March 29, 2019

Accenture Expands Capabilities for Modernizing Legacy Systems in Japan Through Agreement with Caltec Scube

Accenture establishes a dedicated professional unit in Kansai office to help clients achieve digital transformation by optimizing IT systems

OSAKA; March 29, 2019 – Accenture (NYSE: ACN) announced it is acquiring select assets from Caltec Scube, an Osaka-based system development company. Caltec Scube’s mainframe modernization professionals will also join Accenture, strengthening the company’s application modernization capabilities to help clients overhaul their mission-critical legacy systems and transform into intelligent enterprises.

Accenture is acquiring Caltec Scube’s core competencies in areas such as source code migration services, which update legacy systems with a modern and relevant programming language. Caltec Scube’s mainframe modernization professionals will join Accenture’s application modernization team in Kansai, part of Accenture’s Intelligent Software Engineering Services group. This group is dedicated to helping clients use data and the latest intelligent technologies including artificial intelligence, cloud services and machine learning to achieve breakthrough results.

Since its establishment in 1997, Caltec Scube has delivered migration and conversion tools for renewal of legacy systems that span mainframe re-platforming and cloud conversion. For instance, these tools can convert more than 20 programing languages such as COBOL, PL/I and Assembler into different source code that can easily take advantage of cloud services. By acquiring these tools, Accenture will accelerate the expansion of services and resources in its application modernization practice. This will help clients achieve a smooth and more secure migration of mission-critical legacy custom information assets such as sales support systems and production control systems. At the same time, Accenture will apply its broader technical and advisory capabilities to help clients enhance business processes and enable strategic use of data by harnessing cloud, artificial intelligence (AI) and other cutting-edge technologies that can deliver flexibility and innovation at scale for clients.

"Legacy systems have supported Japanese companies for many years,” said Ryoji Sekido, senior managing director and Asia Pacific lead for Accenture Technology. "But the business environment is changing drastically, and maintaining legacy systems is becoming a greater challenge in terms of cost, adoption of new technologies and compliance requirements. It is essential for companies to modernize so they can engineer new services that use AI, analytics and cloud services to create new business opportunities and growth. The modernization capabilities from Caltec Scube will help our clients shift to pervasive, real-time and insight-driven software engineering services that bring innovative end-to-end offerings including strategic planning for system migration, development, operation and digitalization.”

Terms of the transaction were not disclosed.

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