Industry news

Capgemini, has been awarded a seven-year €15m contract extension by Danfoss, the leading global manufacturer of valves and fluid handling components for HVAC (Heating, Ventilating, and Air Conditioning) and industrial applications, based in Denmark.

Capgemini has already been delivering BPO Finance & Accounting services to Danfoss in 29 EAME countries (Europe, Africa and the Middle East) including South Africa for the last five years. During this time it has consolidated processes at the Capgemini Poland Krakow site, transformed systems from a country-based to process-based structure, and has collaborated closely with Danfoss to achieve process standardization.

Through this new contract extension, Capgemini will now deliver Danfoss’ Finance & Accounting services through a dual model of service delivery split between Krakow in Poland and Kolkata in India. Through the new scope, countries from NAM and APAC will also be transitioned from Danfoss to Capgemini (including the US, Canada, India, Australia, New Zealand, Singapore, Malaysia, Philippines, Thailand, Korea and Taiwan).

Over 130 BPO professionals will deliver Finance and Accounting services covering Accounts Payable, Accounts Receivable and General Ledger. Capgemini will give Danfoss the ability to scale up and down its services according to business needs and will drive process alignment increasing process optimization through its Global Process Model.

Christopher Stancombe, Head of Global BPO Finance & Accounting Service Line, said: “This is an exciting development of our collaboration with Danfoss. It extends our partnership into much wider territory, increases our service scope and allows us to deliver significant value and quality improvements for our client by working together to produce a Danfoss Global Process Model.”

Hewlett-Packard Co. plans to launch a public cloud service, company CEO Leo Apotheker said on Monday at the company's annual analyst meeting.

The cloud, connectivity and software are integral to HP's strategy, Apotheker told analysts at the HP Summit 2011 event held in San Francisco. It was the first public appearance by Apotheker since he became CEO more than four months ago.

Observers have eagerly awaited Apotheker's remarks. Since taking over the top spot at HP after the abrupt departure of former CEO Mark Hurd, Apotheker has avoided public statements regarding the company's future strategy. Indeed, as expected, Apotheker's key message focused on his desire for HP to march forward into the cloud.

"We intend to be the platform for cloud and connectivity," Apotheker told analysts. "The opportunities in the cloud are extraordinary and we are positioned to lead with our portfolio and to lead with our customers who need a trusted partner to help navigate the journey ahead."

Serco Group has announced that it has acquired The Listening Company, a UK based provider of outsourced customer contact centre services to both private and public sector organisations, for an initial cash consideration of £42.1m which includes the repayment of £16.4m of debt. In addition, contingent payments of up to £13.8m are payable, conditional on the financial performance in the two year period from 1 March 2011 to the end of February 2013.

The Listening Company specialises in bespoke solutions for managing customer interaction ranging from customer acquisition to retention, renewal and growth and including advice and service. It operates across multiple communication channels including email, telephone and internet.

The Listening Company's revenue for the year to 31 October 2010 is expected to be £82m with underlying operating profit of £4.4m before one-off investment. Following full integration into Serco's Local Government & Commercial division, The Listening Company operating margin is expected to be at least in line with Serco.

Christopher Hyman, Chief Executive of Serco Group plc, said: "This acquisition takes us to a new level of contact centre operation, expanding the services we offer to both the private and public sector as they seek to improve the effectiveness and efficiency of their contact centre operations. It will not only enhance our offering in bids for local authority transformation programmes, an important part of their solution to the challenges in the UK, but also strengthen our private sector capability."

Combined Enterprise with over USD 481 Million in Revenues, Merger creates Economies of Scale across Key Verticals.

HOV Services Limited, an end-to-end global BPO and services company, has announced that an agreement has been entered into

to combine its indirect subsidiary HOV Services LLC with SOURCECORP.

Shareholders of HOV Services and SOURCECORP will each control 50% of the combined entity, i.e. SCH Services, Inc., a Delaware corporation, incorporated under the laws of US (“SCH Services”). The transaction is expected to be completed in the next 45-60 days subject to regulatory approvals under laws of US and customary closing conditions.

Transaction Highlights:

• Strong global management team

• Combined headcount of approximately 14,200 globally on February, 2011

• Marquee customers – more than 50% of the Fortune 100®

• High visibility and large recurring revenue stream

• Deep domain expertise in several industries

• Increased access to global customers with an extensive global footprint

• Significant operating leverage, scalable operating platforms with new revenue growth

opportunities

Commenting on the merger, Suresh Yannamani, President of HOV Services, said "This merger is abouttwo strong companies coming together to create a sustainable platform for value creation and

growth. In joining forces, this merger creates an entity positioned to be a global provider of business process solutions and consultancy services in the industry."

He added, "The combined entity is globally positioned, active on four continents. Its enhanced platforms will enable us to collectively better service the needs of our customers and provide them with additional expertise in Healthcare, Insurance, Banking, Automotive, Retail, Government and Publishing verticals. We are very excited about this combination and look forward to working with Ed Bowman and the entire SOURCECORP team in partnership as one.”

Atos Origin, an international IT services company, has announced that with effect from 1 April 2011, Highlands and Islands Enterprise (HIE) the Scottish Government’s economic and community development agency, will have its IT services - including service desk, application management, desktop and IT infrastructure - delivered by Atos Origin.

This deal is a third in a series for Atos Origin in the North of Scotland having won contracts with Aberdeen City Council and FirstGroup last year.

HIE is the latest non departmental public body to join the successful Skills Development Scotland Information Systems (IS) Shared Services agreement, which now includes other NDPBs such as Scottish Enterprise, Scottish Development International, and the Scottish Criminal Case Review Commission in order to transform IT to achieve efficiencies and service improvements.

Steve Langmead, Senior Vice President – Scotland, Atos Origin, said: “This is a significant expansion of the provision of shared services across the Scottish public sector, and gives Atos Origin the opportunity to increase its footprint across Scotland.”

Atos Origin’s service provision will support HIE in its role, providing a shared service through which all the partner organisations can develop a common platform and pursue greater efficiencies.

Alex Paterson, Chief Executive, Highlands and Islands Enterprise said: “Efficient and effective IT systems are critical to support our performance and we are delighted to be part of the provision of shared services by Atos Origin. We believe it is important that organisations like ours collaborate wherever possible and expect the new arrangement will generate greater efficiencies for all the partners in the longer term.”

Capgemini and the Finnish Customs have signed a four-year contract for infrastructure services related to Customs’ information technology environment. The contract is worth €14 million, covering a wide range of server hosting and workstation services, plus related network and data security services.

The year-long transition project, from the incumbent IT service provider, will start in March. Capgemini’s services will be provided entirely from Finland.

“Finnish Customs has a significant role in the Finnish foreign trade logistics chain, collecting a great amount of tax income. The majority of our offerings are delivered through e-services, which is why real time operations must be secure. Finnish Customs also has a role in inland security, which sets special requirements for the IT service provider. Capgemini’s offering fulfilled our most strict standards. Finnish Customs’ IT based services have developed and the trend is still growing. We expect our partner to deliver stable IT services and the ability to carry out development initiatives with a quick response,” says Arja Palo, Finnish Customs Chief Information Officer.

Mahindra Satyam, a leading global consulting and IT services provider, has announced that it has won a multi-million, multi- year contract from Aspire Zone Foundation, Qatar, one of the leading sports institutes, to provide onsite and offshore support on various application development and infrastructure services projects. Aspire Zone will also utilise Mahindra Satyam’s expertise in event and venue management technologies as part of its ambitious sports event and venue management solution roadmap.

CP Gurnani, CEO, Mahindra Satyam visited Hilal Al-Kuwari, President, Aspire Zone Foundation President, in Qatar to discuss areas of mutual interest and opportunities for collaboration in the Sports Technology domain. Mahindra Satyam is also currently engaged with Aspire Zone Foundation in providing application and infrastructure support services based on a time and material contract.

“The partnership between Mahindra Satyam and Qatar’s ‘Aspire’ highlights a strategic alliance that will help position Qatar as a global hub of excellence in sports—from training athletes to holding international events. Mahindra Satyam will be bringing in its leadership in global outsourcing and IT services to help ‘Aspire’ come one step closer towards its goal of promoting itself as a leading sport’s institute and destination - showcasing its abilities to host or be responsible for other international sporting events in the future,” said C.P. Gurnani, CEO, Mahindra Satyam.

Gas and electricity supplier EDF Energy is to outsource much of its IT support to Capgemini in a contract worth up to £100m.

The contract is initially for three years and EDF Energy has the option to extend it by a further two years. If the full term of the contract is seen out, EDF Energy will have invested £100m by the end of 2015.

The main objective of the outsourcing deal is to improve the quality of IT support services for EDF Energy’s UK business, making them more consistent and standardised.

As part of the contract, Capgemini will provide IT service desk support and managed desktop services – including email, instant messaging and file sharing – for EDF Energy’s 15,000 IT users.

Capgemini will also assist EDF Energy with its technology procurement.

The outsourcing arrangement will result in some of EDF Energy’s IT staff - as well as some staff from its current IT suppliers - moving to Capgemini, most of whom will be based in the UK.

The Independent newspaper has announced a new outsourcing supplement to be released in April. Working in association with the National Outsourcing Association, The Independent will look to promote outsourcing as a way of streamlining and helping British businesses through tough economic times.

Editorially, the supplement will look at how the landscape of British business has changed in the aftermath of the recession and change in Government. Positive aspects of this change will be emphaised as well as how how outsourcing has had a positive effect on the UK economy.

http://www.independentonlinesolutions.com/advertisingGuide/outsourcing.pdf

Credit Suisse is to outsource the administration of its Guernsey-domiciled funds of hedge funds managed internationally by Credit Suisse Asset Managers, which were previously serviced in-house.

The business will be moved to the new provider over the next six months. Credit Suisse will not disclose the name of the third-part administrator, nor the volume of assets involved, but says the new service provider is “one of the biggest fund of funds administrators globally”.

A spokeswoman for Credit Suisse says: “The outsourcing of our fund of funds administration business in Guernsey involves devolving a non-core administrative function, which is in line with our strategy to provide a core, client-orientated service focusing on offering strong investment performance to our asset management clients.”

The spokeswoman says that the group’s banking, wealth management and trust businesses in Guernsey are not affected by the deal, and insists that it remains committed to the island.