CSC to buy BearingPoint’s Brazilian consulting and systems integration unit

by Editor 7/14/2009 4:02:00 PM
Consulting firm BearingPoint, which filed for bankruptcy protection in February and sold its North American commercial services unit to PricewaterhouseCoopers last month, has now made an agreement to sell another one of its assets.

IT services firm Computer Sciences Corp. (CSC) announced on Friday that it has made a deal to buy BearingPoint's Brazilian business unit, which employs 550 people specializing in consulting and systems integration services. The unit has offices in Brasilia, Rio de Janeiro and Sao Paulo.

Financial details of the agreement were not disclosed. The deal is subject to approval by the bankruptcy court and is expected to be completed by the end of the month.

CSC Chairman, President and CEO Michael W. Laphen said: "We will establish a meaningful foothold in one of the world's largest emerging markets, add capabilities that extend and complement our own and position CSC for increased success both internationally and domestically."

This is the latest asset sale for BearingPoint in recent months. In May, Deloitte completed the acquisition of the consulting firm's public services unit in North America for $350 million. On Wednesday, IT services firm Keane Inc. said it had reached an agreement to acquire assets from BearingPoint's North American public services unit.

Find the latest IT consulting jobs on our job board.

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BearingPoint posts third quarter financial results

by Editor 11/11/2008 3:53:00 PM
BearingPoint, one of the world's largest management and technology consulting firms, has announced its third-quarter financial results and operating metrics for the period ending Sept. 30, 2008.

BearingPoint stated that its quarterly results continue to be reflective of the same dynamics that have driven its year-to-date results: improving operating income and margins on flat to decreasing revenues. These operating improvements are primarily the result of reductions in selling, general and administrative (SG&A) expenses, professional compensation expense reductions driven primarily by the reversal of accruals associated with our global tax equalization expenses and a reduction in stock compensation expense. Nonetheless, year-over-year improvements in operating profits, continue to be offset by a combination of increased interest and income tax expense, as well as unrealized foreign currency losses attributable to short-term inter-company borrowings.

Third-Quarter 2008 Financial Results

  • Gross revenue was $801.0 million in the third quarter compared to $861.9 million in the third quarter of 2007, a decrease of 7.1 percent.
  • Net revenue (gross revenue less other direct contract expenses) was $629.4 million in the third quarter compared to $658.9 million in the third quarter of 2007, a decrease of 4.5 percent.
  • Gross profit was $144.5 million in the third quarter compared to $132.6 million in the third quarter of 2007, resulting in a gross margin (gross profit as a percentage of gross revenue) of 18 percent in the third quarter, compared to 15.4 percent in the third quarter of 2007.
  • SG&A expense was $139.9 million in the third quarter, a $20.4 million and 12.7 percent decrease from $160.3 million in the third quarter of 2007.
  • Operating income increased by $32.3 million to $4.6 million in the third quarter compared to an operating loss of $27.7 million in the third quarter of 2007, marking the third consecutive quarter of operating profit.
  • Net loss in the third quarter was $30.5 million compared to a loss of $68.0 million in the third quarter of 2007. Loss per share was $0.14 in the third quarter compared to a loss of $0.32 in the third quarter of 2007.
  • Cash balance, which includes restricted cash, was $333.0 million on Sept. 30, 2008, compared to $431.2 million on Sept. 30, 2007.
  • In the third quarter of 2008, BearingPoint won business with the following customers: Time Warner, Total US Exploration and Production, the Maryland Department of Human Resources, the Texas Department of Information Resources, Bendigo and Adelaide Bank, the U.S. Air Force, the U.S. Marine Corps, the U.S. Department of State, the U.S. Government Services Administration and Unifi Mutual Holding Co.

Third-Quarter 2008 Metrics

  • Bookings were $739.4 million compared to $764.1 million in the third quarter of 2007, a decrease of 3.2 percent year-over-year.
  • DSO was 78 days at Sept. 30, 2008, compared to 89 days at Sept. 30, 2007.
  • Utilization was 79.1 percent compared to 78.5 percent for the third quarter of 2007, an increase of 60 basis points.
  • Billable headcount was approximately 13,100 compared to approximately 14,500 for the third quarter of 2007, representing a decrease of approximately 10 percent.
  • Voluntary attrition was 25.4 percent compared to 26.6 percent for the third quarter of 2007.

Ed Harbach, BearingPoint's chief executive officer, said, "In what has become one of the most challenging economic environments in memory, we posted an operating profit for the third consecutive quarter, reflecting the resilience of our business and our continued efforts to make the Company more efficient through diligent expense control.

"Our pipeline remains strong and we had record bookings in Public Services; and increased gross margins compared to the third quarter of last year," Harbach continued.

"Despite our significant operational improvements this year, we must accelerate our efforts to more efficiently coordinate and manage the cash and tax planning needs of our diverse, international organization. I am keenly aware that we have much left to do in a short period of time. We must aggressively pursue efforts to more efficiently move and manage our global cash balances, continue our ongoing efforts to further improve our DSOs and cash collections, reduce our SG&A costs and exit unprofitable areas of the business," Harbach continued.

The Company also announced that in early October it retained AlixPartners, an internationally known business and financial advisory firm, to assist in developing its 2009 plan, participate in its upcoming negotiations to restructure its indebtedness and lead a number of key cash management initiatives. The Company has also appointed AlixPartners managing director Kenneth A. Hiltz as BearingPoint's chief financial officer effective November 11, 2008. Hiltz will replace BearingPoint interim chief financial officer, Eddie Munson, who will continue to serve on BearingPoint's Board of Directors and resume his duties as a member of the Audit Committee of the Board of Directors.

"We're pleased to have Ken join the Company and will look to him to help us focus on improved cash management and debt restructuring," said Harbach.

Hiltz stated, "During the last month, I've not only conducted an in-depth review of BearingPoint's financials, but become heavily engaged in the Company's 2009 budget and planning process. While it's too early to make a definitive forecast, I feel very comfortable that we will have enough cash to allow us to work through the next couple of quarters as we focus, almost exclusively, on cash and other balance sheet improvements."

Update on Strategic Alternatives

As previously reported, BearingPoint retained financial advisors to explore ways to improve its capital structure and liquidity in light of its evolving cash position. These alternatives initially included a merger or sale of the Company as a whole, a sale of all or substantially all of the assets of the Company or the sale by the Company of any of its six principal business units. While the recent and sudden downturns in global financial and credit markets have created significant challenges in the pursuit of a merger or sale of the Company, they have also presented other opportunities with interested parties, which the Company continues to pursue. Because the Company has not yet reached a strategic agreement regarding a merger or sale, its Board of Directors has also directed the Company's financial advisors to begin discussions with debt holders to explore the feasibility of restructuring its debt or exchanging existing convertible debt for equity. The Company has begun to make contact with debt holders in the past week. At this time, BearingPoint can provide no information regarding the outcome of these discussions or on the timing of when they will be completed.

Forward-Looking Guidance Withdrawn

The Company announced it has withdrawn all remaining forward-looking guidance for fiscal year 2008. Given the recent dramatic changes in global financial and credit markets and the continuing pressures that these events have placed on the Company's share price, the Company is no longer confident that it can assess the near-term implications that these developments will have.

"While businesses around the world are feeling the effects of a difficult macroeconomic environment, I remain impressed with the resilience in our business," said Harbach. "However, we are uncomfortable trying to predict how client demand and the perceptions of entering into long-term engagements with BearingPoint will affect our financial position for the remainder of the year. We've factored a number of considerations into our decision, including: the speed at which our clients are making decisions based on their own outlook; the uncertainties that we face while we resolve issues such as our own noncompliance with New York Stock Exchange continuing listing standards; and our view that we increasingly believe a strategic transaction or restructuring of our indebtedness will be necessary for us to continue to fund our 2009 operations and debt obligations.

"I can only reassure our clients, our investors and our people that we will continue to explore and pursue all options that are in the best interests of our various constituencies," continued Harbach. "We currently plan to provide a business update later in the quarter after we have finalized our 2009 budgeting process, and have moved further in discussions with debt holders and other possible transaction counterparties," Harbach concluded.

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BearingPoint launches Information Management Services portfolio

by Editor 7/16/2008 4:06:00 PM
BearingPoint, Inc., one of the world's largest management and technology consulting firms, today introduced its Information Management (IM) Solution Suite to help businesses and government agencies tackle the exponential increase in the volume and complexity of information within their organizations.

The IM portfolio of services, the company’s second global, cross-industry solution portfolio, integrates BearingPoint’s extensive information management experience and capability to scale and deliver the full breadth of its global services--from strategy development to systems deployment and management. Last year alone, BearingPoint performed more than 1,000 information management projects worldwide, leveraging the skill and abilities of its 2,100 consultants with information management experience.

The new portfolio gives BearingPoint the ability to deliver information management services more rapidly and broadly around the world, with the flexibility to tailor the services to address unique needs of each client.

According to a recent survey of chief information officers by IDG Research Services, 58 percent of businesses assigned an average grade of “C” for their information management strategies. The study also found that more than 50 percent described their organization’s information management practices as “chaotic” or “reactive.”

“For all of the investment in technology and transaction processing, many organizations have yet to focus on the accuracy, quality, relevance and governance of their business information,” said Ed Hagan, global solution leader for Information Management, BearingPoint. “Leading organizations recognize that better information management is essential to identifying risks, expanding markets, managing costs, and improving integration across the global enterprise. They are urgently seeking ways to cut through the volume and complexity.”

The BearingPoint Information Management portfolio of services addresses data governance, data quality and master data management and focuses on three common areas of improvements:

  • enhanced decision making and appropriate access to information across the organization through business intelligence solutions; 
  • increased effectiveness and consistency in capturing and sharing information and data; and 
  • more secure and cost-effective retention of enterprise information.

With increasing regulatory and competitive pressures, market demand for information management services is stronger than ever. Through the launch of the IM suite, BearingPoint combines a demonstrated framework for Information Management with deep vertical industry experience to deliver services that address clients’ diverse needs.

Tackling Information Management in Life Sciences

Increasing regulatory demands are forcing pharmaceutical companies to deploy robust information management systems to bridge the long-standing gap in the integration, alignment and management of global product information. Compliance management of medical products requires in-depth understanding of a product’s specifications and the regulated processes governing its labeling, marketing and use.

BearingPoint is helping major pharmaceutical companies take a more holistic view of how information is managed across their global operations. BearingPoint has created an Information Management Center of Excellence to drive information strategy, governance, architecture and program execution, which leads to a more streamlined approach to implementing improvements and can yield millions of dollars in savings.

Maintaining Control over Complex Content Management in Energy

Energy companies are facing increased pressure to address operational efficiencies in a changing environment that includes massive data growth, more stringent regulatory demands and increased organizational complexity. With IM services such as BearingPoint’s Energy Enterprise Document and Records Management (EDRM) solution, energy industry clients can manage information spread across the enterprise effectively, and comply with regulatory retention policies.

BearingPoint is helping oil and gas companies with their critical EDRM initiatives, developing an EDRM information technology strategy, architecture and framework that support clients’ current and future records management requirements. As a result, clients see reduced operational costs, accelerated timetables for bringing new projects on board, improved ability to meet regulatory compliance requirements, and reduced corporate risk associated with e-discovery.

Sharing Information across Government Agencies

During the last several years, government agencies have been under fierce pressure to improve information sharing across the various government functions through rigorous, nimble systems and procedures. The emphasis has shifted from simply making information available to getting the correct information to the right person at the right time.

BearingPoint recently built an advanced enterprise reporting capability to enable the complex information sharing needs of federal agencies. The BearingPoint solutions offer a unified enterprise data platform that supports metadata management, master data management, data quality management, key performance indicators and dashboards.

Establishing Information Management Leadership

BearingPoint’s leadership in information management includes its pioneering work in establishing industry standards and common methodologies through the company-developed framework called MIKE2.0—Methodology for an Integrated Knowledge Environment ( 

Unlike proprietary approaches to information management and data, MIKE2.0 is a comprehensive, open source framework that provides a common business strategy, technology architecture and delivery method across an enterprise’s information management projects. MIKE2.0 engages the global information management community in continuous development, collaboration and improvement to create the most effective methods, principles and rules for information management. For more information on BearingPoint’s Information Management portfolio, visit

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Top consulting firms in the U.S.

by Editor 7/14/2008 3:06:00 PM

Career portal and recruitment website has announced the top consulting firms in the U.S., based on an analysis of hiring trends in the country. These are the top ten consultancies across the pond: 

IT consulting,tech consultant jobs
1. Booz Allen Hamilton

2. Deloitte Consulting LLP

3. IBM Global Services

4. Accenture

5. BearingPoint

6. Capgemini

7. HP Technology Solutions

8. DiamondCluster International, Inc

9. Telcordia Technologies

10. Keane




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Deloitte to invest $300 million in its people

by Editor 7/1/2008 3:21:00 PM
Deloitte LLP announced today that it will invest approximately $300 million in the creation of a state-of-the-art learning and leadership development center in the Dallas-Ft. Worth area in Westlake, Texas. Construction on the new facility will begin in 2009 and the center is expected to open in 2011.
Deloitte,Deloitte jobs

The facility will serve as a central destination for all of Deloitte's talent, including everyone from new hires to senior leadership to partners, principals and directors. The 750,000-square-foot campus will have 800 guest rooms.

"As our industry evolves faster than ever before, Deloitte's learning and leadership development center will enable our people to take the lead in shaping the future of our profession," said Barry Salzberg, chief executive officer, Deloitte LLP. "We expect this facility to become the heart of our organization -- the place where we meet, learn and develop our next generation of leaders."

The facility will feature multiple conference spaces and classrooms that will house thought leadership events; events with professors from nationally recognized universities and colleges; and networking events. All of the facilities' activities will enable people to develop and grow as a result of their connection with business and industry leaders, academia, mentors and colleagues.

The facility will also feature dining venues, a ballroom, a business center, recreational facilities and a fitness center. The campus will be constructed according to Leadership in Energy and Environmental Design (LEED) standards established by the U.S. Green Building Council. Green considerations are a top priority for all aspects of this project, including design, materials, engineering and supplies.

In addition to the direct benefit for Deloitte and its people, the facility is expected to provide economic benefits to Westlake and the Dallas/Fort Worth region. 

To browse the latest job openings with Deloitte, please visit our IT consulting job board

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BearingPoint builds SAP ERP human capital management-based system for east Japan railway

by Editor 7/1/2008 3:18:00 PM
BearingPoint, Inc., one of the world’s largest management and technology consulting firms, announced today that it has established a new human capital management system for East Japan Railway Company, also known as JR East. The solution is built on the SAP® ERP Human Capital Management solution and has been running smoothly since its formal introduction.

JR East is the largest passenger railway company in the world serving 16 million passengers daily. Established 21 years ago, the company is now restructuring its operations to achieve further growth. Previously, JR East had managed human resources, payroll, social insurance and welfare data separately, distributing personal information across multiple systems. They needed a system that could streamline administrative work, provide better service to the employees and quickly adjust to personnel-system and organizational changes.

To address this need, JR East decided to deploy SAP ERP HCM and establish a new system to integrate its human resource-related systems. BearingPoint helped JR East merge the employee master data from its existing systems, build a new human resource portal for relevant departments to share data, and improve the Web service menus used by managers and regular employees to view and update information. This project involved completely replacing the existing dedicated human capital management terminals. Now, approximately 62,000 employees, including employees located at affiliated companies, use the new system, which is now one of the largest SAP ERP user bases in the Asia-Pacific region.

To establish the new system, JR East looked to BearingPoint for its experience and achievements in installing human resource information systems and providing business process redesign consulting. BearingPoint collaborated with JR East Japan Information Systems Company to develop the basic concept, define the system requirements, and design and develop the system. The two companies also worked together to provide support for smooth and stable operations, and conduct change management. On the advice of BearingPoint, JR East selected SAP ERP HCM because SAP and its products rate highly for reliability, functionality and technological superiority. JR East also took into account the compatibility of its current human resource processes and IT environment.

BearingPoint won the 2008 SAP Award of Excellence presented by SAP Japan in the category "Project Award", which recognizes project impact and innovation. The award for was given to BearingPoint for the new SAP ERP HCM-based system implemented at JR East, a project in which BearingPoint completed one of the Asia-Pacific region's largest SAP ERP HCM-based systems.

About BearingPoint, Inc.

BearingPoint, Inc. is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in more than 60 countries worldwide. Based in McLean, Va., the firm has more than 16,000 employees focusing on the Public Services, Commercial Services and Financial Services industries. BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. Our service offerings are designed to help our clients generate revenue, increase cost-effectiveness, manage regulatory compliance, integrate information and transition to “next-generation” technology. For more information, visit the Company's Web site at

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BearingPoint Awarded IBM’s Asia Pacific SI Business Excellence Award

by Editor 6/25/2008 2:58:00 PM
BearingPoint, Inc., one of the world’s largest management and technology consulting firms, has been awarded Asia Pacific Systems Integrator Business Excellence Award of the Year 2007 for its solid commitment to IBM and delivering industry leading and cost-effective solutions to clients.

BearingPoint’s achievement in 2007 recognizes the success with the Information Management solutions and growth achieved through the expansion into Asia, including wins in Singapore and China. The development of new solutions into the financial sector also contributed to their award nomination.

IBM’s business alliance with BearingPoint began in Australia in 2001 and allows BearingPoint to combine its management and technology consulting expertise with IBM’s product portfolio of hardware and software to deliver quality solutions to the market.

“As an IBM Excellence Award winner, BearingPoint has been recognized for its partnership with IBM and expertise in our Information Management suite of products,” said Andrew Baker, Director, IBM Australia/New Zealand Global Business Partners.

“BearingPoint has established thought leadership in the Information Management space by implementing optimized IT solutions across a wide range of clients."

The IBM awards are held annually and this is the second time that BearingPoint has been awarded the SI Business Partner Excellence Award. The awards recognize business success, mutual teaming and successful client engagement.

“This award is testimony to a 14-year Strategic Alliance that BearingPoint and IBM have created across the world to deliver innovative value to customers. By merging BearingPoint’s capabilities with IBM’s technology, we are able to deliver more complete and compelling business solutions to bring competitive advantage to our clients,” said Charles Cochran, South Asia regional leader, BearingPoint.

The award was presented at the recent IBM Business Partner Summit event, held at the Westin Hotel, Sydney, on 7 May 2008. The awards recognize excellence for each segment of the channel, one winner for each segment: Systems Integration, Distribution, Solution Provider and Independent Software Vendor.

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BearingPoint Named 2008 TOP 10 China IT Outsourcing Services Provider

by Editor 6/25/2008 2:55:00 PM
BearingPoint, Inc., one of the world’s largest management and technology consulting firms, announced today that it has been recognized as one of the 2008 Top 10 China Outsourcing Services Provider at the 6th China International Software and Information Summit (CISIS) in Dalian.

The award – given by CISIS and InformationWeek China – is based on excellence in business, clients served, human resources and the financial health of the company. BearingPoint was selected a winner after an in-depth review of its business and capabilities compared to nearly 100 other outsourcing providers in China.

The judging commission commented that “as the clear outsourcing leader in China, BearingPoint enjoys a healthy competitive advantage particularly in providing strategy and solutions. BearingPoint has been able to win a number of outsourcing projects by leveraging its global footprint and capabilities.”

The commission also noted the significant progress that BearingPoint has made in China by providing both strategic and implementation services for government agencies and industrial parks.

For example, BearingPoint successfully managed the outsourcing strategy and planning for the China-Singapore Suzhou Industrial Park (CSSIP). One of the key accomplishments of the engagement was the development of an outsourcing strategy for CSSIP to better leverage existing manufacturing and industrial capabilities to deliver services and achieve coordinated growth across the firm. BearingPoint also helped CSSIP identify the company’s market potential in the local and global outsourcing market, set the strategic direction for growth, and establish goals and implementation objectives.

This honor builds on the recognition that BearingPoint has already received in the China outsourcing market including;

  • “Top 10 IT Consulting Firms” recognized by the ERP and China Software Industry Association (CSIA) and
  • China CEO, Ron Machan, was named as one of the top “China Outsourcing Service Industry Leaders” by the China Outsourcing Service Center.

About BearingPoint, Inc.

BearingPoint, Inc. is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in more than 60 countries worldwide. Based in McLean, Va., the firm has more than 16,000 employees focusing on the Public Services, Commercial Services and Financial Services industries. BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. Our service offerings are designed to help our clients generate revenue, increase cost-effectiveness, manage regulatory compliance, integrate information and transition to “next-generation” technology. For more information, visit the Company's Web site at

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BearingPoint wins $12.3 million recruiting contract

by Editor 6/23/2008 3:59:00 PM

Management and technology consulting firm BearingPoint has won a contract worth up to $12.3 million from the Navy, to support the Command's recruitment efforts.

The consultancy will create cost modelling and other management tools to help the Command, which is in charge of maintaining the Navy's reserve force, and provide them with operational support.

Defense clients constitute about 20 percent of BearingPoint's business in the public sector, in which the consultancy earned $1.4 billion in 2007.

Marc Murphy, managing director for the Navy segment at BearingPoint, said:

"With all our defense clients we are in a critical time and we are going to continue to play a key role to supporting their business."

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BearingPoint deploys advanced public safety network for Florida police

by Editor 6/4/2008 4:16:00 PM

BearingPoint, Inc., one of the world’s largest management and technology consulting firms, announced today that it recently deployed an advanced public safety network for the newly-established Miami Gardens Police Department in Florida.

Miami Gardens is the third-largest city in Miami-Dade County, with approximately 110,000 residents. Though incorporated in 2003, the city relied on police service from Miami-Dade County until deciding to build out its own police department in July 2006.

Targeting a December 2007 start date, the City of Miami Gardens was tasked with quickly building out a nearly 200-member police force essentially from scratch. In 2007, the city turned to BearingPoint to design and manage the installation of the communications network needed to help the city’s new police department more effectively fight crime and enhance citizen safety services. Just 10 months later, BearingPoint has delivered a network that includes computer-aided dispatch and records-management system for police calls, provides wireless computer access in every patrol car, and delivers Voice over IP (VoIP) communications and enhanced 911 services to the department.

The new fault-tolerant network allows the Miami Gardens Police Department to connect to the Florida Department of Law Enforcement, the FBI’s National Crime Information Center and other participating law enforcement agencies within the state. In-vehicle broadband Wi-Fi services include not only the ability to send and receive traditional text data, but also tie to video cameras in every patrol car, allowing the department to record and store important visual evidence related to its cases.

“We not only stood up an entirely new police department in just 18 months, but we have created a communications network that empowers our officers to be where they need to be, when they need to be,” said Chief Matthew Boyd of the Miami Gardens Police Department. “BearingPoint moved very quickly to help us install the critical infrastructure that better serves citizens and officers on the street, and the system is one that can grow as our city grows.”

“Miami Gardens needed a state-of-the-art public safety network, and they needed it fast,” said Cathy Pomanti, executive vice president of BearingPoint’s State and Local Government practice. “By working closely with the client and leveraging our experience in management consulting and public safety, officers now have access to critical applications they need to more effectively do their jobs.”

As a part of the project, BearingPoint provided management and technology consulting services to the city’s office of the CIO. BearingPoint led project management for a records management system installation, designed, installed and configured IT and VoIP networks for the police department, and created a network (with backup access) that allows use of critical Police Department applications wirelessly from patrol cars.

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