MCN Direct Newswire

Vol. 5 No. 1, 16 January 2006

This issue is sponsored by:

TeleWare

This issue news

1. Accenture makes strong start in new year
2. Capgemini closes in on £83m Swansea contract
3. Xansa recruits senior director from Atos Origin
4. MCG rides consultancy wave
5. IBM banks £100m services contract
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. ACCENTURE MAKES STRONG START IN NEW YEAR

Accenture pushed up its revenue and profit in the first quarter of fiscal 2006 and claims to be on track to meet its goal of 9-12% revenue growth for the full year.

Net profit for the three months to 30 November 2005 rose 10% over the previous year to $214.9 million (£121.7 million), on revenue climbing 12% to $4.2 billion. Accenture said its turnover was the highest for any quarter in its history - with consulting revenue up 8% at $2.6 billion, representing 62% of total revenue, and outsourcing up 18% to $1.6 billion, representing 38% of total revenue.

Accenture's five operating groups all achieved revenue growth, with the communications & high-tech and products groups breaking the $1 billion barrier. Revenue in the Americas was 19% up on the year ago period, but only 5% up in the EMEA region. Asia-Pacific revenue rose 14%.

Accenture CEO William Green said: "Given that we recorded $5.5 billion in new bookings, our highest in seven quarters, we feel confident that we are on the right trajectory to achieve our revenue goal for the year."

New bookings in the quarter were split 50:50 between consulting and outsourcing, leading Accenture to target bookings for the full year of $19-21 billion. Second-quarter revenue is expected to come in at $4-4.2 billion.

2. CAPGEMINI CLOSES IN ON £83m SWANSEA CONTRACT

Capgemini has won the £64 million first phase of an £83 million contract to transform Swansea's council services.

Capgemini was named preferred bidder for the e-government and outsourcing project after a procurement process over a year ago that pitched it against ITNet, now part of Serco, in the final stage. Capgemini will now kick off the programme and take on Swansea's 62 IT staff immediately.

The first phase covers business process reengineering and technology transformation to improve working practices. As well as designing and building IT systems for Swansea, Capgemini will run these and the council's existing systems on an outsourced basis for 10 years.

In the second phase, it will improve customer access to the council's services using a new call centre, contact centre and internet services.

Swansea said it chose Capgemini because of its track record in working collaboratively with other UK local authorities introducing e-government programmes and its ability to deliver all the services required for complex transformation. The project adds to local government contracts won by Capgemini in Westminster, Glasgow and Croydon.

Swansea's cabinet member for e-government, Mary Jones, said: "We will introduce cost-saving world-class IT systems and new working practices by replacing outdated systems that cost us time and money. We are delighted to be leading the drive in Wales to improve services."

3. XANSA RECRUITS SENIOR DIRECTOR FROM ATOS ORIGIN

Xansa has created the role of business development director and named ex-Atos Origin executive David Tait as its first incumbent.

Tait will be responsible for developing and growing new and existing business across Xansa's spectrum of services. He will hold a seat on the executive board and report directly to Xansa chief executive Alistair Cox.

Tait is a veteran of the technology sector and has spent the past 15 years working with Atos Origin and its predecessor Sema in a range of senior posts. He was also a member of the UK board of Sema Group. His track record includes international account development and divisional directorships as well as heading sales on multinational accounts.

His appointment is an acknowledgement that Xansa needs to push the pace, not only renewing existing contracts as it did towards the close of last year, but also winning new business for its UK and offshore operations.

Cox commented: "We are building a lot of momentum in the marketplace around our services. Tait's appointment is key to help us accelerate this momentum, grow our revenues and expand our client base. His experience and expertise will bring us immediate benefits."

4. MCG RIDES CONSULTANCY WAVE

Management Consulting Group, the parent company of operational improvement consultancy Proudfoot Consulting and financial management specialist Parson Consulting, has issued an upbeat trading statement on the basis of improving market conditions.

The group restructured after a financial collapse in 2003 and has since cut its costs and invested in core service offerings.

Ahead of formally announcing its 2005 financial results in March, MCG has predicted revenues will be above market expectations, growing 8% over the previous year to £129 million. Revenues from Proudfoot in 2005 are expected to be up 6% at £86 million, with revenues from Parson up 14% at £43 million. Operating profit is expected to top the highest published forecast in the market, which was £12.2 million, suggested by both ABN Amro and Bridgewell.

Commenting on 2005, MCG chief executive Kevin Parry said: "There has been strong organic growth as a result of continued investment in our service offerings and the expansion of our business development activities. In common with other consultancies, we have seen improving market conditions and there is much greater trading visibility going into a new year than we have had for the past five years."

In a more buoyant market, and taking account of the group's order book and prospects, MCG's directors said the company is positioned for "significant progress in the first half of 2006 over the comparable period of 2005".

5. IBM BANKS £100m SERVICES CONTRACT

IBM has won a €150 million (£102 million), 10-year outsourcing services contract from Portuguese banking group Banco Espirito Santo (BES).

The contract begins this month and includes managing BES Group's IT infrastructure as well as providing business continuity and recovery services from a network of IBM recovery centres.

The bank expects the contract to cut its IT infrastructure costs by 25%, as a result of rationalising its applications architecture and consolidating and standardising IT processes.

• IBM is being formally investigated by the US Securities and Exchange Commission over disclosures relating to its first-quarter 2005 earnings and payment of equity compensation. The move follows an informal investigation of the matter that has been taking place with IBM's co-operation and will continue.

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