Deloitte study highlights correlation between bankruptcy and fraud

by Editor 11/25/2008 11:20:00 AM
According to a new study published by the Deloitte Forensic Center, "Ten Things About Bankruptcy and Fraud," companies filing for bankruptcy protection are three times more likely than non-bankrupt companies to face enforcement action by the Securities and Exchange Commission relating to alleged financial statement fraud. The study analyzed SEC Accounting and Auditing Enforcement Releases and bankruptcy filings.

The study also found that companies that were issued financial statement fraud-related Enforcement Releases by the SEC were more than twice as likely to file for bankruptcy protection as those not issued one. Of publicly traded companies with revenues greater than $100 million that were issued financial statement fraud-related SEC Enforcement Releases, 35 percent filed for bankruptcy compared to 14 percent of similar companies that were not issued the Releases.

Approximately one in seven financial statement fraud-related Enforcement Releases issued to companies that filed for bankruptcy were issued prior to their bankruptcy filings. These situations may provide a warning signal of potential bankruptcy filing.

"With economic conditions likely to increase corporate bankruptcy filings, companies should be aware of their potential exposure to allegations of fraud that may be sustained by the SEC," said Toby Bishop, director of the Deloitte Forensic Center. "Consideration of potential fraud issues may be a wise part of bankruptcy preparations."

Bankrupt companies receiving SEC Enforcement Releases were twice as likely as non-bankrupt companies to have more than ten alleged financial statement fraud schemes -- and at least 1.5 times as likely to have six to 10 alleged fraud schemes as non-bankrupt companies. Bankrupt companies with revenues greater than $10 billion that received SEC Enforcement Releases had 10.8 alleged financial statement fraud schemes on average, compared to 4.3 schemes at such companies with revenue between $100 million and $10 billion.

"In the past few years, many companies have created highly leveraged balance sheets with many layers of debt. When such a highly leveraged company files for bankruptcy protection, its creditors may have little other recourse than to seek recovery from non-traditional sources such as challenging potentially fraudulent conveyances, seeking recovery under D&O policies and filing other (non-bankruptcy) litigation," said Sheila Smith, national service line leader of Deloitte's Reorganization Services. "This strategic shift has raised risks for directors, officers and senior management, increasing the importance of fraud detection."

Companies issued the most Enforcement Releases were in the consumer business (30 percent); technology, media and telecommunications (27 percent); and manufacturing (16 percent) industries.

About the study

The Deloitte Forensic Center and Deloitte's Reorganization Services group analyzed bankruptcy filings between 2000 and 2005 and SEC Accounting and Auditing Enforcement Releases issued from 2000 through 2007 for companies with reported revenues of at least $100 million. In total, 519 bankrupt companies' filings, 2,919 non-bankrupt companies' revenues and 352 companies' Enforcement Releases were examined. Please visit to download the full report.

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IBM’s State of Georgia contract to boost Dell’s managed services and SaaS

by Editor 11/24/2008 4:20:00 PM
IBM recently won an eight-year information technology (IT) outsourcing contract with the State of Georgia. The contract is worth $873 million and IT provider Dell is reported to be a subcontractor on the deal. A trusted source tells that the deal is one of Dell’s largest managed services and Software as a Service (SaaS) contracts to date.

Dell has recently acquired several companies – Silverback Technologies, MessageOne, Everdream – with the goal to boost its SaaS and managed services business. The company has also certified more than 150 technology consulting firms as partners in order to offer Dell Managed Services to small firms across the U.S. It has also been testing direct managed services sales with clients in Texas and New York.

Now, the State of Georgia will also start using Dell Managed Services, which is a crucial step in Dell’s efforts to build its brand from a PC supplier to an IT services provider that earns monthly revenue by managing customer networks and applications.

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IBM system in Warsaw is the most energy efficient supercomputer in the world

by Editor 11/24/2008 4:13:00 PM
The Green 500 report has announced that the most energy efficient supercomputer in the world is the IBM system installed in the Interdisciplinary Centre for Mathematical and Computational Modelling (ICM), at the University of Warsaw.

"Nautilus" is a development system for hybrid computer architectures - runs on Linux and it is based on QS22 Blade servers. It produces more than 536 Mflops (millions of floating point operations per second) per one watt. Nautilus has been ranked 221 in the latest Top500 list of supercomputers, which was announced earlier this week.

IBM has already installed the two-rack system which is now up and running. ICM will use Nautilus for high-end computer-intensive research projects in the areas of computer visualization, medical imaging, astrophysics, bioinformatics, fluid flow simulations and weather forecasting. Hybrid computing machines, based on PowerXCell8i processors like Nautilus are 'smarter' than the usual systems, because they are able to reach greater performance while reducing the power consumption.

“Together with IBM, we are starting in Poland a new trend, which I would call green revolution in high-end technology. We believe that the world should be greener. That is why we decided to build our supercomputer with that idea in mind, choosing technology, similar to the one used in world's fastest supercomputer Roadrunner.” – said Professor Marek Niezgódka, ICM Director.

One of the first technical prototype activities was working with DDR InfiniBand on the QS22 blades as well as tuning the PowerXCell8i processors to operate at a clock-speed of 4Ghz which results in further increase of the theoretical peak performance of the cluster to 30 TFlops. Future plans include further development of hybrid computer architectures in which PowerXCell8i processors are used as accelerators for traditional x86 based nodes (i.e. AMD Opteron based BladeCenter LS21 blades).

“According to some recent reports, the energy losses in conventional systems range between 40 and 70 percent. On average, for every 100 units of energy piped into a data center, only 3 units are used for actual computing. More than half goes to cooling the servers. Nautilus, based on IBM technology, makes supercomputing smarter - greener and more efficient. We at IBM are pleased to have the lead in this project” – said Krzysztof Bulaszewski, Systems and Technology Group Manager, IBM Poland.

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EDS expands manufacturing consulting capabilities

by Editor 11/21/2008 11:06:00 AM
EDS, an HP company has announced the launch of an integrated manufacturing software solution that will enable manufacturers to compete more effectively and improve profitability.

This solution, based on Apriso's FlexNet(R) platform, is designed to support the integration and collaboration of a manufacturer's plant floor, warehouse and quality operations with its enterprise resource planning and product life cycle management systems.

Today more than ever, manufacturers are challenged with finding ways to remain competitive and more efficient to deal with market volatility, globalization, increased client demands and shrinking margins. At the same time, they need to be vigilant about cost management, bringing new items to market quickly and improving the customer experience across multiple channels. EDS brings strong manufacturing expertise along with proven experience in deploying enterprise applications to serve the operational requirements of global manufacturers and their supply chains.

"Manufacturers are under increasing pressure to streamline costs, improve product quality and exceed customer service expectations and responsiveness," said Darl Davidson, vice president and manufacturing industry leader at EDS, an HP company. "Leveraging Apriso's manufacturing operations management platform with EDS' large global services presence will enable us to enhance our manufacturing clients' agility while lowering their operating costs."

Together, EDS and Apriso are actively engaged with global manufacturers within the automotive, industrial, aerospace and defense, high-tech/medical device, and consumer goods industries to provide a globally integrated manufacturing enterprise that will design and implement next-generation operations execution platforms.

Behind the success of 75 percent of the top 100 manufacturing companies around the world is a global team of experienced personnel that EDS has dedicated to the manufacturing industry. EDS' industry insight and technical innovation in a broad range of manufacturing sectors provides manufacturing domain expertise and global organizational support.

About EDS

EDS, an HP company, is a leading global technology services provider, delivering business solutions to its customers. EDS founded the information technology outsourcing industry more than 46 years ago. Today, EDS delivers a broad portfolio of information technology, applications and business process outsourcing services to customers in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries, and to governments around the world.

About HP

HP, the world's largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP is available at

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IT contract market slips into recession

by Editor 11/19/2008 3:03:00 PM
IT contractors have begun to feel the impact of the economic crisis in the third quarter this year. The IT contracts market has slipped into recession, writes Contractor UK, with the demand for freelance IT jobs dropping for the sixth successive month.

A recent study from CWJobs shows that the IT job market has entered recession, with the number of IT jobs being advertised dropping for two quarters back-to-back, and temporary employees are the first to feel its impact.

IT contractors have witnessed the sharpest decline of job adverts, 13 percent less than in the second quarter and 25 percent less than in the same period last year.

Matt Smith, director of UK regions at Harvey Nash, said: “We have seen pay ultimatums spread beyond financial services across a range of sectors. At the moment, we are at a stage where contractors are certainly not as confident as they were this time last year, when they expected to go from one role straight into another. As a result, contractors are being more pragmatic when their clients are telling them to cut their daily fees mid-contract, upon renewal or effectively be gone.”

The same survey, however, found that contractor pay rates were up by one percent on average compared to last year. IT directors and system analysts polled by SSL defied the pressures to cut their fees, while contract developers and programmers tended not to.

A greater number of IT contractors are now considering full time roles because of the economic uncertainties. “Organisations know that they can fill their jobs permanently, so if they need a certain role they are advertising for it permanently and that is… reinforcing that the contract market is being squeezed,” says Smith.

IT jobs in the public sector, on the other hand, are seeing a 25 percent rise in advretising for freelance IT staff. Gill Hunt of IT consulting firm Skillfair says: “The permanent and contractor jobs markets have slowed down – but we’re still seeing a high level of project based work coming through, particularly from the public sector. Consultants in our IT market who have taken the time to market themselves independently are still picking up new contracts.”

“I guess the old adage still holds,” concludes Hunt. “If you’re willing to travel and put the effort into marketing yourself, then the work will come. But your work-life balance may have to suffer for a while.”

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Capgemini opens new office in Aberdeen

by Editor 11/19/2008 2:53:00 PM
Consulting firm Capgemini opened a new office and established a team of oil and gas industry consultants in Aberdeen on Tuesday, November 18, reiterating its commitment to the oil and gas sector. The Aberdeen office was opened to support the growth of the consulting firm's Scottish business.

John Duncanson, MD Capgemini Scotland, said: “Our permanent presence in Aberdeen underlines our commitment to our clients in the oil and gas industry based here. We are growing a local team who will work closely with our global team of experts. In the current economic climate, we want to work closely with these clients, offering them permanent support through these challenging times.

“Capgemini has a long-established global presence in the oil and gas industry. Our practice is supported by our Oil & Gas Centre of Excellence – a worldwide pool of experts with extensive industry backgrounds. On a typical assignment these industry experts collaborate with regional sector consultants who are specialists in relevant areas such as supply chain and information strategy.”

Capgemini works with a wide variety of industry clients and already has Oil & Gas offices in Houston, Calgary, Norway and the Netherlands.

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DMG Consulting names Mindshare customer satisfaction leader

by Editor 11/19/2008 2:48:00 PM
Mindshare Technologies, a leading provider of enterprise feedback management solutions, has announced the company has been ranked as the market leader in overall vendor satisfaction in the "2008 Contact Center Surveying/Feedback and Analytics Market Report" by DMG Consulting LLC, a leading independent advisory firm for the industry.

The DMG report provides in-depth coverage of vendors, products, technology, functionality, trends, benefits, pricing and perception of the 12 leading contact center surveying/enterprise feedback management vendors. It includes a vendor customer satisfaction analysis. Mindshare was the only vendor to score a perfect rating in all categories of the satisfaction study that addressed customer Product/Solution, Implementation, Service & Support, Training, Professional Services and Overall Satisfaction. The vendor customer satisfaction analysis was compiled by surveying customers of each participating vendor. The feedback was collected in two phases including a 15-question online survey and a telephone interview.

"Surveying is an essential activity that should be performed by enterprises of all sizes, as it provides insights into customer satisfaction, loyalty and needs," said Donna Fluss, president of DMG Consulting. "For this reason, we believe that it's essential to survey and interview each vendor's customers when we analyze a market. It is rare that a company earns perfect marks in all categories of the vendor satisfaction analysis. This is an indication that there is a high degree of customer satisfaction with the offering."

"We believe customer service is the most important activity a business can pursue, and this validation confirms that we practice what we preach," said Richard D. Hanks, president of Mindshare. "These findings by DMG Consulting represent a unanimous consensus of the passion and commitment we bring to our clients in helping them use customer feedback tools to improve their bottom line."

DMG's "2008 Contact Center Surveying/Feedback and Analytics Market Report" is the industry's most comprehensive and timely guide to this highly valuable and rapidly growing market. The Report shows that the contact center surveying/feedback and analytics market grew by a resounding 21 percent between 2007 and 2008. This represents the strongest growth ever in this market segment, and DMG expects the trend to continue. Based on sales during the past year, and the momentum carried into 2008, DMG is forecasting 20 percent growth in 2008. According to the Report, the substantial increase in adoption of survey/feedback systems is being driven by the recognition that customer insight and feedback is important to the entire company, not just the contact center.

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OASIS members form committee to advance Content Management Interoperability Services (CMIS) as an open standard

by Editor 11/18/2008 3:48:00 PM
IBM, Microsoft, Oracle, Sun Microsystems, Alfresco, Booz Allen Hamilton, EMC, Magnolia, Nuxeo, Open Text, Quark, SAP, Saperion, Vamosa, Vignette, and others collaborate to enable information sharing across Enterprise Content Management (ECM) Repositories

The international open standards consortium, OASIS, has formed a new group to standardize a Web services interface specification that will enable greater interoperability of Enterprise Content Management (ECM) systems.

The new OASIS Content Management Interoperability Services (CMIS) Technical Committee will advance an open standard that uses Web services and Web 2.0 interfaces to enable information to be shared across Internet protocols in vendor-neutral formats, among document systems, publishers and repositories, within and between companies.

"CMIS offers new potential for write-once, run-anywhere content," said Mary Laplante, senior analyst at The Gilbane Group. "Companies want the best solutions for their business applications. In reality, this means multiple CM systems and the resulting need for integration. Companies still spend significant time and money connecting heterogeneous repositories. CMIS offers the promise of dramatically reduced IT burden associated with maintaining custom integration code and one-off integrations."

With CMIS, users do not need unique applications to access each ECM repository. Application development and deployment are much faster and more efficient. The specification provides easy mapping to existing ECM systems. Web technologies, including Web 2.0, Internet scale, service-orientation and resource-orientation, are all exploited in CMIS.

"CMIS will help rapidly grow the industry for both vendors and independent software vendors (ISVs), while protecting customers' investments in applications and repositories. The specification makes it possible to build applications capable of running over a variety of content management systems. This will foster the growth of a true ECM ecosystem and the overall ECM market." said Al Brown of IBM, convener of the OASIS CMIS Technical Committee.

The CMIS draft specification was created by IBM, Microsoft, and EMC. After successfully shepherding the specification through its incubation phase with Alfresco, Open Text, Oracle, SAP and others, the vendors selected OASIS as the most effective venue for advancing CMIS through the open standardization process.

"The OASIS CMIS Technical Committee will define both a common model for content management functions, and a set of widely-usable service bindings, all based on input both from the early draft's beta testers, and our broad international community of software developers, systems integrators, and users," said James Bryce Clark, director of standards development at OASIS. "The OASIS CMIS Technical Committee will coordinate open standardization of the specification and promote implementation to optimize the usefulness and extensive adoption of this work."

Participation in the OASIS CMIS Technical Committee remains open to all interested parties. Archives of CMIS work will be accessible to both members and non-members, and OASIS will offer a mechanism for public comment.

Support for CMIS


"We are proud to continue this effort at OASIS with the help of the community. We are clearly putting the needs of all customers first in this important technology area. We have worked hard to develop a standard that continues IBM's efforts to leverage the principles of SOA and Web 2.0 interfaces to benefit the industry as a whole," said Ken Bisconti, vice president, products and strategy, IBM Enterprise Content Management.


"Customers tell us they want solutions that promote interoperability and developer innovation while expanding consumer choice, not product uniformity. CMIS embraces Web services and current ECM protocols to help customers take their content management investments to the Web 2.0 era. The new specification will address customer needs to ease the IT burden around multi-vendor, multi-repository environments and applications," said Jeff Teper, corporate vice president of the Office Business Platform, Office SharePoint Server Group at Microsoft.


"Oracle is pleased to be participating in the OASIS standards committee effort on the newly submitted Content Management Interoperability Specification (CMIS). The ability to access content and digital assets in an efficient and standards-based way is directly in line with the Oracle Fusion Middleware hot-pluggable strategy. CMIS will help Oracle, our customers and partners better leverage enterprise content management," said Don Deutsch, vice president Standards Strategy and Architecture, Oracle.


"Content Management has needed a standard like CMIS for at least a decade. We believe CMIS will be to the ECM market what SQL has been to the database market. Major corporations today need to integrate content from multiple repositories and develop applications that can run against multiple ECM systems. With the advent of CMIS the reality of write-once, run anywhere is here at last," commented John Newton, CTO & Co-founder, Alfresco Software.


"When we first began developing CMIS, our goal was to help customers dramatically reduce their challenges associated with managing multi-vendor, multi-repository IT environments. As content management is rapidly becoming a core driver of today's business processes, companies are demanding greater levels of interoperability between diverse content sources. Today's announcement of an official CMIS Technical Committee by OASIS is the next step in making this vision a reality," said Razmik Abnous, VP and CTO, Content Management and Archiving Division, EMC(r).


"To us, CMIS is a logical step in the right direction. Our open-source Content Management System has been developed with the core values openness and interoperability in mind. Hence, we are extremely happy to contribute to the development of the CMIS standard, which takes interoperability to a new level in the content management domain," said Boris Kraft, CTO, Magnolia International Ltd.


"We warmly welcome the inception of this future standard, the perspectives are exciting. This is offering a practical solution to real-world and to the endemic Babel-Tower syndrome of heterogeneous information systems...which they all are! With the growing spread of ECM platforms and related software (search, ERP integration, etc.) in organizations, the interoperability problem and the isolation of content has become a critical issue that our customers are facing. CMIS might be a good answer to this," said Eric Barroca, VP Operations, Nuxeo.

Open Text

"We see CMIS as an important catalyst for the next generation of content-driven applications. Open Text along with our partner SAP AG have already created a working prototype that uses an interface based on the CMIS standard to manage content from SAP applications with Open Text Enterprise Library Services. CMIS will offer customers a host of benefits including an improved end user experience, more robust and flexible business process automation, and a breaking down of silos of content that exist in most organizations today," said Richard Anstey, Vice President of Technology and Product Strategy, Open Text Corporation.


"CMIS is an open standard that will give technology vendors, like Quark, the flexibility to work with a wide range of content management products without having to write adaptors for each system. CMIS will allow us to allocate more resources to advancing system functionality for end users with the knowledge that the new functionality works across all ECM systems that adopt the standard," said Michael Boses, Director of XML Products, Quark. SAP

"With the number of differing and dispersed content management systems in use in organizations today, it is essential for business users to have access to these solutions in one integrated system. For SAP, a leading provider of business software, and its application and integration platform SAP NetWeaver®, the support of common standards for the harmonized consumption of comprehensive ECM services by business applications is therefore important to drive better customer value. SAP is pleased to see that CMIS is on its way to becoming an OASIS standard and will play an active role as a contributor to and supporter of the OASIS CMIS Technical Committee," said Michael Bechauf, VP, Standards Strategy at the Global Ecosystem and Partner Group, SAP.


"We are excited to join OASIS and the CMIS Technical Committee. This is another milestone in our commitment to open standards. CMIS is very similar in structure to our classic services API and presents an opportunity to extend ECM interoperability. Furthermore, it will increase independence from particular client software," said Volker John, Director Product Management at SAPERION AG.


"Customers have always turned to Vamosa to resolve their CMS integration issues. We consider CMIS an exciting and necessary development for the industry as it will free customers from the connectivity issues arising from integration and allow them to focus on the content quality and re-use issues instead. We particularly welcome the involvement of all major players in the industry, a reflection of CMIS' cross-platform and inclusive approach," said Ijonas Kisselbach, Chief Technology Officer, Vamosa.


"Vignette looks forward to the OASIS effort to ensure the market need for a new interoperability standard is fulfilled by CMIS, as it further affirms our philosophy of managing content where it lives and using a virtual content repository approach in the enterprise," said Conleth O'Connell, CTO, Vignette.

Additional information:

OASIS CMIS Technical

Committee Cover Pages Technology Report


OASIS (Organization for the Advancement of Structured Information Standards) is a not-for-profit, international consortium that drives the development, convergence and adoption of open standards for the global information society. OASIS promotes industry consensus and produces worldwide standards for security, Web services, XML conformance, business transactions, electronic publishing, and other applications. OASIS open standards offer the potential to lower cost, stimulate innovation, grow global markets, and protect the right of free choice of technology. OASIS members broadly represent the marketplace of public and private sector technology leaders, users and influencers. The consortium has more than 5,000 participants representing over 600 organizations and individual members in 100 countries.


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Deloitte to hire 3,500 new employees in India by 2011

by Editor 11/17/2008 3:19:00 PM
Consulting firm Deloitte Touche Tohmatsu plans to increase its number of employees in India to 12,000 over the next three years. Deloitte Asia Pacific CEP Chaly Mah says: “We are planning to increase our headcount to 12,000 people by 2011, from 8,500 at present. The hiring would be focused mainly in our advisory business.”

Deloitte’s consulting business needs to respond to the growing demand for advisory services as more companies are seeking advice on cost cutting and other issues resulting from the economic crisis.

Deloitte has already hired more than 2,000 people in India in the past year. Deloitte member firms hired a total of 45,000 staff in fiscal year 2008.

The consultancy’s global CEO James H. Quigley says: “India is a strong growth market for us and we remain confident of our hiring plans in the country… Notwithstanding slower growth predictions, growth of around 5.6 percent is impressive and it is still important that Indian companies consider global expansion and globalise in a smart way - planning growth around people as part of their business strategy.”

The key to expansion and long term sustainable growth, according to Deloitte, is finding new customers, suppliers, new skilled staff.

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IBM named the most innovative company in Poland

by Editor 11/17/2008 3:15:00 PM
IBM Poland has been named "The most innovative company in Poland" by Manager Magazin's Image Profile ranking for the innovative practices and solutions it offers to Polish clients. The Image Profile ranking began in the German edition of Manager Magazin in 1987. The competition, now in its third year in Poland, highlights companies' exceptional achievements in key areas of economic development, based on the evaluation of the following main criteria: ability to innovate, product and services quality, growth dynamics, PR and advertising.

This year's independent ranking was conducted by the Centrum Badań Marketingowych Indicator on Manager Magazin's request. A total of 506 CEOs, business leaders from across all industries were interviewed, pointing IBM Poland as the most innovative company. Apart from IBM as the rankings leader, within the top companies are well known names like Microsoft, HP, Nestle, Volkswagen Poland, Danone Group, Toyota Motor Poland Company, Sokołów, Grupa Onet, Zelmer.

Over the past five years IBM spent 29 billion USD on research and development, resulting in about three thousand patents each year. IBM supports and is working on the development open source software - more than1.3 million users from around the world have already downloaded IBM’s free office software package. The aim of company’s innovative solutions is to achieve progress in many areas, from improving the development of solar energy technology, to breakthroughs in nanotechnology, to the diagnosis of osteoporosis – all of which are cited by Manager Magazin as reasons for choosing IBM as its top innovator.

About IBM Poland:

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