Accenture has acquired analytics services company ChangeTrack Research, a deal which could help boost its slowing consultancy revenues.
Consultancy firm ChangeTrack collects data on people and processes as part of a change programme, using predictive analytics tools such as its ChangeTracking system to target improvements. ChangeTrack’s patented analytics technology is based on advanced mathematical algorithms developed over 10 years.
The company counts BP, Shell, Lloyds TSB and City of London among its clients, as well as Accenture itself.
Accenture said that the acquisition, agreed for an undisclosed fee, will boost its capability to offer business transforming services to its own clients.
“Organisations often struggle to implement change programs on time and on budget as markets evolve at an accelerating pace,” said David Smith, senior managing director, Accenture Talent & Organisation. ”ChangeTrack Research’s insight-driven tools will enhance our ability to help our clients manage change with greater precision and more predictable results.”
Warren Parry, CEO for ChangeTrack Research added: “This acquisition brings together the powerful combination of ChangeTrack Research’s analytical approaches to managing change with Accenture’s deep expertise delivering large-scale transformation programs for global clients.”
According to analysts TechMarketView, the deal shows that Accenture is looking to the emerging predictive analytics market to help improve its consulting arm revenues, which saw a slight slip in the second quarter. The 1 percent drop in year on year consulting revenues led to Accenture lowering its full year revenue guidance to the lower half of its previously forecast 5-8 percent growth range.
“Accenture is keen to add ChangeTrack to its existing change management consulting offering to manage issues like rising costs and time slippage,” said TechMarketView managing partner, Anthony Miller. He added that predictive analytics is likely to become more prevalent in the software and IT services market in future, supporting growth of companies such as Sumerian.
For Accenture, Miller said that the ChangeTrack acquisition could also lead to further business process service (BPS) opportunities by enabling a clearer overview of areas of change within a client’s organisation.
“While ChangeTrack provides a nice tuck-in for Accenture's change management business, we think there could be much bigger opportunities as it shines the light on parts of the client operations needing fixing,” Miller said. “If successful, we could see predictive analytics opening new doors to far broader IT/BPS opportunities.”
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