Covansys wins $83 m outsourcing contract

BANGALORE: Global consulting and technology services company, Covansys Corporation, has been awarded an $83 million outsourcing project by SIRVA, a global business services leader. Headquartered in Illionis, SIRVA is the world's most comprehensive provider of relocation services and logistics solutions for high value product.

Under the terms of the contract, SIRVA will outsource selected applications development and maintenance, as well as project management, to Covansys. The latter expects to receive $83 million in revenues over a 10-year contract term.

"Our partnership with Covansys is consistent with our long-term strategy to significantly decrease our non-core IT spending, while at the same time enhancing the level of customer service," said SIRVA Senior Vice President Corporate Initiatives John Dupuy. "Information technology is a critical part of the customer value proposition in all of our businesses, and we undertook an exhaustive, nine month process to identify the most effective company for the job. We look forward to a mutually rewarding relationship with Covansys."

"Nothing underscores the leadership and expertise of the Covansys outsourcing practice better than the fact that we have been chosen to work with SIRVA, an industry leader, on such an important project," said Covansys President and COO Marty Clague. "We compliment SIRVA for their foresight in considering outsourcing as a strategic initiative for savings and growth."

SIRVA expects to reap immediate first year cost savings, in addition to long-term savings of over 20%. SIRVA's ability to ramp services up or down provides them with added project flexibility. This benefit is due to Covansys' unique, blended onsite/offshore outsourcing model, which allows for seamless operations 24 hours a day, 7 days a week. Covansys has a track record of managing outsourcing for more than four-dozen top companies, including Ford Motor Company and Henry Ford Health Systems.