Affiliated Computer Services F2Q07 (Qtr End 1/31/07) Earnings Call Transcript

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2007-02-13 18:38:53.0

Tags: Affiliated Computer Services Inc.

Question-and-Answer Session

Operator

Thank you, if you would like to ask a question, please press *1.

And our first question comes from Julio Quinteros.

Julio Quinteros - Goldman Sachs

Hey guys, just wanted to focus real quickly then on the commercial side.

Maybe if you can give a little bit of color on where we are in terms of the restructuring, how far along are we if we were to think about it that way? What’s left to do, and more importantly, as you look forward in terms of the work force? But what opportunities are there for redeployment of the current work force, particularly between the onsite and offshore effort mix.

Lynn Blodgett

That’s a great question Julio, and what I’ll do is ask Ann Vezina, the COO of our commercial organization to answer that question.

Ann Vezina

Thanks Lynn. I view, in the commercial business, as is true in the government as well, is that our challenge is to constantly be looking for opportunities to get offshore and to reduce cost. That is something we have to do every single day, it isn’t something we do in one particular quarter or another.

I think, as I look forward in this business, I think we’ve put some structure in place and some processes in place that ensure that we do that on an ongoing iterative basis. So at this point in time?last quarter we did as we talked about, go through a pretty significant restructure. I think at this point in time, we’re in more of what I would refer to as a steady state, steady ongoing cost production as a way of during business mentality, and I think we’ve got that in place effectively.

Lynn Blodgett

Good, and I’ll add on another comment Julio. And that is, considered when you talked about the redeployment of the work force, about 40% of our business is government business, and typically is not as eligible for a lot of offshore. Now we can do some internal forward of our operations, but the actual service delivery to our client in the government space is typically limited.

And so when you look at our head count offshore, you need to factor in that a large percentage of our head count is not eligible to go offshore. If you think about the rest of the business, and the eligible headcount there, when we entered this year, we had a goal of about 30% of moving what was 30% of our current workforce to 40% of the eligible workforce. We’re on track to complete that by the end of the fiscal year.

 

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