TORONTO, Nov 21, 2000 (BUSINESS WIRE) Cap Gemini Ernst & Young and Ontario Power Generation today announced a 10-year, billion-dollar outsourcing agreement to launch a joint venture that will deliver full information technology services to one of North America’s largest energy utilities.
The joint venture, to be launched in February 2001, will be owned 51% by Cap Gemini Ernst & Young Canada and 49% by OPG and will employ about 700 full-time and contract staff.
The joint venture, to be called New Horizon System Services, will initially perform infrastructure management, application development, application support and maintenance, network management, data center operations and help desk support in areas such as commercial systems, work management, finance, human resources and supply chain.
Ron Osborne, President and CEO of Ontario Power, said moving its IT function to a separate company, will provide the generator with a number of benefits. “We will be facing competition in the marketplace and we must make sure we focus on our core business, which is the safe, efficient production of electricity. Cost effective and highly reliable information technology services will be critical to the competitiveness of OPG. With the creation of the New Horizon technology partnership with Cap Gemini Ernst & Young, we will be better positioned to achieve this goal. New Horizon will also provide further growth for IT staff beyond the opportunities currently afforded in OPG,” he said.
“New Horizon has clear potential to develop into a powerhouse within the energy sector,” said Eric Morgan, President, Cap Gemini Ernst & Young Canada. “New Horizon merges the technology services of OPG with the outsourcing and energy expertise of Cap Gemini Ernst & Young. Bringing such world-class credentials together truly results in a company with the force to deliver powerful solutions in the fast-moving deregulated markets and networked economy.”
John Mather, who will serve as President and CEO of New Horizon, said the company’s mission will be to provide cost-effective information technology services to energy companies operating in North America. “Information systems are key to competing in the newly deregulated North American energy market. Advanced commercial trading systems, on-line maintenance and real-time plant information systems are more important than ever to ensure the safe, reliable and clean plant operations. We know the energy business so we’re very well positioned for growth in the future.”
OPG and Cap Gemini Ernst & Young staff have successfully combined their complementary skills and styles on a number of projects in the past. It is expected that New Horizon employees will experience significantly expanded career and development and learning opportunities as the new company grows. The Power Workers’ Union and the Society of Energy Professionals, which represent the bulk of OPG employees to be affected by the joint venture, view New Horizons as a favourable move for their members.
“We’re very happy with this initiative. We believe OPG and the Society have managed to find the right model for a new IT business. Not only are our members’ futures better protected, but there will be many opportunities for new challenges and rewards.” comments Colin Throop, President of the Society of Energy Professionals.
“Employee involvement in developing the partnership was critical,” said Peter Kelly, Vice President of the Power Workers’ Union. “Creating this new IT company is a proactive way to address potential issues relating to Ontario’s new competitive energy marketplace for our membership. The alternative of a gradual but relentless decline in OPG’s IT business is far less palatable. Employee interests are being addressed in concert with a viable new business being created. It is a win-win for all parties! We believe this new entity will be much better situated to pursue and secure growth opportunities.”
About Ontario Power Generation
OPG is one of the largest power producers in North America, operating 80 generating stations with a total installed capacity in excess of 30,000 megawatts. The company’s goal is to expand into new electricity markets while operating in a safe, open and environmentally responsible manner, maximizing both customer and shareholder value. OPG currently supplies about 85% of all electricity consumed in Ontario. More information on the company can be obtained by visiting OPG’s website at www.ontariopowergeneration.com.
About Cap Gemini Ernst & Young
Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help traditional businesses and “dot companies” continue to implement growth strategies and leverage technology in the new economy. The organization employs more than 57,000 people worldwide and reports global revenues of about 7.7 billion euros (1999 pro forma). More information about individual service lines, offices and research is available at www.cgey.com
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