$1 billion Cap Gemini, Hydro One deal in the works

A pending e-services deal between Cap Gemini Ernst & Young Canada Inc. and Hydro One Inc., worth an estimated $1 billion, will position Cap Gemini as a major player in the North American energy market, officials say.

Toronto-based Cap Gemini announced Thursday that it has entered contract negotiations to transfer existing Hydro One e-services employees and capabilities over to the IT consulting firm, the company said.

Cap Gemini will be responsible for a range of IT and business process services – including human resources, customer care, and supply chain management – to the Hydro One family of electricity transmission, telecom and energy service companies.

The deal allows Ontario’s energy provider to focus on its core wires business and continue to look to cost-competitive service providers for support, said Eric Morgan, chief executive officer of Cap Gemini Ernst & Young Canada in Toronto.

“Hydro One will provide Cap Gemini a unique critical mass of outstanding technology and energy professionals and infrastructure to better serve the energy industry in North America,” Morgan said in a statement.

The cost-effective arrangement also provides Hydro One’s e-services employees growth opportunities in their area of expertise, said Eleanor Clitheroe, Hydro One president and CEO in Toronto.

“There are certain services that quite possibly be done better by others that we don’t have to retain in-house,” said Hydro One spokesperson Terry Young.

“A lot of our employees have built careers within this company. What we’re trying to do is give them opportunities where they can grow themselves in organizations that are about the businesses they excel in,” Young said.

Hydro One Inc. in Toronto is at http://www.HydroOne.com

Cap Gemini Ernst & Young Canada Inc. in Toronto is at http://www.ca.cgey.com