• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechPointCloud

Tech Consulting Giants Were Big on Acquisitions in 2016

By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
December 21, 2016, 10:30 AM ET
Courtesy of IBM

The list of technologies that can transform how companies do businesses is long and growing longer by the minute. There’s software for customer service, sales, and marketing, and for crunching data to help executives make better decisions.

Corporate customers are expected to spend an astounding $2.1 billion annually on technology by 2019, according to market research firm International Data Corp. The demand by companies for help with installing it all and teaching workers to use it wisely have prompted big technology consulting firms to make dozens of acquisitions of design and strategy agencies in 2016.

Accenture (ACN), IBM (IBM), Cognizant (CTSH), Deloitte and Wipro (WIT) all snapped up smaller firms that can help businesses dream up new business models, test ideas, and install the technology to make those visions reality. For example, in November, Accenture and Cognizant both expanded their digital teams in Europe with the buyouts of London’s Karmarama (which caters to automaker Honda and consumer goods company Unilever) and Amsterdam’s Mirabeau (which counts airlines KLM and AirFrance as customers.)

Gajen Kandiah, president of Cognizant Digital Business, said his organization has added more than 500 anthropologists and behavioral economists over the past six months to help companies envision how technology will change how they do business. Many companies struggle with this step, he suggests. “This is a market that is quite confusing, and not really getting better over time,” he told Fortune.

Get Data Sheet, Fortune’s daily technology newsletter.

From a sheer numbers perspective, Accenture did the most acquisitions among its peers—it bought six boutique creative agencies and software development firms in the second half of 2016 alone. Separate reports from research firms Everest Group, Forrester, and Gartner list Accenture as the largest digital consulting firm based on the sheer number of services is offer related to analytics, cloud services, and other digital technologies. It can handle projects in more than 40 offices worldwide.

Accenture is followed closely by IBM in terms of employees dedicated to this area. IBM has been adding more talent quickly: it acquired three creative design agencies during the span of just one week early in the year, and then bought another in April. As of February, IBM’s consulting unit dedicated to consulting on digital technologies had more than 10,000 employees.

Accenture doesn’t disclose the size of its workforce.

Brian Whipple, senior managing director for Accenture Interactive, an Accenture business that specializes in helping clients with technology for dealing with their customers, said much of the consolidation is being driven by a desire by large companies to regain control over how customers “experience” their products and services.

That could include helping companies create entirely new ways to show off products to customers, such as using augmented reality headsets—which layer digital images onto a “real world” view—without actually taking them on the road. In theory, the data collected about that interaction would be used as part of an ever-changing profile of that individual customer that gives insights into their likes and dislikes.

Websites, mobile apps, and digital marketing videos—and other interactions—are becoming just as important as traditional advertising activities in shaping what consumers think about companies, Whipple said. “It’s just one of about 100 different experiences that a consumer will have with a company.”

How GE is merging industrial and digital models.

While many technology consulting firms specialize in some of these areas, market researcher Gartner says only a handful of them are capable of advising customers about the full breadth of their digital strategies like their growth plans, cybersecurity, using the Internet of things, evaluating new technologies, and changing corporate culture. Gartner’s list of the best one-stop shops for digital services includes (alphabetically) Atos, Booz Allen Hamilton, Boston Consulting Group, Capgemini, Cognizant, Deloitte Digital, EY, IBM, McKinsey, Orange Business Services, PwC, and Wipro.

Today, services related digital technologies account for nearly 20% of Wipro’s overall revenue. But this portion of Wipro’s business will grow least 30% to 50% over the next three years especially from customers in the financial services, telecommunications, media, and health care sectors, said Rajan Kohli, senior vice president and global head of Wipro Digital. “By definition, the disruption is often tied to consumer habits,” he said.

That opportunity inspired Wipro’s $500 million takeover of cloud services specialist Appirio in October. Appirio CEO Chris Barbin said his company had planned to build its own design team before it agreed to the takeover but now has access to designers through Designit, a Danish design agency that Wipro bought in July 2015. Appirio’s newfound ability to help customers about both cloud software investments and design-centric issues, such as how to make applications and websites easier to navigate, has already helped the combined teams win several deals together, he said.

About the Author
By Heather Clancy
See full bioRight Arrow Button Icon

Latest in Tech

Greg Peters
Big TechMedia
Top analyst says Netflix’s $72 billion bet on Warner Bros. isn’t about the ‘Death of Hollywood’ at all. It’s really about Google
By Nick LichtenbergDecember 5, 2025
2 hours ago
Elon Musk, wearing a suit and in front of a dark blue background, looks to the side and frowns.
Big TechTesla
Elon Musk says Tesla owners will soon be able to text while driving, despite it being illegal in nearly all 50 states
By Sasha RogelbergDecember 5, 2025
2 hours ago
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 27, 2023. Meta Platforms Inc. introduced its latest lineup of head-worn devices, staking fresh claim to the virtual and augmented-reality industry just ahead of Apple Inc. pushing into the market. Photographer: David Paul Morris/Bloomberg via Getty Images
Big TechMeta
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
3 hours ago
Construction workers are getting a salary bump for working on data center projects during the AI boom.
AIU.S. economy
Construction workers are earning up to 30% more and some are nabbing six-figure salaries in the data center boom
By Nino PaoliDecember 5, 2025
4 hours ago
Robert F. Kennedy
PoliticsHealth
Robert F. Kennedy Jr. turns to AI to make America healthy again
By Ali Swenson and The Associated PressDecember 5, 2025
5 hours ago
Steve Jobs holds up the first iPod Nano
Big TechApple
Apple is experiencing its biggest leadership shakeup since Steve Jobs died, with over half a dozen key executives headed for the exits
By Dave SmithDecember 5, 2025
5 hours ago

Most Popular

placeholder alt text
Economy
Two months into the new fiscal year and the U.S. government is already spending more than $10 billion a week servicing national debt
By Eleanor PringleDecember 4, 2025
1 day ago
placeholder alt text
Success
‘Godfather of AI’ says Bill Gates and Elon Musk are right about the future of work—but he predicts mass unemployment is on its way
By Preston ForeDecember 4, 2025
1 day ago
placeholder alt text
Success
Nearly 4 million new manufacturing jobs are coming to America as boomers retire—but it's the one trade job Gen Z doesn't want
By Emma BurleighDecember 4, 2025
1 day ago
placeholder alt text
Success
Nvidia CEO Jensen Huang admits he works 7 days a week, including holidays, in a constant 'state of anxiety' out of fear of going bankrupt
By Jessica CoacciDecember 4, 2025
1 day ago
placeholder alt text
Real Estate
‘There is no Mamdani effect’: Manhattan luxury home sales surge after mayoral election, undercutting predictions of doom and escape to Florida
By Sasha RogelbergDecember 4, 2025
1 day ago
placeholder alt text
Economy
Tariffs and the $38 trillion national debt: Kevin Hassett sees ’big reductions’ in deficit while Scott Bessent sees a ‘shrinking ice cube’
By Nick LichtenbergDecember 4, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.