Digital Fuel wins contracts with industry giants

The BSM start-up has started strongly in 2008.

Business services management (BSM) solutions start-up Digital Fuel Technologies Inc. has signed three contracts, which are expected to generate $9 million revenue. The customers are IBM Corp. (NYSE: IBM), Unisys Corp. (NYSE: UIS), and Xansa plc (LSE: XAN).

Two weeks ago, Digital Fuel signed three contracts worth an aggregate $18 million with two telecommunications firms. Taken together, the company appears to have gotten a strong start to 2008. The company reportedly posted $40 million in sales in 2007, so the new contracts are substantial for the company and help consolidate its position in the IT outsourcing industry.

Digital Fuel president and CEO Yisrael Dancziger and partners founded the company in 2000. The company has raised $35 million from Israel Seed Partners, Benchmark Capital, Apax Partners, and Sigma Capital.

In the agreement with IBM, Digital Fuel will increase the use of the business services management division. IT services company Unisys selected Digital Fuel's product as a core component for its business services and technologies package being offered to customers, including US government agencies. Business services outsourcing company Xansa has made Digital Fuel's software as standard in the human resources, finance, and administration services packages offered to customers.

Dancziger said that the contracts were "a clear sign of the business flow we expect in 2008."

Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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