c|net, 4/30/02: Study: Gov't outsourcing needs oversight
By Margaret Kane
Staff Writer, CNET News.com
Government agencies are outsourcing desktop IT services, but need to keep better track of where they're spending their money and what benefits they expect to receive, according to a report.
The analysis focused on "seat management"--that is, hiring an outside contractor to provide equipment, software, and services for distributed computing requirements. The agencies said the main reasons they chose that approach were to improve IT management, boost end-user support and productivity, and upgrade their technologies.
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ComputerWire, 5/1/02: Perot Systems Grows After Outsourcing Wins
Perot Systems Corp has reported solid growth in its core outsourcing business for the first quarter as new contract signings more than doubled from $49m to $134m year-on-year.
In the three months to March 31, the Plano, Texas-based company made a net profit of $19.4m compared to a loss of $7.7m in the year-ago quarter. Revenue increased by 11% to $325.8m, with a 15% decline in consulting revenue to $15.1m offset by a 12% rise in its IT Solutions business (outsourcing, software and systems integration) to $310.2m. The company's Indian joint venture HCL Perot Systems reported a 21% decline in profit to $1.9m during the quarter.
The company's outsourcing business appears to be in good shape, with its top 10 clients committed to base contracts until at least 2006. During the past 12 months, the company has signed $1.3bn in new contracts, and yesterday announced a seven-year IT outsourcing deal with residential construction company KB Home, as well as a multi-year contract extension to provide contact center management services to Volkswagen of America.
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Press Release, 4/30/02: Outsourcing Report: Focusing on Core Competencies Requires Savvy Outsourcing
DURHAM, N.C., April 30 /PRNewswire/ -- Many of the world's top companies have rejuvenated their valuations through strategic outsourcing initiatives, according to a new report from Cutting Edge Information. The report reveals how top companies such as Merck, Amazon, British Air, Sprint, Compaq, American Express, and Boeing use outsourcing to cut corporate inefficiency and deliver on shareholder value.
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Press Release, 4/30/02: Perot Systems Signs 7-Year IT Services Contract With KB Home
Agreement Represents the Largest IT Outsourcing Contract Within the Residential Construction Industry
PLANO, TX and LOS ANGELES —April 30, 2002 — Perot Systems Corporation (NYSE: PER) and KB Home (NYSE: KBH) today announced that they have entered into a seven-year IT services agreement, the largest contract of its kind in the residential construction industry.
Perot Systems will provide core information technology services to KB Home, including maintenance and enhancement of all applications, infrastructure, networks and telecommunications.
Outsourcing its information technology to Perot Systems allows KB Home to focus on core competencies while receiving high quality, cost effective IT services. In addition, KB Home will use this relationship as another strategic tool in its efforts to reduce financial risk and deliver predictable, sustainable results for its customers and shareholders.
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Computerworld, 4/30/02: IT layoffs hit investment company
By TODD R. WEISS
Some 375 workers, mostly in IT jobs, are being laid off by investment management company State Street Corp. in a cost-cutting move.
In an announcement yesterday, the Boston-based company said most of the positions are in its Boston and Quincy, Mass., locations.
A State Street spokeswoman said today that the majority of the laid-off workers are in IT support and services. She said she didn't know how many IT jobs would remain in Boston and Quincy, but the company employs 3,000 IT workers worldwide. Despite the cuts, she said the company isn't moving toward outsourcing its IT operations. She also said she didn't expect any IT projects to be canceled as a result of the layoffs.
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Infoworld, 4/30/02: Microsoft spills the beans on Topaz
By Cathleen Moore
April 30, 2002 7:43 am PT
ON TUESDAY MICROSOFT plans to detail a major overhaul to its Systems Management Server, featuring improved support for remote systems, integration with Active Directory, and planned support for Windows CE devices.
The forthcoming release, formerly code-named Topaz, will be christened SMS 2003 at the company's Management Summit 2002 in Las Vegas.
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Computerworld, 4/30/02: Microsoft to give users ability to manage non-PC Windows devices
By CAROL SLIWA
Microsoft Corp. today announced that the upcoming version of its Systems Management Server will add a feature to help IT departments manage non-PC Windows devices, such as Pocket PCs and cash registers.
David Hamilton, director of Microsoft's management business group, said the feature is being added as a result of customer feedback from some of the 60 early adopters who have been testing a preview version of Systems Management Server 2003, which was formerly code-named Topaz.
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Computerworld, 4/30/02: Welch gives advice on managing through a downturn
By MARYFRAN JOHNSON
LAS VEGAS -- Jack Welch is tired of all the whining about the high-tech recession and shrinking IT budgets.
"It ain't all that bad. This will pass," the former CEO of General Electric Co. told an audience of more than 2,500 CIOs and IT executives at the PeopleSoft Leadership Summit 2002 here yesterday. "Don't freeze over it. Just fix it."
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