Accenture to Expand Business Process Outsourcing Offerings with the Acquisition of Savista’s BPO Assets
Bundled Back Office Business Process Outsourcing Solutions Will Target the Middle Market
NEW YORK; March 6, 2006 – Accenture has agreed to acquire key assets of Savista, expanding the range of bundled, back office business process outsourcing (BPO) capabilities the company offers to include those designed specifically for the middle market – organizations with fewer than 12,000 employees. The market for these services is estimated by industry analysts to approach $17 billion and is expected to grow to more than $25 billion by 2009.
The acquisition will supplement Accenture’s market-leading business process outsourcing capabilities in human resources, finance and accounting, learning, customer care and procurement. The acquisition is expected to close in the next month. Terms of the agreement were not disclosed.
Following the asset acquisition, approximately 400 Savista professionals will join Accenture, bringing the total number of Accenture professionals performing BPO work to more than 18,000.
“This arrangement will allow Accenture to offer industry-defining outsourcing services to an expanded set of clients,” said Joellin Comerford – Group Chief Executive, Outsourcing. “It demonstrates our commitment to aggressively pursue a leadership position among BPO service providers -- bringing the strongest capabilities to serve a wide range of clients in each area of our business.”
Savista, an Accel-KKR company, has established itself as the de facto source for human resources and finance outsourcing solutions for the hospitality industry and is moving quickly to capture opportunities in the financial services and high tech sectors. The acquisition of these BPO capabilities will enable Accenture to expand its client base in a lucrative and growing market.
“Back-office business process outsourcing offers a tremendous opportunity for mid-sized companies to save money, improve operations and focus limited resources on core business initiatives. As a result, the mid market is one of the fastest growing BPO segments,” said Phil Fersht, Executive Vice President, BPO Research, Nelson Hall. “Accenture’s announcement not only makes strong business sense, but also delivers a decisive message that the company recognizes BPO as a powerful - and global - inflection point in industry, and is looking to build operational capabilities to strengthen its position as one of the market leaders."
“With this acquisition, Accenture is gaining both a seasoned and successful management team and a leverageable platform and set of services that are unparalleled in the middle market,” said Kevin Campbell, global managing director of Accenture’s BPO organization. “We are excited to be able to expand our bundled BPO offering to an additional set of clients. These offerings can reduce costs, improve quality of operations, enhance controls, and – ultimately – improve business results.”
"By joining Accenture, we will be able to continue to focus on achieving a clear leadership position in the thriving mid-market sector, with the goal of shaping and driving the delivery of high value-added solutions that help mid-market companies grow and manage their businesses more profitability," said Jeff Bizzack, CEO of Savista. “Moreover, by leveraging the company’s global delivery network, we will be able to further improve the value propositions we offer to clients.” Mr. Bizzack is expected to join Accenture and lead the unit responsible for mid-market offerings following the completion of the acquisition.
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 126,000 people in 48 countries, the company generated net revenues of US$15.55 billion for the fiscal year ended Aug. 31, 2005. Its home page is www.accenture.com.
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