Avanade
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Company type | Private |
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Industry | Technology Services IT Consulting |
Founded | April 4, 2000 |
Headquarters | Seattle, Washington |
Key people | Adam Warby, CEO Dave Seybold, COO Ken Guthrie, CFO Stella Goulet, CMO Stephen Kelly, CHRO Ashish Kumar, Chief Growth Officer Chris Miller, Chief Technology Innovation Officer Bob Bruns, CIO |
Revenue | $2 billion (fiscal year 2015) |
Number of employees | 29,000 |
Parent | Accenture, Microsoft |
Website | www.avanade.com |
Avanade Inc. was founded in 2000 as a joint venture between Accenture and Microsoft to serve an untapped market for Microsoft-focused consulting services. The company provides IT services focused on the Microsoft platform for mid-sized to large enterprise organizations. Headquartered in Seattle, Washington, the company has 70+ locations worldwide and employs more than 29,000 professionals. Today, Avanade is majority-owned by Accenture.
History
Avanade was formed in April 2000 as a joint venture between Accenture and Microsoft. Ownership was initially split between the two founding companies, with Accenture owning 51% and Microsoft 49%.[1] In 2001, however, Accenture increased its ownership to become the majority owner and Avanade became a subsidiary of Accenture.[2]
Through the joint venture, Accenture and Microsoft looked to enter what they perceived to be a largely untapped market for Microsoft-focused consulting services for companies in the Fortune 1000.[3][4]
Acquisitions
To-date, Avanade has acquired ten other firms:
- In 2003, Avanade acquired Brisbane-based DCG, a firm specializing in ebusiness consulting and integration.[5]
- In 2003, Avanade acquired St. Louis-based G.A. Sullivan, a technology services company.[6]
- In 2005, Avanade acquired Chicago-based en’tegrate, a services firm specializing in Microsoft AX deployments.[7]
- In 2007, Avanade acquired Copenhagen-based HOB Business Solutions, a services firm specializing in Microsoft Dynamics AX solutions.[8]
- In 2008, Avanade acquired Ghent, Belgium-based Quadreon, a services firm specializing in Microsoft Dynamics AX solutions.[9]
- In 2010, Avanade acquired the US portion of the CRM practice from Ascentium, a US-based consulting firm.[10]
- In 2011, Avanade acquired Kiel-based eCONNEX AG, a services firm specializing in Microsoft Dynamics CRM solutions.[11]
- In 2012, Avanade acquired Azaleos, a Seattle-based American corporation specializing in managed messaging, collaboration and unified communications services for Microsoft Exchange, Microsoft SharePoint, Microsoft Active Directory and Microsoft Lync and Blackberry Enterprise Server.[12]
- In 2015, Avanade acquired KCS.net, one of the largest Microsoft Dynamics ERP partners in Germany, Switzerland and Austria, a leading Microsoft Dynamics CRM partner and has a fast growing Microsoft SharePoint business.[13]
- In 2015, Avanade acquired CloudTalent, a strategic infrastructure and cloud advisory[14] business headquartered in the United Kingdom [15]
Operations
Avanade operates its business in more than 70 cities across North America, Europe, Asia, South America, and the Pacific. These locations include:
America
- United States
- Canada
- Brazil
- Argentina
- Mexico
- Puerto Rico
Europe
- Austria
- Belgium
- Denmark
- Finland
- France
- Germany
- Italy
- Latvia
- Netherlands
- Norway
- Slovakia
- Spain
- Sweden
- Switzerland
- United Kingdom
Asia Pacific
- Australia
- China
- India
- Japan
- Malaysia
- Philippines
- Singapore
Africa
- South Africa
- Morocco
- Mauritius
India (IDC), China (CDC) and the Philippines (PDC) supply Avanade with offshore consultants housed in parent company Accenture's delivery centers. Overall, these offshore workers comprise over 40% of Avanade's total workforce. Avanade relies heavily on offshore workers in India, China and other developing countries to help their customers reduce costs.[16][17][18]
Talent Communities
Avanade's Talent Community portfolio includes:
- Account Leadership
- Analytics
- Business & Technology Integration
- Business Leadership
- Business Operations
- Change Enablement
- CRM
- Delivery Management
- DevOps & Agile Coaching
- Ecosystem & Alliance Management
- Enterprise Technology Architecture
- ERP
- Experience Design
- Finance
- Human Resources
- Industry Solutions & Services
- Infrastructure
- IT Operations
- Legal
- Marketing
- Platforms & Offerings
- Sales
- Security
- Software Engineering
- Strategy
Finances
According to the Puget Sound Business Journal, as of 2008, Avanade is 80 percent owned by Accenture plc (formerly Andersen Consulting), a multinational software and outsourcing firm. Microsoft owns about 17 percent of the company. The original founding members and early employees own the remaining 3 percent.
Avanade's business model is heavily dependent on Accenture. Nearly 65% Avanade's revenue comes from Accenture, primarily by serving as a subcontractor to Accenture.
In fiscal year 2007, Avanade grew revenues by 23% to $593 million and increased its global number of employees by 22%. Revenues were led by the company’s operations in North America (51%), followed by Europe (39%), then Asia Pacific (9%)
As of 2008, almost half of Avanade’s 8,000 workforce are Accenture employees on contract to Avanade. [1] A significant portion of Avanade's total revenue is obtained by subcontracting for Accenture and Microsoft. In fiscal year 2007, that amounted to more than 70% of total revenue for the company.[16]
In 2000, Avanade was formed as a joint venture between Accenture, then Andersen Consulting, and Microsoft. Microsoft contributed $385 million cash [19] to support Avanade.
Legal Issues of Note
In 2006, Avanade began filing financial disclosure reports with the Securities and Exchange Commission, a requirement even for the privately held Avanade when their number of shareholders exceeded 500. (Avanade had 1,100 shareholders at the time of first filing in 2006.) [2]
While writing about the contents of the public SEC disclosure, Seattle Times noted that then Avanade CEO Mitch Hill's brother, Mark Hill, was on Avanade's payroll with a $7,000-per-month contract. Mark Hill, who is chairman of California's Marin County Republican Central Committee, was employed by Avanade to facilitate the company "in developing business with certain California governmental agencies." [3]
In May 2008, CEO Mitch Hill announced that he would be leaving Avanade to be replaced, per Board of Directors vote, by UK General Manager Adam Warby. Warby, a UK citizen, announced he will continue to work from Avanade's London office while Avanade remains headquartered in Seattle, Washington, USA. [4]
References
- ^ Microsoft and Andersen Consulting Announce Expanded Alliance Microsoft website. March 13, 2000.
- ^ Software Notebook: A Microsoft joint venture gets big, quietly. Seattle Post-Intelligencer. October 2, 2006.
- ^ Microsoft, Andersen team up. Seattle Post-Intelligencer. March 14, 2000.
- ^ Microsoft teams up with Andersen. Seattle Times. March 14, 2000. [dead link]
- ^ Avanade buys into Queensland with DCG. ARN. March 11, 2003.
- ^ Microsoft joint venture buys Midwest consulting and software developer. Puget Sound Business Journal. May 27, 2003.
- ^ Avanade acquires Chicago company. Puget Sound Business Journal. March 2, 2005.
- ^ Avanade acquires Danish ERP consultant HOB Business Solutions A/S. TMCnet. November 2, 2007.
- ^ Avanade acquires Quadreon. Avanade. June 2008.
- ^ Avanade to Acquire Ascentium Microsoft Dynamics CRM Practice. Market Wire. April 2010.
- ^ "Becomes Leading Microsoft Dynamics CRM Service Provider in Germany; Expands European CRM Capabilities". avanade.com (Press release). 2011-11-07. Retrieved 2015-08-07.
- ^ "Avanade Completes Acquisition of Azaleos".
- ^ "AVANADE ACQUIRES KCS.NET TO EXPAND MICROSOFT DYNAMICS CAPABILITIES ACROSS GERMANY, SWITZERLAND AND AUSTRIA".
- ^ "CloudTalent - IT transformation". cloudtalent.co.uk. Retrieved 2016-08-18.
- ^ "Avanade Acquires CloudTalent, a Strategic Cloud and Infrastructure Advisory Firm".
- ^ a b Avanade Annual Report 2007. SEC EDGAR website
- ^ Avanade website office directory. [Retrieved December 28, 2007].
- ^ Avanade website Brazil office opens press release.
- ^ Andersen Consulting and Microsoft in $1 Billion Pact To Form Joint Venture and Expand Global Alliance