Keane Lands Multimillion-Dollar Outsourcing Deals - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Keane Lands Multimillion-Dollar Outsourcing Deals

The turn of the century is just a little more than 10 monthsaway, and vendors that had reaped much of their revenue fromyear 2000 projects are shifting gears. Year 2000 workaccounted for 37% of Keane Inc.'s $1.1 billion in revenuelast year, but the company is now winnowing that down withlarge applications-management and -development outsourcingcontracts, such as the five-year contract it announcedyesterday with SuperValu Stores Inc. The agreement, whichKeane president Brian Keane says is "worth over $20million," ironically follows a decision by the supermarketchain to close one of its less profitable stores because, inpart, it would have cost too much to bring that store'ssystems into year 2000 compliance.

Under the contract, Keane will provide support andenhancements for SuperValu's mainframe legacy applications,including its homegrown applications for distribution,warehousing, and logistics. In addition, Keane plans toreplace most of the company's "significant" applicationswith purchased packages as well as to replace its mainframesystems with a mixed Windows NT and Unix client-server environment.

Next week, Keane is expected to announce an applicationoutsourcing agreement with Dominion General InsuranceCompany of Canada, based in Toronto. Unlike SuperValu,Dominion already had a relationship with Keane for year 2000services. Under terms of the contract, a five-year dealvalued at more than $10 million, Keane will support andmaintain Dominion's existing legacy systems. The contractwill allow Dominion to concentrate on new technologies andpackaged applications that will eventually replace itslegacy applications. Analysts expect Y2K revenue to accountfor 15% to 17% of Keane's revenue by the fourth quarter ofthis year, and about 20% to 25% of its total revenue for theyear.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll