ACS Boosts Outsourcing With Intellisource Purchase

By Nick Wakeman, Staff Writer


JUNE 22 ? Affiliated Computer Services Inc. of Dallas has bought the Intellisource Group Inc. of Vienna, Va., in a move that further bolsters the company's outsourcing capabilities.


Terms of the deal were not disclosed, but ACS is picking up about $100 million in additional revenue and customers, such as NASA's Goddard Space Flight Center, the Federal Aviation Administration, the Air Force, Coast Guard and the cities of Philadelphia and Newark, N.J.


"One of Intellisource's greatest attributes is its strong position and focus on enterprise outsourcing," said Bill Woodard, president of Rockville, Md.-based ACS Government Solutions Group. "This acquisition is a vital part of our business strategy to provide an expanded array of services to a larger share of the government market."


The outsourcing market in the federal government is expected to grow from $1.7 billion to $3.3 billion over the next five years, according to the market research company International Data Corp. of Framingham, Mass.


About a third of ACS' $1.64 billion in 1999 revenue came from the government. In addition to the revenue and new customers, ACS also is picking up 680 employees.


"In order to adequately leverage our unique position and take advantage of the market conditions, we needed to become part of a bigger organization," said Michael Berta, president and chief executive of Intellisource.