1. Major IT outsourcing acquisition will have mixed impact

    The announcement that outsourcing consultancy Information Services Group (ISG) will acquire competitor Alsbridge marked the biggest M&A announcement in the IT services advisory industry since KPMG bought EquaTerra in 2011. The two large independent outsourcing advisors are joining forces to create a 1,300-person firm with offices in 20 countries revenues targeted at between $285 and $300 million in 2017.

    [ Related: Cloud services now account for a third of IT outsourcing market ]

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  1. Quotes

    1. ISG's principle competitors — KPMG. Deloitte, EY and PwC — now have a bigger, badder ISG to contend with that can not only undercut them on fees but also can boast competencies in the emerging area of RPA, where the Big Four are currently winning out.
    2. The combined capabilities of ISG and Alsbridge are formidable.
    3. For loyal clients of both ISG and Alsbridge, most will have a larger pool of talent to help them.
    4. Those who loved to trade off ISG and Alsbridge to get their fees lowered will have to resort to really small firms like Avasant and Aecus as alternatives, who are good at some things, but will often struggle to scale up to meet client needs.
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