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Pegasystems Expands BPM Software Alliance With Capgemini

By Rick Whiting
December 11, 2009    3:19 PM ET

Business process management software vendor Pegasystems is expanding its alliance with systems integrator Capgemini in a deal that will expand Pegasystems' sales into markets where the systems integrator has a significant presence.

Pegasystems and Capgemini have worked together on customer engagements for several years. The new deal formalizes the relationship and commits Capgemini to developing a "significant practice" with more than 300 people around Pegasystems' BPM software, said John Barone, managing director of global strategic alliances at Pegasystems.

Capgemini will utilize the Pegasystems product as part of its business process consulting and IT services and will develop add-on extensions for the software. The company's sales efforts will initially focus on financial services markets, later expanding into telecommunications and health-care markets, as well as making the software part of the company's CRM practice.

Businesses are increasingly using business process management applications like those from Pegasystems to collect transactional information from business processes and analyze it to match corporate strategies with process execution," said Vikrant Karnik, Capgemini vice president and global partner portfolio executive. "Tying those together today is pretty critical," he said.

Capgemini was already working with Pegasystems in some public sector and financial service accounts and the systems integrator realized the results could be applied to other customers and markets. "Our customers are asking us to demonstrate ROI quickly," Karnik said. BPM tools also help reduce the risk associated with business process re-engineering projects, he said.

Capgemini becomes a platinum-level partner under the deal. Barone said Capgemini has relationships with top executives that Pegasystems lacks. "They have access that we don't have," he said. "They have experience that we don't have."

A "significant portion" of Pegasystems' sales involve channel partners, either as new sales brought to the company by channel partners or through joint customer engagements with solution providers. "We view the channel as a way to achieve our growth targets by gaining access to new markets [and] new geographies," Barone said.

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