VAR500: Accenture Says Execs Hesitate On Expansion; ACS Builds 'E-ZPass' System

VAR500 Solution Providers In The News

The largest revenue-generating solution providers made headlines by winning a public transportation contract, discussing IT's presence in emerging countries and announcing an IPO, among other news. Here's what's happening at VAR500 companies, including Accenture, ACS, EPAM, GlassHouse and Strategic Products and Services.

Accenture Survey: Execs Unsure About Expansion

Accenture's report, Fast Forward to Growth: Seizing opportunities in high-growth markets, reveals that a majority of global business leaders say their companies understand that high growth emerging economies are critical to their growth strategies, but do not believe they have the necessary capabilities to compete in those markets. According to the survey of 588 business leaders in 85 countries, 80 percent say their company’s primary focus for growth is on emerging economies, but 73 percent believe they either must increase their efforts to improve market share in high-growth markets, or they may actually be too late to do so.

In addition, the report found that 40 percent of executives say they lack a strategy or the operational capabilities to take advantage of opportunities in their target high-growth markets and 57 percent believe their company will have to ’reassess’ or ’fundamentally rethink’ the approaches and capabilities they need to compete in these markets.

ACS Implements 'E-ZPass' for SEPTA Riders

As part of a $122.2 million contract with ACS, passengers riding on any Southeastern Pennsylvania Transportation Authority (SEPTA) vehicle soon won’t require passes, farecards, tokens or cash. Riders will be able to digitally pay their fare with a quick tap or wave of ’contactless’ credit or debit cards, or smartphones. SEPTA will be one of the first public transportation systems in the country to deploy such a contactless system. Passengers riding any of the buses, subways, trolleys or the regional rail trains on the SEPTA system will be able to use what's called an open payment fare collection system. During the three-year implementation, ACS, a BPO giant that is a part of Xerox, will design, install, integrate and operate one of the country’s most sophisticated transit payment technology systems. The contract also includes two five-year options for continued operations.

EPAM Systems Launches IPO

EPAM Systems has launched an initial public offering of 7.4 million shares of common stock. Subject to market and other conditions, EPAM expects to sell 1,517,647 shares of common stock and the selling stockholders expect to sell an aggregate of 5,882,353 shares of common stock. The estimated IPO price is between $16.00 and $18.00 per share. The VAR500 solution provider has applied to list the shares of common stock on the New York Stock Exchange under the symbol ’EPAM.’ The company said it plans to use the net proceeds that it receives from this offering for general corporate purposes, such as for working capital, acquiring facilities, and potential strategic acquisitions or investments.

GlassHouse Raises $4.4 Million

GlassHouse Technologies, which last month scuttled its second IPO plan, has taken in $4.4 million in a new debt funding round, according to an SEC filing. Eighteen backers are participating in the funding, including several members of GlassHouse's board of directors. In December, the solution provider pulled the IPO, which it had hoped would raise $75 million. At the time, CEO Patrick Scannell, in his first month on the job, issued a statement, saying, "the economic climate continues to be volatile, and we feel these are not the optimal conditions for GlassHouse to move forward with an IPO.’


Avaya Alum Connects With SPS

Jenine Johnson has joined VAR500 solution provider Strategic Products and Services as vice president of services and operations. Johnson brings over 25 years of communications industry experience and expertise. She joins SPS from Avaya where she most recently served as sales vice president of U.S. services. Johnson was also Avaya's North America sales operations vice president.