Feeds

Cap Gemini targets EDS renewals

'Customers are already asking questions'

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

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.

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.