Ariba sells services business to Accenture

In a move that surprised many, Ariba have sold their sourcing services group business to Accenture. That makes Ariba pretty much a pure software firm, and strengthens Accenture's position in the sourcing consulting and outsourcing market.  It looks like Accenture got a good deal in terms of the price, and the capability they are buying; while Ariba get to focus on core business, as the old cliche goes.

Spend Matters has done a superb job on commenting on this, so do take a look here. Jason's last post in particular gives some great advice if you are an Ariba client; the potential for cost increase was my immediate thought, as Accenture have never been noted for their - how shall I put it - 'bargain' consulting fees!

One additional thought - I can't speak for the US, but my perception is that Accenture have dropped down the league table for 'intellectual property' in Europe in the procurement space over the last few years.  Purely my opinion, but if I go back 10 years I would have put them well ahead of KPMG, Deloittes etc in terms of their procurement and supply chain thought leadership.  Since then, their focus on outsourcing and large delivery type work seems to have dulled the IP edge a little.  So maybe this acquisition helps them get some of that back?  Or is it all about winning more large BPO projects?

Interesting - and do take a look at Spend Matters for more in depth analysis.

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