Accenture opens outsourcing facility

Global management consulting and technology services firm Accenture has expanded its operations with the opening of a facility in Cebu, Philippines, reports Inquirer.

The Cebu facility, which will initially have 500 seats, will provide "high-value" information technology outsourcing services like application management service, systems development and other related services to global clients, said Keith Haviland, lead of delivery centre network for technology of Accenture.

Executives declined to disclose the amount invested in the new facility.

Accenture and EDS have bid for a $500 million IT outsourcing contract from India's Reliance Communications, a source close to the development said on Tuesday, reports Reuters.

According to the source, the contract is likely to be finalised by month-end. A spokesman at Reliance said the company was constantly evaluating proposals.

The Business Standard newspaper said IBM, Hewlett-Packard and a unit of Deutsche Telekom had also bid for the 10-year contract.

Indian players and global multinationals, which have outsourced their IT businesses, are opting for short-term negotiations with vendors rather than going for rebidding, since the change costs are prohibitively high, says Business Standard.

In the US alone, there has also been a 60% year-on-year drop, from $24.1 billion in 2006 to $9.7 billion in 2007, in the total contract value of contracts awarded.

This drop was greater in the business process outsourcing industry at 36%, as compared to the IT outsourcing industry's 19% for the same period.