NEW YORK and ROME; Dec. 20, 2002 – Telecom Italia Group and Accenture today announced a seven-year, $200 million business process outsourcing agreement under which Accenture will provide outsourced payroll processing and administration services to Telecom Italia.
As part of the arrangement, Accenture will acquire TESS, Gruppo Telecom’s payroll services company, from Telecom Italia for approximately $8 million.
The arrangement supports Accenture’s strategy to grow its business process outsourcing capabilities, particularly in human resources, finance and accounting, and learning and training, among other areas. TESS will become a subsidiary of Accenture under its HR Services organization, which provides human resource services to global enterprises on an outsourced basis.
Under the terms of the agreement, TESS will continue to provide payroll services to Gruppo Telecom, offering the same high level of service and privacy safeguards.
The agreement, subject to the approval of European Antitrust Authority, is consistent with Gruppo Telecom’s strategy of divesting non-core activities.
About Telecom Italia
The Telecom Italia Group is Italy’s ICT leader, with more than 27.3 million fixed lines and over 24.1 million mobile lines. The Group is focused upon leveraging technological innovation, customer loyalty enhancement, cost control and operating efficiencies. Telecom Italia is consolidating its leadership position in the domestic market, as well as its mobile unit, TIM’s (Telecom Italia Mobile) presence beyond Italy. TIM currently has 39.7 million mobile lines worldwide. In Latin America, TIM is building the first ever Pan-American GSM network. In the first half of 2001 domestic wireline and wireless telecommunications accounted for 73% of turnover. Alongside these businesses the Group operates in Internet services, satellite telecommunications, information technology and research and development.
Accenture is the world’s leading management consulting and technology services company. Committed to delivering innovation, Accenture collaborates with its clients to help them realize their visions and create tangible value. With deep industry expertise, broad global resources and proven experience in consulting and outsourcing, Accenture can mobilize the right people, skills, alliances and technologies. With more than 75,000 people in 47 countries, the company generated net revenues of $11.6 billion for the fiscal year ended August 31, 2002. Its home page is www.accenture.com.