Archive for December, 2009

IBM Extends IT Contract with Discover

December 24th, 2009

IBM Corp. (NYSE: IBM) said Wednesday it has extended its information technology services contract with Discover Financial Services (NYSE: DFS) through 2015.

As part of the agreement, IBM said that it will continue supporting operations, customer service and compliance for the credit card issuer.

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Shares of IBM slipped 10 cents to $129.83, while Discover shares gained 7 cents to $14.71 in midday trading.

Source : http://www.transworldnews.com/NewsStory.aspx?id=151468&cat=1

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Discover Financial Services extends IT agreement with IBM through 2015

December 24th, 2009

IBM Corp. announced on Wednesday that it will provide information technology (IT) services to Discover Financial Services through 2015, as a result of an extended outsourcing agreement between the two companies.

As part of the agreement, IBM will continue providing management and support for some of Discover’s most critical IT operations. IBM will make investments in software, processing, and storage technologies that will result in improved operations, efficiency, reporting and compliance.

“IBM has had a long history working closely with Discover to provide high quality, highly efficient IT operations. The new agreement provides them with the flexibility to meet the challenges present in the card business today while taking our relationship well into the next decade,” said Scott Morin, IBM vice president of financial services sector, strategic outsourcing.

“Technology plays a key role in all aspects of Discover’s business. Through the work performed under this agreement, we expect to further enhance our customer experience while realizing increased efficiencies in our operations,” said Glenn Schneider, Senior Vice President and Chief Information Officer, Discover Financial Services.

The contract was signed in November 2009.

Source: http://www.wwpi.com/index.php?option=com_content&view=article&id=8119:discover-financial-services-extends-it-agreement-with-ibm-through-2015&catid=221:other-storage-media-ssd-hdd-blades&Itemid=2701223

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Digicable Signs 10-Year IT Outsourcing Agreement With IBM

December 24th, 2009

IBM (NYSE: IBM) today announced that Digicable, a leading cable and broadband distribution player in India, has signed a US $83 million, 10-year strategic outsourcing agreement with IBM.

As part of this agreement, IBM will support the integration of Digicable’s digital media content delivery and value added services applications with its core business technologies and processes. This integrated approach will enable Digicable to provide superior and personalized service to its subscribers.

With a strong focus across all segments of the media and entertainment industry, IBM has the deep business insights and technology know-how to help Digicable solve complex business problems and build a more intelligent enterprise by accelerating the transformation of their business. The deal with IBM will see alignment of key strategic business and information technology (IT) objectives to ensure greater leverage of technology investments for the exponential growth planned by Digicable.

More specifically, IBM will allow Digicable to manage its business processes better and help enhance revenue per subscriber by facilitating the launch of Value Added Services such as Video-On-Demand (VOD), Push-VOD, Interactive TV, Internet Service on TV, gaming and telephony. Digicable’s digitization initiative will also provide its customers with access to more channels with better picture quality and sound.

As part of the agreement, IBM will provide IT infrastructure services, network support, application maintenance services and security services. IBM will leverage its strength in hardware and software solutions – to assess and help optimize operations for Central/Remote Head Ends and physical/digital assets. IBM will also implement and manage core applications and services, including business-to-business/business-to-consumer and employee Portals, voucher and credit management systems, Electronic Bill Presentation & Payment (EBPP), Intellectual Property Management (IPM) and ERP.

Commenting on the deal, Jagjit Singh Kohli, Managing Director and Chief Executive Officer, Digicable said, “The business landscape is changing continuously, competition is getting intense and customer demands are increasing exponentially. It is hence imperative to differentiate ourselves by constantly evolving new and exciting service offerings to attract and retain customers, ably supported by a partner who understands our business and provides significant value-add”

Mr. Kohli further said, “IBM has a strong track record in the media and entertainment space and we are confident that this agreement will enable us to accelerate growth, while ensuring utmost customer satisfaction”

Asif Khan, Chief Technology Officer, Digicable said, “We believe in leveraging the latent advantages of the cable networks and latest technological innovations to derive new services to meet our customer expectations and facilitate our franchisee partners. The partnership with IBM will help us focus on our core business, reduce time-to-market for new services and adapt quickly to meet future market requirements at an optimum cost”

Steve Canepa, General Manager, IBM Media & Entertainment Industry said, “IBM is excited to partner with a progressive and growing company like Digicable. We will help Digicable capitalize on market opportunities efficiently and drive additional revenues by facilitating accelerated launch of new value-added services. We are confident that our understanding and expertise in M&E industry, coupled with proven capabilities in IT services delivery, will provide Digicable the necessary impetus for future growth”

The contract was signed in December 2009.

About Digicable
Digicable, with a strong focus on quality of service and content, has in a short time acquired more than 8 millions subscribers spread across 125 locations in over 70 cities and 14 states across India. The company is enhancing its delivery infrastructure to provide advanced next-generation digital cable and broadband services. Digicable will provide its subscribers, through cost effective and technologically advanced set-top boxes, the access to a plethora of value added services like Video On-Demand, Push- VOD, Internet Services on TV, Gaming, E-commerce etc.

Source: http://www.webwire.com/ViewPressRel.asp?aId=110064

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IBM In $83 million deal to help India’s digicable roll out new interactive TV AND VOD services

December 23rd, 2009

IBM announced Tuesday that it has secured a 10-year, $83 million strategic outsourcing deal with Indian cable operator, Digicable. According to IBM, the deal will see it supporting the integration of Digicable’s digital media content delivery and value-added services applications with its core business technologies and processes, thus enabling the operator to provide “superior and personalized service” to its subscribers. Specifically, IBM says, the deal will see it enabling Digicable to manage its business processes better and enhance revenue-per-subscriber by facilitating the launch of such services as VOD, push-VOD, interactive TV, Internet-on-TV, gaming and telephony, as well as allowing it to launch more channels and with better picture quality and sound.

As part of the agreement, IBM says, it will provide Digicable with IT infrastructure services, network support, application maintenance services and security services. According to the company, it will leverage its strength in hardware and software solutions to assess and help optimize operations for central and remote headends and physical and digital assets. The deal will also see IBM implementing and managing core applications and services, the company says, including business-to-business, business-to-consumer and employee portals, voucher and credit management systems, electronic bill presentation and payment, intellectual property management and ERP.

“IBM is excited to partner with a progressive and growing company like Digicable,” Steve Canepa, general manager of IBM Media & Entertainment Industry, said in a prepared statement. “We will help Digicable capitalize on market opportunities efficiently and drive additional revenues by facilitating accelerated launch of new value-added services. We are confident that our understanding and expertise in M&E industry, coupled with proven capabilities in IT services delivery, will provide Digicable the necessary impetus for future growth.”

Source : http://www.itvt.com/story/6285/ibm-83-million-deal-help-indias-digicable-roll-out-new-interactive-tv-and-vod-services

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Jacob Ballas, NEA To Invest $60M In Financial Software & Systems

December 23rd, 2009

Financial Software & Systems (P) Ltd (FSS), a Chennai-based electronic payments processing firm, has raised $60 million from private equity firms Jacob Ballas Capital India Pvt. Ltd and New Enterprise Associates, Inc. (NEA). The PE firm duo have picked up a 40% stake in the firm, valuing FSS at around $150 million, sources close to the development told VCCircle.

FSS raised its first PE round in 2001, collecting $10 million from The Carlyle Group. The fresh deal with Jacob Ballas and NEA also includes a secondary transaction to buy a 34% stake held by Carlyle. The PE giant seems to be exiting one of its first investments in India pocketing around 4-5x returns.

Srinivas Chidambaram, managing director of Jacob Ballas Capital India, declined to comment on the development. Bala Deshpande, senior managing director with NEA, also did not comment on the deal. VCCircle could not reach the FSS spokesperson for a comment.

Earlier reports suggest that FSS was expecting revenues of Rs 260 crore in FY10. The firm has also entered into the management of systems and processes like ATMs. With a network of 1,600 ATMs, It also provides services like point-of-sales outsourcing, value added payments, and card management services.

FSS was founded in 1991 and is headed by managing director Nagaraj Mylandla. Its key customers include ICICI Bank, HDFC, State Bank of India, Reliance Mutual Funds and Bombay Stock Exchange. FSS competes with international players like Total Systems Services, Visa, KKR-owned First Data Corporation (FDC), and Indian players like Venture Infotek and TechProcess Solutions.

Veda Corporate Advisors was the advisor on the latest transaction.

The transaction processing space has attracted investor interest in the past (see table). Several banks have been looking to hive off their ATM Networks and the transaction processing companies are likely to manage these networks. Earlier this year, FDC signed a deal to deploy 3,000 ATMs. ICICI Bank was also reportedly looking to hive off its ATM business, one of the largest networks in the country.

Source : http://www.vccircle.com/500/news/jacob-ballas-nea-to-invest-60m-in-financial-software-systems

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OSF Global Services Acquires CMI Technologies, Extending its Leadership in Web Development Service Offerings

December 23rd, 2009

OSF Global Services, www.osf-global.com, the Canadian provider of IT services and consulting, today announced that it has completed its purchase of CMI Technologies LLC, a U.S.-based leader of website coding service offerings under the brand CodeMyIMAGE.com.

CodeMyIMAGE is a leading provider of coding services to convert digital designs into web pages, content management systems and e-commerce websites. Established in 2008, CodeMyIMAGE’s rapidly grew its client base of web designers, developers and marketing agencies by combining high-volume turn-around and pricing with high-touch, personalized services. Based in the U.S., the company delivers its services to clients throughout North America. OSF will continue to provide coding services under the CodeMYIMAGE brand.

Since being established in 2000, OSF Global Services has provided dynamic IT Services & Consultancy with a focus on Business Process Outsourcing, Consulting Services and Enterprise-class IT Services and application development that enhance customers’ processes and transform their businesses through unparalleled usage of technology as competitive leverage. The company is headquartered in Quebec, Canada with development branch-offices in Romania and Ukraine, enabling follow-the-sun support services to any of our clients.

”We started collaborating with CodeMyIMAGE earlier this year with an eye towards strengthening our position in the SMB market and broadening our US client base. Now that the acquisition is complete, we can leverage OSF’s capabilities and infrastructure to offer CodeMYIMAGE clients complementary services such as website hosting and on-going maintenance services. These core OSF competencies are logical extensions of the services CodeMyIMAGE currently provides and further enable our clients to focus on what they do best – design”, says Gerard Szatvanyi, President and CEO of OSF Global Services.

Source : http://www.prweb.com/releases/2009/12/prweb3370794.htm

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HP, Dell Look to Gain on IBM in IT Services Space

December 23rd, 2009

With its acquisition of Perot Systems, Dell is looking to quickly expand its capabilities in the $800 billion IT services space, currently dominated by IBM. Both Dell and Hewlett-Packard, which has integrated EDS into the fold, want to increase the recurring revenues available from their services businesses. Meanwhile, IBM continues to look to its massive software and research businesses to add more capabilities to its services offerings.

More than a month after closing the deal on a $3.9 billion acquisition of Perot Systems, executives from Dell went before analysts and reporters to tout the deal’s ability to help Dell expand beyond its systems-making roots.
During an hourlong Webcast Dec. 16, the Dell officials spoke of the potential financial boost (about $7.5 billion in annual revenues), the size of the company’s new services unit (42,000 employees), the size of the IT services market (about $800 billion) and Dell’s place in it (among the top 10) that the acquisition of Perot brought with it.

They also talked about catering to the “underserved” midmarket and how they planned to differentiate themselves from larger rivals such as IBM and Hewlett-Packard with modular offerings, high degrees of automation and shorter engagements.

“The old approach of embedding an army of consultants locked in processes, frameworks, and proprietary software and hardware is inefficient and burdens consumers and their customers with too high of a cost,” said Peter Altabef, president of Dell Services and formerly president of Perot. “In contrast, we want to help organizations innovate and focus on strategic objectives while spending less on routine IT management. This is a new initiative that is redefining services from the customer’s perspective, making IT easier to access and simpler to manage and, most importantly, aligning our solutions to our customers’ success.”

Paul Bell, president of Dell’s public sector group, said his company is looking at services engagements that run 60 to 90 days involving two or three Dell Services people.

“Our competitors continue to bring teams of consultants that don’t want to go away,” Bell said.

Dell is only the latest of the larger systems makers to see services as a way of expanding its reach beyond its rapidly commoditizing hardware business. HP, already a significant services player, has integrated services company EDS into the fold some 16 months after closing the $13.9 billion deal. Even printing giant Xerox is getting into the game, with its $6.4 billion purchase of Affiliated Computer Services in September.

All are looking, in one form or another, to mirror some of the success that IBM has had with its Global Services unit over the past 15 years, moving away from low-margin hardware sales to stronger services businesses that offer recurring revenues.

Source : http://www.eweek.com/c/a/IT-Infrastructure/HP-Dell-Look-to-Gain-on-IBM-in-IT-Services-Space-484004/

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