LOS ANGELES, May 7 /PRNewswire/ -- With Philippine President Fidel Ramos
looking on, Robert Buttacavoli, president and chief executive officer of RCG
Information Technology, approved an agreement in principle to acquire a
majority interest in Manila-based Open Systems Philippines Corp. (OSPC).
Terms were not disclosed.
Mr. Buttacavoli made the announcement yesterday during an Information
Technology Trade Mission sponsored by the Philippine Department of Trade &
Industry here. The meeting was attended by representatives from every
information technology service provider in the Philippines and top-level
representatives from business, media and government in the United States.
The purpose of the mission was to showcase the Philippines expertise in
information technology and to position the Pacific Rim nation as a formidable
alternative to other countries as a source of skilled computer technicians and
OSPC will retain its name, and Jojy Azurin -- president and chief
executive officer of OSPC -- will continue in that position where he will
focus on marketing OSPC's products and services.
The acquisition of OSPC will unite one of the Philippines leading
technology systems integration companies with the Edison, New Jersey-based RCG
Information Technology, a global leader in providing cost-effective
information technology solutions to Fortune 1000 companies and specialist in
providing end-to-end Year 2000 solutions. As a result of this transaction,
RCG will substantially increase its offshore capabilities, generating more
cost-effective Year 2000 conversion solutions for its clients.
"The synergism between OSPC and RCG should benefit everyone involved,"
Mr. Buttacavoli said. "Together, we can dramatically increase RCG's offshore
capabilities, create even more jobs for the Philippines' talented labor force,
and strengthen our ability to overcome the Year 2000 labor shortage. At the
same time, we will be able to continue to offer state-of-the art Year 2000
products, services and conversion capabilities to our customers in the United
States and the Philippines.
"The signing of this agreement is a momentous occasion for RCG. With many
members of our work force coming from the Philippines, we have always had
great respect for the country and it citizens. For that reason, we are
particularly delighted to have President Ramos with us today as we take the
next step in our aggressive strategy to become a dominant player in the global
information technology consulting business," said Mr. Buttacavoli.
"OSPC will provide cost-effective programming services for projects
undertaken by RCG's regional offices in the United States," said Chuck
McGlynn, a senior vice president of RCG and head of its fast-growing Year 2000
conversion practice. "While its initial focus will be on providing
state-of-the art Year 2000 project conversion solutions, OSPC also provides a
full spectrum of mainframe client/server technologies. Additionally, OSPC
will be charged with expanding its local and Asian consulting business through
the use of PeopleSoft and other leading edge technological expertise, thus
attracting more global business to the Philippines."
RCG Information Technology, with revenues of $137 million in 1996, a team
of 1,700 consultants worldwide and one of the most comprehensive employee
training and development programs in the industry, experienced a 28 percent
revenue growth over the prior year. OSPC, with 150 experienced consultants on
staff, currently provides consulting and programming services to major Asian
companies. Additionally, the company works on large systems integration
projects for such industry leaders as IBM, NCR, Citibank, Philippines Long
Distance Company and government institutions.
"We are looking forward to increasing our role as a responsible corporate
citizen. RCG has been active in the Philippines for the past 10 years," said
Manny Rodriguez, RCG's vice president for off-shore operations. "As a native
of the Philippines, I am especially eager to begin working with OSPC and the
Philippine government to attract more global business there."
RCG IT is a leader in providing information technology consulting services
to Fortune 1,000 companies. These services include product and application
software development, complete Year 2000 products and services, software
outsourcing, supplemental staffing, client server and emerging technologies
such as SAP and PeopleSoft. RCG is a subsidiary of New York-based Reliance
Group Holdings (NYSE: REL).
SOURCE RCG Information Technology