CGE&Y Nabs Canadian Pact

Consulting firm will negotiate outsourcing deal with Hydro One.

Cap Gemini Ernst & Young Canada Inc. has won the right to enter contract negotiations to supply up to $640 million in outsourcing services to Hydro One Inc., Canadas largest utility.

CGE&Y outbid a number of competitors, including Accenture, which had earlier expressed confidence in winning that business (SP, Aug. 20, p. 22,

Under the 10-year transformational outsourcing deal, CGE&Y would provide a range of services to Hydro, including the management of its IT operations, supply chain, human resources, financial and customer care operations.

Hydro One expects the contract to free up its resources to focus on its core energy business.

"This arrangement with Cap Gemini Ernst & Young will provide Hydro One with an opportunity for more competitively priced services and cost savings," stated Hydro One CEO Eleanor Clitheroe. "It also provides our employees in the e-services area with growth opportunities in their area of expertise."

The Hydro One deal comes only a few days after CGE&Y Canadas parent issued an earnings warning for its current quarter.