Avanade

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Avanade Inc.
Private
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 2014)
Number of employees
 27,000
Parent Accenture, Microsoft
Slogan Results Realized
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 19,600 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 eight 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 cloud advisory business headquartered in the United Kingdom [14]

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

  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • 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.[15][16][17]

Services

Avanade's Service Line portfolio includes:

  • Application Development
  • Data & Analytics
  • Collaboration
  • Customer Relationship Management
  • Enterprise Resource Planning
  • Managed Services
  • Infrastructure Services

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.[15]

In 2000, Avanade was formed as a joint venture between Accenture, then Andersen Consulting, and Microsoft. Microsoft contributed $385 million cash [18] 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

  1. ↑ Microsoft and Andersen Consulting Announce Expanded Alliance Microsoft website. March 13, 2000.
  2. ↑ Software Notebook: A Microsoft joint venture gets big, quietly. Seattle Post-Intelligencer. October 2, 2006.
  3. ↑ Microsoft, Andersen team up. Seattle Post-Intelligencer. March 14, 2000.
  4. ↑ Microsoft teams up with Andersen. Seattle Times. March 14, 2000.[dead link]
  5. ↑ Avanade buys into Queensland with DCG. ARN. March 11, 2003.
  6. ↑ Microsoft joint venture buys Midwest consulting and software developer. Puget Sound Business Journal. May 27, 2003.
  7. ↑ Avanade acquires Chicago company. Puget Sound Business Journal. March 2, 2005.
  8. ↑ Avanade acquires Danish ERP consultant HOB Business Solutions A/S. TMCnet. November 2, 2007.
  9. ↑ Avanade acquires Quadreon. Avanade. June 2008.
  10. ↑ Avanade to Acquire Ascentium Microsoft Dynamics CRM Practice. Market Wire. April 2010.
  11. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ 15.0 15.1 Avanade Annual Report 2007. SEC EDGAR website
  16. ↑ Avanade website office directory. [Retrieved December 28, 2007].
  17. ↑ Avanade website Brazil office opens press release.
  18. ↑ Andersen Consulting and Microsoft in $1 Billion Pact To Form Joint Venture and Expand Global Alliance

External links

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