Tuesday, January 6, 2009
Introducing the Insider
The Industry Defined
HUBZones: Anyone Can Play
Beyond Reproach: The Incumbent's Bind
Breaking Wave: Human Resources BPO
Cooperative Personnel Services: Differentiating Not a Problem
Adventures in Marketing
Policy & Regs: Can We Satisfy the Appetite for Cleared Personnel?
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Posted on June 3
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The company's public posture is that Carlyle's just a super-sized partner and that nothing of consequence is going to change. For assuring clients in the foreseeable future, that's valid and utterly essential. For owners big and small, however, "no change" is not very likely over a period of years. Carlyle didn't buy Booz Allen to just watch it increase in value. We identify the critical internal and client-side changes that Carlyle and its Booz Allen partners will need to consider for the longer term.
We also take a quick look at the much smaller Booz & Co. subsidiary that houses the firm's commercial business until the close of the Carlyle deal allows it to stand alone.
CSC joined the ranks of companies settling voluntarily before three big lawsuits run their course in an area of vital importance to IT firms: how vendors and teammates are compensated for joining and performing within alliances for large bids and programs. The industry still has little certainty on the rules that the government wants it to follow, although it does know—from the allegations against Sun, Accenture, and HP—how the government is trying to define kickbacks and related false claims.
You might think that given the state of the EDS government business, that revenue has little to do with HP's buying rationale. We tend to agree. As a matter of fact, the rationale appears to be pretty thin. Worldwide, EDS revenue per employee is about $100K, and its government business is only about 10 percent of its total revenue. Despite their place in IT history and particular strengths, both firms are largely in the commodity business.
The venerable $5 billion company may feel too small and feel unwanted. Although it never confirmed it was putting itself up for sale, numerous sources confirm that a couple of offers were made last month, and the Harris CEO found them wanting. While some firms, e.g., $100 million revenue, have the well-known "mid-size" problem in the government arena, perhaps Harris has the same problem two size classes up when it faces the six companies that dominate the Defense business.
Two years ago, a survey found over 250 interagency contract vehicles. They are still with us, for good and for bad, and OMB/OFPP has decided to add some regulatory guidance on how they are used. Alan Chvotkin tells you why the changes arose and how to comply with them for good-business sake.