Industry News

Fidelity buys stake in outsourcing co.

Signs Covansys contract worth $150 million

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Fidelity National Financial has signed a $150 million outsourcing contract with Covansys, a global provider of strategic outsourcing and integration services that has operations in India, and purchased a 29 percent equity stake in the company.   The agreement will make Covansys Fidelity's "primary strategic provider of outsourced information technology services," according to a Covansys statement today. The contact is expected to generate $150 million in revenues for Covansys over the next five years.   Fidelity Chairman and CEO William P. Foley II said the deal was an important strategic investment for the company.   "Prior to this investment, Fidelity's global outsourcing activities consisted of project-based, contractual relationships with several offshore service providers. While the absolute cost savings in offshore outsourcing are compelling, we have been searching for a strategic partnership that not only optimizes our technology delivery efforts f...