equaterra
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equaterra provides advisory services in information technology and business process transformation. equaterra is headquartered in houston, texas. equaterra has a revenue of $ 78. 5m, and 300 employees. equaterra has 31 followers on owler .
equaterra provides advisory services in information technology and business process transformation. equaterra was founded in 2003. equaterra' s headquarters is located in houston, texas, usa 77056. equaterra has an estimated 300 employees and an estima ...
owler has collected 9 screenshots of equaterra' s website since jun 2014. the latest equaterra website design screenshot was captured in sep 2016 .
sridhar vedala, former managing director - global sourcing at equaterra, inc. - relationship science
timothy p. flynn, chairman, kpmg international, said :
equaterra is an ideal fit for kpmg and we look forward to welcoming the equaterra team to the kpmg network family .
equaterra and tpi, inc. today announced the signing of their merger agreement. closing is anticipated later in february 2006 .
equaterra, the top ranking full service outsourcing and offshoring advisor in 2007, has earned the lead position due to its continuous focus on educating current and prospective buyers on how to evaluate internal it and business processes, and successfully engage and manage outsourcing relationships. equaterra
equaterra is ranked no. 2 on the international association of outsourcing professionals' recent 2010 list of the world' s best outsourcing advisers
yes - that happened. we just had the biggest shakeup in the outsourcing advisory market since kpmg' s acquisition of equaterra in 2011 .
equaterra' s advisors are defined by their ability to work collaboratively with clients to reduce costs and improve performance in their internal business support functions .
[... ] equaterra + kpmg – a new era, or a new miscalculation & # 10... [... ]
may 2, 2005 (plansponsor. com)  equaterra, a outsourcing and insourcing advisory firm, has launched equaterra public sector llc (eqps), a subsidiary to help public sector organizations evaluate outsourcing, shared services or a blended sourcing model for hr, finance & accounting, it, crm and procurement .
[... ] by cliff justice, finished in second place – a strong showing and justification of their 2011 acquisition of equaterra. click to [... ]
today equaterra' s clients include a mix of the global 1, 000, multinational corporations, local companies, and large public sector and not - for - profit organisations .
equaterra, houston jolie newman, 407 - 677 - 8404 jolie. newman @ urltoken or gina blackie, + 44 (0) 7775 521 487 gina. blackie @ urltoken
* equaterra was founded by mark toon, mark hodges en david karabinos, in houstonin 2003. between 2003 and 2011 the consulting firm grew quickly to become one of the leading global players in the area of sourcing and business process excellence. in februari 2011 equaterra was absorbed by kpmg, approximately 300 advisors stepped over to the big 4 office globally .
[... ] week’s outsourcing advisory bombshell wedding between kpmg and equaterra may well prove to be a turning point in the way buyers are serviced in [... ]
equaterra 150 minories london ec3n 1ls united kingdom + 1 713 470 9812 (americas) + 44 845 838 7500 (europe) + 44 845 838 7600 infoeuapac @ urltoken www. urltoken
prior to his new role, giles served as senior vice president at waypoint, a strategy and management consulting firm. between 2007 and february 2009 he was vice president of client services at equaterra (in february 2011 kpmg advisory bought equaterra). in the years before, he was chief operating officer at the district of columbia and held senior positions with idea integration and ernst & young .
through objective, independent advice, equaterra delivers sustainable value with a return on investment that usually occurs within three to six months of your improvement initiative launch, with payback often exceeding 20 times the investment .
equaterra recently completed its second - quarter pulse surveys with those on the front lines of the bpo industry—its own global advisors and the industry’s service providers, and the results are surprising for the hro market .
equaterra is an ideal fit for kpmg and we look forward to welcoming the equaterra team to the kpmg network family ,
said timothy p. flynn, chairman, kpmg international .
through this acquisition, clients of kpmg member firms will benefit from the addition of a market - leading sourcing adviser to help them transform their organizations into more flexible enterprises in a way that meets today' s complex market demands .
equaterra sourcing advisors help clients achieve sustainable value in their business and it processes. with an average of more than 20 years of industry experience in over 600 global transformation and outsourcing projects, our advisors offer unmatched industry expertise. equaterra has deep functional knowledge in finance and accounting, hr, it, procurement and other critical business processes with advisors throughout north america, europe and asia pacific. we help clients achieve significant cost savings and process improvement with outsourcing, internal transformation and shared services solutions. for more information on equaterra, please contact lee ann moore at 713 - 669 - 9292; leeann. moore @ urltoken; www. urltoken .
equaterra has prior experience in the public sector market, having previously advising groups such as the us navy, us army, california state university and the new york city department of education, on a range of sourcing matters .
equaterra sourcing advisers help clients achieve sustainable value in their it and business processes. their advisors average more than 20 years of industry experience and have supported more than 2, 000 transformation and outsourcing projects across more than 60 countries .
equaterra provides expert advisory services in information technology (it) and business - process transformation. we help companies significantly reduce costs and improve effectiveness and efficiency through internal process delivery improvements, shared services, outsourcing and global sourcing solutions .
kpmg’s recent acquisition of equaterra signals some new dynamics in the market for outsourcing advisory services. the acquisition creates an intriguing combination of capabilities encompassing high - level consulting services for tax, supply chain management and it strategy with equaterra’s proven outsourcing transaction strengths. moreover, it confirms a mini - wave of industry consolidation following tpi parent company’s information services group (isg) acquiring long - time benchmarking specialist compass (more recently, isg acquired public sector specialist sta consulting) .
equaterra is an ideal fit for kpmg and we look forward to welcoming the equaterra team to the kpmg network family
, said timothy p. flynn, chairman, kpmg international .
through this acquisition, clients of kpmg member firms will benefit from the addition of a market - leading sourcing adviser to help them transform their organizations into more flexible enterprises in a way that meets today' s complex market demands .
mark toon, former chief executive officer of equaterra and current kpmg llp principal, said that the deal adds value for clients of both organizations .
joining a network with kpmg' s capabilities and global scope provides great opportunities for our employees and clients
, toon said .
kpmg' s extensive sourcing experience, its big four market presence, and its reputation for relentless execution is an ideal complement for equaterra' s business transformation capabilities and highly respected reputation in the shared services and sourcing advisory sector .
[... ] her trade with kpmg’s shared services and outsourcing advisory group, having come across with the 2011 equaterra acquisition, having earned her stripes in the pharmaceutical, chemicals and life sciences industry with ibm [... ]
[ … ] in grand rapids michigan. the firm has done an impressive job developing the ip and technology acquired from equaterra and coupling its governance consulting talent to its clients, as and when they need it, under its [ … ]
[... ] team from 10 people to 65 professionals including myself. that’s when we acquired equaterra (see post). we brought in about 250 consulting professionals around the world in 2008 and since then we’ve [... ]
equaterra provides support across the entire process improvement lifecycle, from strategy and assessment through to solution design and implementation, benefits realisation, and ongoing improvement and governance. we can guide clients through the entire journey, or any step along the way .
mark toon, former chief executive officer of equaterra and current kpmg llp principal, said that the deal adds value for clients of both organizations .
joining a network with kpmg' s capabilities and global scope provides great opportunities for our employees and clients ,
toon said .
kpmg' s extensive sourcing experience, its big four market presence and its reputation for relentless execution is an ideal complement for equaterra' s business transformation capabilities and highly respected reputation in the shared services and sourcing advisory sector .
now, we see kpmg llp (us), kpmg holdings limited (uk) and kpmg international now aquiring outsourcing advisory firm equaterra in an effort to create a broad global sourcing and shared services advisory offerings across the americas, europe and asia pacific .
[... ] in grand rapids michigan. the firm has done an impressive job developing the ip and technology acquired from equaterra and coupling its governance consulting talent to its clients, as and when they need it, under its [... ]
we cannot find any source for valuation of equaterra but would imagine that the transaction was in the hundreds of millions of dollars. that leaves tci still operating in the f & a, hro and bpo space, which we hear deloitte is very interested in .
[... ] this post was mentioned on twitter by naomi bloom, ronfriedmann, phil fersht, phil fersht, theanalystunion and others. theanalystunion said: equaterra + kpmg - a new era, or a new error for outsourcing advisory? urltoken via [... ]
combining kpmg' s practice and equaterra, two of the world' s top - ranked global sourcing organizations, the transaction is consistent with the kpmg network' s growth strategy, focusing on organic and inorganic opportunities in select high - demand market sectors. terms were not disclosed .
kpmg llp (us), kpmg holdings limited (uk) and kpmg international today announced the closing of an agreement to acquire the business of advisory firm equaterra. the acquisition creates one of the broadest global sourcing and shared services advisory offerings across the americas, europe and asia pacific .
equaterra was the top ranking full - service outsourcing adviser in 2007, in part for the houston, texas, company' s well - defined outsourcing governance best practices. virginia - based paceharmon was ranked as the top adviser among boutique firms, which support clients with highly specialized services .
equaterra advisors and service providers were in agreement, however, on which of the process areas within hr ranked the highest: payroll (79 percent of advisors; 64 percent of service providers), benefits (78 percent versus 43 percent) and hrit (53 percent versus 71 percent) .
these quarterly surveys, which commenced in 2004, offer in - the - field insights into sector trends and projections. each quarter, nearly 100 equaterra advisors and approximately 20 service providers answer our questions on the ito and bpo markets on a proprietary and confidential basis. here are the latest findings .
after five consecutive quarters, the moderate, sequential decline of outsourcing market demand has stopped. more than half (55 percent) of equaterra’s advisors cited demand as increasing (versus 40 percent in the previous quarter) as did 67 percent of service providers (versus 59 percent in the first quarter. )
the mini - wave of consolidation may seem paradoxical given that growth has returned to the outsourcing marketplace. forrester believes the overall market for such services will grow 7. 1% to $ 254b this year. if the outsourcing market is again growing, why are the winds of industry consolidation blowing? although the opportunity is broadening, large mega - deals that firms like tpi and equaterra grew to prominence on are getting scarcer and scarcer. moreover, clients are taking a more holistic view of outsourcing alongside evaluating shared services and other organizational dynamics, creating the need for a broader value proposition extending beyond transactional services. although many outsourcing advisory firms have gone down this path with strategy and research services, the kpmg - equaterra combination creates an unusually strong combination. kpmg, which heretofore had lagged principal competitors pwc and deloitte in the scale of its outsourcing advisory service, should benefit substantially from the addition of equaterra’s resources and capabilities .
recently kpmg announced it launched a fund aimed at investing in new technologies, like big data and analytics. with the move it embarks ground that no other big four firm has gone before – the land of technology investment. meanwhile it is known that kpmg capital will be led by former equaterra ceo mark toon .
big four firm kpmg has announced the closing of an agreement to acquire the business of advisory firm equaterra. according to a company announcement, the acquisition is consistent with the kpmg network' s growth strategy, focusing on organic and inorganic opportunities in select high - demand market sectors. terms of the acquisition were not disclosed .
the name
equaterra
means
level ground ,
which aligns well with kpmg' s philosophy of providing an objective sourcing and shared services advisory approach. this is also consistent with kpmg' s focus on bringing clients and service providers together in a collaborative environment to create innovative delivery models and provide sustainable value to the business .
equaterra is ranked no. 2 on the international association of outsourcing professionals' recent 2010 list of the world' s best outsourcing advisers. it serves clients throughout the americas, europe, middle east, africa and asia pacific, providing deep functional knowledge in finance and accounting, hr, it, procurement and other critical business processes .
outsourcing pricing in the second quarter was cited as “stable” by 63 percent of equaterra’s advisors, while 15 percent cited pricing as more favorable to service providers. this pricing environment has allowed service providers to be less reliant on dropping their prices to win business. this pricing equilibrium between buyer and provider is healthy for the industry as a whole .
equaterra is ranked no. 2 on the international association of outsourcing professionals' recent 2010 list of the world' s best outsourcing advisers. it serves clients throughout the americas, europe, middle east, africa, and asia pacific, providing deep functional knowledge in finance and accounting, hr, it, procurement, and other critical business processes .
glenn giles, an alumnus of equaterra, has been appointed as ceo of privia. privia is an american - based company that supports customers with proposal management services and solutions for the public sector. giles will be responsible for the company' s full operations and will focus specifically on growing the firms' market share in the u. s .
with offices throughout north america, europe and asia pacific, equaterra has deep expertise in finance and accounting, hr, it, supply chain management and other critical business processes. our advisors, who have on average more than 20 years of industry experience, have supported more than 2, 000 process transformation and outsourcing projects across more than 60 countries in 19 languages .
the name
equaterra
means
level ground
, which aligns well with kpmg' s philosophy of providing an objective sourcing and shared services advisory approach, according to the company announcement. this is also consistent with kpmg' s focus on bringing clients and service providers together in a collaborative environment to create innovative delivery models and provide sustainable value to the business .
equaterra, inc. provides advisory services in information technology (it) and business process transformation. it offers advisory services in the areas of finance and accounting, human resources, information technology, real estate services and facilities management, supply chain, procurement, business processes and shared services. the c ompany was founded in 2003 and is headquartered in houston, tx .
the delve brand index for human resources outsourcing also contains information on the ever - important sourcing advisors as well as articles written by insiders at important hro players such as accenture, hewitt, excelleratehro, equaterra, and alsbridge. because this report is built on getting key market constituents to frankly discuss the industry, the report is likely to raise more than a few eyebrows .
as organizations transform their operations to compete in today' s complex business environment, equaterra' s highly experienced professionals, combined with the kpmg network' s deep market presence and objective shared services and outsourcing advisory team, will provide clients with a full life - cycle of capabilities - from strategy through to optimization - for companies seeking to reduce costs and improve effectiveness and efficiency .
but cutting to the chase, these firms have some seriously experienced fellows who know this business inside and out. they know what they are doing and i would be highly surprised if we see a repeat of the now infamous
veritage
, when equaterra and tpi failed to tie the knot after some very expensive offsites (and had chosen the lovely name
veritage
) .
as organizations transform their operations to compete in today' s complex business environment, equaterra' s professionals, combined with the kpmg network' s deep market presence and shared services and outsourcing advisory team, will provide clients with what kpmg is calling a full life - cycle of capabilities - from strategy through to optimization - for companies seeking to reduce costs and improve effectiveness and efficiency .
equaterra is known for its collaborative approach and culture. we recognise that our clients have complex business issues and requirements, which is why we have a flexible methodology and a solution orientation that enables us to focus on the unique needs of our clients, never looking for a one - size - fits - all solution. we simplify the complicated to help you focus on what is most critical to your business .
in contrast, among service providers, hro remained the leading process area (cited by 53 percent), followed by fao (24 percent), and procurement (12 percent). the disparity of rankings between equaterra advisors and service providers is a function of marketplace demand, the focus areas of the advisors, and service providers polled, and a slightly different ranking methodology required by advisors versus service providers .
john griffith - jones, co - chairman, kpmg europe llp, said the acquisition will allow kpmg member firms to help clients manage large scale, cross - border transformation efforts .
kpmg member firms provide a full suite of services for enterprise executives seeking to optimize their organization. the acquisition of equaterra complements these existing capabilities and deepens kpmg member firms' shared services and sourcing expertise, intellectual property and services .
so there are the usual statements on strategy / presence / client service / capabilities urltoken the press release from timothy p. flynn, chairman, kpmg international; mark toon, former chief executive officer of equaterra and current kpmg llp principal; john veihmeyer, kpmg llp (u. s .) chairman and ceo; and john griffith - jones, co - chairman, kpmg europe llp, which we will skip .
john griffith - jones, co - chairman, kpmg europe llp, said the acquisition will allow kpmg member firms to help clients manage large scale, cross - border transformation efforts .
kpmg member firms provide a full suite of services for enterprise executives seeking to optimize their organization. the acquisition of equaterra complements these existing capabilities and deepens kpmg member firms' shared services and sourcing expertise, intellectual property, and services .
@ jd - never really saw either isg or alsbridge as powerhouses in bpo - which was why equaterra was originally formed. in my view, the new isg would be better served focusing on rpa at this stage, which is the
new bpo
for so many clients. they will need to add to their process and technical capabiities to really move this forward; rpa is murky, and technical and plagued with misinformation .
equaterra was founded in 2003 by mark toon, mark hodges and david karabinos. this is a number two ranked company in the international association of outsourcing professionals’ 2010 list of the world’s best outsourcing advisers with global clients and providing deep functional knowledge in finance and accounting, hr, it, and procurement. the firm’s highly - experienced sourcing advisers help clients achieve sustainable value in their it and business processes; having helped 2, 000 transformation and outsourcing projects in 60 countries .
ito, hro and…procurement? demand trends by process area shifted in the three months from april to june. among advisors, demand for hro slipped to third (marking the first time in six quarters that hro wasn’t cited as the no. 1 process area), with ito taking the leading slot and procurement bpo moving into second place. equaterra advisors’ citings on these three process areas were 28 percent for ito, 25 percent for procurement, and 20 percent for hro .
sales - cycle lengths vary significantly by deal, depending on process areas, clients, service providers, and whether sourcing advisors were involved. sales cycles should not be confused with “time - to - contract, ” which is defined as the period from the release of the rfp to actual contract signing. in the quarter, 26 percent of equaterra advisors (compared with 30 percent in the previous quarter) cited a lengthening sales cycle, and 64 percent of advisors said the cycles remained the same .
great article, phil. i appreciate the insights and historical perspective of the advisory business. having had the pleasure of working with quite a few folks from equaterra over the years, i agree whole - heartedly that the experience they bring to the table is the real value. nothing replaces the knowledge / perspective that comes with having lived through outsourcing deals from all sides (buyer, provider, advisor), which the folks i worked with all had. thanks again and keep up the great work !
the firm touts synergies: equaterra’s highly experienced professionals can leverage kpmg network’s deep market presence to provide clients with a full life - cycle of capabilities – from strategy through to optimization, especially for organizations who want to reduce costs and improve effectiveness and efficiency. in addition, equa terra’s broad geographic and industry - specific footprint will enhance kpmg’s own professionals help clients transform their service delivery models and address change management issues, centralize and optimize capabilities, outsource functions, and create a sustainable governance and performance management model .
note that equaterra is not the outsourcer itself, as far as we can gather. it is the quintessential (but very successful) middle - man consultant. it provides advisory services in information technology (it) and business process transformation helping clients reduce costs and improve effectiveness and efficiency through internal process delivery improvements in data center consolidation, application optimization and rationalization, cloud and saas computing, shared services, outsourcing and global sourcing solutions. so they tell clients what to do, but not do the doing themselves .
john veihmeyer, kpmg llp (u. s .) chairman and ceo, noted that the acquisition helps address changing client needs as the outsourcing services market continues to evolve .
equaterra' s tools and capabilities speak directly to clients' desire to move beyond one - off outsourcing activities and develop comprehensive sourcing strategies that deliver real value across their organizations ,
veihmeyer said .
this is part of our strategy of building large - scale transformation capabilities to help organizations as they address the realities of a new global marketplace .
john veihmeyer, kpmg llp (u. s .) chairman and ceo, noted that the acquisition helps address changing client needs as the outsourcing services market continues to evolve .
equaterra' s tools and capabilities speak directly to clients' desire to move beyond one - off outsourcing activities and develop comprehensive sourcing strategies that deliver real value across their organizations
, veihmeyer said .
this is part of our strategy of building large - scale transformation capabilities to help organizations as they address the realities of a new global marketplace .
formally kpmg capital is based in london, yet its final control will be led by mark toon, who is based in houston, usa. the choice for houston as a headquarters primarily has more to do with toon’s location. he has his roots in houston (in 2003 toon was co - founder of equaterra in houston *) and will also in the coming period continue to operate from the american city known for the lyndon b. johnson space center of the space agency organization nasa. this city brings a competitive advantage to the fund .
what was amazing, was the sheer speed with which eq caught up their industry to become, initially, the leading advisor for hro and f & a bpo engagements, while quietly developing its competency in ito. from there, the firm had excited glen davidson so much, he publicly resigned from his accenture job during an awards dinner acceptance speech to announce the establishment of
equaterra' s public sector
organization. from that moment on, the firm knew no bounds, establishing its software process evaluation tool, equasiis and taking over morgan chambers' european advisory organization. they even reached the spectacular heights of doing some research with us !
equaterra, or
eq
as they are commonly known in the trade, has formed part of the heartbeat of the sourcing industry over the last eight years. when three frustrated tpi consultants had finally despaired of their employer ever
getting
bpo, they snuck off to set up their own shop, coined a goofy name, convinced all their buddies to take a leap of blind faith with them, before stripping off at a luau and shaking their booties at their unsuspecting followers. yes, these guys were clearly on a path to building a multi - million dollar global advisory outfit that would be submerged into a highly respected auditor and management consultancy .
some really good comments in terms of the article as well as the responses. each of us has our pet favorites but any wise person will make use of all data points in order to glean the current realities. from my workings with equaterra & kpmg, they have held my respect on both a quantitative and qualitative base. whereas others treat analysis as a commodity and in a changing market place this creates a weak foundation for expert advisory. the issue is that you can have an office in a foreign location but that does not mean is has a keen sense on the local pulse... especially when hindered by western command and control operations .
djfii is right that advisory for most places means anything outside of audit and tax, but all of the big 4s do have some sort of a strategy practice that is embedded within sector teams, i. e. o & g, healthcare, etc. e & y and kpmg also have a strategy consulting practice that is housed within
performance improvement
group or risk. also some people would consider performance improvement to be
strategy
and all of the big 4 offer that service. kpmg, pwc and e & y are on an acquisition spree right now to rebuild their consulting arms after they cut them loose in the 90s. e & y acquired partake consulting and isa consulting, kpmg acquired analytica and equaterra, and pwc acquired diamond. if you do go the big 4 route, make sure you get staffed in a group you like that shows you' re interested in strategy work etc .
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meanwhile, the leading management consultancies were still raking in so much coin selling shared services advisory engagements, it was easier for many of them to advise their clients against outsourcing, than actually help them through a sourcing evaluation process. why risk your $ 20m - a - year engagement doing shared services improvement for a $ 1m project to look at outsourcing ?
so the management consultancies realized they need to poach the specialists from the boutiques, but were in for a rude awakening when they discovered how much the top talent at alsbridge, eq, everest, tpi et al. were raking in. plus, these guys were a unique breed - they actually liked the boutique culture, along with the specialism and ip their firms were generating. bottom - line, these boutiques didn' t fit their compensation models or their cultures. add to this the fact that
outsourcing
had always been something of a dirty word, and poorly understood by the other consulting practices. hence, it was pretty clear, as long as five years' ago, that the best route into the outsourcing game for some of the management consultants was to do the unthinkable and actually acquire one of these boutique firms .
they have persisted with the mba - model, which just doesn' t work with complex outsourcing deals. several management consultancies have struggled to understand why they can' t stick a team of 26 - year old mbas onto their clients to crunch through a deal, while the boutiques have a cost structure that enables them to put experienced
workmen
with genuine deal experience, whose rates are often cheaper. and while you can get away with some juniors on ito deals, with bpo you actually need experienced process experts - not kids .
outsourcing is still something relatively new and foreign to their classical consulting practices. outsourcing of it, and more recently business processes, has grown rapidly over the last decade and many of the consultancies have been slow to adjust. only now are they recognizing they need this competency, or risk getting edged - out of long - standing clients who are morphing into global outsourcing operating models .
the
hire the leader
tactic to build competency has largely failed. in years gone buy, if niche consultancies were overpriced, the large shops would simply hire the top one or two partners, safe in the knowledge their main delivery guys would follow. this just hasn' t worked too effectively with boutiques, as the top outsourcing advisory talent is well - paid and happy in their boutique environment. plus the fact there are literally only a couple of dozen real
market makers
in the outsourcing advisory space worth hiring .
the boutiques have wanted too much money. some of the boutiques today will be wishing they took offers on the table before the recession, as the consolidating and commodotizing market has knocked down the market value considerably. however, with eq now out of the frame, there are only a small handful remaining with sufficient scale and ip, and these firms will have renewed hope they can cash - out sometime soon .
* the outsourcing advisory business is all about talented people, experience and relationships. what has impressed me most about this deal is the fact that kpmg has created 17 new partners from the eq organization. these people have stuck together for years, have considerable ip, experience and relationships, and are moving over to this new environment together .
* it would have been extremely messy if kpmg had tried to hire away these folks one - by - one. they have retained the top talent and have created careers for them within their organization .
* quite simply, there is a really bad (and worsening) talent shortage in our industry, and kpmg has just snapped up a good portion of it in one full swoop .
* now their challenge is to integrate eq and create a culture the new partners and their teams can get used to. retaining the core team is critical to the success of this venture. if they can do that well, they will likely have recouped their investment in a few short years, not to mention the new client relationships they can forge as a result of their extended competency .
* if kpmg can' t keep it' s new partners happy and there is a mass exodus, then this acquisition will have failed. having hired a close - knit group, it does run that risk, and needs to work hard to integrate the eq people. this merger is all about talent and ip - and they are intertwined .
* kpmg is also very excited about this and took a long, hard look before they took the plunge - it is a big, big deal to them and they have put a stake in the ground to show how serious they are about this business. the firm has clearly chosen this space as the one they want to lead, and should be applauded for making a bold move that none of their competitors have (so far) chosen .
the one
prize
boutique left on the market is tpi, even though it can hardly be called a boutique anymore, with its new - found alignment with compass. the outsourcing market will have a solid year and its valuation should start to pick up, so i would surprised if any of the large consulting firms, such as deloitte and pwc, makes a serious move this year .
my prediction for 2011: we now have 4 major players, and they' re no longer boutiques: deloitte, kpmg, pwc and tpi. providers will have to re - evaluate their influencer strategies, as more intricate and finessed relationships are required. the old
referral
model is pretty much dead. the remaining boutiques, namely alsbridge and everest, should be able to pick off more business, now they have less competition, and can take better advantage of their more flexible cost structures. yes, we have a sea - change in the industry, but the buyer still has choice and we have better integration of the traditional consulting model and the boutique methodology .
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what are ur ideas about my career track? please help me & # 8230; & # 8230; .. ? | business outsourcing
phil - good article on eq and kpmg. . and one point that you might want to think about which you aluded to at the start of your article is the
capative shared service versus outsourcing
... as if you are doing the advisory work up front - like the case for change, and you are inside an organisation like kpmg - there is pressure to go with a
make
decision - as then you get follow on consulting work. . if you recommend
outsource
.. then where does kpmg make its money? one of the things i worry about... good thoughtful article - thanks for writing
providers will have to re - evaluate their influencer strategies
...
not always, if providers influence end - users directly with repeatable success ...
this is the best - and most well thought - out - synopsis of the advisory business i' ve ever read. thanks for putting together !
essentially, some clients are going to outsource regardless, and advisors who want to
stay
with them post - transaction need to sufficiently up their game to provide ongoing value to clients. the consulting opportunity for a client after outsourcing is huge :
think about the impact on their processes, people and technology; think about the potential to introduce cloud computing; think about the opportunity to help the client focus on core value, and less on administrivia; think about the opportunity to develop smarter service integration strategies; think about the chance to help them develop innovation roadmaps; think about the ongoing support to help them develop effective social business models in a globally distributed environment .
both eq and tpi (as examples) have put investment and talent into developing governance and relationship management services for their clients. however, they' ve learned quite quickly that it' s hard to monetize these services without providing real
business support
beyond help around the contract itself. this is why the potential of integrating the traditional consulting world and the niche knowledge of the outsourcing boutique is potentially dynamite (if they can get the integration right )
mary sue asks - where do advisory firms make their money post outsource decision? great question - particularly if you have just bought one .
there are many opportunities for advisors to add value to both service consumers and suppliers post deal .
service delivery needs to me more flexible than even the best contractual based relationships can provide for .
cloud means sourcing models are becoming more' open' - not a case of either outsourcing or build but bits of both plus some enhanced technology and automation .
what may be difficult for the bigger players is these change management opportunities may well be more suited to the rising group of niche players coming through to take on the established specialists - especially beyond the traditional us / uk heartland of bpo advisory .
just wanted to chime in with alain... this was fantastically well written piece. it' s a breath of fresh air to get this kind of detailed analysis .
one of your best ever posts, phil. this made my day - such a good analysis of the situation ,
you couldn' t have nailed this one any better. a big sea change is happening with the consulting business and this is a bold move by kpmg to exploit the expertise needed to take advantage of it .
so... where does this leave advisory? ?? i believe that the consumers need to start demanding more from those that are providing insight and guidance. maybe be willing to engage qualified boutique organizations that don' t simply measure what is happening but can engage at both a tactical and strategic level. at the end of the day buyers have a business to run and do so in a sound and responsible fashion .
i have a slightly different take on 2 aspects of this article: 1) i dont think advisory firms make the margins from putting together outsourcing deals as they used to be able to. the buyers are much more sophisticated than they used to be, and the suppliers too are better at demonstrating greater value to prospective buyers directly. the role of the advisor is more limited, especially in the current round of contract renewals which form a fair chunk of new outsourcing work. i think it is too simplistic to believe the advisory firms want a bigger chunk of the growing outsourcing pie, and therefore, the justification for this and potentially other mergers. 2) i dont believe advisors in this space can afford to be either only outsourcing or only shared service advisors as this article and some comments seem to suggest. in fact advisory in this space is evolving to help clients think of the wholistic service portfolio approach of how to best deliver services. it is about helping the client develop and manage the operating and delivery model that is best for them, and use shared services and outsourcing as elements of that model, not just one of the other. so, good advisors will continue to play a role whether clients outsource or build shared services, and is happening in many cases, do both .
it will be interesting to see if kpmg can leverage this model to asia pacific. to date it has been a very difficult market for outsourcing advisors. several have entered, most have left. even australia one of the most mature ito markets globally has struggled to sustain providers. if they can get the model correct, kpmg may have a chance .
@ av: completely agree on both points. the boutiques are overly - focused on the transaction (even though some of them claim not to be, but that' s how they make more of their money). the consultants need to offer the blended expertise of all sourcing areas across shared services, captive, outsourced and inhouse operations. plus they need the finessed client skills of the classical consultants blended with the hard - nosed operational knowledge of the outsourcing experts .
the big problem is that as the contractual process, (the price benchmarks, the tc and cs etc) becomes increasingly standardized, and the skills of the buyers' procurement and governance staff increase, the fees the advisors can command go progressively down. for example, why bother using an advisor when outsourcing a very established outsourced service such as payroll, or even adm? all the providers have standard service cards now - it' s more a case of the buyer having decent negotiation skills…
@ pf exactly. in fact, i think the demand for advisors as this space evolves will continue to blend with the more traditional performance improvement, and business effectiveness consulting, with shared services, outsourcing, insourcing, being tools in the consulting toolkit. i think we will continue to see the big 4 build strategy and performance improvement skills, and the traditional strat firms get better at using the sourcing toolkits. i believe there is a lot more to come in this space .
well summarized article phil, i have always wondered why i don' t see big four firms on many of the outsourcing deals in my space. this proposes at least one motive for them to not push for outsourcing services and connected advisory services. i' ll give you another one they might not have though of: how many large enterprise businesses want extremely well networked big four leadership and board members to know how much and what they are sending offshore? if i innovate with partners that is my secret sauce and i don' t want to share how and who is doing it with me, so the answer is, i think, not many. it may be interesting for clients to use small and private boutiques for that exact reason, the old adage: if a tree falls in the forest does it make a sound ?
phil - great article and dialogue on this key topic! as i look at this i wonder when the advisors will realize that the next goldmine is for them to also take on change management programs to help their client drive the huge change opportunities outsourcing offers to them. this is so under valued and missed by many. as this marketplace continues to evolve with increasing speed, those that can execute on the many improvement initiatives teed up by outsourcers and keep pace with the continued advancement in innovation and maturity will find not just cost savings but better ability to compete and grow !
[... ] became the only “big 5″ management consultant to buy a boutique sourcing advisor… the outsourcing advisory business is all about talented people, experience and [... ]
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john veihmeyer, kpmg llp (u. s .) chairman and ceo, noted that the acquisition helps address changing client needs
acquisition reflects kpmg growth strategy to identify service opportunities for high demand market sectors .
the company is also led by a management group with extensive sourcing industry experience supported by a deep bench of global leadership talent. these are invaluable attributes crucial to succeeding in this competitive market segment ,
added griffith jones .
this broad geographic and industry - specific footprint will enhance the ability of kpmg professionals to help companies transform their service delivery models and address change management issues, centralize and optimize capabilities, outsource functions, and create a sustainable governance and performance management model .
gavin houlgate kpmg llp (europe) t: + 44 20 76943902 e: gavin. houlgate @ urltoken
kpmg is a global network of professional firms providing audit, tax and advisory services. we operate in 146 countries and have 140, 000 people working in member firms around the world. the independent member firms of the kpmg network are affiliated with kpmg international, a swiss cooperative. each kpmg firm is a legally distinct and separate entity and describes itself as such .
this article represents the views of the author only, and does not necessarily represent the views or professional advice of kpmg in the uk .
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we have seen deloitte quite active in the m & a space, especially in the uk, and pricewaterhousecoopers doing the big diamond acquisition in 2010. and accenture and capgemini have been prowling around and snapping up companies all over the world in 2010 .
kpmg says this acquisition says this is to grow its network both through organic and inorganic opportunities in select high - demand market sectors.
equaterra was acquired by kpmg effective february 18 , 2011 . as a member of kpmg ’s network of member firms , equaterra continues to provide global sourcing advisory services in information technology ( it ) , finance and accounting ( f&a ) , human resources ( hr ) , supply chain management and other business processes . 
equaterra was acquired by kpmg effective february 18, 2011. as a member of kpmg ’s network of member firms, equaterra continues to provide global sourcing advisory services in information technology (it), finance and accounting (f&a), human resources (hr), supply chain management and other business processes.
equaterra was acquired by kpmg effective february 18, 2011. as a member of kpmg ’s network of member firms, equaterra continues to provide global sourcing advisory services in information technology (it), finance and accounting (f&a), human resources (hr), supply chain management and other business processes.