snapshots of 16 suppliers in the multi-process HRO marketplace. It also provides an assessment of their delivery capabilities along four key dimensions- scale, scope, technology, and delivery footprint.
http://www.everestresearchinstitute.com/Product/11161

Ramco Systems, a part of the USD 800+ million Ramco Group, is a global provider, catering to over 100,000 users. Their resource strength exceeds over 1,306 employees operating out of 18 offices in 9 countries. Ramco Systems develops cost effective, flexible, and innovative enterprise applications, across multiple verticals including banking, insurance, manufacturing, supply chain, aviation, transportation and logistics, healthcare, governance, retail and so on. Ramco's collaborative solution innovation platform-Ramco VirtualWorks ensures that when your business changes, your system also changes along. Ramco Systems has been certified for ISO 9001:2008 quality standards, and ISO 27001 security standards.

Financial Highlights

•Global profit of USD 0.40 mln for the financial year 2009-10 as against last year’s profit of USD 0.45 mln
•Global revenues for Q4 (FY: 09-10) stood at USD 9.05 mln.
•During the year, the total quarterly income (India) reported is Rs 27.28 crores as against last year revenues of Rs. 18.12 crores depicting noteworthy growth of 51%.

Business Highlights

•The company’s flagship product RODE (Ramco OnDemand ERP- ERP delivered on cloud) successfully added 60 new customers in India
•The company’s entered into partnership with HP to market its Analytics Product on its neoview platform

http://www.ramco.com/news/company_press_May_24_10.asp