IPsoft buys Swedish IT services firm ab1 Group AB in bid to realise Nordic ambitions

Automation software provider IPsoft expands into the Nordic region with its acquisition of Swedish IT services supplier ab1 Group AB

Automation software provider IPsoft has bought Swedish IT professional services firm, ab1 Group AB.

This increases IPsoft's reach into the Nordic region for its autonomic platform, IPcenter.

IPsoft CEO and founder Chetan Dube said the Nordic market is an early adopter of innovative technologies.

"The region continues to surprise us by the pace at which businesses want to expand into the areas of cognitive and autonomic technologies," said Dube. 

"For such drastic business transformation to happen, we need management consultants and business transformation experts who specialise in overhauling business models. Our aim is to make the transition as smooth and seamless as possible."

IT services supplier ab1 Group AB employs 50 consultants from its Stockholm, Gothenburg and Malmö offices, with clients including Ericsson, IKEA, the City of Stockholm and the Swedish Tax Agency. In 2013 ab1 Group AB reported a turnover of SEK58.2m (£4.5m). The value of the acquisition has not been disclosed.

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Automation boosts ab 1 customers' efficiency

Erik Danielsson, CEO of ab1, said: “We work with many of the largest firms in Sweden. Over the past 18 months, we have seen their appetite for automation explode as they embark on growth strategies that demand a new efficiency paradigm.”

IPcenter is an ITIL-aligned (information technology infrastructure library) automated service-management platform. IPsoft claims users – including Accenture and NTT – typically see a 35% efficiency improvement in operations in 90 days.

Demand for such automation systems in the region remains high, but the skills and abilities to support the business processes are in short supply. IPsoft will use ab1’s consultants to assist IPcenter's Nordic customers and plans to expand into Europe later in 2015. IPsoft claims ab1’s existing clients will see no disruption to service.

One of the early beneficiaries of the combined group could be the banking sector, with IPSoft in talks with two leading Nordic financial institutions.

"The biggest challenge for automation in banking is how we move from this era of in-person banking to one where there is no human interaction. I’m not just talking about mobile and online banking, but all the back-end systems and processes that we need to stitch together. It’s a big job, but I see it as a do-or-die challenge for the banking sector,” said Dube.

IPsoft is no stranger to the Nordic market. Leading third-party sourcing advisor, Alsbridge, awarded an IPsoft  IT transformation programme an Alsbridge Innovation Award as one of the most innovative uses of automation technology in Europe.

Mats Magiste, Cygate’s CTO, said that, without IPsoft's technology, they would not have come so far in reaching their growth goals.

“By embracing automation we have broken the link between rising business volumes and a rising cost base,” said Magiste.

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