Services,
Technology and
Consulting Newsletter
March 2016
Welcome to Latitude Executive Consulting’s Q1 newsletter. The newsletter
rounds up news in the first quarter of 2016 within the Services, Technology and
Consulting sectors. The material has been sourced from a range of publicly
available media and business contacts/partners.
The organisations covered in this issue are:
The organisations
great
start to 2015. covered in this
issue are:
1.
1. IBM
2. Google
3. Adecco
4. Infosys
5. EY
6. Apple
7. Capgemini
8. Deloitte
IBM
IBM has announced it has signed a definitive agreement to acquire Aperto – a
digital agency with headquarters in Berlin. Upon completion of this transaction,
Aperto will to join the IBM Interactive Experience (IBM iX) team, supporting
IBM’s growth in the largest economy in Europe.
Aperto’s 300-plus employees will continue to serve its roster of clients, which
currently includes companies such as Airbus Group, Volkswagen and Siemens.
IBM iX is the largest global digital agency Ad Age Agency Report –2014 &
2015, providing clients a unique fusion of services spanning strategy, analytics
and systems integration for scalable digital, commerce, mobile and wearable
platforms –including consumer apps for the Apple Watch. Its consultants cocreate solutions for clients, including Nationwide, Jaguar’s Landrover, Citi and
Wimbledon, in its 25 global IBM Studios.
“IBM iX is a global market leader in experience design, which is emerging as
an essential element in all business strategy,” said Paul Papas, Global Leader,
IBM Interactive Experience. “We’re honored to be joining forces with Aperto
and look forward to reshaping the future of business and digital innovation with
our clients in Germany and beyond.”
E
“We pride ourselves on remaining at the forefront of the digital revolution. After
x
20 years in the industry, we’re proud to join forces with IBM iX, the largest
a
global digital agency, to continue doing just that,” said Dirk Buddensiek, CEO,
m
Aperto. “Between the talent sitting within the iX team, and IBM’s transformative
p
work in the cognitive space, as well as leadership in cloud, mobile and
l
analytics, this opportunity will open many doors for both our team and clients.”
e
IBM has identified a critical and growing need for digital, strategy and design
o at the leading edge of business strategy. Demand for experience design
skills
isf expected to accelerate as clients in all industries seek to deliver more
consumer-like experiences to their customers and employees, and integrate
a power of cognitive computing and analytics platforms.
the
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This is IBM’s second creative and digital agency acquisition in recent times. It
follows the announcement of IBM’s intent to acquire US-based agency
Resource/Ammirati, and demonstrates continued investment in Germany. In
December 2015 IBM launched its global headquarters for the Watson Internet
of Things (IoT) unit in Munich.
2.
Google
The head of Google's research and development lab X has been speaking
about projects that failed, at the TED (Technology, Entertainment and Design)
conference in Vancouver.
Astro Teller revealed the tech giant considered building air cargo ships and
vast vertical farms but later rejected them.
The theme of this year's TED is Dream. Mr Teller revealed that at X, dreams
were big but failure was a key part of any project. X, described as Google's
"moon shot" factory, has many projects that have gone on to become reality,
including Google's driverless car program and Project Loon, an attempt to use
balloons to deliver internet to places that have been traditionally cut off from
access. Mr Teller revealed that the formula for deciding which projects to
pursue was a simple one.
"We find a huge problem that affects millions of people, propose a radical
solution and look for a breakthrough technology that can solve it," he said.
"We spend most of our time breaking things and trying to prove we are wrong."
Projects which were left on the cutting room floor included plans to build
vertical farms.
Hydroponic farming, in which crops are grown indoors in boxes stacked on top
of each other with no need for soil, is seen as a solution for an increasingly
urban world population living in crowded cities with little space for land. Fujitsu
is applying a cloud-based approach to food production "One in nine people
suffers from undernourishment and vertical farming uses 10 times less water,
100 times less land," said Mr Teller.
But the company rejected the idea of large-scale versions of such farms when
it realised that staple crops such as rice and grain could not be grown in that
way. Others are ploughing ahead with vertical farming. Chicago-based
FarmedHere plans to open a $23m (£16m) vertical farm in West Louisville
while Japanese firm Fujitsu sells the produce it makes to hospitals,
supermarkets and hotels.
The second project that Mr Teller revealed had been later ditched was a plan to
build lighter-than-air cargo ships. That was dropped when the team working on
it decided that it would cost too much to build a prototype. "You can't spend
$200 million on the first data point of a project," he said.
Google's Project Loon superpressure balloons have already flown millions of
kilometres around the world. Failure is hugely important at X, Mr Teller told the
TED audience.
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"The only way to get people to work on big, risky things - audacious ideas - is
to make it safe to fail," he said.
"The Silicon Valley hype machine has created this myth that visionaries are
effortlessly creating the future. Don't believe the hype," he said.
Project Loon for instance, perhaps one of X's most outlandish ideas, has been
a steep learning curve, Mr Teller said.
"We made round, silvery balloons, we made pillow balloons. We basically burst
a lot of balloons," he said.
But, he added Project Loon now appears as a viable solution to the digital
divide. He predicted that balloon-based net services along with other
technologies would connect the rest of the world in the "next five to ten years".
"That will change the world in ways that we can't imagine," he said.
3.
Adecco
Franz-Josef Schürmann (46), a German national, has been appointed by the
Adecco Group’s Board of Directors as the new Regional Head of Germany,
Austria, Switzerland (DACH) and Member of the Executive Committee of the
Adecco Group. He will take up his position on January 1, 2016. The operational
responsibility for Adecco / TUJA Group in Germany will remain under CEO
Thomas Bäumer. DIS AG and euro engineering AG will continue to be the
responsibility of CEO Peter Blersch and Adecco Switzerland will continue to be
led by Country Manager Nicole Burth. Thomas Bäumer, Peter Blersch and
Nicole Burth will report to the Regional Head DACH, Franz-Josef Schürmann.
Franz-Josef Schürmann brings 20 years’ experience in services and consulting
across various companies, industries and geographies. From 2010 to 2015,
Franz-Josef Schürmann was Country Head of Germany for Infosys Ltd, a
global leader in consulting, technology, and outsourcing. Focus magazine and
Xing named the company as “Best Employer” in Germany in its category.
Prior to joining Infosys, Franz-Josef Schürmann held several positions at
Accenture, where he started his career in 1996. As a member of the German
and European leadership teams of Accenture, in 2008 he was named Global
Client Partner for several DAX 30 companies. As Partner for Outsourcing in
Austria, Switzerland and Germany for the Resources Industry, he developed
the outsourcing business and sales force for the sector. Over 15 years, FranzJosef Schürmann supported Fortune 500 and DAX 30 companies in their
transformation initiatives. Throughout his consulting career, he has led efforts
in building start-ups and new services companies in the business process
outsourcing field.
Alain Dehaze, Adecco Group CEO, said: “I’m delighted that Franz-Josef
Schürmann will join the Adecco team. Over the past 20 years, Franz-Josef has
built a very strong track record in driving business innovation through
technological transformation. He will bring his extensive experience in transition
and quality assurance for shared services consulting, business transformation
and outsourcing engagements, as well as his strong cross-business expertise
and in-depth knowledge of the regional market”.
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Franz-Josef Schürmann commented: “I am honoured to join the Adecco Group,
the global industry leader, and I look forward to working with the passionate
teams in Germany, Austria and Switzerland. Together we will focus on the
successful implementation of the strategic priorities of the Adecco Group, in
order to strengthen Adecco’s leadership position in the region”.
4.
Infosys
Infosys, a global leader in consulting, technology, outsourcing and nextgeneration services, today announced the launch of the Infy Maker Awards India to inspire the creative spirit of ‘making’ in India, encouraging citizens to
create. These awards were first launched in the U.S. by the Infosys Foundation
USA in September 2015 to support the maker movement.
Sharing the excitement at the launch of these awards in India, Vandana Sikka,
Chairperson, Infosys Foundation USA said, "We are thrilled that Infy Makers is
going global and will help awaken a spirit of making in India and inspire the
next generation of inventors! After all, the future is, and has always been,
shaped by those who make."
Following the success of these awards in the U.S., the Infy Maker Awards are
going global with their foray into India as part of the Make in India Week
organized by the government. Through these awards, Infosys will recognize
and reward deserving makers in India whose ideas and solutions have
potential to solve real world problems.
Speaking on the launch of the Infy Maker Awards - India, Pravin Rao, Chief
Operating Officer, Infosys said, "The principle of 'making' is what follows an
idea, and determines what translates into reality. The Infy Maker Awards - India
aim at encouraging people to 'make' by recognizing ideas and projects that
represent the energy and curiosity to fix or solve the problems of our times.
Through these awards, we endeavor to inspire a culture of making in India and
motivate people to ideate, create, and promote skill-development around
problem solving, critical thinking and innovation. Infosys will help makers
pursue their ideas, provide inspiration as well enable an ecosystem of forwardthinking innovation."
5.
EY
The fourth quarter of 2015 concluded a year of multiple global technology
dealmaking records, meaning that 2015 set a new all-time high for annual tech
M&A aggregate value, surpassing the previously set record in 2000, according
to EY’s Global technology M&A report: October-December 2015 first look.
The fourth quarter of 2015 ended a blockbuster year with a “megahit” quarter,
with the value of disclosed-value deals growing by 323% compared to the
same period in 2014. EY expects the forces behind 4Q15’s deal value to
continue in 2016 as massive digital transformation caused by disruptive cloud,
mobile, social and big data analytics technologies is still in its infancy.
Consequently, many tech vendors will continue addressing the growing need
for high-performance cloud data centers to handle the data storage and
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processing load those digital transformation trends require. This will lead some
companies to continue seeking scale and end-to-end solutions, while others
will still privately manage their own transformation away from public-market
scrutiny.
Further, the mix of deals will change with the rise of a new form of dynamic and
increasingly automated partnering EY calls ‘industrial mash-ups’ . Over time,
more automated access to business functions will emerge to enhance industrial
mash-ups by helping drain the friction out of these fast-evolving business
relationships.
Divestitures are likely to rise, and non-tech companies will increasingly acquire
tech, driving-up cross-industry blur. The report found that non-tech buyer
disclosed-value more than doubled in 2015, increasing 124% to US$53.6b from
US$23.9b. Private equity (PE) value in 2015 rose to US$55.9b, up 41%.
Jeff Liu, EY Global Technology Industry Leader, Transaction Advisory
Services, says:
“Global technology M&A values and volumes will remain high but moderate in
2016. As digital technology transforms other industries, more complex
ecosystems are evolving to deliver complete solutions. A powerful new
partnering form we call ‘industrial mash-ups’ will increasingly stand in for M&A
in such situations.”
6.
Apple
Apple will contest a court order to help FBI investigators access data on the
phone belonging to San Bernardino gunman Syed Rizwan Farook. The
company had been ordered to help the FBI circumvent security software on
Farook's iPhone, which the FBI said contained crucial information.
In a statement, Apple chief executive Tim Cook said: "The United States
government has demanded that Apple take an unprecedented step which
threatens the security of our customers."
"We oppose this order, which has implications far beyond the legal case at
hand."
Since September 2014, data on the latest Apple devices - such as text
messages and photographs - have been encrypted by default. If a device is
locked, the user's passcode is required to access the data. Entering an
incorrect code 10 times will automatically erase the phone's data, if this option
has been enabled.
Apple says even its own staff cannot access the data - a move the company
made following the Edward Snowden The FBI has asked Apple to do two
things. Firstly, it wants the company to alter Farook's iPhone so that
investigators can make unlimited attempts at the passcode without the risk of
erasing the data. Secondly, it wants Apple to help implement a way to rapidly
try different passcode combinations, to save tapping in each one manually.
The FBI wants to use what is known as a "brute force" attack, trying out every
combination until stumbling across the correct one and unlocking the phone.
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Farook is understood to have used a four-digit passcode which means there
are 10,000 possible combinations. Apple said the FBI's demands set "a
dangerous precedent".
"The FBI wants us to make a new version of the iPhone operating system,
circumventing several important security features, and install it on an iPhone
recovered during the investigation," wrote Mr Cook.
"The government is asking Apple to hack our own users and undermine
decades of security advancements that protect our customers.
"Opposing this order is not something we take lightly. We feel we must speak
up in the face of what we see as an overreach by the US government."
Farook and his wife killed 14 people in the California city last December before
police fatally shot them.
7.
Capgemini
Capgemini, one of the world's foremost providers of consulting, technology and
outsourcing services, today announced that IGATE will now operate exclusively
under the Capgemini brand, six months after the completion of its acquisition of
the US-based corporation.
The rebranding of IGATE as Capgemini is a key step in the integration process
which has seen 31,000 former IGATE employees join Capgemini. The
acquisition makes North America the Group's largest region by far, with 30% of
revenues, while boosting Capgemini’s Global Production Center network to
more than 96,000 employees and augmenting its expertise in the Financial
Services sector.
The strong combination of IGATE and Capgemini’s service offerings and
capabilities in the fields of innovation and industrialization, has already resulted
in some initial joint client wins including one of the largest North American
property and casualty companies, a leading global risk advisor, insurer and
reinsurance broker, as well as an Enterprise Resource Planning (ERP)
consolidation initiative for a major food and beverage company.
"Only six months after the completion of the acquisition of IGATE, our clients
are already benefiting from the integration of talent and the combined portfolio.
It’s been a natural fit," comments Virginie Régis, Group Marketing &
Communications Director and Member of the Group Executive Committee at
Capgemini. “Operating as one brand means that we can offer our clients
seamless access to a wide set of expertise. It is an acknowledgement that the
brand transition phase is complete and that we are now going to market
officially as one unified company."
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8.
Deloitte
Japanese acquisitions in the UK reached $9.5 billion in 2015, the highest level
this century, and dwarfing the $0.67 billion recorded for 2014. From the UK to
Japan, there were $0.57 billion of M&A deals last year, according to new
analysis from Deloitte.
Japanese buyers have also been active outside the UK, managing $67.7 billion
of outbound M&A deals globally. This means outbound M&A was responsible
for 53% of all of Japan’s M&A (domestic, outbound and inbound), overtaking
domestic activity for the first time since the year 2000. This looks set to
continue with outbound Japanese M&A already at $5 billion year to date,
including the recent offer by Asahi for various Anheuser-Busch InBev beer
brands.
Iain Macmillan, head of global M&A at Deloitte, commented: “With Japan
expected to adopt negative interest rates, cheaper borrowing costs will fuel
more acquisitions outside its own territory. Japanese acquirers are already
compelled to look abroad faced with a shrinking home market, compounded by
a decline in real earnings and an aging population.
“Last year a series of outbound deals including Nikkei’s US$1.3 billion
acquisition of the Financial Times from Pearson, and now Asahi’s acquisition of
various iconic beer brands, including one in our own backyard in Greenwich.
We estimate that the Nikkei 225 non-financial constituents currently hold $507
billion in cash reserves, the second highest amount after the US corporate
sector, so foreign targets hold a considerable appeal.”
The above information has been sourced from a range of media publications and
statements made in public company announcements. Latitude Executive Consulting
acknowledges all copyright and trade names. The information does not represent Latitude
Executive Consulting’s view or opinions. Copyright, Latitude Executive Consulting, 2016.
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Introducing Latitude Executive Consulting
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globally and our network across EMEA, the Americas & APAC is ubiquitous.
We partner with many of the fastest-growing and most ambitious organizations
worldwide; both large and small.
Our team’s commitment to uncovering the best talents is total. Professionalism,
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