Possible E&Y Partner Reports Large Losses
A story ran recently on AccountingWeb discussing the possible merger of Ernst & Young's consulting practice with Paris-based computer services firm Cap Gemini. Now, Cap Gemini reports a loss of $87 million in U.S. business.
Cap Gemini says the loss is based, in part, to several cancelled contracts with United Way of America and the U.S. Chamber of Commerce.
The United Way, for example, cancelled its $12 million project with Cap Gemini because the computer systems could not process gifts sent by workers through payroll deductions. In addition, Deloitte & Touche consultants discovered many other problems with the system.
There is no indication that the announcement will impact discussions with Ernst & Young.