New York-based Accenture has agreed to acquire key assets of Witchita, KS-based Savista in a move to bolster its mid-market business, which includes companies with fewer than 12,000 employees. The acquisition is expected to close in the next month. Terms of the agreement were not disclosed.
According to Accenture, 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 BPO capabilities in HR, F&A, learning, customer care, and procurement.
Following the asset acquisition, approximately 400 Savista employees will join Accenture, bringing its total number of BPO worker 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 a leading provider of integrated HRO and FAO 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.”
“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 profitably,” 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.
