Feeds

Cap Gemini targets EDS renewals

'Customers are already asking questions'

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Cap Gemini Ernst & Young is aiming for strong growth in its outsourcing operation by dramatically building its offshore arm, targeting new business in applications management and BPO, and targeting the clients of rival EDS. It must regret selling off its BPO practice in 2001, with outsourcing services currently showing strong resilience to the general slowdown.

Hubert Giraud, global head of CGE&Y's outsourcing practice, has said that the company plans to grow its outsourcing services to between 40-45% of revenue over the next two to three years, up from its current level of 27%.

Mr Giraud said CGEY is building a new model of onsite, near-shore and offshore software and services delivery capabilities. Traditionally, the company has worked through providing consulting and systems integration services onsite at its clients' locations in western markets. But to benefit from the cost advantages of moving development work to less expensive locations, the company has set up near-shore development sites in Barcelona and Madrid in Spain, as well as an offshore site in Mumbai, India.

CGEY is also targeting potential opportunities arising due to the recent troubles at EDS, which saw CEO Dick Brown resign last month.

Kevin Tomlinson, head of outsourcing for CGE&Y in the UK said: "We know that EDS has a lot of renewals coming up in the next two years in the UK and customers are already asking questions."

Business process outsourcing (BPO) is another target area, and here Giraud claims the company won the largest project in the market in 2002, valued at $642 million, to provide human resources, transaction processing and supply chain management services for Hydro One.

More than 900 employees will move from Hydro One to CGEY-owned vehicle Inergi, while the customer services operations are managed by UK-based BPO operation Vertex under subcontract from Inergi. It is interesting that CGEY has to share the booty with Vertex, which acquired Cap's business process outsourcing practice in February 2001.

CGEY sold up at a time when it was building up its high-end consulting operation through the acquisition of Ernst & Young Consulting. It must now wish that it kept hold of the division, with consulting spend frozen and outsourcing services emerging as the one area of IT services spend to show resistance to the general slowdown.

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.