MCN Direct Newswire

Vol. 6 No. 18, 17 September 2007

This issue is sponsored by:

CODA, kpi-insight and Annual Consultants' Forum 2007

This issue news

1. Morse acquires Xayce for up to £6.1m
2. EDS to cut US workforce
3. PwC earns more from consultancy
4. Capita secures £175m Lincolnshire deal
5. KPMG supports black business community
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. MORSE ACQUIRES XAYCE FOR UP TO £6.1m

Morse, the systems reseller turned IT professional services firm, has bought financial and local government consultancy Xayce for cash and shares worth £3.6 million. A further payment of up to £2.5 million of Morse shares is conditional on Xayce achieving targets between now and 30 June 2010.

Morse will integrate Xayce into its management consulting business and expects the acquisition to be earnings enhancing in the current financial year to 30 June 2008.

Having sold off Monitise, a secure mobile banking applications business, at the close of the last financial year, Morse is concentrating on IT services. It offers management, applications and infrastructure consulting across the financial services, media & communications and public sectors.

Xayce was founded in Manchester by a group of ex-Accenture consultants in 1998 and was privately owned. The company offers back-office transformation services to insurance, retail banking and local government organisations and has over 70 clients. Xayce has 25 staff and uses a network of associates to complete engagements. In the year to 31 March 2007, its turnover was £4 million.

Commenting on the deal, Morse chief executive Kevin Alcock said: "The acquisition of Xayce will enhance our management consultancy capabilities in insurance and retail banking, as well as give us additional relationships to position ourselves for the back-office transformation work coming on-stream in local government."

Morse, excluding Monetise, reported pre-tax profit up 14% at £12.5 million, on turnover down 13% at £256.5 million, in the year to 30 June 2007.

2. EDS TO CUT US WORKFORCE

EDS is bowing to the trend of globalisation among IT services firms by offering 12,000 of its 50,000 US employees early retirement as it seeks specialist skills on other continents.

EDS said the move is about improving its competitive stance in relation to Indian outsourcing companies. With a total of 136,000 employees worldwide, over half of them outside the US, EDS wants to move more jobs to countries that offer the best skills at the lowest costs.

The US voluntary retirement scheme will run until the end of October and is open to employees aged over 50 who have worked at EDS for more than five years.

Ron Rittenmeyer, who replaced Mike Jordan as EDS CEO at the beginning of this month, said at a recent earnings annoucement: "To drive increased productivity and competitiveness, we will continue to aggressively deploy offshore programming and delivery resources."

Sponsor

kpi-insight

At the Annual Consultants' Forum, kpi-insight consulting - the independent provider of complete management solutions to project-driven organisations - will be launching Insight Consultants Club (IC²), a partner referral programme for accountants, advisors and consultants. Membership includes free master classes and Lunch and Learn (free online webcasts). To find out more, click here.

3. PwC EARNS MORE FROM CONSULTANCY

PricewaterhouseCoopers (PwC) increased its revenue from advisory services by 4% to £493 million in the year to 30 June, while 72% of its total annual revenue came from non-audit services.

PwC's results follow those of Deloitte, which raised its consultancy revenues by 13% to £430 million (MCND 6-17).

PwC's advisory division includes performance improvement, business recovery, corporate finance and forensic services.

The company's overall profit rose 11% to £631 million after exceptional gains from the disposal of its Southwark Towers office leasehold and credits on pension schemes. Revenue for the year grew 6% to £2.1 billion.

UK chairman Kieran Poynter commented: "Our results demonstrate the strength and diversity of our business and reflect demands for an increasingly broad set of high-quality services from our clients. Within advisory services, performance improvement consulting grew by 8%."

Looking forward, Poynter highlighted PwC's commitment to corporate responsibility and sustainability, including the challenge of climate change, saying: "Our focus on sustainable development gives me great confidence in the future success of the firm."

4. CAPITA SECURES £175m LINCOLNSHIRE DEAL

Capita Group has won an outsourcing contract from North East Lincolnshire Council that is expected to be worth about £175 million over 12 years.

As part of the partnership, 350 council staff will be seconded to a joint venture company set up by the two organisations. The joint venture, Capita and the council will work together to improve council services, particularly in the areas of business transformation and property regeneration, while cutting costs.

Council leader Andrew de Freitas explained: "The partnership will make council services more customer-friendly and streamlined, allowing most residents' requests to be dealt with at a single point, rather than being passed to different departments. New information management systems will create a more cohesive approach, allowing services to be developed around the specific needs of those who live and work in the community."

Sponsor

Annual Consultants' Forum 2007

Open for registrations

We are delighted to announce the date for this event is Thursday 27 September at One Great George Street. We are currently finalising the agenda and have decided to open the event to pre-registrations.

To review the event and pre-register please click here.

5. KPMG SUPPORTS BLACK BUSINESS COMMUNITY

KPMG is providing pro-bono advisory services to start-up companies from London's black community under the Volunteers Inspiring Black Entrepreneurs programme within its Black Business Network.

The programme has completed a successful pilot and is now being extended to help more of London's black businesses. Those selected are assigned a KPMG mentor, usually a partner or director, who undertakes a review of the business and its market.

KPMG offer face-to-face coaching and goal setting followed by ongoing dialogue and feedback. Volunteers from its risk advisory business provide at least three hours of consultancy each quarter to firms selected to take part in the programme.

Errands Etc, a personalised butler service for London workers, was on the pilot project. Managing director Jennifer Kabaaga said: "Working with my mentor helped me to focus my energies in the areas that were likely to make the biggest difference to my business. Apart from the confidence that working with KPMG has given me, it has also helped to give my business credibility with potential clients."

The Black Business Network is part of KPMG's diversity initiative and aims to support its members and communities by providing positive African-Caribbean role models to inspire and motivate young people from similar backgrounds.

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

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