Alsbridge Experiencing Rapid Growth in Outsourcing, Shared Services and Offshore Consulting Since 2005 Merger

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Alsbridge, independent advisors on Outsourcing, Shared Services and Offshoring, is celebrating a highly successful first year since the firm was created with the merger of the Trowbridge Group (US) and ALS Consulting (UK) in May 2005.

Alsbridge, independent advisors on Outsourcing, Shared Services and Offshoring, is celebrating a highly successful first year since the firm was created with the merger of the Trowbridge Group (US) and ALS Consulting (UK) in May 2005. Alsbridge, is the premier consulting firm providing unbiased advice on the use of Outsourcing, Shared Services and Offshoring for functions such as IT, HR, F&A, CRM, Procurement and other business processes.

“Our merger was quite strategic and gave both firms sizable space for development and growth within the sourcing sector,” noted Tim Lloyd, Alsbridge Managing Partner, Europe. “Ours is an industry where size and scale is vitally important. Since our merger, we’ve leveraged the skills of both teams in innovative, new ways that will continue to increase our market share in forthcoming years. By pooling our resources Alsbridge has become a formidable competitor in a highly complex market.”

Ben Trowbridge, Managing Partner, North America added, “Our company has seen over 150% growth in revenue since the merger between the Trowbridge Group and ALS Consulting last year. Outsourcing is a highly volatile market, yet Alsbridge is quickly becoming a preferred consultancy firm due largely to our unbiased approach to the consulting process.”

Earlier this year Trowbridge identified significant trends unfolding in the outsourcing industry that have helped the company define its goals for this year. These trends noted four significant drivers fueling the 2006 outsourcing market. “By keeping our finger on the pulse of the industry through ongoing research and recent outsourcing projects, Alsbridge is better positioned to increase our growth during 2006,” said Trowbridge. “These four trends set the right standard for any outsourcing project this year.”

These trends include:

1.    US-based outsourcing providers will begin to control and reduce their internal G&A costs. Many still have large, onshore, non-client value adding G&A functions and as a result are burdened with higher overheads when competing against India based providers. Leveraging offshore resources should help them to reduce the strain caused by narrow profit margins.

2.    Offshore “client owned” captive BPO and IT centers will continue to take market share away from outsourcing providers. Fifty percent or more of BPO jobs will go to “client owned” captive centers. Alsbridge experience indicates that the term “offshoring” now means "offshore captive” first and “offshore outsourcing” second. US-based outsourcing providers will finally begin to take this as a serious client option and begin to make inroads to be a part of it.

3.    India-based outsourcing providers’ (TCS, Infosys, Wipro amongst others) margins will continue to improve while US-based providers could be challenged to maintain their dominant positions in the market. Improved profitability and increased market capitalizations will allow India-based outsourcing providers to acquire talent from US and European-based providers. This talent influx will allow India-based providers to move higher up the value chain and win increasingly complex projects.

4.    M&A will continue to play a major role in the global provider community in 2006 and could result in the consolidation of one or more of the major outsourcing provider organizations. Any consolidation among the “Global Nine” (ACS, Accenture, Atos Origin, BT, Capgemini, EDS, HP, IBM, and T-Systems) would have a serious impact on the global market as a whole. Of particular interest would be the impact on the current commodity-like procurement process used by buyer organizations. Provider consolidation may allow the providers to opt out of participating in such processes and therefore cause a shift in the market.

“We expect to see sustained growth during the coming years resulting from our proven sourcing methodology as well as the continuous demand for outsourcing services,” Trowbridge commented. “With our strong roster of consultants, as well as global clients that support our unique sourcing process, there’s no doubt Alsbridge holds an enviable position as the sourcing industry leader.”

About Alsbridge

Alsbridge (http://www.alsbridge.com) is the premier consulting firm providing unbiased advice on the use of Outsourcing, Shared Services and Offshoring for functions such as Information Technology (IT), Human Resources (HR), Finance & Accounting (F&A), Customer Relationship Management (CRM), Procurement, and other business processes. With global presence across North America, Europe and Asia Pacific, we provide clients with unmatched functional experience and in-depth industry knowledge. We help clients reduce costs, improve processes and maximize shareholder value through the use of both onshore and offshore Outsourcing and Shared Services.

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Derek Toone
ALSBRIDGE
214-696-6410
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