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NelsonHall Blog

  • Capgemini Looks to Accelerate LatAm Business in 2014

    Dec 16, 2013, by Rachael Stormonth

    NelsonHall recently attended an event hosted by Capgemini Brazil. We were keen to find out about developments in the three and a half years since Capgemini acquired a 61% stake in CPM Braxis, at the time something of a scoop. The acquired capability provided Capgemini with a significant presence in the attractive domestic market of Brazil. But it was dilutive on margins, and management expected th[...]

  • 2013 Highlights & Trends in HRO

    Dec 12, 2013, by NelsonHall Analyst

    As 2013 comes to a close, it’s time to recap on what happened in HR BPO this year. It has been a good year for HRO with overall contract activity up ~37% on 2012.  But, it was a year of two halves: H1 activity was down 16% y/y, but the market really picked up in H2, when announced contract activity nearly doubled as benefits administration vendors announced health exchange contract s[...]

  • Capgemini BPO in Brazil: Location Strategy and Portfolio Development Support Growth Ambitions

    Dec 12, 2013, by Rachael Stormonth

    NelsonHall recently visited the Capgemini BPO center in Campinas, Brazil, about 100 kilometers to the northwest of the city of São Paulo. Capgemini’s Campinas center is part of a network of BPO centers in Latin America, the others being in Guatemala City; Santiago, Chile; and, most recently, Blumenau, also in Brazil. We had had the privilege several years before to visit the Guatemala[...]

  • Mouchel Bounces Back in FY 2013

    Dec 12, 2013, by NelsonHall Analyst

    Mouchel has announced results for FY 2013, for the period ending 30 September 2013:     Revenue was £555.3m       EBIT was £28.1m, a margin of 5.1%. Comparisons with the prior year were not provided as the company in its present from came into being in August 2012. For the new company, for the five weeks to the end of 2012 FY, revenue was[...]

  • Amazon Launches Packaged Virtual Desktop Offering Amazon WorkSpaces

    Dec 06, 2013, by Dominique Raviart

    Amazon Web Services has launched Amazon WorkSpaces, a public cloud-hosted standard virtual desktop offering. The offering mirrors the IaaS Amazon EC2 offerings of Amazon Web Services, with shared IT infrastructures, multi-tenancy, fast provisioning and opex models. Amazon Workspaces features include: A choice of different CPUs, memory, storage Storage is attached to each virtu[...]

  • HP Enterprise Services Exceeds Guidance for FY 2013

    Nov 26, 2013, by Rachael Stormonth

    HP Enterprise Services (ES) has announced fiscal Q4 2013 results, for the period ending October 31, 2013: Revenues were $5,759m, down 9.3% y/y, and down 1% sequentially EBIT was $255m, a margin of 4.4% down 223 bps y/y. Fiscal Q4 2013 revenue (and y/y and sequential revenue growth) by service type was: Infrastructure technology outsourcing $3,563m (-9%, -3%) Application and bu[...]

  • Capita CEO to Retire

    Nov 18, 2013, by Rachael Stormonth

    Capita has announced the retirement of its CEO, Paul Pindar, with effect from February 28, 2014. Pindar will step down after 26 years with the company. Andy Parker, Capita's current Deputy Chief Executive and Joint COO, will succeed Paul as Chief Executive from March 1, 2014.  Dawn Marriott-Sims, currently Executive Director of Capita's Workplace Services division, will be appointed t[...]

  • Maximus, Doing Well and Eyeing Growth in U.K.

    Nov 17, 2013, by NelsonHall Analyst

    Maximus has announced results for FY 2013, the year ending September 30, 2013. Revenue was $1,331m, up 26.8% as stated. Operating income was $188.2m, a margin of 14.1%, up 200 bps. FY 2013 revenue (and growth) by segment was: Health Services $862.9m (+28.6%) Human Services $468.4m (+23.6%). FY 2013 operating income and margin by segment was: Health Se[...]

  • Atos Unveils 2016 Financial Objectives

    Nov 15, 2013, by Dominique Raviart

    Atos has unveiled its Ambitions 2016 plan in whch it has detailed how two of its key service lines (Managed Services and Systems Integration) will evolve over the next three years. Managed Services Managed Services (MS) is planning to grow at a 5% 2013-2016 CAGR with a slight organic growth. The unit has stabilized (organic growth 2011: +1.7% ; 2012; +2.4%;[...]

  • Atos to Float Worldline by Mid-2014

    Nov 15, 2013, by Dominique Raviart

    Atos has unveiled its financial objectives for its Worldline unit. The company is to float Worldline by mid-2014, while keeping a majority stake in the company. Proceeds from the IPO are to finance organic growth and especially acquisitions. Financial objectives for the 2013-2017 period include: Revenue growth of 5% to 7% (2013-2017 CAGR) all organic (2012 revenues €1,066m, +5%; 2013[...]

  • Hexaware Partners with Experitest to Offer Mobile Application Test Automation

    Nov 13, 2013, by Mike Smart

    This follows the announcement by Hexaware of a partnership with Oracle to offer PeopleSoft Test Framework (PTF, see separate article) and indicates an increasing focus of Hexaware on its testing/ quality assurance service line, which achieved an estimated 53.1% y/y growth in Q3. [...]

  • Xerox Analyst Conference: Key Takeaways about the Services Business

    Nov 12, 2013, by Andy Efstathiou

    Xerox Services has not operated its business at high efficiency over the past few years. It has been very late to offshoring, growing revenues internationally, and rationalizing its services businesses around a few key areas. The current five plank strategy is devised to address those challenges. Xerox understands the challenge of successfully offshoring (and near shoring) its workforce to lower c[...]

  • Cabinet Office on Track with Shared Services Strategy

    Nov 04, 2013, by NelsonHall Analyst

    The U.K. Cabinet Office recently briefed NelsonHall about progress with its shared services strategy. Shared services has been a recurring theme in the U.K. public sector’s drive for efficiency for many years. It has continued to rise in importance as a lever for cost savings in the public sector, driven first by the Gershon Review of 2004 and most recently, when the current government first[...]

  • Accenture Awarded Five-Year ADM Contract by Zurich

    Nov 04, 2013, by Rachael Stormonth

    Accenture has announced that in 2012 it was awarded a five-year application services contract by Zurich Insurance Group (Zurich) to streamline Zurich’s global finance IT. Services being provided by Accenture Finance and Risk Services include development, implementation and management of SAP-based finance and BI applications that support Zurich operations in North America, Germany, Switzerlan[...]

  • Steria Ventures Into New Deal with U.K. Government

    Nov 01, 2013, by Rachael Stormonth

    This is Steria’s largest ever award: the press release refers to the contract being potentially worth over £1bn over 10 years (7 plus 3): with the foundation clients, the value is closer to £500m, depending on what additional business Steria brings in to the JV, its lifetime value could be worth much more than £1bn. The contract was signed last night: the conclusion, sin[...]

  • Accenture to Acquire PCO Innovation to Enhance PLM Capabilities

    Oct 31, 2013, by Rachael Stormonth

    Accenture has announced its intention to acquire PCO Innovation, a consulting and systems integration group specializing in PLM software. PCO Innovation offers PLM strategy and process consultancy, application architecture, system implementation, data migration and application management. It specializes in PLM platforms including Dssault Systèmes, PTC and Siemens PLM. Today’s an[...]

  • Axelos to Accelerate Growth of U.K. Government's Best Practice Portfolio

    Oct 28, 2013, by NelsonHall Analyst

    NelsonHall recently had a briefing with Axelos, the Capita and Cabinet Office JV that has been set up to commercialize the Government’s Best Practice Methodologies portfolio. Axelos was incorporated in July 2013, 51% owned by Capita, 49% by the Cabinet Office but governed by a separate board from the parent organizations. The company will be fully operational from January 1, 2014. Axelos [...]

  • HR Technology Conference in Review: Spotlight on RPO

    Oct 24, 2013, by Gary Bragar

    This year’s 16th Annual HR Technology conference in Las Vegas had the highest turnout yet, 8,000 attendees. Below are highlights of just two of the sessions we attended, and of briefings with ManpowerGroup Solutions and Randstad Sourceright. All were focused on RPO: Pinstripe and Boehringer Ingelheim (BI) RPO Presentation Keys to success include: Client view of Pinstrip[...]

  • Wipro Q2 FY 2014 Results: Signs of Progress

    Oct 22, 2013, by Rachael Stormonth

    Wipro published its Q2 FY 2014 results today: full details are available to NelsonHall database or Key Vendor Assessment program subscribers here There are some clear positives in Wipro’s performance this quarter: Revenue just topped prior guidance ($1,620-$1,630m), [...]

  • Cigniti Details its Mobile Testing Offering

    Oct 21, 2013, by Dominique Raviart

    Cigniti’s mobile application testing road-map prefigures how overall software testing is likely to evolve over the next few years. Like a number of its competitors, Cigniti has launched a centralized service consolidated across labs, therefore allowing economics of scale. The company is able to share costs of its device estate investment across clients, at a minimal price i.e.[...]