RealTime IT News

VerticalNet Gets a Pop from Outsourcing Deal

Business to business software company VerticalNet, Inc. today has formed an outsourcing alliance with IT consulting firm Computer Sciences Corp. and was promptly rewarded by investors.

The duo are expected to tap the discrete manufacturing and industrial business sectors with combined IT services. In afternoon going, shares in VerticalNet were trading at $3.23, up $1.17 or 60 percent from its close. The stock, though, is well-below its 52-week high of $63.37.

As part of the alliance, El Segundo, Calif.-based CSC plans to integrate Horsham, Pa.- based VerticalNet's software, including its commerce and supplier enablement services. The companies said they would also work together on sales and marketing initiatives.

CSC said it intends to train a team on VerticalNet's technology.

The two companies have worked together previously to integrate software into Net marketplaces, including Elastomer Solutions.

Dwayne Spradlin, senior vice president of strategic alliances and corporate development for VerticalNet, said the two companies would identify potential customers for integration services. In particular, VerticalNet and CSC would align a sales pipeline to offer reverse aucitons and software security, among other offerings.

Several weeks ago, VerticalNet agreed to acquire PlasticsNet.com, an online marketplace serving buyers and sellers in the plastics industry. The company manages 59 marketplaces, including PlasticsNet.com.

The B2B space is predicted to grow between $2.7 trillion and $7.3 trillion in the next three years.