VAR500: Capgemini Hires, NWN Acquires, IBM Profits

A Season Of Growth

Top VAR500 solution providers continued to focus on offshoring and e-filing. IBM and TCS posted excellent earnings for last quarter, while NWN made an acquisition and ACS scored a state contract for e-filing. In addition, Capgemini increased its staff as part of its $4.2 million investment in its new Charlotte, S.C., office, which supports banking, insurance and capital markets clients.

TCS Revenue Soars

Indian outsourcing powerhouse TCS saw revenue rise 26 percent to $2.1 billion in its last quarter. The solution provider beat analysts’ estimates posting a 30 percent jump in net profit from a year earlier to $514 million. Cost controls and growing demand for technology outsourcing contributed to the positive earnings results.

’Sharp focus on our strategy with rigorous execution discipline has helped us capture volumes, defend our margins and deliver another stellar quarter," TCS CEO and managing director, N. Chandrasekaran said in a statement. "Demand environment continues to be strong and we are focused on helping our customers become more efficient and plan for growth.’

NWN Expands Offshore Services

IT systems integrator, NWN, recently bought ComFrame, an international application development firm with offices in Birmingham, Ala., Nashville, Tenn., and Beijing, China. With the China-based off-shoring capabilities, the deal provides NWN with the expertise to provide the kind of application development and deployment services that power bigger global systems integrators. ComFrame, a Microsoft Gold partner with considerable Java programming expertise, is a 13-year-old application development services provider. ComFrame, and NWN are two of only 37 nationally managed Microsoft system integrators. "This makes us one of the more substantial applications development services companies in the business, and one of the few focused on both the commercial midmarket and public sectors," said NWN CEO Mont Phelps.

Capgemini In Hiring Mode

Capgemini plans to bring 550 jobs to Charlotte, N.C., the company announced last week. The company will invest $4.2 million in its new Charlotte office -- part of Capgemini's financial services unit, which will support banking, insurance and capital markets clients. That office will probably be up by the second quarter, according to the company.

He said the company hopes to hire 150 workers by the end of the year and the remaining employees within three years. The Charlotte jobs will be largely technology-focused -- application development and computer science-related roles -- and will pay an average of $62,396 annually. That's higher than the $48,776 average for Mecklenburg County, according to a report in The Charlotte Observer.

IBM Posts Healthy Earnings, Hardy Services Growth

IBM's fourth quarter 2010 revenue of $29 billion increased 7 percent from the fourth quarter of 2009. Total Global Services revenues increased 3 percent (1 percent, adjusting for currency). IBM said it signed services contracts worth $22.1 billion during the quarter, up 18 percent. Systems and Technology segment revenue was $18 billion, an increase of 11 percent (11 percent, adjusting for currency).

ACS Wins E-Filing Contract

The Arkansas Administrative Office of the Courts has awarded Affiliated Computer Services, a Xerox company, a contract to implement e-filing in the State Supreme Court, Court of Appeals, Circuit Court and District Court. The project is anticipated to save time and money for the courts and attorneys.

’With e-filing, attorneys can securely submit court documents online, anytime, saving the cost of delivery and document processing. For the courts, receiving and processing documents electronically means new efficiencies and fewer redundant tasks,’ said Timothy N. Holthoff, director, Court Information Systems Division, Administrative Office of the Courts. The project is expected to begin in the first quarter of this year with a pilot in the Pulaski County Circuit Court in Little Rock. The program will roll out statewide later in the year.