MCN Direct Newswire

Vol. 5 No. 5, 20 February 2006

This issue is sponsored by:

TeleWare

This issue news

1. BearingPoint joins forces with Google
2. Capita closes in on key BBC and DTI deals
3. Joe Forehand retires from Accenture
4. Sapient struggles in Europe
5. Kanbay set to acquire Adjoined Consulting
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. BEARINGPOINT JOINS FORCES WITH GOOGLE

BearingPoint has reached an agreement with Google to deliver search capabilities to enterprise clients through its new Search Solutions practice group.

BearingPoint will extend Google's products by offering clients customised search technology tailored for their specific business environment. It is working with a number of companies in the pharmaceuticals, banking, brokerage, high tech and aerospace industries to identify how search solutions could benefit them.

BearingPoint CEO Harry You explained: "We are enthusiastic about providing our suite of solutions for Google's search products and see a tremendous opportunity to address a significant and growing sector. Search technology is rapidly becoming a critical application and BearingPoint is committed to developing the products, services and partners that keep us at the forefront of the IT landscape."

Dave Girouard, general manager of Google Enterprise, added: "As companies realise that search is critical to global business, we're pleased that BearingPoint is delivering the integration services, application plug-ins and on-the-ground expertise that customers are demanding."

Specifically, BearingPoint's newly established Search Solutions practice will work on the integration of Google search technology into complex enterprise environments; tailor and improve Google Search Appliance's capabilities for particular enterprise environments; and customise security integration for search solutions to build on Google's native security features.

2. CAPITA CLOSES IN ON KEY BBC AND DTI DEALS

Capita is on the verge of signing two outsourcing contracts worth over £100 million each - one with the BBC to deliver HR services, the other with the Department of Trade and Industry to administer miners' personal injury liability claims.

Under a 10-year BBC HR services contract valued at around £100 million, Capita will work with BBC People to provide services including recruitment, pay administration, aspects of staff development and occupational health.

Around 260 jobs will transfer to Capita as part of the deal and 100 new jobs will be created at its Belfast service centre, from where the contract will be delivered alongside existing BBC activity. The contract is subject to final signature but is due to be operational from April, saving the BBC more than £50 million over its full term.

Stephen Dando, director of BBC People, commented: "This deal marries our expertise in HR with the resource and expertise of a leading player in business process outsourcing. The value created is a significant step for us in ensuring the BBC is fit for the future and continues to invest in creating innovative programmes and services for our audience."

At the DTI, Capita has been named preferred supplier in the final stage of a re-tender process for the contract to administer miners' personal injury liability claims. Subject to contract, the arrangement is expected to be worth £120 million over a three-year period to 31 July 2009, with an option to extend.

Capita Group executive chairman Rod Aldridge said: "This is testament to the successful delivery of the existing contract over the past two years and recognises our ability to handle claims effectively and sensitively, while maintaining rigorous eligibility procedures. It also confirms the expertise of our team at Capita Insurance Services."

3. JOE FOREHAND RETIRES FROM ACCENTURE

Accenture will end a 33-year relationship with company chairman Joe Forehand when he retires on 31 August. He will be replaced by current CEO Bill Green, who will take the additional position of chairman on 1 September.

Green succeeded Forehand as CEO in 2004 and has been a member of the Accenture board of directors since 2001. He has held executive positions in most of the company's operations groups and prior to being appointed CEO was chief operating officer for client services, a role within the office of the CEO.

Commenting on the choice of Green, Accenture lead board director Mark Moody-Stuart said: "The appointment reflects our support of Bill's tremendous capabilities and ensures a smooth transition in our board leadership. We have been extremely impressed with Bill's leadership as CEO over the past 18 months, as well as with his contributions as a member of the board for nearly five years."

Forehand will leave Accenture after 33 years at the company. As chairman and CEO he led the initiative that changed Accenture from a global partnership to a corporate organisation and then directed it through an initial public offering in 2001.

4. SAPIENT STRUGGLES IN EUROPE

Sapient, one of the few consultancies set up in the dotcom boom to survive the subsequent bust, is making slow progress in Europe despite significant gains in the US.

Reporting its fourth-quarter and full-year 2005 results, Sapient said that non-US revenue - from the UK, Germany and Canada - rose just 1% year on year, down from 46% in 2003/2004. UK revenue rose 4% between the third and fourth quarters, giving the company a better base to build on, but Germany remained flat.

Total net profit for the fourth quarter rose 43% to $11.4 million (£6.5 million), on revenue rising 28% to $84.7 million. For the full year to 31 December, net profit rose 17% to $26.6 million, on revenue rising 26% to $319.5 million.

Sapient, founded in 1990 and initially known for providing fixed-price systems integration projects and delivering services from India, said highlights during 2005 included an expansion of its operations in India - over 50% of the workforce is now based in Sapient's two Indian offices.

The company also acquired US SAP services provider Business Information Solutions and announced its acquisition of US-based integrated marketing agency Planning Group International. This purchase was completed in January and positions Sapient to help clients exploit the rapid evolution of media, advertising and technology.

Looking forward, Sapient co-chairman and co-CEO Jerry Greenberg said: "We see great opportunity to expand our business in a number of high-growth markets, including marketing services and SAP consulting and business intelligence, as well as business solutions areas such as trading and risk management, customer billing and self-service, e-commerce and quality assurance."

5. KANBAY SET TO ACQUIRE ADJOINED CONSULTING

Kanbay International, a US-based IT services firm with European operations in Cambridge and Dublin, has agreed to acquire Adjoined Consulting for a total of $165 million (£95 million).

The deal is expected to complete in March and will create an IT services provider employing over 5,700 associates - 500 from Adjoined - serving over 200 clients from 21 offices across the US, Europe and Asia.

Founded in 1989 and focused on the financial services sector, Kanbay will acquire management consulting skills, SAP and Oracle expertise and a lead into the consumer & industrial products, life sciences and communications & media markets through the takeover.

Commenting on the deal, Adjoined founder, chairman and CEO Rodney Rogers said: "Together we will cover the full spectrum of capabilities in the IT services industry and create a new standard of excellence by becoming an industry-focused, full-service management consulting and technology integration firm. Our unique model will differentiate us from the sub-$1 billion consultancies and pure offshore players and enable us to compete more efficiently with larger firms."

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