Entries from November 2006
EDS is developing a middleware, messaging and security platform for Deutsche Lufthansa AG based on an application development and integration services contract awarded to EDS at the end of the second quarter of 2006.
This platform serves as the basis of the Lufthansa Service Oriented Architecture (SOA), enabling Lufthansa the ability to interface, interoperate and integrate with Lufthansa business partners and other airline systems through open standards.
The development of the application is slated for the end of December and the platform will be ready for acceptance and integration by Lufthansa in January 2007.
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Categories: Contract Wins · Outsourcing · Technology
First ever full services contract outside of India
Tata Consultancy Services (TCS) has signed a seven year agreement to provide a full range of managed IT services to Somerfield, a leading UK-based small-format food retailer, building on an existing eight-year relationship between TCS and Somerfield.
Under this new agreement, TCS will take over the entire IT operations, asset management and planning for Somerfield and provide a fully managed IT infrastructure and applications service within Somerfield, aimed at meeting its current and future business demands. As part of the agreement, TCS will manage 3rd party hardware, software and services contracts with an estimated value of over $100 million over the duration of the agreement.
Phiroz Vandrevala, executive vice-president and global head, corporate affairs said: “This is the first full services contract win for any Indian company outside of India. It shows companies like TCS have emerged as global contenders for complete, end-to-end outsourcing engagements based on parameters like high quality of deliverables and innovative business models”.
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Categories: Contract Wins · Globalization · Outsourcing
Intelligroup launched today its Testing Practice with a focus on ERP testing. The firm has also recently signed a partnership agreement with Compuware which includes becoming a Reseller of Compuware Testing products.
Intelligroup Testing services build upon the ERP best practices and tools that Intelligroup has perfected in the SAP and Oracle arena. The focus is on more effective requirements and impact analysis; preventing defects from moving through the development life cycle; and a metrics program that is useful to both the project manager and senior management. Intelligroup already provides Testing services in ERP, as well as, web and other applications.
Intelligroup currently provides both manual and automated Testing services for clients in Life Sciences, Consumer Products, and High Tech industry verticals. Capabilities include Functional, Regression, Stress, and User Acceptance testing for both ERP and web applications built on Java and .Net.
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Categories: Alliances · Outsourcing · Technology
Rhodia, IBM and ADP today signed a 7-year strategic worldwide agreement to optimize Rhodia’s Human Resources organization by outsourcing the administrative and support areas of key HR processes.
The partnership with IBM and with ADP will allow Rhodia to focus on strategic HR issues, while increasing the flexibility of the organization to better manage variations in its business scope and development in fast growing regions. The agreement is expected to reduce costs of the related HR processes by 30%.
IBM will provide Rhodia with support for HR processes such as recruitment, training, compensation and benefits, workforce administration and analysis, as well as specialized technology, including Global Human Resources Information Systems to improve process standardization.
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Categories: Contract Wins · Outsourcing
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Für zunächst drei Jahre 70 Datei- und Druck-Server, rund 1400 Arbeitsplatzsysteme sowie 850 lokale Drucker. Dazu kommt die zentrale Betreuung der EDV-Anlagen in der Generalverwaltung und den Verwaltungen der Max-Planck-Institute inklusive Helpdesk.
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Andreas Ziegenhain (41) verantwortet bereits seit dem 1. Oktober das Deutschland-Geschäft.
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Zu der Gruppe gehören 14 Call Center, fünf Logistikstandorte sowie diverse IT-Dienstleister. Insgesamt arbeiten dort 10.000 Menschen. Karstadt-Quelle hat bereits Teile seiner Logistik an die Deutsche Post abgegeben.
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The sad truth: poverty is rampant in India, even if Bangalore has become a high-tech hub.
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EDS gets credit for signing new contracts and cost cutting.
Categories: Daily Links · Outsourcing
28. November 2006 · 1 Comment
TPI, one of the most renowned international sourcing advisors, hits the nail on the head on global trends in sourcing:
- Increasing tendency toward multi-sourcing strategies, with multiple service providers engaged across a spectrum of business support functions and geographies
- Rapid adoption of global service delivery platforms, with attendant opportunities for flexible contracting relationships
- Shorter-duration contracting terms, reducing the risks associated with long-term agreements but also potentially restricting the upside
- Dramatic increase in service provider diversity, across service families, industries and geographies
- Gaining popularity of provider-defined solutions that contrast with historical models of provider-assumed assets and staff, with associated incremental improvements delivered over time
- Breakthrough potential of transformation in business operations made possible by focused investments and risk-taking on the part of the service provider community
Absolutely. That says everything happening right now in the industry. I would add four extra points to that list:
- Massive sellout of captives to service providers!
- Massive sellout of ITO units and field service forces to specialized service providers!
- Massive uptrade of the large global service providers into the BPO business
- The offshorers are coming! India and the other BRIC majors are entering the arena in the U.S. and West Europe!
Categories: Outsourcing · Trends
TPI Collaboration with Industry Leaders Offers Guidance for Successful Contract Negotiation Strategies
TPI, the world’s leading advisor to global corporations on all facets of service strategies for business support operations, today announced the completion of the first of four evolutionary innovation initiatives for the global outsourcing industry.
Large enterprises are looking to optimize their business operations — including finance, procurement, accounting and even human resources — through the best combination of insourcing, offshoring, shared services and outsourcing, according to TPI, a leading sourcing advisory firm that today is relaunching its brand to reflect its evolvement along with that of the overall marketplace.
TPI has unequalled access to the range of complex and inter-related contracting terms that result from negotiations between corporations that are buyers and the industry’s leading service providers. In response to feedback from participants on sourcing services buying and selling sides, the company is publishing guidelines to the industry on the current state of “center points” for certain contracting terms.
The categories of guidance offered via TPI’s recommended Terms & Conditions Center Points document, available at http://www.tpi.net/knowledgecenter/innovationagenda/, include:
- Services definition
- “New services” definition
- Service levels
- Post-contract true-ups
- Cost of required consents
- Accountability for managed third parties
- Termination for convenience
- Intellectual property leave-behind rights post-termination
- Approval rights to move service locations
TPI will report shortly on the remaining three core Innovation Agenda items.
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Categories: Outsourcing · Reference
At the end of October the Düsseldorf-based consumer goods company Henkel extended its existing frame agreement with T-Systems, which is valid until March 2007, by another three years. This international frame contract provides the worldwide basis for cooperation in all joint ICT projects.
In addition to the classical services and solutions offering, the international frame contract focuses on innovation, optimization and quality assurance. “The international frame contract provides the basis for the service agreements with T-Systems and ensures the standard quality of all information and communication services on an international level,” says Michael Prange, Head of Computing and Network Services at Henkel. “We know that we have a strong partner in T-Systems, one that offers efficient support throughout all our business processes with its comprehensive ICT portfolio.”
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Categories: Contract Wins · Outsourcing
In the future Siemens Business Services will operate the SAP system for the bauMax do-it-yourself retail chain in seven countries. More than 7,000 bauMax employees use the system in Austria, Czech Republic, Slovakia, Hungary, Slovenia, Croatia and Romania. The contract runs for eight years.
In the past, the do-it-yourself specialist and market leader bauMax handled all its information technology in-house, but as far as SAP is concerned the days of do-it-yourself IT are a thing of the past. In the future, Siemens Business Services will be responsible for all SAP operations, including provision of the necessary IT infrastructure. In addition, Siemens Business Services will also handle hardware and database management, SAP basic installation, operating system maintenance and application monitoring.
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Categories: Contract Wins · Outsourcing
IBM Signs Agreement to Open New Global Delivery Center in Chengdu to Service Global Clients
IBM signed an agreement today with the Chengdu High-Tech Zone, to establish a Global Delivery Center within the Chengdu Tianfu Software Park. Scheduled to be operational by February 2007, this new center will provide multi-lingual application development and maintenance services to clients globally in English, Japanese and Chinese, and to the IBM Global Procurement Center, recently located to the southern Chinese city of Shenzhen.
“As part of our transformation to becoming a globally integrated business, IBM is focused on amassing the right skills and expertise where they exist to deliver the right services to our clients. The presence of a vast talent pool, technical capabilities and business friendly economic policies make China one of our key locations to deliver world-class services to clients around the world,” said Frank Kern, General Manager, IBM Asia Pacific.
The new center at Chengdu further strengthens IBM’s existing network of global delivery centers in China across Shenzhen, Dalian and Shanghai. Established since 1999, China Global Delivery Services has been assessed at SEI CMMI Maturity Level 5, the highest in the industry, providing support to clients in America, Europe and Northeast Asia. IBM also plans to aggressively grow the scope of services according to client needs. The globally benchmarked Chengdu center will have local talent working with highly-trained staff from other parts of China and from IBM operations around the world.
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Categories: Globalization · Outsourcing
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Service providers are on the lookout for companies willing to sell their shared-service centers.
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Quite a hot market for dispensing with captive service centers today.
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Some numbers …
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There’s Money in Back Office Operations
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Troubled medical imaging technology provider Merge Technologies Inc. (TSX:MRG) is amputating 28 per cent of its North American workforce and adding a similar number of jobs in India.
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Tata Consultancy Services (TCS) is in the last stages of finalising a multi-million outsourcing contract with the International Monetary Fund (IMF).
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Der IT-Dienstleister hat mit einer knappen Erklärung auf Presseberichte über ein bevorstehendes Ende des Outsourcing-Abkommens reagiert.
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Provocative Thought-Leadership Panel Discussion Presented by CollabNet and InformationWeek – Thursday, November 30th, 2006 in New York
Categories: Daily Links · Outsourcing
Oops, I just coincidentally discovered a moment ago that today is the first anniversary of my blog. What would be greater than to thank you all today on my very special and own Thanksgiving Day for your growing support. Within 12 months I posted almost 500 articles about IT Outsourcing and more than 1,000 links to worthy information in the Daily Links category. Thank you readers! And thank you WordPress people for a really reliable and great platform!
Categories: Outsourcing · Personal
Tata Consultancy Services and its Chinese partners, supported by the National Development and Reforms Commission (NDRC) announced that Microsoft Corporation had signed a tripartite investment agreement to be a strategic investor in TCS China, with the TCS and the and Chinese Parties, which are national software export bases located in Beijing and Tianjin and nominees of the NDRC. Microsoft will hold a minority stake in TCS China.
The agreement was signed at an Indo-Chinese business forum which had been addressed by President Hu Jintao earlier.The entry of Microsoft follows the granting of the business operating license to TCS China. It also signals the culmination of the process to get the joint venture operational after an MoU was signed between the three parties (TCS, Chinese parties and Microsoft) in June 2005.
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Categories: Alliances · Aquisitions · Globalization · Outsourcing
Siemens Business Services has today announced the extension of its business process outsourcing (BPO) contract with Barclays, in a multi-million pound deal. This extension to 2008 is the second since the beginning of the relationship with Barclays in 2000.
Siemens Business Services is operating areas of Barclays’ retail banking back office, including: account closures, transfer of funds and administrative processing for direct debit and standing order instructions. Back office operations have been transformed through improved operational efficiencies, including the deployment of imaging technologies along with the use of workflow solutions. The continuous improvements results in a cost effective, high performance operation that consistently exceeds service levels and delivers resilience and business continuity.
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Categories: Contract Wins · Outsourcing
Hydro Tasmania and Sydney Water contract renewals solidify LogicaCMG’s success in the energy and utility business
LogicaCMG announces the renewal of outsourcing contracts worth a combined value of more than AUS$18 million with Hydro Tasmania and Sydney Water. The continuation of these relationships resulted from LogicaCMG’s domain expertise and the quality of its support services.
Hydro Tasmania has outsourced the management and support of its complete IT environment to LogicaCMG ever since an initial tender process in 2000. The utility has decided to extend this relationship for another five years. Our partnership with “LogicaCMG”, in particular their expertise in energy and utilities means we can improve our competitiveness and can better face the challenges of operating in the national electricity market. We are also very impressed with LogicaCMG’s commitment to Tasmania, with having over 60 staff in their Hobart office,” said Lance Balcombe, general manager corporate at Hydro Tasmania.
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Categories: Contract Wins · Outsourcing
