Hydro One Enters 10-Year Outsourcing Agreement

Hydro One Networks Inc. entered into a 10-year outsourcing services agreement with Inergi LP, an affiliate of Cap Gemini Ernst & Young Canada Inc. (CGEY Canada), effective December 28, 2001. Under the agreement, Hydro One outsourced its customer service operations, information technology, supply management, human resources and finance and accounting services, and transferred the employment of approximately nine hundred union and management employees to Inergi. Inergi, in turn, subcontracted the performance of certain call centre services to Vertex Customer Management (Canada) Limited. Base service fees over the term of the outsourcing agreement are valued in excess of $1 billion.

Ken Hartwick, senior vice-president, and Michael Sheehan, vice-president, corporate services, Hydro One, directed the transaction. Legal negotiations on behalf of Hydro One were led by Osler, Hoskin & Harcourt LLP’s outsourcing team that included Richard Coleman, Daniel Logan, Richard Pratt and Mark Austin. Rhonda Wise and Cassidy McFarlane, in-house counsel, Hydro One, provided ongoing legal assistance on all aspects of the transaction. Employment matters were negotiated by David Gavsie of Ogilvy Renault and Joseph Agostino, assistant general counsel, Hydro One.

Inergi was represented by Stephen Power, CGEY Canada, and Paul Abel, CGEY US. Legal negotiations were handled by David Zarfes, executive vice-president and general counsel, CGEY for the Americas; Nishan Swais, associate general counsel, CGEY for Americans resident in Canada; and by Stikeman Elliott with a team that included Richard Clark, Martin Langlois and Tim Chubb (technology and outsourcing), with assistance from John Lorito (tax), Gary Nachshen (pensions and benefits) and Julie Thibault (employment and labour).

Vertex was represented by Philip Holden, senior commercial manager, and Kathy Fenton, commercial manager, Vertex Data Science Limited; John Berrington, president and chief operating officer, Vertex Customer Management (Canada) Limited; and by a legal team that included Gabe Takach and Tamara Kronis of Torys LLP, with assistance from Rachel Vickery, in-house counsel, Vertex Data Science Limited, and Hugh O’Reilly (employment, pensions and benefits) of Torys.