Irvine, California (November 20, 2003) - Magic Software Enterprises (Nasdaq: MGIC), a leading provider of state-of-the-art business integration and development technology, announced today that its wholly owned subsidiary CoreTech Consulting Group, LLC, of King of Prussia, Pennsylvania, has closed a new two year $2.2 million contract to provide support services to one of the world?s largest global pharmaceutical companies.
In this outsourcing engagement, CoreTech, a leading provider of Consulting Services and Solutions to the Life Sciences and Financial Services industries, will provide support services to a growing client base which stands today at around 7,000 end-users. Having demonstrated solid technical and service capabilities along with high degrees of flexibility and client focus in past engagements with this customer, CoreTech was requested to widen the dimension of the services it provides and extend the contract for an additional two years.
?Pharmaceutical companies are under pressure to streamline operations, increase efficiencies and improve results while increasing the speed of product development and approval of patents,? said Mark A. Redlus, CEO of CoreTech Consulting. ?We provide the quality outsourced services that enable companies to free up their IT resources to focus on strategic initiatives and business growth.?
By working with CoreTech, this leading pharmaceutical organization has been able to offload a tremendous amount of end-user support from its own IT staff. At present, the CoreTech staff handles close to 10,000 unique service requests per month.
According to analysts at Gartner Dataquest, spending for software and external services in the U.S. pharmaceutical industry will outpace spending for hardware, network equipment and internal services. They have projected that by 2005, outsourced services spending is expected to account for 58 percent of total external spending.
?Lately, we are seeing renewed demand for outsourced IT support services in the USA, especially in highly competitive areas like the pharmaceutical industry,? said Menachem Hasfari, CEO of Magic Software. ?With its expertise in delivering quality support and coordination services, CoreTech is well positioned to continue building its services offerings, and significantly expanding its contractual service agreements with existing and new customers."
Companies interested in finding out more about CoreTech?s project staffing services can visit www.coretech.com or send e-mail to info@coretech.com.
About CoreTech Consulting Group, LLC (CoreTech)
CoreTech, a wholly owned subsidiary of Magic Software, is a leading provider of Consulting Solutions in the areas of Internetworking, Security, Platforms, Business Intelligence, Program and Project Management, Project Staff Augmentation, and Support Services in the Life Sciences and Financial Services industries. CoreTech's clients include enterprises such as GlaxoSmithKline, Johnson & Johnson, Wyeth, SunTrusT Banks, Synovous Financial and many more. CoreTech, which has been named to the Inc. 500 and Deloitte & Touche's Fast 500, is based in suburban Philadelphia. More information about CoreTech may be obtained by calling 800-220-3337.
About Magic Software Enterprises
Magic Software Enterprises, a subsidiary of Formula Systems (Nasdaq: FORTY ), develops, markets and supports software development, deployment and integration technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The Company's North American subsidiary is located at 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone (800) 345-6244, (949) 250-1718, fax (949) 250-7404, http://www.magicsoftware.com/.
Formula Systems is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer-based solutions.
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.