MCN Direct Newswire

Vol. 4 No. 28, 12 December 2005

This issue is sponsored by:

TeleWare

This issue news

1. Capgemini finalises £350m Met Police deal
2. Atos Origin secures Torino Olympics
3. Anite fares well in public sector
4. Siemens Business Services under scrutiny
5. Northgate takes acquisition trail to Europe
6. Further information - feedback/pass on to a colleague/remove from mailing list

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TeleWare

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1. CAPGEMINI FINALISES £350m MET POLICE DEAL

Capgemini has signed the £350 million contract that will see it take over IT and communications outsourcing for the Metropolitan Police Service.

The Capgemini-led Cubit consortium - a collaboration with Unisys and BT - won 'preferred bidder' status for the seven-year deal in October, beating the EDS-led metAgility consortium during final contract negotiations (MCN Direct 4-23).

Cubit will now take over the service from current suppliers EDS, Atos Origin and business communications company Damovo.

Under the terms of the deal, Cubit will manage and support desktop IT networks, telephony and mobile devices across the force. It will also support 50 software applications relating to crime reporting information, analysis and record storage, and supply data centres for application and service hosting plus mechanisms to drive service improvements.

Responsibility for the IT service delivery will transfer to Cubit from Atos Origin and EDS over a six-month period ending in June 2006, with the communications service transferring from Damovo by the end of December 2006.

Ailsa Beaton, director of information at the Metropolitan Police Service, said: "After a rigorous selection process we believe Cubit offers the most appropriate solutions to meet the specific demands of policing London in the 21st century."

Capgemini will provide most of the services, with Unisys offering applications management and support, some data centre services and desktop support. BT will manage and support the Met's wide and local area networks, and its telephony and mobile services.

2. ATOS ORIGIN SECURES TORINO OLYMPICS

Atos Origin has introduced the accreditation system that will help to manage and secure the 90,000 people involved in the Torino 2006 Olympic Winter Games.

As the worldwide IT partner for the Olympic Games, Atos Origin has designed and implemented the system in co-operation with the International Sports Federation, the Torino 2006 Organising Committee (Toroc) and law enforcement agencies.

The accreditation solution, part of the games management system, combines a physical ID badge and scanning system with back-office database applications. It will allow 90,000 athletes, coaches, Olympic officials, VIPs, media, staff and volunteers to be registered and given security clearance for privileged access to the games.

The accreditation process will include security checks by law enforcement agencies and immigration checks on non-EU citizens as the accreditation badge will also serve as an entry visa for the duration of the games.

Atos Origin points out that the games are not a technology showcase, so only tried-and-tested technology has been used, but says the system was delivered on time and to specification.

3. ANITE FARES WELL IN PUBLIC SECTOR

IT services and solutions company Anite continued its financial recovery in the first half of fiscal 2006 with its public sector and telecoms businesses leading the way.

Anite reported pre-tax profit from ongoing businesses up 5% on last year's comparable period at £7.3 million, on revenue rising 4% to £83.6 million.

Its public sector business recorded revenue growth of 10% for a total of £36.5 million, driven by demand for software and services from local authorities and contract wins with the police and other non-departmental public bodies.

Revenue from telecoms rose 14% to £24.8 million in the half year, with Anite's 3.5G platform being well received by the global market.

The company's travel business revenue fell 9% to £14.6 million. Its international business - essentially Anite's German IT consultancy and systems integration operations - also fell, by 18% to £7.7 million.

Despite these setbacks, Anite chief executive Steve Rowley said: "With our strengthening financial position and well-positioned businesses, we are continuing investment in new products to take advantage of growth opportunities. The first half finished strongly following a slow start to the year."

4. SIEMENS BUSINESS SERVICES UNDER SCRUTINY

Siemens' loss-making IT services subsidiary, Siemens Business Services, may be broken up, following reports that the organisation's product-related services operation is being sold to Fujitsu Siemens Computers.

Siemens has declined to comment on the sale - which would follow the sale of part of the product-related services business in Germany in fiscal 2005 - but analysts believe a final decision will be made shortly. The products business represents about 20% of SBS' 2005 revenue of €5.4 million (£3.6 million).

Siemens president and CEO Klaus Kleinfeld has been scrutinising SBS since he stepped into his office in January. Last month he said 5,400 jobs would be cut from the total headcount of 36,000, a partner would be found for the product-related services business, and that further restructuring would continue. In fiscal 2005, SBS reported a loss of €690 million, reversing a profit in the prior year.

Earlier this year Atos Origin was reported to be in talks to acquire SBS but Siemens rejected an offer for the business on the grounds that it was too low (MCN Direct 4-5).

If the break-up is pursued, Atos Origin is expected to be back at the table bidding for SBS' outsourcing business. A full-scale sale of SBS is now thought to be unlikely, as about 25% of SBS' revenue comes from within the Siemens conglomerate.

5. NORTHGATE TAKES ACQUISITION TRAIL TO EUROPE

Northgate Information Solutions is planning to accelerate its growth through an acquisition programme that will see it move into continental Europe.

The software and services company - which operates HR, public service applications and managed services divisions - has over £100 million to spend and is expected to concentrate on developing its HR business, which is reaching saturation in the UK.

Northgate's most recent acquisition was rival SX3 in the UK, but the company has begun a move into continental Europe through pan-European contracts with Ryanair and McAfee.

Northgate chief executive Chris Stone discussed the acquisition plan as the company reported results for the six months to 31 October. Pre-tax profit slipped from £10.2 million a year ago to £10 million, while turnover rose 68% to £162.7 million, reflecting the cost of the £143.3 million SX3 acquisition and the subsequent cash generation. Organic growth was 4-5%.

Northgate continued to attract new customers in the first half, with its HR division signing 31 new clients, the public service division signing 42 and managed services signing 12.

Looking forward, Stone said: "Trading in the second half has started well and we are confident of achieving another satisfactory outcome for the year as a whole. The outlook for the group is good."

* This is the last issue of MCN Direct before Christmas. We wish all our readers a Happy Christmas and prosperous New Year.

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Written by Sarah Underwood. Copyright 2010 PMP (UK) Ltd.