Using Analytics to Reinforce Strengths and Fill Gaps, Accenture Buys Gapso

With very few exceptions, Accenture has pursued a policy of "tuck-in" acquisitions (<$50 Million revenue) since going public in 2001 that add specific point capabilities to existing strengths or to reinforce capabilities in specific geographic and industry sectors where growth prospects have dimmed of late. Accenture's also markets the power of applied analytics to identify challenges and opportunities for clients which they might not otherwise see or be able to address as quickly as required. Last week's announcement last week that Accenture were acquiring Brazilian analytics service provider Gapso for an undisclosed sum shows that Accenture is applying their own analytics knowledge to their business in a tried and tested method against an increasing market opportunity.

Acquiring Gapso, reinforces Accenture's growing analytics practice with skills in Supply Chain and Logistics especially for the Internet of Things (IoT). HfS believes that Supply Chain, and IoT in particular remains a massive area of opportunity across analytics, systems deployment and business process operations for years to come. At the same time it brings a potential spark to the Brazilian geographic unit and the broader Latin American region, which is a key growth market for Accenture. It also provides additional capabilities in the Resources Operating Group where year on year growth for the 1Q of FY 2015 is (1%) even as overall Accenture revenues for the same period grew +7%.

As a tuck-in, Gapso is unlikely to materially impact the Resources OG in the short term but it is a sign of commitment to the group to align key capabilities across target markets and functions including supply chain, logistics and how the Internet of things comes together through applied analytics.

It seems unlikely that this acquisition just fell into the lap of Accenture but that instead it was the result of the same sort of insight based analysis that drives the overall growth of Accenture analytics, just applied internally rather than clients. In that way this small but interesting acquisition helps reinforce the overall message that looking at your business with the lens of analytics is about finding solutions that reinforce strengths and fill gaps in capabilities.