Posts Tagged ‘contract’

Wipro signs 7 year outsourcing contract with UCO Bank

August 28th, 2010

Wipro Infotech recently today announced that it has signed a seven year total outsourcing contract with 5 regional rural banks sponsored by UCO Bank, a leading public Sector Bank.

The contract is for implementing a Core Banking Solution (CBS) across 803 branches of RRBs under UCO Bank’s sponsorship.The RRBs under the sponsorship program are Jaipur Thar Gramin Bank (JTGB), Kalinga Gramya Bank (KGB), Bihar Kshetriya Gramin Bank (BKGB), Paschim Banga Gramin Bank (PBGB) and Mahakausal Kshetriya Gramin Bank (MKGB). These RRB’s have operations primarily in the states of Rajasthan, Orissa, Bihar, West Bengal and MP. With this initiative, all five RRBs would come under the ambit of core banking, thereby ensuring uniformity in technology platform and related business processes for improved business efficiency and customer care.

Speaking about the engagement, Ajai Kumar, Executive Director, UCO Bank said: “Today RRBs are being viewed as one of the primary vehicles to drive financial inclusion. This implementation by Wipro would be a big step in technologically enabling our sponsored RRB branches to deliver rural banking services to the masses.”

The scope of services includes building, hosting and managing the underlying infrastructure at the Data Centers, in addition to implementing the Finacle CBS across 5 RRBs. Wipro would also provide network management and user training across all 803 branch locations as a part of the Total Outsourcing relationship. The CBS would be executed on an Application Service Provider (ASP) model where Wipro would get paid on a monthly pay-per-use basis. Roll out of all branches is expected to be completed by September 2011.

Anand Sankaran, Senior Vice President and Business Head, Wipro, India, Middle East and Africa said, “We are excited to be partnering with 5 of the RRBs sponsored by UCO Bank for this long-term and strategic engagement. We are confident that coupled with our vast domain expertise and knowledge of global best practices, we will be able to help RRBs achieve their business objective of taking low-cost banking to the rural masses.”

The contract is the outcome of a competitive bidding process. In a keenly contested deal, Wipro emerged as the preferred partner for the total outsourcing deal spanning 7 years.

Source:http://informationweek.in/Software/10-08-27/Wipro_signs_7_year_outsourcing_contract_with_UCO_Bank.aspx

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Texas Tells IBM make way for others on outsourcing contract

August 22nd, 2010

IBM delivered a letter to DIR that mischaracterized the obligations of IBM and DIR under the MSA, was insufficient to cure the breaches identified in the Notice to Cure Letter, and was little more than a reiteration of inconsistent and incomplete ideas that IBM has previously expressed. During discussions over the past nine months, IBM suggested that DIR re-procure all or part of the services under the MSA. Given IBM’s failure to cure the breaches set forth in the Notice to Cure Letter, IBM now leaves DIR no course but to pursue procurement.”

“In accordance with the terms of the MSA, the Notice to Cure Letter specified that IBM had thirty (30) days to cure each such breach. IBM has failed to cure the identified breaches. Accordingly, DIR has full legal right and authority to terminate the MSA for cause. DIR has determined that it is not in the best interests of the State to exercise that right at this time. DIR will proceed with procurement for all services required of IBM under the MSA. DIR requires IBM’s full and compliant performance of its obligations under the MSA.”

“DIR expressly retains all rights with respect to termination of the MSA, and no delay in termination of the MSA shall be deemed a waiver of those rights.

Source:-http://spectrum.ieee.org/riskfactor/computing/it/texas-tells-ibm-make-way-for-others-on-outsourcing-contract

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IBM make way for others on outsourcing contract

August 20th, 2010

I was pretty confident that IBM and the State of Texas would reach some sort of mutually unacceptable accommodation in their disagreements over the quality and level of performance involving the outsourcing contract Texas awarded to IBM in 2006 that would allow everyone to save face and move on.While I got the mutually unacceptable bit right, more importantly, I was way off about the two sides reaching an accommodation.As you may recall, the Texas Department of Information Resources (DIR) sent an 8-page “Notice to Cure” letter to IBM last month in essence stating that in the state’s opinion, IBM has failed to live up to the IT outsourcing promises it has made to the state since the contract’s start.

The DIR gave IBM 10-days to come up with an acceptable cure plan, and 30-days to cure the contract breaches noted in the cure notice.The 30-day period ended this week, with IBM declining to submit an acceptable plan, as well as in DIR’s opinion, declining to fix the contract breaches noted in its cure letter.
On August 13, 2010, IBM delivered a letter to DIR that mischaracterized the obligations of IBM and DIR under the MSA, was insufficient to cure the breaches identified in the Notice to Cure Letter, and was little more than a reiteration of inconsistent and incomplete ideas that IBM has previously expressed. During discussions over the past nine months, IBM suggested that DIR re-procure all or part of the services under the MSA. Given IBM’s failure to cure the breaches set forth in the Notice to Cure Letter, IBM now leaves DIR no course but to pursue procurement.”

In accordance with the terms of the MSA, the Notice to Cure Letter specified that IBM had thirty (30) days to cure each such breach. IBM has failed to cure the identified breaches. Accordingly, DIR has full legal right and authority to terminate the MSA for cause. DIR has determined that it is not in the best interests of the State to exercise that right at this time. DIR will proceed with procurement for all services required of IBM under the MSA. DIR requires IBM’s full and compliant performance of its obligations under the MSA.”
DIR expressly retains all rights with respect to termination of the MSA, and no delay in termination of the MSA shall be deemed a waiver of those rights.

What this all means is that the DIR will take over control of the contract, and according to a story in the Dallas-Morning News, rebid much of the remaining work on the contract.An article in the Austin-American Statesman states that the contract required the merger of the data centers of 28 Texas state agencies “into two streamlined and secure facilities. The consolidation was supposed to be completed by December 2009 but is still only 12 percent complete.

IBM disagrees with the DIR’s stance, and is quoted in the Statesman as saying it is still “hoping to continue a constructive dialogue” with the DIR.That doesn’t look too likely.I hesitate to make any predictions, given my previous track record, but I would guess an eventual trip to court looks better than a 50-50 chance.

Source:-http://spectrum.ieee.org/riskfactor/computing/it/texas-tells-ibm-make-way-for-others-on-outsourcing-contract

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IBM sued, loses major contract

August 19th, 2010

US hospitality giant accuses Big Blue of fraud.

US hospitality heavyweight Carlson has canned a multimillion dollar outsourcing deal with IBM five years before its expiry, alleging fraud by Big Blue staff.

The privately held US company owns major brands such as Radisson Hotels, Country Inn, TGI Fridays, Park Inn and Par Plaza.

Carlson had signed a 10-year outsourcing deal with IBM in 2005, with several hundred IT and finance staff losing their jobs or being transferred across to IBM.

The signing of the outsourcing deal was opposed by the firm’s CIO, Steve Brown at the time, who resigned from the company in protest.

Besides fraud, Carlson has alleged IBM breached its contract and its fiduciary duties, according to court documents obtained by Information Week.

IBM has dismissed the claim as “baseless”, claiming Carlson filed the complaint because IBM was demanding payment from parties under the Master Services Agreement between the two.

Source:http://www.itnews.com.au/News/229232,report-ibm-sued-loses-major-contract.aspx

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Reprints desk secures exclusive reprints outsourcing contract for jama – journal of the american med

August 15th, 2010

Reprints Desk, the content workflow company, today announced that the company had secured an exclusive, multi-year contract to provide article Reprint and ePrint outsourcing services for the journals published by the American Medical Association (AMA): Journal of the American Medical Association (JAMA), the nine specialty Archives Journals, American Medical News, and Disaster Medicine and Public Health Preparedness (DMPHP). Life science companies and other research-intensive organizations use both paper Reprints and digitally deployed ePrints of copyrighted materials as educational tools for communicating with healthcare professionals and consumers. JAMA is considered one of the premier medical journals in the world.
The multi-year agreement went into effect on July 27, 2010. Under the terms of the agreement, the Reprint and ePrint services that Reprints Desk provides will span article quoting and order processing, printing, delivery and deployment, billing, and customer satisfaction. Financial details were not disclosed.
“Reprints Desk is honored to have been selected as the sole supplier entrusted with managing reprints for JAMA and other AMA journals whose brands are respected worldwide for their excellence, integrity, and leadership,” said Peter Derycz, President and Chief Executive Officer at Reprints Desk. “As an organization that believes science improves public health, Reprints Desk is committed to making it easier for brand managers, medical marketers, and others to license and re-use content that can help save and improve lives.”
“We at the American Medical Association are impressed with Reprints Desk’s initiatives and its abilities to manage the reprint and ePrint business issues that arise in the handling of published materials,” said Elizabeth Jones, Sr. VP of Periodical Publishing. “We can think of no better company to oversee the smooth running of these varieties of services for our flagship publication, JAMA, as well as our other marquis journals.”
Reprints Desk is headquartered in Santa Monica, California, and was founded in 2006 by document delivery pioneer Peter Derycz. The company provides business software and information services that simplify how individuals and research-intensive organizations procure, manage and share journal articles and other copyright-protected content. The company’s content workflow and compliance solutions help customers effectively use peer-reviewed literature in research, regulatory submissions, education and product promotions. For more information, visit Reprints Desk online at www.reprintsdesk.com.
Reprints Desk, Inc. is a business software and information company that simplifies how research-intensive companies and other organizations procure, manage and share content in compliance with copyright, Good Reprint Practices, and Good Promotional Practices. Reprints Desk solutions help customers effectively use peer-reviewed literature in research, regulatory submissions, education and product promotions. An authorized sales representative for Copyright Clearance Center’s rights management tool Rightsphere and a channel supplier for more than 100 scientific, technical, and medical (STM) publishers, Reprints Desk earned the #1 ranking in the 2008 Document Delivery Vendor Scorecard by Outsell, Inc., and currently serves companies in life sciences, energy, aerospace, industrial products, food and beverages, consumer packaged goods, information technology, legal, academia and government. Reprints Desk is a Derycz Scientific company. For more information about Reprints Desk, contact Ian Palmer at

Source:-http://pr-canada.net/index.php?option=com_content&task=view&id=245380&Itemid=58

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Unilever extends BT outsourcing contract

July 15th, 2010

Retail giant Unilever has extended its outsourcing deal with BT in a contract worth an extra £144m.

BT’s Global Services arm will look to implement new technology around unified communications, messaging, supply chain and wireless technology, in more than 100 countries across Unilever’s three operating regions, over the next four years.

The scope of the service includes the design, management and operation of a secure, fully integrated end-to-end IT networking infrastructure, delivering data, voice, video and mobility services to about 1,000 Unilever sites.

Jeff Kelly, CEO of BT Global Services, said: “Unilever is one of our largest customers in an important market for us. Our aim is to help them drive out costs and deliver their market-leading brands more efficiently.”

Unilever’s chief enterprise support officer Pascal Visée said that the aim was to “double the business while reducing environmental impact.”

The original £833m contract was awarded in November 2002 and was BT’s first comprehensive global communications outsourcing contract.

Source:-http://www.managementconsultancy.co.uk/computing/news/2266439/unilever-extends-bt-outsourcing

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Accenture Wins Outsourcing Contract

June 17th, 2010

It seems a frequent affair for the global management consulting firm, Accenture plc (ACN – Snapshot Report) to win outsourcing contracts. Yesterday, Accenture announced that it had been awarded a 6-year outsourcing contract to provide application management services to Germany-based Henkel’s North American operations.

As per the terms of the contract, which is in addition to an existing contract signed last year, Accenture will provide management services to Henkel that are expected to reduce costs and streamline its activities.

Though we remain unclear about the financial impact of the deal on Accenture’s revenue stream, we continue to believe that the company’s solutions will attract a series of contracts and customer wins across various industries spanning over several years.

Last year for instance, Accenture won a 7-year outsourcing contract from Scandinavian Airlines for providing financial management services. We believe this is a good growth opportunity for Accenture in the aviation segment, where it operates through its subsidiary, Navitaire. The latter provides technological support to more than 75 airlines worldwide.

Furthermore, Accenture enhanced its Mobility services with the strategic acquisition of Nokia Corp.’s (NOK – Analyst Report) Symbian service unit. The Symbian operating system is the world’s most widely used platform for smartphones. The acquisition helped Accenture to develop innovative solutions for mobile devices, which in our view, will attract major handset manufacturers.

According to the U.S. research firm Gartner Inc., global spending for IT services will witness a boost in 2010 with an anticipated 4.5% increase from 2009. With a major part of revenue coming from the consulting business, we expect Accenture to be a major beneficiary.

With about 181,000 employees around the world, the company delivers a wide range of consulting, technology, and outsourcing services to its clients in diverse industries. Accenture has extensive relationships with the world’s leading companies and governments, and operates in over 120 countries.

Accenture reported an unexciting second quarter, with EPS of 60 cents missing the Zacks Consensus Estimate of 61 cents and revenue declining by 2.1% compared with the year-ago quarter. However, the company reported strong bookings of $6.52 billion with equal contribution from consulting and outsourcing businesses.

Despite improving trends noticed in Accenture’s businesses, we would remain cautious until revenue growth shows more sustained momentum.

Source:http://www.zacks.com/stock/news/35644/Accenture+Wins+Outsourcing+Contract

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