MCN Direct Newswire

Vol. 6 No. 2, 29 January 2007

This issue is sponsored by:

PMP, NCC and CIO Connect

This issue news

1. IBM pushes services business up 55%
2. EDS takes $97m space agency contract
3. LogicaCMG reports 5% IT services growth
4. PA hires new head of ventures
5. Accenture insures $100m project
6. Further information - feedback/pass on to a colleague/remove from mailing list

Sponsor

PMP

IT governance conference - Delivering a successful governance strategy

For organisational investment in IT to deliver full value, it is widely recognised that IT has to be fully aligned to business strategies, key risks have to be identified and controlled, and legislative and regulatory compliance demonstrated. IT governance covers all of this and more and, in light of recent corporate failures and scandals, enjoys a higher profile today than ever before. Key speakers include: Alan Calder, the Director at IT Governance, plus KPMG, HBOS, Mantix Ltd and Bird & Bird.

For full details of all the speakers and the programme, visit the conference website: conference website.

1. IBM PUSHES SERVICES BUSINESS UP 55%

IBM delivered a strong financial performance in the last quarter of 2006, with service signings up 55% to $17.8 billion. Net profit in the three months to 31 December rose 11% to $3.5 billion, on revenue climbing 7% to $26.3 billion.

But IBM's full-year results reflected the up-and-down nature of the market, with its global services business' revenue flat at $16 billion. Total revenue for the year was also flat at $91.4 billion but profit rose 20% to $9.5 billion. IBM's global technology services showed an increase of 3% during the year to reach $32.3 billion.

CEO Sam Palmisano commented: "IBM had a terrific quarter and a good year with record cash performance, profit and earnings per share, as well as record payouts to shareholders. We are well-positioned in the growth areas of a changing IT industry, focused on our evolving business model and poised for long-term success for our clients and shareholders."

On a geographic basis, IBM will be looking for more revenue from the EMEA region and an improvement in Asia-Pacific over the coming year. The 2006 results showed revenue from the EMEA region flat at $30.5 billion, the Americas up 2% at $39.5 billion and Asia-Pacific down 6% at $17.6 billion.

2. EDS TAKES $97m SPACE AGENCY CONTRACT

EDS has won a $97 million (£49.5 million), five-year contract to manage the European Space Agency's (ESA) corporate IT services and related infrastructure.

EDS will act as prime contractor for a team including Atos Origin, Orange Business Services and Telindus, to deliver an end-to-end services model that will improve services and decrease costs at the agency.

The team will support servers and applications infrastructure, local and wide-area networks, a mobile computing environment, messaging and desktops for over 4,000 internal space agency users. It will also provide IT solutions and helpdesk services to over 6,000 external business partners requiring access to agency information.

The ESA is an international organisation with a mission to develop Europe's space capability. Gaele Winters, ESA's director of operations and infrastructure, said: "To meet this challenge, our goal is to continue to serve our customers effectively, while increasing efficiency and lowering costs. A solid IT foundation will play a significant role."

Sponsor

NCC

High potential leadership

This is a development programme organised by IMPACT in association with the National Computing Centre and CIO Connect.

Designed by David Taylor, author of one of the fastest-selling business books 'The Naked Leader', this programme will specifically increase the leadership capabilities of IT professionals, and is led by a world-class team of experts with a profound understanding of the critical issues facing IT professionals today.

To find out more about the programme, dates and locations, download the PDF overview: click here.

3. LOGICACMG REPORTS 5% IT SERVICES GROWTH

LogicaCMG achieved 5% IT services growth in fiscal 2006, driven by improvements in its financial services and industry, distribution & transport businesses. In a trading update, LogicaCMG also recorded the departure of UK chief executive Guy Warren and his replacement in early January by Joe Hemming, former head of its UK space and defence business.

LogicaCMG said its IT services margins remained strong in the UK throughout 2006, based on extended use of its global service delivery model and a cut in the use of subcontractors. Revenue from the Netherlands rose 10%, France matched group performance with a 5% gain and Germany - for so long LogicaCMG's major detractor - returned to profitability in the second half. During the year, LogicaCMG also acquired Nordic IT services firm WM-data.

Chief executive Martin Read said: "We are pleased to have delivered another year of significantly increased operating profit and good operating cashflow. We had good order intake in the second half. For 2007, our focus is on the integration of WM-data and on delivering benefits to our customers and shareholders from our strengthened European footprint."

4. PA HIRES NEW HEAD OF VENTURES

PA Consulting has appointed Martin Stapleton as head of ventures, with responsibility for nurturing new companies within the consultancy.

Stapleton joins PA from Sofius Capital, where he was a founding shareholder and executive director. At Sofius, he led the buyout of the Reuters Greenhouse Fund, which he went on to manage. Before his career in venture capital, he held a number of new business positions in the Reuters Group, among them the role of chief financial officer during the inception and early development of Tibco Software.

At PA, Stapleton will look for and incubate new ideas that exploit PA's intellectual capital, technology and know-how. The company has a track record of developing new ventures - including HR consultancy Cubiks and wireless communications product developer UniNetics - and is entering a new phase of investment and growth.

Commenting on his appointment, Stapleton said: "PA has an ambitious growth agenda for building its venture portfolio and I look forward to working with executive chairman Jon Moynihan and the rest of the senior management team to realise this ambition."

Sponsor

CIO Connect

The Outsourcing Master Class series

Find out how your clients are being coached to deal with you!

Suitable for all organisations either thinking about outsourcing or those in existing arrangements, this Master Class series has something for all levels of expertise.

Organised by CIO Connect, the leading forum for CIOs and IT executives, and delivered by recognised industry experts, this programme is split into six modules which will lead you through the outsourcing process. Highly flexible, the programme allows for several members of your organisation to benefit from different modules.

To find out more, download the prospectus PDF (1Mb): click here.

5. ACCENTURE INSURES $100m PROJECT

Accenture has signed a $100 million (£51 million), 10-year contract to provide outsourcing services to AIG Entrepreneur, the small-business property and casualty insurance arm of AIG Europe.

Accenture will offer the services through its dedicated insurance business process outsourcing (BPO) business and deliver them from its centre in Bucharest, Romania - one of seven onshore, near-shore and offshore facilities within Accenture Insurance Services.

The services will be supported by an IT platform using proprietary Accenture insurance software, with implementation due to be completed within six months. The contract requires initial delivery of services to France, with other European countries being added later.

Serge Callet, global managing director of Accenture's insurance practice, explained: "Our centre in Bucharest will provide high-quality and cost-competitive BPO services to AIG Entrepreneur for its operations in key markets in the EU. By combining our respective capabilities and skills, we look forward to helping the company innovate through a more industrialised operating model."

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