NelsonHall Perspectives

October 8, 2008 TCS announced it had agreed to acquire Citigroup Global Services (CGSL) for $505m. CGSL, which has 12,000 workers in India and estimated $278m revenues in 2008, provides processing services for retail, corporate, and investment banking services to Citigroup.

EDS' BPO targeting and business strategy in the Spanish banking market is part of its overall Southern European covering Spain, Portugal, Italy, and Greece. The company is targeting medium sized retail banks, with services delivered locally. Over a period of several years, EDS intends to build its portfolio of clients and transition the delivery of services from client dedicated delivery centers to shared service centers of excellence (with each center ultimately specializing in a specific service line, rather than a range of services).

WNS Global Services (WNS) has acquired for £115m (c. $228m) Aviva Global Services (AGS), the Singapore-based holding company of insurance group Aviva's offshore BOT (Build-Operate-Transfer) facilities. The agreement includes a Master Services Agreement (MSA) for an 8 year 4 month (100 month) insurance BPO contract with an estimated potential lifetime value of $1Bn

NHS Connecting for Health (CfH) is to issue a termination notice to Fujitsu Services for the 10-year contract awarded in January 2004, initially value at £893m and now worth £1.07Bn covering the south and west of England cluster.

This follows Fujitsu Services' decision to withdraw from contract re-set negotiations that have been going on since July 2007 over the Care Records Service (CRS), the main part of the NPfIT. While Fujitsu Services will have 20 days to register a counter claim, the company is unlikely to do so.

Unisys believes the challenge of mandate management in a SEPA system can best be addressed in a shared environment delivered by a 3^rd party provider. To address this opportunity Unisys has developed a service offering, Secure Mandate Management (SMM).