Legacy migration top of CGEY hitlist

CGEY is keen to ramp up its outsourcing business. IT was formed two years ago when French services company Cap Gemini bought Ernst & Young's IT and management consulting firm, CGEY, .

CGEY is keen to ramp up its outsourcing business.

Formed two years ago when French services company Cap Gemini bought Ernst & Young’s IT and management consulting firm, CGEY, which trimmed local staff numbers last year by 5% to10%, employs 160 staff in New Zealand including 50 developers at the Auckland-based Advanced Development Centre.

CGEY’s service offerings are targeted at organisations with a $200 million-plus annual turnover, though it has done work for smaller companies, says CGEY New Zealand vice-president Alan Sinclair.

The firm is aiming to develop its outsourcing and support capacities, working off its established ERP client base. In Australia BHP Steel has outsourced its finance and human resources services to CGEY.

Outsourcing constitutes about 22% of CGEY’s business worldwide and covers application management (including helpdesk, maintenance and enhancement) and business process management.

“We’re also developing transformational outsourcing — the transition from legacy systems to new platforms,” says Sinclair. “We provide support services to help maintain legacy systems until they are no longer required and help customers migrate to a new platform.”

The two can be bundled together as an operational cost rather than having a support contract for the legacy system with a separate new platform project, which is treated as a capital expense.

For infrastructure-outsourcing CGEY tends to partner with the likes of HP and IBM, says Sinclair. But it competes with some of the same outfits.

“Globally we’d see ourselves competing with IBM Global Services, Accenture and EDS, and that’s how the market analysts have come to regard us. Also we compete against our ‘big four’ peers — Deloittes, KPMG, PwC and with companies like Datacom on development services.”

The New Zealand ADC is one of two in the Asia Pacific region, the other being in Mumbai. Set up last May, the ADC develops component-based business applications using accelerated methods — either custom development or integrating with existing products. It was part of the .Net early adopter programme and also uses IBM Websphere and other Java tools.

Sinclair says the ADC services Australia as well as the local market and supports the Mumbai centre for other work in Asia Pacific. It has also packaged a system developed for the telecommunications industry called Telco-in-a-Box and is looking to do the same for other industry sectors.

CGEY categorises the bulk of its work (56%) under the heading business solutions and technology.

Business solutions covers CRM (Siebel, Pivotal and the CRM modules of the major ERP suites), B2B supply chain and finance and employee transformation. Technology covers ERP (SAP, Peoplesoft, JD Edwards, Oracle), network infrastructure solutions (Cisco), and advanced development and integration.

Sinclair says CGEY has mainly been working on ERP projects in the first half of this year and it is seeing an increasing interest in support services and outsourcing. IT strategy planning has also come back strongly this year. “We’re helping clients plan business strategy. For example, for Transpower we’re looking at IT infrastructure and services. It was an existing customer but this is a new type of service.”

CGEY New Zealand reports to Australia, which reports to Hong Kong.

Key customers

  • New Zealand Government e-procurement rollout
  • Transpower — infrastructure review
  • NRMA (State Insurance) replacement of core systems
  • Air New Zealand — implemention and support of SAP in its engineering operation
  • STABuy Portal
  • CHH
  • Fonterra
Who’s in charge at CGEY

When Ernst & Young’s consulting business merged with Cap Gemini, it went from being a partnership to a public company so there are no partners.

Sarah Prentice – strategy and transformation

Les Greeff – business solutions

Damian Moody – technology

Rebecca Tohill – sales and business development

Paul Cook – chief operating officer for ANZ/Japan (based in Auckland)

David Stewart – heads the Oracle service line for ANZ

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