Compass and TPI tie up takes consolidation in outsourcing sector to a different level

The IT services sector is consolidating. Mergers and acquisitions as well as strategic partnerships between suppliers will be commonplace this year.

But the advisory and consultancy sectors could also see a lot of activity.

I write this following the news that TPI parent company Information Services group, has acquired Compass. It will bring TPI and Compass together to harness their combined strengths. TPI is a sourcing consultancy which advises big businesses on IT outsourcing, while Compass is an IT consultancy that uses benchmarking to help businesses transform IT.

There is also a rumour doing the rounds that KPMG is going to take over TPI competitor Equaterra. Mind you there has also been talk of Deloitte buying TPI.

It seems to me that these types of takeovers are inevitable.

But is there a risk of receiving too many services from one supplier?

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