The Outsourcing Week in Review (Mergers & Acquisitions): June 14, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

With all the mergers and expansion plans this week, it’s like the BPO industry is playing a game of Monopoly!

Let’s kick this off with a thunderous *drum roll* for none other than Accenture! Again. The global professional services giant has further expanded its presence in Australia by acquiring Bourne Digital, a Melbourne-based firm specializing in the SAP Business Technology Platform. The specifics of the deal remain undisclosed.

Established in 2015, Bourne Digital has a strong presence in Australia, with offices in Sydney and Brisbane. It clams expertise in crafting experience-driven applications that streamline workflows and introduce automation. The acquisition amplifies Accenture’s SAP offerings, particularly in sectors such as consumer goods, financial services, resources, health, and travel. Its 66 employees will join the Accenture SAP Business Group in Australia. This is another solid stride into Australia’s SAP industry following Accenture’s 2020 acquisition of Zag for $45 million.

In another move, Accenture has absorbed Nextira, an AWS Premier Partner specializing in cloud-native innovation. The nearly 70-strong team from Nextira will join Accenture’s AWS Business Group, contributing to the firm’s cloud transformation mission. Accenture conducted a thorough analysis of the enterprise landscape for 23 years to pinpoint technology trends most likely to cause disruptions in businesses and industries. In March, the firm announced it had created a team called the Generative AI and Large Language Model (LLM) Centre of Excellence, which consists of 1,600 professionals who specialize in generative AI. According to Accenture, language-based AI is expected to support or augment up to 40% of all working hours.

With these strategic moves, it’s no surprise that Accenture recently topped the Time Doctor OA500, an index of the world’s top 500 business process outsourcing (BPO) firms. In 2022, Accenture reported revenue of around $62 billion.

Meanwhile, TMF Group is opening its wings to embrace Saudi Arabia, with the acquisition of PROVEN’s BPO and corporate services. With a new office planned in Riyadh, TMF Group is bringing its services to the Middle East‘s largest economy. The company is on a roll, reporting a revenue increase of 14% to €744m ($794m) last fiscal year. Earlier this year, TMF Group acquired PartnersAdmin, a full-service outsourced fund administration provider headquartered in California.

U.S.-based firm Atrium acquired a majority interest in Gibbs Hybrid, a London-headquartered IT and business services company. This acquisition broadens Atrium’s global presence, extending its talent and workforce management solutions to international clients and integrating Gibbs Hybrid’s Contingent Program Management and Total Talent Management offerings. The merger bolsters the companies’ shared mission to champion diversity, equity, and inclusion.

In tech, American IT company CirrusLabs has launched a new Customer Experience Center in Dubai Digital Park. This move gives them a strategic base to cater to the growing digital transformation needs in the Middle East. The U.S.-based company’s new facility will enhance its services to regional clients while coordinating with its offices in Washington DC, Atlanta, Toronto, and India. According to data from Crunchbase, CirrusLab’s estimated revenue falls within the range of $1 million to $10 million.

Indian firm Tata Consultancy Services is spreading its digital wings, launching TCS Dexam on Google Cloud. This data marketplace promises to break down those pesky cross-functional barriers for improved data governance. Did we mention TCS generated a whopping $25.7 billion last fiscal year?

Regarding data security, Geoff Forsyth of PCI Pal will serve as a member of the PCI Security Standards Council (PCI SSC) Board of Advisors. This means a stronger push for global payment data protection – an effort worth every penny. PCI Pal, listed among the UK‘s fastest-growing companies, reported average annual sales growth of 64.79%.

In high-level appointments, Intradiem, a provider of Intelligent Automation solutions for contact centers and back-office teams, welcomed Tim FitzGerald as its new Executive Vice President of Sales. As part of his new responsibilities at Intradiem, FitzGerald will be responsible for devising new sales strategies and expanding the company’s customer base in North America, the UK, Europe, the Middle East, Africa, and other global markets.

8×8 has also locked in some key positions, with Samuel Wilson taking up the reins as CEO and a member of the company’s Board of Directors and Kevin Kraus securing his position as CFO. 8×8 provides cloud solutions that support over 40,000 companies worldwide. In the third quarter of fiscal year 2023, which ended December 31, 2022, 8×8 reported a year-over-year increase of 18% in total revenue, reaching $184.4 million.

Well, folks, if the BPO industry were Monopoly, Accenture would be gobbling up all the top properties on the board!

via GIPHY

The outsourcing M&A news this week

9 June 2023

• Intradiem appoints Tim FitzGerald as EVP of Sales – read article…
• PCI Pal’s Geoff Forsyth to join new board – read article…
• Atrium acquires Gibbs Hybrid, expands global footprint – read article…​

8 June  2023

• CirrusLabs opens new CX center in Dubai – read article…
• 8×8 promotes Kevin Kraus to CFO – read article…
• TCS unveils data marketplace platform on Google Cloud – read article…

7 June 2023

• Tech Mahindra partners with India’s Bank of Baroda – read article…
• 8×8 announces new CEO – read article…
• TMF Group acquires PROVEN’s BPO, corporate services units – read article…

6 June 2023

• Accenture amplifies AI capabilities with Nextira acquisition  – read article…
• UBB promotes Karen Von Guten to head USource – read article…
• SEDCO launches new solutions on phygital CX – read article…

5 June 2023

• Accenture acquires Bourne Digital – read article…
• CGS announces new global outsourcing, CX chief – read article…
• Wolters Kluwer, LTIMindtree partner for financial operations transformation – read article...