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Cap Gemini Ernst & Young Set for Global Leadership in Business Process Outsourcing with Expansion into China and Eastern Euro

17 July 2003

Cap Gemini Ernst & Young is set for global leadership in Business Process Outsourcing (BPO) with two new strategic deals that will add Poland and China to its worldwide network of delivery centers. The company is expanding in the fast-growing BPO market, with existing business processing centers in North America, Europe and Asia Pacific. The new deals bring the company its first BPO facilities in mainland China and Eastern Europe.

The two new centers, in Krakow, Poland and Guangzhou, China, are being transferred to Cap Gemini Ernst & Young complete with their employees and blue-chip clients. Both centers already provide the full range of back-office business processing activities. The two centers offer 350 experienced BPO employees with excellent language capabilities.

The move reflects continued strong expansion in business process outsourcing, a market in double digit growth as companies worldwide respond to increasing cost and efficiency pressures.

Hubert Giraud, Global Head of Outsourcing at Cap Gemini Ernst & Young, said: “With the two new centers, we now offer a truly global choice of onshore, near-shore and offshore business processing facilities run to world-class standards, in line with our ‘right-shoring’ strategy. Krakow and Guangzhou are great locations with proven strengths and offer clients significant cost savings.”

He added that “forthcoming Polish entry into the EC, and continued dynamism across Asia Pacific, will further boost the importance of the two newly acquired centers”.
Les Mara, European BPO Vice President said “We are now able to offer clients BPO delivery centers across three continents – Europe, Asia and North America. In a global market place this is a clear differentiator for us and our clients.”

International Paper,the world’s largest paper and forest company, have transferred their Krakow center in a deal which also involves a multi-year contract to deliver finance and accounting services across the Group.

The Guangzhou center, near Hong Kong, was formally part of a joint venture established in 1999 with Asia’s leading retailer of fast moving consumer goods, Dairy Farm International Holdings. The new deal includes an $17 million 7-year business processing contract with Dairy Farm.

-ENDS-

Note for Editors

The Cap Gemini Ernst & Young Group is one of the world’s largest providers of Consulting, Technology and Outsourcing services. The company helps businesses implement growth strategies and leverage technology. The organization employs approximately 50,000 people worldwide and reported 2002 global revenues of 7.047 billion euros.
More information about individual service lines, offices and research is available at www.cgey.com

For more information about International Paper: http://www.internationalpaper.com/

Dairy Farm is a leading pan-Asian retailer. At 31st December 2002, the Group and its associates operated 2,300 outlets - including supermarkets, hypermarkets, health and beauty stores, convenience stores, home furnishings stores and restaurants; employed 52,500 people in the region; and had 2002 total sales from continuing operations of US$4.0 billion furnishings stores and restaurants; employed 52,500 people in the region; and had 2002 total sales from continuing operations of US$4.0 billion.
More information about Dairy Farm : http://www.dairyfarmgroup.com/