Deals

Mahindra Satyam develops integrated migration solutions for healthcare payer organizations
Mahindra Satyam, the brand identity of Satyam Computer Services Ltd. (NYSE:SAY), is providing integrated migration solutions for healthcare payer organizations that would meet the new federal HIPAA rules.
http://www.mahindrasatyam.com/media/pr1Sept10.asp

Patni appointed to deliver application management services to the Codan Group in Scandinavia
Patni has secured a seven-figure contract over three years to provide managed services around some of Scandinavia’s core insurance platforms.
http://www.patni.com/press-release/2010/patni-appointed-to-deliver-application-management-services.aspx

Hydro Awards Accenture Three-Year SAP Application Management Contract
Accenture has signed a three-year application outsourcing (AO) contract with Norsk Hydro ASA, one of the world's leading integrated aluminum companies. The agreement covers support and maintenance of two of Hydro's SAP systems globally.
http://newsroom.accenture.com/article_display.cfm?article_id=5049

Wipro signs 7 year outsourcing contract with UCO Bank
Wipro Infotech has signed a seven year total outsourcing contract with 5 regional rural banks sponsored by UCO Bank, a leading public Sector Bank. The contract is for implementing a Core Banking Solution (CBS) across 803 branches of RRBs under UCO Bank’s sponsorship.
http://www.informationweek.in/Software/10-08-27/Wipro_signs_7_year_outsourcing_contract_with_UCO_Bank.aspx

KiwiRail Selects IBM to Deliver Smarter Rail Network for New Zealand
IBM and KiwiRail have reached a three-million dollar (NZD) partnership to provide KiwiRail Network with the software and services designed to improve visibility and management of its tracks, bridges and other network assets to improve the speed, safety, and reliability of its rail service.
http://www-03.ibm.com/press/us/en/pressrelease/32406.wss

Accenture Awarded Supply Chain BPO Contract Extension by ETS
Educational Testing Service (ETS), the leading provider of education assessments and psychometric research, has awarded Accenture a seven-year, $160M contract extension to continue managing its end-to-end supply chain, under a business process outsourcing (BPO) agreement.
http://newsroom.accenture.com/article_display.cfm?article_id=5050

M&A, Partnerships, JV

Capgemini acquires a 55% stake in CPM Braxis, the leading Brazilian IT services player
Capgemini has reached an agreement with the shareholders of CPM Braxis which will see Capgemini acquire a 55% interest in the leading Brazilian IT services company.
http://www.capgemini.com/news-and-events/news/capgemini-acquires-a-55-stake-in-cpm-braxis-the-leading-brazilian-it-services-player/

Essar Group successfully closes acquisition of AGC Networks Ltd.
Essar Group has successfully completed the acquisition of AGC Networks Ltd., including closure of the offer representing 20% of AGC Networks’ outstanding shares. The total deal was worth $61.4 million.
http://www.aegisglobal.com/article.aspx?cont_id=yOUzCj7pcAQ=

News & Events

WNS Global Services to invest USD 15-mn to open new centers
WNS Global Services, plans to invest USD 15-million to open new centers in India in 2010.
http://economictimes.indiatimes.com/infotech/ites/WNS-Global-Services-to-invest-USD-15-mn-to-open-new-centers/articleshow/6391395.cms

Carlson Ditches IBM, Sues For Fraud
Hospitality giant Carlson has terminated its multimillion dollar outsourcing deal with IBM and slapped Big Blue with fraud and breach of contract charges. The owner of Radisson Hotels, T.G.I. Fridays restaurants, and Carlson Wagonlit Travel claims IBM violated terms of the deal, signed in 2005, under which Carlson handed off IT and back office operations to the tech vendor. The agreement was originally set to run through 2015. http://www.informationweek.com/news/services/outsourcing/showArticle.jhtml?articleID=226700455

Firstsource to expand in Australia, Philippines
Business process outsourcing firm Firstsource has appointed managing director and chief executive officer, Matthew Vallance, will be focusing on building domain capabilities within the company to leverage its position in the US, UK and India and also enter new areas like Australia.
http://www.business-standard.com/india/news/firstsource-to-expand-in-australia-philippines/406024/

Sonata opens office in Netherlands
Sonata Software has opened its new office in the European region. Located in Amsterdam, Netherlands, the office will cater to the requirements of Sonata’s growing number of customers in the BeNeLux (Belgium, Netherlands and Luxembourg) countries.
http://www.sonata-software.com/web/sonata_en/company/newsroom/pressreleases/current/Sonata_opens_office_in_Netherlands.html

Awards

Telstra and Infosys Win Top Honours in IT Service Management Awards
Telstra and Infosys Technologies Ltd have won Best ITSM (IT Service Management) Project of the Year, the top industry award bestowed by itSMF Australia , the peak body for ITSM in Australia. The Telstra-Infosys submission tied with one from the Department of Immigration.
http://www.infosys.com/newsroom/press-releases/Pages/IT-service-management-awards.aspx

Analyst/Reports

The Forrester Wave™: Business Process Management Suites, Q3 2010
Forrester evaluated 11 leading business process management (BPM) suite vendors against 148 criteria reflecting the requirements of business process professionals running large-scale BPM programs.
http://www.forrester.com/rb/Research/wave%26trade%3B_business_process_management_suites%2C_q3_2010/q/id/53295/t/2?src=Alert%20RSS_CustomFeed&cm_mmc=Research_Alert-_-email-_-08_25_10-_-53295

Established Outsourcing Providers Lose Market Share in the DACH Region

The latest findings from a report on "Sourcing trends and Supplier positioning in Germany, Austria and Switzerland" by the market research firm Pierre Audoin Consultants (PAC) state that sales from IT outsourcing services will have increased by approximately EUR 4.5 billion in the DACH region (German- speaking nations) in 2010 compared to 2005.

Key Highlights of the Report

The top 5 providers account for nearly 45 percent of the market in Germany; and 70 percent in Austria. The remainder of the market is highly fragmented, with the number of outsourcing providers approaching 100 in the DACH region alone

• In the overall DACH region, IBM ranks first, closely followed by T-Systems. HP, Siemens SIS and Atos Origin
• In the Swiss market, IBM leads with a market share of nearly 19 percent, followed by Swisscom IT Services, HP and T-Systems. Accenture and CSC rank 5th and 6th
• In Austria, Siemens SIS - with a market share of 23 percent - is clearly ahead of its major competitors, IBM, Raiffeisen Informatik, HP, and T-Systems
• In Germany - by far the biggest market - T-Systems ranks first, with a market share of almost 13 percent, closely followed by IBM. HP, Siemens SIS, Atos Origin and Fujitsu are the challengers
• Infosys, an Indian player, has made it into the top 20 outsourcing providers in the DACH region. In Switzerland, the company even ranks 7th
• HP has gained quite some share in all markets after taking over EDS
• IBM has maintained its positioning in Austria and Germany since 2005, while slightly losing market share in Switzerland
• Swisscom IT Services has improved its position in its home market, Switzerland
• Capgemini’s market position has remained largely unchanged over the period in question
• Accenture, Computacenter or Wincor Nixdorf in Germany have gained market share
• In Switzerland as many as four India-based players (Infosys, TCS, Mahindra Satyamand Wipro) are among the top 20 outsourcing providers

https://www.pac-online.com/pac/pac/live/pac_world/global/press_corner/press_releases/index.html?lenya.usecase=show-rapport&document=pac_sitsi_reports/press_release/DE_Outsourcing_Program_SuppPos_EN_PR1008&xsl=press_release

HCL is a US$ 5 billion leading global Technology and IT Enterprise that comprises two companies listed in India – HCL Technologies & HCL Infosystems. Founded in 1976, HCL is its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over 71,000 professionals of diverse nationalities, who operate from 26 countries including over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms.

Financial Highlights

• Consolidated revenue reported for the quarter at USD 699 Mn and for the year at USD 2628 Mn
• Profit Before Tax reported for the quarter at USD 21 Mn and for the year at USD 75 Mn
• Board of Directors has recommended a final dividend of Rs. 2 per fully paid up share, taking the total dividend for the year 2009-10 to 375%

Business Highlights

• Overseas expansion through inorganic growth
• Bagged India’s 1st RAPDRP order of over Rs 500 cr to implement a state wide power solution in
  Rajasthan
• Won project worth Rs.100cr from Delhi Government to roll out country’s first Government Radio
  Network
• Awarded a project to implement India’s 1st smart card based Public Distribution System in
  Chandigarh
• Project awarded for digitising data from Census of India for the year 2010 –11
• Won a contract of over Rs 100 cr, from Gujarat Government to deploy IT educational solutions for
  the development of the tribal districts schools in the state of Gujarat
• Forays into the gaming market with its range of handheld gaming consoles
• Launches HCL O’zone, an end-to-end cloud based computing infrastructure
• Announced the return of Beanstalk ‘Desktop Computing 2.0’, one of the most popular desktop
  range
• Rolled out new marketing initiative ‘Mobile Excitement’, a multi dimension initiative with more
  focused marketing strategy towards today’s youth
• IDC Dataquest survey ranked HCL Infosystems as No.1 in ‘IT Services’ in India

http://www.hcl.in/files/HCLI-qtrly-rslt-q4-aug2010.pdf

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 38,000 people, MphasiS services clients in financial services, healthcare, communications, transportation, consumer & retail industries and to governments around the world.

Financial Highlights for Quarter ended 31 July 2010

• Consolidated revenue at $ 275.6 million for the quarter ended 31 July 2010 as compared to $ 232.0 million in the same quarter last year displaying growth of 18.8%
• Net profit at $ 58.5 million for the quarter ended 31 July 2010 as compared to $ 48.1 millionin the same quarter last year displaying growth of 21.6%
• Operating Profit at $ 59.4 million for the quarter ended 31 July 2010 displaying growth of 17.6% over the same quarter last year
• Operating margins stood at 21.5%
• EPS for the quarter was $ 0.28, an increase of 21.1% over the same period last year

http://www.mphasis.com/pdfs/PressReleaseUSDQ3FY10.pdf

National Association of Software and Service Companies (NASSCOM)has come up with the findings of its annual survey on the outlook for FY10-11. The Indian IT-BPO exports are projected to grow by 13-15% while the domestic IT-BPO is expected to grow by 15-17% during FY11. NASSCOM also released the annual rankings for the following categories, for FY09-10:

Top 20 IT Software and Service exporters in India (excluding BPO revenues)

1. Tata Consultancy Services (T.C.S.)
2. Infosys Technologies
3. Wipro Technologies
4. HCL Technologies
5. Tech Mahindra
6. MphasiS
7. Patni Computer Systems
8. Aricent Technologies
   
9. CSC
10. L&T Infotech
11. HSBC Software
12. Polaris
13. Mindtree
14. 3i Infotech
15. Mascon Global
16. Honeywell
17. Infotech Enterprises
18. Hexaware Technologies
19. Sonata Software
20. Zensar Technologies

Click Here for the entire listings.

Deals

CSC Signs 10-year Contract Extension with Swiss Re
CSC has arrived at a 10-year extension to its business process outsourcing (BPO) services agreement with Swiss Re, one of the world’s largest and most diversified reinsurers.
http://www.csc.com/newsroom/press_releases/51685-csc_signs_10_year_contract_extension_with_swiss_re

MERS Awards Seven-Year Mortgage Services Contract to Genpact
Genpact Limited (NYSE: G) will provide mortgage services support and member-facing helpdesk services for MERSCORP, Inc. (MERS), the mortgage finance industry’s electronic loan registry system.
http://www.genpact.com/home/aboutgenpact/press-releases/genpact-MERS-contract.aspx

Wipro Signs Outsourcing Services Agreement with Citibank N.A. and takes over Citi’s Data Center in Meerbusch, Germany
Wipro Technologies, the global IT services business of Wipro Limited (NYSE:WIT) and Citibank have signed an agreement for Wipro to take over the operation and management of Citi’s data center in Meerbusch Germany.
http://www.wipro.com/corporate/media/newsdetail.aspx?id=1654

TCS Wins PwC's Contract to Handle IT Support System
The US and UK arms of PricewaterhouseCoopers (PwC) have awarded a contract for back-office information technology (IT) support to Tata Consultancy Services (TCS).
http://www.globalservicesmedia.com/News/Home/TCS-Wins-PwC's-Contract-to-Handle-IT-Support-System/21/27/0/GS10080588640

Capgemini awarded a five-year application management services contract with The Main Street America Group
Capgemini has been awarded a five-year application management services contract with super regional property-casualty insurance carrier, The Main Street America Group. Capgemini will provide a service-based application management solution for Guidewire ClaimCenter®, which aims to increase clients’ operational efficiency, predictability and scalability for new application developments.
http://www.benzinga.com/press-releases/10/08/b421535/the-main-street-america-group-selects-capgemini-to-provide-application-

Accenture Awarded Contract to Support University of North Texas’ Shared Services Strategy for Information Technology and Human Resources
The University of North Texas System (UNTS) has selected Accenture (NYSE: ACN) to assist in developing a plan for implementing IT and HR/payroll shared services for its component institutions.
http://newsroom.accenture.com/article_display.cfm?article_id=5046

Subex, IBM bag Idea Cellular deal
Subex Ltd, provider of operations and business support systems for communications service providers, has bagged a multi-million dollar deal from Idea Cellular, along with key partner IBM India. Subex and IBM will implement Subex's ROC (Revenue Operations Centre) for interconnect billing for the telecom major.
http://www.thehindubusinessline.com/2010/08/14/stories/2010081451440700.htm

M&A, Partnerships, JV

JDA Software and Tata Consultancy Services Announce Global Alliance
JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, and Tata Consultancy Services (TCS), today announced a global alliance designed to help customers drive high performance within their organizations through the delivery of world-class solutions and services.
http://www.jda.com/company/press-release-details.html?id=1968&src=rss-press&utm_source=jdarss&utm_medium=rssfeeds&utm_campaign=rss_press

HCL Technologies Collaborates with Daon to Provide Comprehensive Identity Assurance Solutions
HCL Technologies Ltd. (HCL) has reached a strategic partnership with Daon, a leading provider of biometric identity assurance software, to help aviation, transportation, government and public sector clients solve their identity program challenges through innovative biometric technology solutions.
http://www.hcltech.com/media/press-releases/2010/08/10/

IBM to Acquire Unica Corporation
IBM  and Unica Corporation (NASDAQ: UNCA) have entered into a definitive agreement for IBM to acquire Unica at a net price of approximately $480 million, after adjusting for cash. A publicly held company in Waltham, Mass., Unica will expand IBM's ability to help organizations analyze and predict customer preferences and develop more targeted marketing campaigns.
http://www-03.ibm.com/press/us/en/pressrelease/32309.wss

News & Events

Mekong Housing Bank (MHB) Vietnam goes live with Polaris’ IntellectTM Global
Polaris Software, a leading Financial Technology company, today announced that Mekong Housing Bank (MHB),
Vietnam’s 5th largest State owned bank has gone live on Polaris’ IntellectTM Global Universal Banking (GUB).
http://www.polaris.co.in/media/media-release/2010-aug-mekong-goes-live-with-igub.pdf

Awards

Cognizant Tops EquaTerra’s Performance and Satisfaction Rankings in Europe
Cognizant has topped the client satisfaction rankings in the 2009-10 Europe ITO Service Provider Performance and Satisfaction (SPPS) study carried out by EquaTerra.
http://www.infosys.com/newsroom/press-releases/Pages/breakthrough-award-2009-bpo.aspx

Analyst/Reports

The 2010 Global Services 100 List: 100 Companies That Define Global Outsourcing
Global Services 100 is a list of the top global providers of business and technology outsourcing services. Leading service providers are evaluated based on criteria including service offerings, management excellence, delivery capabilities, financial and geographic scale and client relationships.
http://www.globalservicesmedia.com/GS100/2010-GS100-List/The-2010-GS100-List:-100-Companies-That-Define-Global-Outsourcing/26/57/9917/GS100806828646

Inquiry Spotlight: Sourcing Execution, Q1 And Q2 2010
This report highlights what your sourcing and vendor management (SVM) peers are asking about in sourcing execution and offers Forrester's view on the answers.
http://www.forrester.com/rb/Research/inquiry_spotlight_sourcing_execution%2C_q1_and_q2/q/id/57373/t/2?src=Alert%20RSS_CustomFeed&cm_mmc=Research_Alert-_-email-_-08_14_10-_-57373

Rolta is an Indian multinational organization that has executed projects in over 40 countries. The Company is a strong player in the Defense and Homeland Security, Government, and Infrastructure sectors by providing innovative solutions – Enterprise Geospatial and Defence Solutions (EGDS), Engineering Design and Operation Solutions (EDOS) and Enterprise IT Solutions (EITS). Rolta, headquartered in Mumbai, employs about 4500 professionals with countrywide infrastructure and international subsidiaries across the globe. Rolta is accredited with the prestigious BSI ISO/IEC 27001:2005 certification, the ultimate benchmark for information security; the BSI ISO/IEC 20000-1:2005 IT Service Management Standard; and the Company’s software development business group has been assessed at the highest level of SEI-CMMI Level 5. Forbes Global has ranked Rolta amongst the "Best 200 under a Billion" four times in six years. Rolta has been included in the S&P Global Challengers ListTM by Standard & Poor’s. The Company is listed on the NSE in cash and F&O segment and forms part of CNX IT, NIFTY Midcap 50 and CNX 500 indices. The Company is also listed on BSE 'A' group and forms part of BSE Midcap, BSE 200, BSE 500, BSE IT and BSE TECK indices. The Company's GDR is listed on the Main Board of London Stock Exchange and its FCCB's are listed on the Singapore Stock Exchange.

Financial Highlights

•Consolidated Revenue for Q4 FY-10 at Rs. 4.12 Billion against Rs. 3.33 billion in FY-09, registering a Y-o-Y growth of 23.9% and sequential growth of 4.4%.
•Consolidated EBITDA for Q4 FY-10 at Rs. 1.60 Billion against Rs.1.12 billion in FY-09, registering a Y-o-Y growth of 42.3 % and sequential growth of 7.3%.
•Consolidated Profit after Tax for Q4 FY-10 at Rs. 0.69 Billion against Rs. 0.50 Billion, without considering one-time gain of FCCB buy back, in FY-09, registering a Y-o-Y growth of 39.3% and sequential growth of 3.0%.
•Consolidated Revenue for FY-10 at Rs. 15.33 Billion against Rs.13.73 Billion in FY-09, registering a growth of 11.6%.
•Consolidated EBITDA for FY-10 at Rs. 5.77 Billion against Rs.4.64 Billion in FY-09, registering a growth of 24.5%.
•Consolidated Profit after Tax for FY-10 at Rs. 2.55 Billion against Rs. 2.67 Billion, without considering one-time gain of FCCB buy back, in FY-09, registering a Y-o-Y decline of 4.7%.
•The Board has recommended a dividend of Rs. 3.25 per share for FY 2009-2010.

Thinking of setting up a Vendor Management Office (VMO)? Here are three key strategies to implement an effective Vendor Management Office

Create a 360 degree Communication Channel: Don't just focus on executive communication, get the entire team involved and engaged. No bottom-up or top-down communication only. Make it a 360 degree communication channel where everyone who has a role is involved actively.

Implement SLA's and KPI's: Service Level Agreements are important but so are Key Performance Indicators to track not just vendor performance but also outcomes of the contractual process, result, and any qualitative measures that align with the company's core values. Service Level Agreements should be measurable and achievable but not so stringent that they are difficult to achieve and create all around frustration.

Create streamlined processes:  Create simple processes that are comprehensive and logical yet also easy to follow. Don't create a paperwork nightmare, processes that require endless meetings after meetings or processes that have so many steps that the overal project goals get lost in the mounds of paperwork and approvals.

Learn how to negotiate effectively: Negotiation is an art. But when does negotiation become counterproductive or is ineffective? Create a competitive bidding process to get the best deal. Avoid single sourcing just because it's more convenient.

CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions & Services, the Managed Services Sector and the North American Public Sector. CSC’s advanced capabilities include system design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. Headquartered in Falls Church, VA., CSC has approximately 95,000 employees and reported revenue of $16.2 billion for the 12 months ended July 2, 2010.

Highlights for the Quarter include:

•New business awards of $3.2 billion for the quarter compared to $3.5 billion for the previous year
•Pre-tax margin of 5.45% for the quarter, an increase of 71 basis points from the previous year
•Operating margin of 7.13% for the quarter, an increase of 32 basis points from the previous year
•Operating cash flow of -$60 million for the quarter, an improvement of $237 million from the previous year
•Free Cash Flow of -$318 million for the quarter, an improvement of $144 million from the previous year

http://www.csc.com/newsroom/press_releases/52046-csc_reports_first_quarter_results

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry,majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunications plc. With total revenues of INR 46,254 million in the year ended March 31,2010, Tech Mahindra serves telecom service providers, equipment manufacturers, software vendors and systems integrators. Tech Mahindra solutions enable clients to maximize returns on IT investment through its domain and process expertise, distinctive IT skills, research and development, proven innovative delivery models and approach to off-shoring. Assessed at SEI-CMMi Level 5 and PCMM Level 5, Tech Mahindra's track record for value-delivery is supported by 35,000 professionals who provide a unique blend of culture, domain expertise and indepth technology skill-sets. Its development centres are ISO 9001:2000 & BS7799 certified. Tech Mahindra has principal offices in the UK, United States, Germany, UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, Philippines, Canada & Australia. 

Key Highlights:

Highlights for the Quarter (INR)

•Revenue at INR 11,337 mn; up 1.9% YoY
•Operating Profit at INR 2,126 mn; down 24.2% YoY
•PAT at INR 1,443 mn; up 9.6% YoY
•Added 1,743 personnel during the quarter, taking the headcount to 35,267
•Added 4 new clients during the quarter
•Forays into Latin American markets with it's first win

Highlights for the Quarter (USD)

•Revenue at USD 251.1 mn; up 10.3% YoY
•Revenue on constant currency basis, up 11.0% YoY
•Operating Profit at USD 46.4 mn; down 20.0% YoY
•PAT at USD 31.4 mn; up 16.0% YoY