Corio Corp. is expected to unveil today a partnership with Ernst &Young Consulting through which Ernst & Young will sell and install Corio application service provider software. Ernst & Young, which is awaiting approval for its proposed merger with Cap Gemini, will offer outsourcing services to Corio customers.
The move is strategic for Corio, which filed for its IPO on Friday. It opens a new market to the company, which has previously focused solely on startups and medium-sized companies. Ernst & Young will market the ASP services to its customers with less than $1 billion in revenue, pitting Corio's services more directly against USinternetworking Inc.
With the expanded customer base, Corio says, it will create more tailored and customized versions of its software, using best practices from Ernst & Young to develop repeatable, customized, pre-integrated software. The move may also increase Corio's revenue stream and margins because more customized software means larger service contracts and implementation fees.