Both CTS and Ordina will collaborate to deliver outsourced services as part of a seven-year arrangement with Rabobank Group, encompassing application design, development and testing services. On its part, CTS will manage the onsite/offshore delivery of services.

The two companies - CTS and Ordina - had entered into an agreement whereby the former will become Ordina''s primary strategic partner in the Benelux for offshore solutions. The two companies will jointly offer global delivery solutions for Ordina''s top 40 customers in the financial services, public, industrial and telecommunications markets.

"This agreement confirms our leading position in the ICT and outsourcing market in the Netherlands", said Ronald Kasteel, chief executive officer, Ordina.

According to Francisco D''Souza, president and CEO of CTS, the deal allows the company to extend its long standing relationship with Rabobank via Ordina. "Additionally, our partnership with Ordina further underscores our commitment to expanding CTS'' presence in key European markets and enables the two companies to jointly pursue strategic client relationships through the strength of our combined business models."

Meanwhile, CTS posted an impressive first quarter result with revenue going up by 61 per cent to $460.3 million as compared to the previous year''s first quarter revenue of $285.5 million. The GAAP net income was $75.4 million for the first quarter this year as against $47.2 million of the previous year''s corresponding period.

According to D''Souza, the company generated strong momentum in newer verticals, especially in retail, manufacturing and logistics. "We also experienced escalating demand across our solution offerings, particularly ERP, testing and business process outsourcing."

Based on current visibility, CTS is providing the following guidance:

— Second quarter 2007 revenue expected to be at least $500 million.
— Second quarter 2007 diluted EPS expected to be $0.51 on a GAAP basis, and $0.56 on a non-GAAP basis, which excludes the impact of stock-based compensation expense of $0.05.

— Fiscal 2007 revenue now expected to be at least $2.07 billion.

— Fiscal 2007 diluted EPS expected to be at least $2.13 on a GAAP basis, and at least $2.34 on a non-GAAP basis, which excludes the impact of stock-based compensation expense of $0.21.

—Total headcount by end of 2007 expected to be approximately 55,000, reflecting the company''s plan to increase utilisation throughout the remainder of the year.

"In response to the appreciation of the Indian Rupee during the first part of 2007, we continue to focus on managing our business for long-term growth while delivering value for our shareholders through financial performance within our target operating margin range. Based on our strong financial performance in the first quarter and the positive demand environment, we are pleased to raise our guidance for full-year 2007," said chief financial and operating officer Gordon Coburn.

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