MCN Direct Newswire

Vol. 3 No. 19, 17 May 2004

This issue is sponsored by:

InterSystems, The UK Consulting Industry 2003/4, Magic Software and IBM

This issue news

1. IBM and HP take second bite at £4bn MoD deal
2. Capgemini down but spirits up
3. CSC improves image with £196m NHS contract
4. Atos Origin steady in first quarter
5. EDS promotes brainpower and willpower
6. Further information - feedback/pass on to a colleague/remove from mailing list

Sponsor

InterSystems

InterSystems invites you to its Connecting People and IT for Business Symposium on 10 and 11 June at the Crowne Plaza Hotel in Marlow.

Learn how InterSystems' high speed database, Caché, and integration platform, Ensemble, can bridge the gap between IT and people making them more effective, whilst leveraging the most out of their IT investment.

For more information click here or click here.

1. IBM AND HP TAKE SECOND BITE AT £4bn MoD DEAL

IBM and HP have returned to battle for a £4 billion, 10-year Ministry of Defence contract they were excluded from in earlier stages of the bidding.

The companies have joined the Atlas consortium - led by EDS and including Fujitsu Services, Cogent, General Dynamics and LogicaCMG - which is bidding for the MoD's Defence Information Infrastructure (DII) or 'Future' project, the largest of its kind ever undertaken by the department.

The move comes after an IBM-led consortium including BAE Systems, Computacenter, Steria, NTL and Echelon was deselected from the Future bidding last December, while HP was part of a Lockheed Martin consortium that pulled out of the contract race early this year.

IBM's decision to join Atlas follows a dearth of major wins in the public sector, its last and most public failure being to miss out on the £6 billion worth of contracts awarded under the NHS' National Programme for IT. HP is also making little ground in the UK public sector IT services market, its latest disappointment being omitted from the shortlist for the BBC's £2 billion contract (MCN Direct 3-18).

The Future contract race is now between Atlas and the Radii consortium, comprising CSC, BT, Capgemini and Thales UK. The preferred bidder will be announced this autumn with the contract award still on track for the first quarter of 2005 and go-live of all systems by 2008.

The Future project will replace more than 100 information systems that cater for over 300,000 MoD staff at 2,000 locations in the UK and abroad. The contract winner will not only design, build and operate an infrastructure encompassing the whole of the MoD, but will also manage and move existing information systems - including 2,500 applications - to the new IT service.

2. CAPGEMINI DOWN BUT SPIRITS UP

Capgemini has reported first-quarter revenue down 5% compared to last year's comparable period, but the company claims its revenue is "steadily stabilising across Europe".

Capgemini said its first-quarter revenue - which totalled 1.5 billion euros (£1 billion) - was up 6% on the last quarter of 2003, showing that it is "moving back to the normal seasonal pattern in the business".

In Europe, the UK remains Capgemini's best short-term hope. With the £3 billion Inland Revenue Aspire contract under its belt, the company is in contention as part of the Radii consortium for the MoD's £4 billion Future project (see story above) and is still in the running for an £850 million outsourcing deal at the Department for Environment, Food and Rural Affairs.

Capgemini's headcount is stable at around 55,400 employees worldwide, but the thorn in its side is its US operation which continues to founder. However, the first quarter showed a glimmer of hope in improved US bookings for consulting and systems integration. Overall bookings in the quarter reached 1.6 billion euros, down from 2.1 billion euros a year ago.

Sponsor

The UK Consulting Industry 2003/4

'A sharp, challenging report that goes much further than the usual statistical summaries. All UK practitioners need to test their strategies against the data, informed analysis and insight in this report'. Gilbert Toppin, former Head of European Operations, Deloitte.

The definitive report on the UK consulting market, based on data, analysis and forecasts from the Management Consultancies Association. To purchase the report or obtain further details, please click here or mailto:reports@pmp.co.uk.

3. CSC IMPROVES IMAGE WITH £196m NHS CONTRACT

A CSC-led consortium has won a £196 million, 10-year diagnostic imaging contract awarded as part of the NHS' £6 billion IT overhaul.

CSC, and its alliance partners Kodak and ComMedica, will build and run a picture archiving and communications system across the North West and West Midlands - the region where CSC won a £1 billion local service provider contract under the National Programme for IT (NPfIT) late last year. CSC estimates its share of the imaging contract will be worth about £108 million over 10 years.

NHS IT director general Richard Granger commented: "CSC and its alliance members have worked with us to deliver the best possible value and first-class performance. The new system will help doctors do what they do best - treat patients - and will provide NHS users with a first-class service. This ground-breaking deal is a great example of how investment in IT infrastructure is helping to deliver better patient care."

CSC will deploy the service which will allow health professionals to store, access and mail images such as X-rays and scans electronically. Kodak will provide radiography, radiology and archiving systems, while ComMedica will deliver software that captures, distributes and manages digital medical diagnostic images.

In other local service provider regions, GE Medical Systems has been selected to supply picture archiving and communications systems to Fujitsu Services in the southern region and to Accenture in the East, East Midlands and North East region, while BT will work with Philips in the London region.

Sponsor

Magic Software

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iBOLT from Magic Software delivers affordable enterprise application integration to mid-sized organisations and systems integrators by providing tier one features and functionality in a cost effective solution. Providing practical advice drawn from numerous successful integration projects, Magic Software have created a technical white paper highlighting the steps you need to follow to establish integration needs and implement effective integration projects. Click here.

4. ATOS ORIGIN STEADY IN FIRST QUARTER

Atos Origin has reported first-quarter revenues of 1.3 billion euros (£879.6 million), in line with last year's comparable period but unmoved by two months of contributions from recently acquired SchlumbergerSema.

At constant exchange rates, revenue was down by 0.9% in the first quarter, with managed operations gaining a respectable 4.5% at 682 million euros but consulting and systems integration falling 6.2% to 623 million euros.

Atos Origin's key country markets - the UK, France and Netherlands - all pushed up turnover in the quarter, but these gains were undercut by falling revenues across the rest of EMEA, the Americas and Asia-Pacific.

The company said: "The IT market continues to show signs of stabilisation, with indicators of a gradual return to growth. However, order pipeline opportunities are still taking time to convert into firm orders, especially in Europe."

Despite its flat year-on-year quarterly result, Atos Origin continues to target an operating profit of over 7% for the full year and 2004 revenues in line with 2003 at about 5.3 billion euros.

The company said most of the integration of SchlumbergerSema has been completed with remaining work due to be completed by the end of the first half. A review of the company's service portfolio is underway with a view to identifying disposals shortly.

Sponsor

IBM

Working with IBM - making it easier

We are delighted to invite you to attend an event on 25 May, at which we are offering one-to-one sessions with experts from each area of IBM and several Partner organisations and including an opening address by leading independent journalist, Penelope Ody.

For more information and to meet Penelope and our other experts, click here.

5. EDS PROMOTES BRAINPOWER AND WILLPOWER

EDS is drawing attention to the early signs of a financial turnaround with an advertising campaign carrying the tag line "EDS. Manpower. Brainpower. Willpower.".

Described by EDS as an "aggressive" integrated print and broadcast campaign, the marketing drive follows the company's first-quarter report of rising revenues and reduced losses (MCN Direct 3-17).

Print ads will appear in leading US newspapers and the Financial Times, with TV slots reserved for US golf broadcasts.

EDS vice president of global communications and advertising Tom Mattia said: "These ads reflect the strong, can-do spirit and winning attitude that define the way EDS approaches a challenge. As our renewed corporate positioning begins to gain traction, we decided it was time to deliver an aggressive, unfiltered message to the business community. EDS is moving forward with confidence, is in fighting form and is here to stay."

There are three print ads, the finale being 'Rock Climber' featuring a lone rock climber on a mountain face. The copy explains that "insurmountable" is not part of EDS' vocabulary and highlights the company's expertise in developing innovative solutions for the most challenging problems.

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