Sourcing consultancy Alsbridge has kicked off its UK expansion with the acquisition of boutique sourcing advisory Source for an undisclosed amount.
Alsbridge launched its UK sourcing practice in March, after ending a deal under which its sourcing advisory business was run as a franchise by Aecus. In the UK, it had a benchmarking operation but could not sell sourcing advice services.
Source has customers including Amey, John Lewis, The National Trust, LCH Clearnet and Ucas.
Combined, the companies will offer services such as sourcing advisory, supplier management, network and provider support, as well as dedicated practices focused on robotic process automation.
Alsbridge CEO Chip Wagner said: “Through this acquisition Alsbridge benefits from a strengthened presence in the rapidly growing UK and Northern European markets for IT outsourcing, business process outsourcing and network sourcing, which is one of is one of the most advanced, vibrant and competitive in the world.”
He added that Source’s robotic automation expertise is key to the acquisition.
“We are increasingly focused on helping clients and providers understand how best to leverage the capabilities of robotic process automation, autonomics and cognitive computing,” he said. “This area represents the future of the outsourcing industry and those that don’t get on the bandwagon will be left by the side of the road,” said Wagner.
Read more about sourcing consultancies
- Business consultancy KPMG has acquired sourcing advisory Equaterra after months of negotiations.
- The US owner of sourcing consultancy TPI has acquired Compass Management Consulting to increase the transformational services it can offer.
- The amount of money spent on outsourcing contracts in Europe in 2015 is expected to be one of the highest figures ever.
Alsbridge is a huge player in the US and boasts large numbers of global multinational firms as clients. The company is equity backed and must therefore have targets to grow, which could include making acquisitions.
Robert Morgan, director at sourcing consultancy Burnt Oak Partners, said Alsbridge could challenge the number one position of ISG. “Alsbridge's acqisition of Source was totally expected and likely to be the first of several,” he said.
“Most projects are fourth generation and therefore free of undue complexity. Fleet-of-foot point solutions are what these clients demand. Alsbridge could fill this gap,” he added.
The sourcing sector has seen growth in recent years, in parallel with a boom in outsourcing and changes to the models used when buying IT services.
Alsbridge will be up against the likes of ISG and Gartner in the UK.
In 2011, through its TPI sourcing advisory arm, ISG acquired UK-based Compass Management Consulting. In the same year, business consultancy KPMG acquired sourcing advisory Equaterra, which had earlier acquired Morgan Chambers.