MCN Direct Newswire

Vol. 2 No. 7, 17 February 2003

This issue is sponsored by:

Sage and OpenAccounts

This issue news

1. Accenture buys outsourcing company
2. IBM wins $2 billion mega-deal
3. Unisys seals $450 million insurance contract
4. Perot Systems reports record financial results
5. BearingPoint secures $24 million passport project
6. Further information - feedback/forward to a colleague/unsubscribe

Sponsor

SAGE

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1. ACCENTURE BUYS OUTSOURCING COMPANY

Accenture has strengthened its financial outsourcing operations by agreeing to acquire key elements of Swiss IT services supplier Systor. Accenture declined to disclose the financial terms of the deal - which covers Systor's client contracts and the majority of its 620 employees - but said it will boost its outsourcing and IT services capabilities in Switzerland.

Founded in 1970, Systor is a holding of UBS Capital, the private equity division of UBS. Among its previous owners was Perot Systems, which held a 40% stake in the company from 1995 to 2000.

Systor works predominantly in the banking and financial sectors, providing services including outsourcing, hosting, applications management and software development. In 2001, it reported sales of $312 million.

The contract requires Swiss regulatory approval before it can be completed, but once this has been granted, Accenture anticipates closing the deal by the end of March.

Ralf Naef, country managing director of Accenture in Switzerland, said: "Systor's outsourcing and IT solutions capabilities are an excellent fit for Accenture and this agreement is consistent with our goal of enhancing our outsourcing capabilities in key markets around the world."

2. IBM WINS $2 BILLION MEGA-DEAL

IBM has won a $2 billion, 10-year contract from Visteon to deliver a range of IT services aimed at improving the US-based automotive supplier's competitive position.

IBM will offer services to Visteon on a global basis, including mainframe support, data centres, customer support centres, application development and maintenance, data network management and disaster recovery.

Visteon will maintain control of its IT strategy, architecture, planning and product development IT applications.

Describing the deal as an 'alliance partnership', Visteon president and CEO Mike Johnston said: "This agreement gives us flexibility by making our IT expenditures variable, allowing us to adjust services to meet our business demands. The partnership with IBM will enhance the quality of our IT services and improve our speed to market."

Todd Kirtley, general manager of IBM Global Services' industrial sector, commented: "Companies today need to be able to adapt their IT use in real time, responding to unpredictable market conditions. To help Visteon pursue new market opportunities, IBM Global Services is transforming its IT environment to allow the company's suppliers, customers and employees to work more effectively and productively."

Visteon has 77,000 staff and provides automotive components and systems to manufacturers from 180 sites in 25 countries.

* IBM has awarded Computer Sciences Corporation (CSC) a $500 million, seven-year subcontract to support its $5 billion deal at JP Morgan Chase (MCN Direct 62). CSC currently provides IT services to JP Morgan Chase under an agreement that expires in July. Under the contract with IBM, CSC will continue to manage a portion of the distributed data processing environment and help IBM in the implementation of a new data processing delivery strategy.

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3. UNISYS SEALS $450 MILLION INSURANCE CONTRACT

Unisys has confirmed its strength in the insurance market with a $450 million, 10-year business process outsourcing contract at Royal & SunAlliance (R&SA).

Unisys Insurance Services Ltd (UISL) will handle the processing and administration of the 2.4 million life and pensions policies in R&SA's UK Life operation.

The contract value could exceed $450 million as it is based on policy volume. It is UISL's second major award in the sector - in January 2001 it won a $323 million, 10-year business process outsourcing contract with Abbey Life to administer 1.7 million policies.

As part of the arrangement with R&SA, 1,700 employees will transfer to UISL on 1 May, leaving R&SA's UK Life operation with a small governance team to manage the Unisys and other outsourcing contracts.

* Unisys has strengthened its executive team with the appointment of former Andersen consultant Charles Reekie as managing partner of its public sector practice. Stuart Bladen, previously a PricewaterhouseCoopers director, takes over Unisys's defence practice, while Andrew Smith joins as a partner in its justice and public safety practice.

4. PEROT SYSTEMS REPORTS RECORD FINANCIAL RESULTS

Perot Systems achieved an all-time high in 2002, turning a loss of $2.7 million into a net profit of $78.3 million on turnover up 11% at $1.3 billion.

The Texas-based IT solutions and services company attributed its success to its entry into the US government IT services market through the acquisition of ADI Technology. Its healthcare market turnover also rose 43%. IT solutions work increased 8% to $1.2 billion, consulting was down 4% at $59.7 million, and government services business went from zero to $38.2 million.

In the quarter to 31 December, Perot's profit rose 202% to $19.9 million, on turnover up 6% at $330.4 million. Looking forward, Perot Systems expects its first-quarter 2003 turnover to be $335-350 million.

President and CEO Ross Perot Jr said: "We delivered all-time high revenue and earnings for 2002 as we leveraged our position in existing markets, expanded into new markets and increased the efficiency of our operations. While we aspire to higher growth rates as IT spending improves, our balanced long-term focus has helped us to weather this downturn."

5. BEARINGPOINT SECURES $24 MILLION PASSPORT PROJECT

BearingPoint has won a $24 million contract to modernise Ireland's passport office systems.

The agreement with the Government of Ireland's Department of Foreign Affairs includes upgrading the business processes and technologies used to process passport applications. The new system will allow citizens to apply for passports online and is planned to be ready by autumn 2004.

Leading a consortium of suppliers, BearingPoint will design, install and test the new system, as well as provide new passport booklets and application forms. The consortium includes two Dutch companies, Industrial Automation Integrators and Enschedé/Sdu, which will provide the security design of the passport, and US-based Datacard Group.

Ireland's Minister for Foreign Affairs Brian Cowen said: "In appointing BearingPoint to be our strategic partner in this project, we have selected a leading provider of technology solutions in Ireland. I have every confidence that BearingPoint and its consortium members will deliver a passport system that will meet the needs of Irish citizens in the 21st century."

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