Daily BPO news alert 05/06/2006

[BPO Business Intelligence]

Business Intelligence - Daily BPO news alert 05/06/2006

GENERAL
Accenture Launches Technology Delivery Center in India 
Accenture has announced the launch of its technology delivery center in Pune, India. The center is expected to have a capacity to house 1,600 professionals by August  2006. The new center will provide software outsourcing and systems integration services. In addition, the center will have competencies, including SAP and Siebel,  Net-centric technologies, such as Java and Microsoft, business intelligence, and testing. The center is the ninth for the company in India. Source: Globalsourcingnow.com 02/06/2006

Vertex reports £405m full year revenue
BPO company Vertex has grown its revenue by 2.3% to £405m in the year ended 31 March 2006. However, operating profits (before amortisation and restructuring costs) fell by £3m to £21m. The March 2006 acquisition of Marlborough Stirling, which has been unprofitable for most of the year, was the main cause of the profits decline. Over the year Vertex spent £25.5m on restructuring, and wrote off £9.8m in intangible assets associated with Marlborough Stirling. There were a number of highlights for Vertex's Financial Services unit in March 2006. It purchased 1st Software Group, which provides software to IFAs, for £25m. It also secured a £45m five-year deal with db mortgages (owned by Deutsche Bank) to provide application processing and mortgage servicing. Finally Vertex acquired Egg's 49% stake in its mortgage subsidiary, extending its mortgage services agreement with Egg while also winning contracts with Livingstone Mortgages and GMAC-RFC in Canada. Looking forward, Vertex says it has a pipeline of opportunities worth £300m in financial services. Source: Ovum 02/06/2006

PUBLIC SECTOR
TUC urges action on protection for temps
The TUC has urged ministers to deliver increased protection for temporary workers by signing up to a European directive. Publishing a report on Friday, the union organisation said that temporary workers in the UK are often earning less than their permanent colleagues, are denied access to a pension scheme, have less annual holiday entitlement and no sick pay. The TUC said that while the government says it remains committed to the aims of the EU agency workers' directive, no progress is being made because of a lack of political support from the member states. Trade secretary Alistair Darling should support the draft directive and push for its re-introduction, said Barber. And in the meantime the government should introduce domestic legislation as soon as possible to stop temps from losing out. Source: epolitix.com 02/06/2006

FINANCIAL SERVICES
UK insurance: high net worth segment is growing niche
The number of high net worth (HNW) individuals is forecast to grow by an annual average rate of 8.1% between 2004 and 2009, reaching a total of 1,289,200 in 2009. Although market conditions remain competitive, the consumer base for HNW insurance is set to grow significantly in the coming years, driven by stable economic conditions. This reinforces the point that raising penetration and bringing new consumers into the market is more important than competing on price. Source:  Datamonitor  02/06/2006

Pensions deficits grow by £20bn as stockmarket falls
The 5 per cent fall in stockmarkets increased pension scheme deficits by £20bn over May 2006 according to Aon Consulting. But despite these falls, pension scheme funds are on average, better funded than at the start of the year. This is because bond yields are still higher than as at the start of the year. Corporate bond yields rose from 4.7 per cent to 5.0 per cent and gilt yields rose from 4.1 per cent to 4.4 per cent between December 31 2005 and the end of May. Based on the market movements in May, the total estimated deficit for the 200 schemes surveyed by Aon was £52bn at the end of May 2006, compared with £32bn as at the end of April 2006 and £72bn as at the end of 2005. Source: Money Marketing 02/06/2006

PRIVATE SECTOR
No Significant News

UTILITIES
Competition authority shows it means business as company investigations continue
While the European Commission frets and writes reports about national laggards failing to implement its gas and electricity directives, the Competition Directorate General has reminded us that it has powerful tools at its disposal to make an integrated, competitive European market happen on its own terms. The second round of energy company inspections on May 29-30, 2006, by the Competition DG reflects a focus on competitive outcomes and consumer impact, rather than legislative frameworks. The Commission, on the other hand, plans only to issue a report by the end of this year on the status of integration of the energy directives. As we have seen from repeated violations of the EU's Stability and Growth Pact, talking tough and acting tough when dealing with member states are two very different things. Source: Datamonitor 02/06/06

NORTH AMERICA
DTE Energy Declares Dividend
The DTE Energy  Board of Directors has declared a $0.515 per share dividend on its common stock payable July 15, 2006, to shareholders of record at the close of business June 19, 2006. DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.3 million customers in Michigan and other non- utility, energy businesses focused on power and industrial projects, fuel transportation and marketing, and unconventional gas production. Source: Energy Central 01/06/2006

Regards
Anish Agarwal
Mob: 09811801202