Keane Replaces CEO Tarred By Sex Scandal

The company said Kirk Arnold, 47, will assume the post vacated in March 2006 by Brian Keane. Keane, the son of the company's founder, resigned after he was accused of sexual harassment by two female employees. Keane denied the charges but said in a statement at the time that he had exercised "poor judgment."

Arnold joins Keane from Fidelity Investments, a longtime customer of the outsourcer. She was a VP within a Fidelity unit that provides third-party human resource management services. Arnold was previously president and CEO of IT consulting firm NerveWire, which she helped launch in 2000.

The hiring caps a period of executive turmoil at Keane. Following Brian Keane's departure, the company formed a three-person leadership team. One of those executives, Richard Garnick, was fired in September for what the company said was problems with his travel expenses and "unauthorized communications inconsistent with the company's interests." Garnick has since sued Keane for wrongful dismissal.

With revenue of about $1 billion, Keane is considered a mid-tier outsourcer. The company maintains service delivery operations in the United States, Canada, and India.