Full Description

Affiliated Computer Services, Inc. (ACS), incorporated on June 8, 1988, is a provider of business process outsourcing and information technology services to commercial and government clients. The Company operates in two segments: commercial and government. The Company services its clients through long-term contracts. ACS supports client operations in approximately 100 countries. In December 2008, the Company acquired Grupo Multivoice (Multivoice), a South American-based customer care services provider. In March 2009, the Company acquired e-Services Group International (e-Services), a Caribbean-based business process outsourcing (BPO) and customer care company. In June 2009, the Company acquired VBHG Ltd (Anix). In July 2009, the Company acquired Pharm/DUR Inc.

Commercial Segment

The commercial segment provides business process outsourcing, information technology solutions, systems integration services and consulting services to its commercial clients. This segment is focused on both vertical markets and horizontal solutions. The Company’s horizontal solutions include human capital management solutions (HCMS), commercial education and financial services, finance and accounting (F&A), and information technology outsourcing (ITO).

ACS provides a portfolio of human resources solutions, including consulting and technological solutions. The Company’s HCMS services include buck consulting, total benefits outsourcing, human resources outsourcing and learning process outsourcing (LPO). Buck is a global human resources consulting firm that helps the Company’s clients develop, deploy and manage their human capital. Buck is organized into integrated practice areas, such as retirement, health and productivity, global human resources (HR) technology and administration, human capital management consulting, compensation and communication. The Company’s total benefits outsourcing solution allows its clients to analyze and manage benefit programs, including access to emerging trends and industry expertise. The Company helps its clients redesign, redeploy and restructure their human resources organization, staff and service delivery model. Its service offerings include benefits administration, compensation management and administration, learning services, on-boarding, payroll administration, performance management and administration, processing services, reporting and analytics, self-service tools, succession planning and workflow tools. The Company provides a range of LPO services to its clients, including learning administration and operations, a learning platform, content development services and management services.

The Company’s loan servicing system provides a range of loan services, including inbound and outbound call center services, payment processing, entitlement processing, claim filing, pre-default collections, skip tracing and originations. ACS also provides student financial aid office outsourcing services, including student financial aid counseling, online self-service tools, application processing and disbursement of funds; student enrollment services; tax credit reporting services, including data collection, transmission, management, reporting, fulfillment and mailing, and its document imaging solution, which allows it to process, scan and image borrower correspondence, entitlement forms and other records so they may be available online without the need for special software or hardware.

The Company’s F&A services include order-to-cash services (order management and billing, credit analysis, dispute and deduction, accounts receivable and collections), procure-to-pay services (sourcing services, order management, settlement of invoices, reconciliation of transactions, control/audit services and reporting), payroll processing, travel and expense accounting services, general accounting services (overseeing, coordinating and controlling the accounting records and closing activities of an organization, such as intercompany consolidations and close, account reconciliations, fixed assets, inventory/cost accounting and general ledger services), and treasury and cash management services (including sales and use tax compliance services, other tax compliance activities and several treasury support services that include bank account management and reconciliation, cash forecasting and tax processing). The Company’s F&A solutions utilize its workflow tools.

The Company’s ITO services include data center outsourcing, midrange server outsourcing, network outsourcing, remote infrastructure management (RIM), help desk/service desk management, desktop outsourcing, managed storage and utility computing. It also includes disaster recovery, security services and information technology (IT) commercial services.

Government Segment

ACS provides services to four government markets, which include state and local government, government healthcare, federal government and transportation solutions (TS), which provides services to both domestic and international clients. The Company’s services include technology and business process-based services with a focus on transaction processing, child support payment processing, electronic toll collection, traffic violations processing, program management services, such as Medicaid fiscal agent services, and student loan processing services.

State and Local Solutions (SLS), Federal Solutions and Government Healthcare Solutions (GHS) comprise the government solutions vertical markets within the Company’s government segment. ACS helps state and local government agencies by providing service offerings, such as IT services, child support solutions, electronic benefits transfer (EBT), eligibility solutions, government records management and unclaimed property.

The Company’s information technology services include data center management, application integration and maintenance, network management and security, seat management, helpdesk services and disaster recovery services. ACS provides child support payment processing services, including remittance processing and disbursements, as well as associated employer outreach and client service activities. ACS provides electronic payment services to its clients, including EBT programs, under which its deliver food stamp and cash benefits using a debit-type electronic card. It provides unclaimed property management services and helps its clients identify and collect on property, maintain records databases, and manage claims and customer service.

The Company’s federal solutions service offerings include student loan processing, electronic payment card, administrative services and customer care. The Company provides loan servicing for the Department of Education’s Direct Student Loan program, including consolidation loan processing, debt collection services on delinquent accounts, IT infrastructure operations and support, maintenance and development of information systems, and portfolio management services. ACS leverages its debit or electronic payment card solutions to disburse federal government benefits to unbanked social security recipients under a subcontract with Comerica, Inc. to the Department of the Treasury. It provide mail handling, scanning, electronic document management, government records management and other administrative services to the Social Security Administration and other federal government agencies. The Company offers call management, public service dispatch, online services, emergency incident reporting, project management and IT integration skills to governmental organizations, as well as data centralization and trend analysis.

The Company’s GHS service offerings include health program administration, healthcare and quality management, eligibility and enrollment solutions and pharmacy benefits management. The Company’s TS solutions include electronic toll collection (ETC), commercial vehicle operations, motor vehicle services, photo enforcement and violations processing, public transport, on-street parking, and off-street and airport parking.