Accenture Acquires EnergyQuote JHA, Strengthens Energy Procurement Offering

pylon current-813168_1280Accenture announced this week that the firm is acquiring EnergyQuote JHA, which specialises in energy procurement, risk management and strategy development with services including forecasting, energy contracts, carbon emissions reduction and utility bill management across 20+ European countries.

We’re not close to the energy procurement market, unfortunately, so have little experience of JHA, but it is a fair sized operation, founded in 1992, with 279 staff across Europe and India. Its HQ is in London, and financial terms have not been disclosed; JHA is a privately owned business.

Accenture Operations is the huge division of the firm that includes all the BPO work as well as infrastructure and cloud services. The new acquisition will sit in that division under Mike Salvino, group chief executive of Accenture Operation, who said;  “This acquisition will extend Accenture’s industry leading position in the procurement market and enhance our ability to provide comprehensive energy management services, putting us in an even better position to provide innovative business process services that deliver business outcomes to our clients.”

We would imagine that EnergyQuote JHA will be integrated into the procurement outsourcing business, which grew dramatically two years ago with the acquisition of Procurian, you may remember. Certainly, Procurian had a pretty strong energy category team, although bringing another 279 people to that party brings a whole new dimension of capability and reach!

Without knowing the financials, we can’t comment on how good a deal this is for Accenture, but strategically it must strengthen their position at the top of the list of procurement BPO providers. It also supports our hypothesis that more firms are interested in a selective approach to procurement outsourcing.

We aren’t seeing too many “big bang” type deals where everything gets handed over to the provider, but more where an organisation chooses to outsource a range of categories and / or geographical requirements. Energy is a highly specialist area, and one where it is hard to build and retain really deep procurement and market expertise, so is a prime candidate for using that external capability in a targeted fashion.

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