VAR500 This Week: Public Sector Activity And Expanded Offerings

Much of the activity this week among VAR500 companies centered around public sector contracts and the expansion of offerings.

Unisys sold off some healthcare services, while Accenture upgraded an outdated Health and Welfare system. Ciber will be increasing its governmental work, as well. Capgemini will expand into software testing due to the strength it gained through its Sogeti subsidiary, while Dewpoint made a strategic acquisition to boost its SOA expertise.

Accenture (2009 VAR500 rank: 3) replaced the outdated human service benefits eligibility system of the Idaho Department of Health and Welfare.



The new Idaho Benefit and Eligibility System has replaced a 30-year-old eligibility system that could not be updated to accommodate new requirements. The system also did not support efficient administration of the state's health and human service programs. Idaho's new system is designed to enable easy updates when policy and operational requirements change, and to facilitate a more streamlined benefits interview process that will help the state handle increasing caseloads more efficiently. According to a spokesman for the department, it was the lowest-cost implementation of an eligibility system in the U.S. in the last 20 years.





"Idaho now has the most modern and efficient eligibility system in the country, developed in a manner that keeps the state from being bound to specific technologies and vendors," said David McCurley (left), Accenture's global managing director for human services.

Unisys (2009 VAR500 rank: 31) will sell its health information management business to Molina Healthcare for approximately $135 million in cash.



The Unisys HIM business provides system solutions and business process outsourcing services to state governments for administration of their Medicaid and other state health care entitlement programs. The business currently has contracts with the states of Louisiana, New Jersey, West Virginia, Idaho and Maine. It also provides drug rebate administration services for the Florida Medicaid program.



The transaction is expected to close in the first half of 2010 and is subject to customary regulatory approvals and closing conditions, including receipt of customer consents.



The Unisys HIM business represents approximately $110 million in annual revenue.



"For the first time, Molina Healthcare will have, within a single company, the tools our state partners need to run their Medicaid programs, ranging from full-risk managed care health plans to fee-based information technology solutions," said J. Mario Molina, M.D. (left), president and chief executive officer of Molina Healthcare.

Ciber Federal, a division of Ciber (2009 VAR500 rank: 83), announced it was named part of the team headed by aerospace contractor Dynetics that won the National Aeronautical and Space Administration Marshal Space Flight Center Information Technology Services Contract. Under that contract, Ciber will provide more than 60 personnel for five years under the deal, which is expected to produce revenue in excess of $26 million, according to the solution provider.



"This award represents a new foothold for Ciber in the strategically important Huntsville, Alabama, market, which houses not only NASA's Marshall Space Flight Center campus, but also the U.S. Army's Redstone Arsenal and the Department of Defense's Missile Defense Agency as well," said Marcia Kim (left), CIBER Federal President.



Ciber has a history of providing IT and telephony to clients, including the U.S. Army, U.S. Army Reserve, and U.S. Navy.

Capgemini (2009 VAR500 rank: 7) and its Sogeti subsidiary have launched an enhanced portfolio of software testing services. The combination of both companies will create one of the largest dedicated testing practices in the industry, supported by more than 6,400 test specialists globally and up to 11,000 further applications specialists in more than 30 countries.

Capgemini and Sogeti's Testing Services will offer best-in-class testing solutions, combining Sogeti's methodology, industry partnerships and reputation as a market leader in testing, with Capgemini's sector expertise, global reach, offshore delivery capacity, and track record. Capgemini and Sogeti have also created a new 'Testing Center of Excellence' in India, with 2,100 dedicated testers offshore.



"With the launch of our enhanced Testing Services, we will enable organizations to maximize their return on investment in their IT systems through a proven, structured approach to software testing and quality assurance that delivers what our clients require, driving faster time to market and significant cost efficiencies," said Hans Van Waayenburg, (left), leader of Capgemini and Sogeti's Global Testing Services.

Dewpoint (2009 VAR500 rank: 447) has acquired Moongate Technologies. The deal will result in a company representing one of the largest reseller presences in Indiana. Moongate's expertise in Service-Oriented Architecture (SOA) and focus on Roadmap and Architecture, SOA governance, service development, hosting and implementation services broadens Dewpoint's offerings.



"We're extremely excited to bring Moongate on board with Dewpoint," Dewpoint president and CEO Andy Kotarba (left), in a statement. "The companies both have a long history in Indiana, with complementary talents and technology offerings. Together, our experienced team can deliver even more diverse strategic IT solutions to our local community as well as across the Midwest."