MCN Direct Newswire

Vol. 2 No. 26, 7 July 2003

This issue is sponsored by:

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This issue news

1. Accenture sets up e-democracy division
2. Computacenter trades up
3. EDS faces further financial woe
4. Atos Origin swallows up $167 million deal at Brakes
5. LogicaCMG names head of financial services
6. Further information - feedback/forward to a colleague/unsubscribe

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1. ACCENTURE SETS UP E-DEMOCRACY DIVISION

Accenture has set up a new business designed to provide services to election agencies around the world. Called eDemocracy Services, the business combines Accenture's elections experience with the acquired public-sector assets of election.com.

Previously a strategic alliance partner, election.com has implemented its election systems management software in numerous US counties and states, and has implemented multi-channel voting pilots for UK local authorities. In the UK, this work will continue under the eDemocracy Services banner at a time when in this country, the Office of the Deputy Prime Minister is committed to making it easier and more convenient for citizens to engage with government.

As well as election solutions, eDemocracy Services will provide strategy and planning, programme management, voter registration systems development and outsourcing services.

Steven Rohleder, group chief executive of Accenture's government operating group, explained: "We created our elections practice in response to the market need that emerged following the 2000 elections and we continue to see tremendous global business opportunities in the election industry. Formalising this practice as a business is consistent with our strategy to expand our services into key areas of government where we have the experience and capabilities to deliver high-value solutions that meet the needs of our clients."

Accenture eDemocracy Services will be led by Meg McLaughlin, an Accenture veteran of 20 years and global managing partner of the consultancy's elections practice,

2. COMPUTACENTER TRADES UP

IT infrastructure and services provider Computacenter claims it will show first-half financial figures "ahead of market expectations" when it reports its results in early September.

In a trading update covering the six months to 30 June, Computacenter chief executive Mike Norris said: "We are confident that the group's strategic direction, which puts a clear focus on IT infrastructure services, will continue to deliver superior performance. Our managed services offering has demonstrated that customers can realise significant internal cost benefits in the longer term."

Among the company's recent wins in the IT services sector are a $117 million, five-year contract to manage Abbey National's desktop infrastructure and a three-year contract at HBOS to manage roughly half the finance giant's 70,000 desktops.

Computacenter's success in managed services through the first half offset poor product sales resulting from weakness in IT capital expenditure. The company said it would continue rigorous cost management across the group and with the integration of CC CompuNet, the German acquisition it made early this year, in a bid to improve profitability.

Looking forward, Norris commented: "After a modest pick-up in the market in the first quarter, trading has fallen back to more subdued levels. We anticipate little change to these conditions for the remainder of the year."

Computacenter reported pre-tax profit of $41 million on turnover of $1.6 billion in the first half of 2002, completing the full year with pre-tax profits of $92 million on turnover of $3.2 billion.

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3. EDS FACES FURTHER FINANCIAL WOE

EDS has warned that its second-quarter free cashflow will fall short of expectations because of the late payment of $98 million from MCI, the bankrupt communications company formerly known as WorldCom.

Previous guidance suggested second-quarter free cashflow of between $75 million and $125 million (MCN Direct 2-24). This will be significantly reduced by the late payment - but EDS said its second-half 2003 cashflow will consequently be boosted above its guidance of between $200 million and $350 million.

The warning follows a round of fund raising in the financial markets that netted EDS $1.7 billion to support general corporate activities (MCN Direct 2-25), including a restructure that will involve 2,700 job cuts and a focus on core outsourcing business.

In an effort to counter dwindling confidence among its investors and customers, EDS continues to pump out order announcements, last week promoting new and renewed contracts worth $150 million with companies in Europe and South Africa. In the UK, EDS announced a five-year contract with the Post Office to provide cheque and TV licence processing services.

4. ATOS ORIGIN SWALLOWS UP $167 MILLION DEAL AT BRAKES

IT services company Atos Origin has secured a 10-year, $167 million outsourcing contract with food service supplier Brakes.

Eighty IT staff will transfer from Brakes to Atos Origin, which will develop a new site to house the team in Ashford, close to Brakes' headquarters.

As well as managing the food supplier's IT, Atos Origin will integrate the business systems of companies within the Brakes Group to create a single SAP solution that will replace legacy systems.

Brakes Group information systems director Phil Goodwin said Atos Origin was selected for its track record in large SAP implementations, as well as its experience in the food market - Atos Origin has outsourcing contracts with United Biscuits and Uniq, and is also involved in the provision of ERP systems to 15 other food companies.

Goodwin explained: "Our research into outsourcing demonstrated that there would be a number of benefits to Brakes but when choosing a company to partner us, it was important to find one that understood our industry."

Atos Origin claims it has more experience in the food industry than any other outsourcer operating in the UK and said the Ashford base will act as a springboard into the south-east market.

5. LogicaCMG NAMES HEAD OF FINANCIAL SERVICES

LogicaCMG has appointed Nick Caplan as managing director of its international financial services line of business.

Caplan joins from Becsam, a company he established to deliver interim and consultancy services to clients including Abbey National and Ifonline. His previous roles in the financial services industry include a period as managing director of Walker Financial Solutions and leader of CSC's financial services business.

At LogicaCMG, Caplan will be responsible for the development and execution of the company's global strategy in the financial sector, leading 3,000 consultants in 30 countries.

He commented: "Financial organisations are facing multiplying challenges with globalisation, consolidation and increasing regulation, both statutory and standards based. LogicaCMG has the experience and expertise to continue to be a market leader in this sector, delivering mission-critical, cost-effective solutions."

LogicaCMG claims that more than $3 trillion a day is transmitted using its software solutions and counts Abbey National, Banque de France and Credit Suisse First Boston among its global financial services customers .

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