MCN Direct Newswire

Vol. 2 No. 32, 1 September 2003

This issue is sponsored by:

Apama, One4All, OpenAccounts, Xansa and Epicor

This issue news

1. Lockheed Martin snubs NHS project
2. CGEY tracks Transiciel
3. EDS considers more staff cuts
4. IBM closes in on Procter & Gamble deal
5. Atos Origin sells out in Hungary
6. Further information - feedback/forward to a colleague/unsubscribe

Sponsor

Apama

Apama's real-time detection, analysis and decision-support software is making real business differences within the area of BAM, alerting and rules engines in sectors such as capital markets, telco and defence.

Apama is leading this next generation technology with a suite of business tools that allow users to create and model business scenarios and real-time analytics in a truly flexible and scalable way - allowing them to conduct real-business in real-time. To find out more click here.

1. LOCKHEED MARTIN SNUBS NHS PROJECT

Lockheed Martin has pulled out of bidding for the $3.7 billion National Health Service IT overhaul, only weeks after being shortlisted for both the national application service provider contract and a number of local service provider contracts (MCN Direct 2-30).

The company refused to explain its decision, but insiders speculate that it was because the government is making it difficult to make money on the contracts - which include demanding performance targets coupled to heavy fines if deadlines and standards of service are not met.

Lockheed Martin's withdrawal from the key contract covering the design, delivery and operation of a national patient records system leaves just IBM and BT in the running.

IBM said it would not comment on any rumour or speculation that it might follow Lockheed Martin's lead, while BT said it would continue to bid for the national and regional contracts.

Commenting on Lockheed Martin's withdrawal from the national contract, the NHS said: "We are pleased they have given us notice of their withdrawal now rather than at a later stage of the competition. We value the efforts they have made and the innovation they have brought to the competition."

Lockheed Martin has also pulled out of the bidding for two of the five local service provider contracts that it was chasing in a joint venture with HP. The London contract is due to be awarded next month and the south-east/south-west regional contract is scheduled to be signed before the end of the year.

Sponsor

One4All

"One4all Technologies Alliance Partner Programme".

One4all Technologies Limited provides an Enterprise Information Integration and Delivery product set. One4all is delivered to market through Consultants, Systems Integrators and Resellers. One4all announces the launch of their Alliance Partner Programme offering generous incentives, intimate exchange of knowledge and skills and delivering support for partners.

For further information please click here.

2. CGEY TRACKS TRANSICIEL

Cap Gemini Ernst & Young (CGEY) is in negotiations to acquire Boulogne-based IT services and engineering company Transiciel.

While both companies insist their talks are informal, CGEY is believed to be interested in merging Transiciel with its technical support arm Sogeti. This would create a 15,000-strong company operating in Europe and the US, with combined 2002 revenues of over $1.1 billion.

Transiciel operates predominantly in France, but also has businesses in Spain and Benelux. In fiscal 2002 the company said 27% of its turnover was generated outside France when it reported a net profit of $3.3 million on revenues of $612.5 million. Most recently it reported first-half 2003 revenues of $275 million, down from $318 million in last year's comparable period.

CGEY said "informal discussions have not led to any commitment nor even to any agreement in principle", claiming: "These discussions are part of a process which the group conducts on an ongoing basis in order to identify possible development opportunities."

Transiciel echoed: "To date, these preliminary discussion have not resulted in an agreement of any form whatsoever. With the group's development constantly in mind, Transiciel management regularly examines the best opportunities that will allow a greater and more solid expansion of its activities, notably on an international level."

Any purchase by CGEY is expected to be funded by capital raised through a convertible bond issue earlier this summer (MCN Direct 2-25).

Sponsor

OpenAccounts

At Softworld Accounting & Finance (24-25 September 2003, NEC) OpenAccounts demonstrations and seminars will cover the whole OpenAccounts product suite - Best-of-Breed Financials, Procurement, Project Accounting EDR Enhanced Financial Reporting, eFinance for Empowerment of Non-Finance users & eBIS Workflow.

For further information, visit our website: click here or click here.

3. EDS CONSIDERS MORE STAFF CUTS

EDS is considering job cuts beyond the 2,700 it announced in June (MCN Direct 2-24), saying that it "may reduce the workforce by more than 2% in connection with our ongoing transformation efforts or otherwise".

The company made the reference to further potential job losses in a US Securities and Exchange Commission filing covering a stock options plan, but did not detail where or when staff would be cut.

The threat follows a strategy shift in June under new chairman and CEO Mike Jordan which included a 2% reduction in global headcount and a renewed focus on EDS' core IT outsourcing business. The company also said it would push further into the business process outsourcing market and build up its offshore resources.

To date, EDS has shown few signs of financial recovery after a string of problems and contract difficulties decimated its share price early this year. Most recently, it reported second-quarter net profit down 56% at $138 million, on revenues up 2% at $5.5 billion (MCN Direct 2-29).

Sponsor

Xansa

Xansa, the world leader in consultant led face to face project management training has issued its latest course schedule detailing its range of courses in Programme, Project and Service Management. To view the Xansa Course Schedule Sept 2003 to Feb 2004 visit: click here.

To find out more about our range of services please visit our website at click here.

4. IBM CLOSES IN ON PROCTER & GAMBLE DEAL

IBM is in exclusive talks with Procter & Gamble over a business process outsourcing (BPO) contract covering the group's employee services including HR, payroll and benefits.

If a deal is signed, some 700 Procter & Gamble administrative staff will transfer to IBM as part of a contract expected to be worth at least $500 million over five or six years. Accenture and specialist BPO player Convergys were believed to be in the running for the project, but have been excluded from the race.

Procter & Gamble initially planned to outsource $7 billion worth of work to a single supplier and was close to signing with EDS late last year. It abandoned this plan - and discussions with EDS - when EDS issued a profits warning and the risk of using a single supplier in a volatile services market became apparent.

Instead of a single contract, the consumer goods group decided to use multiple suppliers and outsource on a step-by-step basis. Among its first moves was a $3 billion contract with HP covering the outsourcing of its IT infrastructure.

Further BPO contracts are expected as Procter & Gamble continues to outsource with a view to concentrating on core competencies such as product development, sales and marketing.

* IBM has paid an extra $397 million to PricewaterhouseCoopers in connection with last year's $3.5 billion purchase of PwC Consulting. A filing with the US Securities and Exchange Commission covering IBM's second financial quarter said the sum was paid after a review and revaluation of some physical assets transferred in the sale. The filing also revealed that IBM laid off 14,213 staff from its Global Services business in the quarter as a result of "the recent decline in corporate spending on technology-related services".

Sponsor

Epicor

Epicor Software is a leading provider of enterprise software solutions for mid-market companies with over 15,000 customers. Epicor provides integrated solutions for CRM, Financials, SRM and Professional Services under .net.

For further information visit our website: click here or click here.

5. ATOS ORIGIN SELLS OUT IN HUNGARY

French IT services firm Atos Origin has agreed to sell its operations in Hungary to local solutions provider Synergon Information Systems. The transaction is subject to regulatory clearance from the Hungarian competition office, but is expected to be completed by the end of October.

Under the terms of the agreement, Atos Origin will sell its wholly-owned Hungarian subsidiary, Atos Origin Information Technology, to Synergon and enter a partnership in which Synergon will provide support services to Atos Origin's global clients in Hungary.

Neither company would disclose the price of the sale, which will add around $5.4 million in annual revenue to Synergon's operations.

Synergon is listed on the Budapest Stock Exchange and on Seaq in London. Its strategic goal is to become a leading IT service provider in the central and eastern European market. In 2001 it acquired majority ownership of Infinity in the Czech Republic and Span in Croatia.

6. FURTHER INFORMATION - FEEDBACK/FORWARD TO A COLLEAGUE/UNSUBSCRIBE

• For more information or if you have any feedback on MCN Direct, please email editor@pmp.co.uk
• To unsubscribe from MCN Direct, simply send a reply to mcndirect@pmp.co.uk. In the BODY of the message please type MCN DIRECT UNSUBSCRIBE

Please visit http://www.pmp.co.uk to view any of these publications, all of which are fully searchable and represent thousands of pages of information relevant to the consultant community.

Publications include:

Management Consultants' News

Consultants' Advisory

International Consultants' Guide

International Consultants' News

Copyright 2012 PMP (UK) Ltd.