MCN Direct Newswire

Vol. 5 No. 27, 2 October 2006

This issue is sponsored by:

Management Consultancies Association and Agresso

This issue news

1. Accenture backs out of NHS IT programme
2. Deloitte supports disability sports
3. Parity pushes back into profit
4. Detica promotes Colin Evans to board
5. LogicaCMG seals €14m European project
6. Further information - feedback/pass on to a colleague/remove from mailing list

Sponsor

Management Consultancies Association

Working on 'shared services' in the public sector?

The Management Consultancies Association (MCA) - the UK trade body for consulting firms - is carrying out a survey of senior civil servants in order to understand the practical hurdles central government faces in pursuing a shared services strategy.

In addition to this, they are capturing the lessons learned by consultants who have worked on shared services initiatives and how these lessons will apply in the context of central government.

To receive a free copy of the report - take part in this confidential survey: please click here.

The findings of this survey will be incorporated into a report to be published by the MCA in November.

1. ACCENTURE BACKS OUT OF NHS IT PROGRAMME

Accenture has decided to pull out of the NHS' £6.2 billion Connecting for Health IT modernisation programme and hand over responsibility for its two contracts to CSC in January. Accenture is not planning any lay-offs as a result, but is in consultation with 550 consultants working on the project about moving their jobs to CSC.

Accenture would not confirm that potential financial losses led to its withdrawal, but detailed the financial impact of the agreement with CSC and Connecting for Health on the day it revealed its full-year results. The agreement resulted in a $339 million (£182 million) reduction in fourth-quarter revenue, but Accenture said this was offset by a corresponding decrease in cost of services, meaning there was no impact on operating profit.

Earlier this year, Accenture suffered a $342 million reduction in second-quarter operating profit as a result of provisions made against future losses on the two local service provider contracts.

To date, Accenture has been paid £173 million by the NHS for its work on the contracts. It will retain £110 million, leaving CSC with one new enlarged contract covering both the North East and Eastern regions with a total value of £2 billion over nine years.

As well as taking on Accenture's work, CSC will continue to fulfil the obligations of the local service provider contract it won in late 2003 covering the North West and West Midlands.

Accenture chairman and CEO William Green said: "I'm delighted that we have resolved the NHS contracts, arriving at an agreement that benefits all parties, is clearly in the best interest of our shareholders and puts this matter successfully behind us."

Despite the NHS setback, Accenture reported record full-year revenue up 9% at $16.7 billion and record new bookings at $20.4 billion. Consulting revenue rose 6% to $9.9 billion, with outsourcing up 14% at $6.8 billion. Net profit for the year rose 3% to $973.3 million.

Looking forward to fiscal 2007, the company said it is targeting new bookings of $22-24 billion and expecting revenue growth in the range of 9-12%.

2. DELOITTE SUPPORTS DISABILITY SPORTS

Deloitte will donate up to £1.7 million to support and develop disability sports in the UK over the next six years.

The consultancy's programme, which has won plaudits from Secretary of State for Culture, Media and Sport Tessa Jowell, will improve how talented sports people are identified and supported at community level, with the aim of increasing participation in competitive sporting events.

Deloitte will offer individual bursaries to high-potential athletes through a partnership with SportsAid and establish an online Disability Sports Institute run by the British Paralympics Association.

Deloitte chief executive John Connolly commented: "We have a strong tradition of supporting community endeavour and nurturing top talent. As part of Deloitte's continuing commitment to work in the community, we wanted a partnership that reflected the enthusiasm of our people for sport and high achievement, and also one that supported skills and commitment to sport at a grass-roots level."

• Deloitte has hired Stephen Pentland from boutique firm Spectrum Strategy Consultants to become strategy director of its technology, media and telecoms practice.

Sponsor

Agresso

Consultants - Achieving success in the modern business market

As well as a wonderful opportunity to network with your peers this evening event will also challenge all attendees to consider the implications of helping clients to achieve success in the modern business market and answer the following questions:

– What is today's modern business market like? How do you address it?
– What is the difference between "flexibility" and "agility" and why is "post implementation agility" so important?
– Listen to the case study of LogicaCMG!

Please click here to visit the website for full information and registration - there is no charge to attend.

3. PARITY PUSHES BACK INTO PROFIT

Parity returned to profitability in the first half of this year, but admits that its position remains fragile and it has to do more to sustain earnings and top-line growth.

The IT services group reported net profits of £557,000 for the six months to 30 June, reversing a loss of £1.8 million in last year's comparable period. Revenue was up 9% at £73 million, while net debt was reduced by 75% to £4.8 million, following a successful share placing in April which raised £14.6 million.

Parity chief executive Alwyn Welch commented: "The revenue growth is an indication that our renewed business development focus is having the desired impact in the market and that customers remain committed to Parity as a partner and provider. Many of the key indicators of the business have improved substantially from a year ago, but we must and will remain focused on continuing the progress we have achieved to date and on creating value for our shareholders."

Parity said it completed the disposal of its overseas businesses and saw the benefits of streamlining the business into a UK-focused operation in the first half. Its three divisions all moved into profitability in the period, with Resources growing ahead of market rates, Solutions making new business wins and Training improving significantly to eliminate losses.

4. DETICA PROMOTES COLIN EVANS TO BOARD

Security and public sector consultancy Detica has promoted UK managing director Colin Evans to its board of directors in the new role of group chief operating officer.

Detica chairman Chris Conway explained: "As a board we have focused heavily on ensuring that we have the management infrastructure and talent in place to drive the sustainable growth of our businesses both organically and through acquisitions. The creation of the role of COO for the group is a logical next step in the evolution of the business as we drive it forward off a broadened operational footprint."

Detica's growth has been strong since its IPO in April 2002. Staff numbers have risen from 270 in 2002 to 1,200 today and revenues increased from £32.8 million to £101.5 million in the year to 31 March 2006. The consultancy has also extended its geographic reach from an exclusively UK-based business in 2002 to one that has locations in the UK, continental Europe and the US.

5. LOGICACMG SEALS €14M EUROPEAN PROJECT

LogicaCMG has won a €14 million (£9.5 million), five-year contract from the European Commission to provide quality control for the EC's tax and customs IT projects.

Under the contract, LogicaCMG will provide quality assurance for all deliverables and services provided by the EC's Taxation and Customs Union Directorate, which develops European policy on tax and customs.

Large parts of the systems developed and operated under the Directorate's auspices have been outsourced to IT service providers - and LogicaCMG will be responsible for auditing these service providers, as well as offering security assessments and maintaining the Directorate's own quality methodology.

Martin Dieussaert, managing director of LogicaCMG's public sector business in Belgium, explained: "The Directorate General was looking for a partner to ensure that the different projects were well-managed, that projects were delivered on time, that defined quality levels were achieved and that co-operation between the Directorate and its service providers was optimised. LogicaCMG was awarded the contract on the basis of its competence in the areas of quality assurance and quality control."

6. FURTHER INFORMATION - FEEDBACK/PASS ON TO A COLLEAGUE/REMOVE

• For more information or if you have any feedback on MCN Direct, please email editor@pmp.co.uk
• If you wish to unsubscribe please reply/send an email stating 'Remove !*FIELD1*! from MCNDirect' to: mcndirect@pmp.co.uk.

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

Publications include:
Management Consultants' News
Industry Reports

Written by Sarah Underwood. Copyright 2012 PMP (UK) Ltd.