Capgemini expands outsourcing contract Algar Group

Brazilian conglomerate Algar Group has expanded its Business Process Outsourcing contract with Capgemini, to include its telecommunications and technology business units and holding entities. As part of the expansion, the contract has been upgraded from €31 million to €43 million.

Algar Group is an in 1929 established Brazilian entrepreneurial business group that operates in the sectors of IT/Telecom, Agriculture, Services and Tourism. The conglomerate has 25,000 employees serving more than 2 million clients in 75 different locations in Brazil, Colombia, Argentina and Chile.

The original thirteen-year outsourcing contract, with a value of €31 million, was won by consulting firm Capgemini in 2011, and is one of the longest BPO contracts in the industry. As part of the contract, Algar Group leverages Capgemini’s Global Enterprise Model to centralise all of its back office functions and drive transformation through BPO services that are delivered from Brazil and India, an approach that lead to the creation of a BPO platform for growth outside Brazil.

“We are delighted with Capgemini’s progress and its consistent delivery and collaborative approach. Their skilled leaders, respect for client culture, and problem-solving focus in BPO have been second to none. Capgemini has helped us to streamline costs and centralise our back-office operations. We look forward to continuing our work with Capgemini in supporting our growth strategy,” says Maurício Lemos, Algar Corporate Solutions Centre (CSC) Director.

The updated contract, with a value of €43 million, expands Capgemini’s work and will include telecommunications and technology business units and the company’s holding entities. Under the expanded contract, Capgemini will deliver complete finance and accounting services including Record to Analyse (R2A), Procure to Pay (P2P), and Credit to Cash (C2C) as well as Human Resources Outsourcing (HRO) for 22,000 of the company’s 25,000 employees.

Commenting on the expanded contract, Christopher Stancombe, CEO of Business Process Outsourcing (BPO) at Capgemini says: “We have developed a strong relationship with Algar working as one team to deliver world-class outcomes. Providing customised solutions and leveraging our unique Global Enterprise Model, we are proud to have been able to assist Algar in driving transformation across their global organisation. We are delighted to be supporting Algar with their growth ambitions over the next ten years.”

Outsourcing
For Capgemini the expansion of the contract is the second large outsourcing deal in a month's time, as recently UK Energy company EDF Energy extended its three-year outsourcing contract with Capgemini for another two years with a value of £12 million.