Accenture, Savista, Outsourcing, Buyout

Accenture acquires assets of outsourcing vendor

07 Mar 2006 | (News)

Accenture has agreed to acquire key assets of Savista, expanding the range of bundled, back office 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 BPO 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.

According to Joellin Comerford – Accenture's 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."

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