MCN Direct Newswire

Vol. 7 No. 2, 11 February 2008

This issue is sponsored by:

CODA and The UK Consulting Industry Report 2006/7

This issue news

1. Fujitsu Services claims £140m contracts
2. EDS takes cautious view of 2008
3. Andy Green rings the changes at LogicaCMG
4. Accenture wins at South West Water
5. Atos Origin improves UK performance
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. FUJITSU SERVICES CLAIMS £140m CONTRACTS

Fujitsu Services has beaten competitors to a £100 million, eight-year outsourcing contract with the Police Service of Northern Ireland (PSNI) and a £40 million, 10-year project with Research Councils UK.

The PSNI deal is worth £34 million initially and potentially £100 million over eight years. Fujitsu Services will consolidate the police force's five IT services suppliers into a single provider to improve service quality and reduce costs. It will also manage a 24x7 service desk, applications hosting services, data networks, mobile automatic number plate recognition cameras and around 10,000 PCs and laptops.

John Tully, head of information and communications at PSNI, said: "The PSNI's ICT systems and services are critical to policing in Northern Ireland and we expect this new contract with Fujitsu to deliver real, tangible benefits to front-line police officers."

Fujitsu was one of four companies shortlised for the project and its selection strengthens its presence in Northern Ireland where it already runs two large government contracts.

Its £40 million deal at Research Councils UK involves implementing a shared services infrastructure to support 12,000 Research Council employees and about 30,000 researchers. The aim is to improve back-office efficiency by setting up a shared services centre in Swindon that will be staffed mainly by existing administrators.

2. EDS TAKES CAUTIOUS VIEW OF 2008

EDS has forecast revenue growth of just 2% and reduced the outlook for its earnings-per-share for 2008 - despite achieving a 4% gain in 2007 revenue and its best second-half total contract value since it collapsed into financial losses in 2001.

EDS did not detail the financial forecast, but it will want to avoid any disappointment after spending the past few years building up to its former financial strength. CEO Ron Rittenmeyer said: "EDS enters 2008 a stronger and more competitive company. Our financial priorities include building on our strong presence in IT outsourcing, continuing to enhance our capabilities in higher-margin applications services and expanding our Best Shore global delivery."

For 2007, EDS reported net profit up 59% to $828 million (£425 million), on revenue rising 4% to $22.1 billion. Its full-year contract value was $19.5 billion, down 26% from $26.5 billion in 2006. Total contract value for 2008 is forecast to be over $20 billion.

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The Consulting Industry Report 2006/7 is sponsored by Maconomy.

3. ANDY GREEN RINGS THE CHANGES AT LOGICACMG

New CEO Andy Green has begun his reign at LogicaCMG by consolidating all its outsourcing services into a single global division and acknowledging the upcoming departure of chief operating officer and interim CEO Jim McKenna.

Green has been in the CEO's office since 1 January and has given McKenna leadership of the outsourcing division until he leaves the company after 14 years' service later this year.

The division will pull together the outsourcing strands from LogicaCMG's sector-driven businesses into a 9,000-strong operation that will launch in key European geographies in the current quarter and across the whole organisation by 2009. The aim is to provide outsourcing sales and design specialists to LogicaCMG customers via local offices, while services are delivered using a global delivery model that blends onshore, nearshore and offshore support.

Commenting on the new organisation, Green said: "Our customers are clear. They want LogicaCMG to relate to them locally, while also delivering the best competencies from around the world in the most cost-effective and efficient way."

McKenna, who became interim CEO of LogicaCMG following the departure of Martin Read last autumn, has been asked by the board to stay on to create the outsourcing services division. He will leave in the second half of 2008 to pursue other interests.

Green commented: "I am delighted that Jim McKenna has agreed to stay on for an interim period to help me lay the foundations for the next stage of the group's development."

4. ACCENTURE WINS AT SOUTH WEST WATER

Accenture has won a 10-year outsourcing contract to help South West Water improve its business processes and workforce performance.

The value of the contract was not disclosed, but it will start on 1 April with Accenture providing customer care and billing services and managing the utility's back-office operations for its customers in Devon, Cornwall and parts of Dorset and Somerset.

Accenture adds South West Water to a list of over 20 utility clients in the UK and North America. Keith Mueller, managing director of Accenture Utilities BPO Services, said: "We will be creating a UK showcase of the processes, technology and performance models Accenture Utilities BPO Services has developed and refined over the years with utility companies around the world and sharing these with South West Water and other utility clients."

5. ATOS ORIGIN IMPROVES UK PERFORMANCE

IT Services provider Atos Origin has hit its 2007 revenue targets after a transformation programme which started last February improved the performance of its UK operations.

The company's 2007 revenue reached €5.6 billion (£4.2 billion), helping it achieve a target of 8.5% year-on-year organic growth. The UK business recovered from a 13% revenue fall in 2006 to achieve 1% growth and revenue of €1 billion in 2007.

Breaking down its UK revenue, Atos Origin noted 7% growth in its managed operations, reversing a decline in the previous year, and a drop of 2% in its systems integration revenue as a result of the transformation programme. Global consulting revenue also fell 11% to €360 million, but Atos Origin predicted the UK would improve its consulting performance in the first half of 2008.

The company's systems integration business pushed revenue up 4% to €2.3 billion in the year, while managed operations rose 15% to €3.2 billion.

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

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