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WHO's Next for Satyam
By John Moore, Ziff Davis Internet


Satyam went up against heavyweights Accenture, IBM and others for a World Health Organization contract and took the prize.


Satyam Computer Services Ltd. bested Accenture, IBM and other rivals for an enterprise resource planning system contract with the World Health Organization.

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The contact calls for Satyam to deploy WHO's Global Management System. Specifically, Satyam will conduct a global rollout of an Oracle-based ERP system. The enterprisewide installation will include WHO's regional offices and 140-plus country offices.

The contract will span a three-year implementation period, according to a Satyam spokeswoman.

ACS Takes Airlines' Bankruptcy in Stride

Affiliated Computer Services found itself with two customers in bankruptcy protection when Delta Air Lines and Northwest Airlines filed for Chapter 11 protection last week.

In February, ACS announced a seven-year, $120 million human resources business process outsourcing contact with Delta. The deal covers compensation and benefits, administration, payroll, and HR information services among other functions.

For Northwest, ACS provides Internet customer support and "a full suite of in-house customer support center and client-site project consulting services," according to Northwest's Web site.

An ACS spokeswoman said the airlines' filings will have no impact on the company. "The services we provide are critical to the continued operations of both airlines," she said. "We will continue to provide these services."

The transportation and travel sector is one of 10 vertical markets that ACS pursues. The company's services to this industry include call center services, reservation management and e-ticket fulfillment.

ACS, meanwhile, unveiled back-to-back contract awards this week: a business process outsourcing contract with First Group of America and a student loan services pact with the University of Pittsburgh.

Agilysys Promotes Services

Agilysys Inc. on Tuesday launched a program that aims to boost the services component of its resellers' hardware and software sales.

The company offers the program, dubbed Services Surround, to its KeyLink Systems Group partners who sell Hewlett-Packard Co. products. The goal: increase the services content ratio of initial product sales and set the stage for follow-on annuity revenue streams via service contract renewals.

The services to be resold will come from HP Services. Pete Montana, vice president and general manager of HP sales for Agilysys' KeyLink unit, said he expects professional services and education services to top the list of services resellers will find attractive.

"Those are the two with the biggest potential to allow the VARs more of a broad range of entry into the end-user customers," he explained.

KeyLink will train its partners on how to sell HP services. Partners who undergo the training will be able to order services from KeyLink, which in turn will place orders with HP. KeyLink will host a training session next week for 25 partners.

Resellers stand to boost their margins through the services program as well as obtain a recurring revenue stream.

"The hardware margins are continuing to decline," Montana said. The ability to add services to a project will "increase the overall margin of the deal," he said.

KeyLink plans to establish a volume-based quarterly rebate to encourage service sales.

Keane Gets $200M Credit Line

Keane Inc. has closed a five-year, $200 million revolving credit facility with a Bank of America-led banking syndicate.

Keane said it will use the funding to bolster its industry-specific knowledge in such vertical markets as financial services, insurance, health care, government and transportation. The company strategy of late has been to market repeatable solutions to particular market segments. Keane's joint venture company in Australia, for example, is fielding a transportation ticketing system for Australia's Victoria state.

The funding will also be used for acquisitions, share repurchasing, geographic expansion, employee education and solution development, the company said.

Keane announced the funding arrangement on Tuesday. The credit agreement replaces Keane's existing $50 million revolving credit facility, according to a Securities and Exchange Commission filing.

Next page: DiamondCluster plans to reduce work force.

     
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