Cap Gemini Ernst & Young and Cisco Systems Cement Leadership of the Networked Economy
Details of strategic alliance finalized with launch of Global Business Unit to drive innovation in the Internet economy
1 November 2000
Cap Gemini Ernst & Young and Cisco Systems today announced the formalization of their March 8th strategic alliance, with the launch of a global business unit. The global business unit (GBU) will be named Cap Gemini Ernst & Young Telecom, Media & Networks-operating under the Cap Gemini Ernst & Young brand, providing strategic counsel and hands-on expertise to telecom, media, and networking organizations worldwide.With more than 150 clients the GBU employs almost 6,000 management and IT consultants, mainly from the former Cap Gemini Telecom & Media unit. Operating from twenty-four locations throughout the US, Asia and Europe, the GBU hosts the Network Infrastructure Solutions (NIS) Service Line for Cap Gemini Ernst & Young. The NIS provides a critical role in optimizing Cisco’s networking expertise together with Cap Gemini Ernst & Young’s consulting and IT strengths, and today employs over 1,000-network integration professionals worldwide.
The GBU delivers solutions that enable service providers and enterprise customers to more rapidly offer new services-developed in conjunction with Cisco and Cap Gemini Ernst & Young. These will include:
- Implementation of e-commerce and supply chain integration applications
- Integration/migration of voice and data networks
- Delivery of new wireless applications including broadband wireless and wireless data
- Delivery of broadband services
- Implementation of unified messaging applications
- Implementation of integrated call center applications
- Implementation of IP-based management systems
The strategic alliance has also resulted in the creation of eight research, development and innovation labs throughout the world. The labs-based in California, Boston, Dallas, London, Paris, Munich, and Singapore-enable the GBU to maintain strict quality control standards on behalf of its customers, by testing system reliability before installation on client sites.
“Cap Gemini Ernst & Young’s global expertise in management consulting, IT services, and systems integration, and Cisco’s capabilities in networking for the Internet makes for a formidable combination,” said Alexandre Haeffner, Chief Executive Officer of Cap Gemini Ernst & Young Telecom, Media & Networks. “By successfully bringing together these complementary skill sets, we have created an entity that is perfectly positioned to decipher the increasingly complex convergence of telecommunications, media, and networking.”
“In the rapidly changing Internet Economy, Cisco Systems is committed to providing customers with best of breed solutions. Cisco’s open eco-system business model utilises the strengths of our partners combined with our Internet expertise to accelerate customer benefits through the delivery of complete Internet business solutions,” said Todd Abbot, Vice President, Service Providers, Cisco Systems EMEA.
The GBU is a subsidiary of Cap Gemini Ernst & Young Group in which Cap Gemini Ernst & Young Group holds a 95.1% stake and Cisco Systems holds a 4.9% stake. Cisco Systems is investing €171 million in the GBU (which includes a 20% discount for Cisco’s minority shareholder position) and €702 million in payment for 2.6 million newly-issued shares of Cap Gemini SA through a reserved capital increase under the terms and conditions approved by the General Assembly of shareholders as of May 23, 2000.
About Cap Gemini Ernst &Young
Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help traditional businesses and “dot companies” continue to implement growth strategies and leverage technology in the new economy. The organization employs more than 56,000 people worldwide and reports global revenues of about €7.7 billion (1999 pro forma).
More information about individual service lines, offices and research is available at www.capgemini.com
About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at www.cisco.com.
Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.
