Avanade

Avanade Inc.
Private
Industry Technology Services
IT Consulting
Founded April 4, 2000
Headquarters Seattle, Washington
Key people
 Adam Warby, CEO
Andrew White, COO
Ken Guthrie, CFO
Florin Rotar, CTIO
Chris Miller, CIO
Revenue $1 billion (fiscal year 2010)
Number of employees
 20,000
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:

Operations

Avanade operates its business in more than 70 cities across North America, Europe, Asia, South America, and the Pacific. These locations include:

America

Europe

Asia Pacific

Africa

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.[13][14][15]

Services

Avanade's Service Line portfolio includes:

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. 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.[13]

In 2000, Avanade was formed as a joint venture between Accenture, then Andersen Consulting, and Microsoft. Microsoft contributed $385 million cash [16] 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.)

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."

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.

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.
  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. ↑ http://www.avanade.com/us/about/avanade-news/press-releases/Pages/Avanade-Completes-Acquisition-of-Germany-based-eCONNEX-page.aspx
  12. ↑ "Avanade Completes Acquisition of Azaleos".
  13. ↑ 13.0 13.1 Avanade Annual Report 2007. SEC EDGAR website
  14. ↑ Avanade website office directory. [Retrieved December 28, 2007].
  15. ↑ Avanade website Brazil office opens press release.
  16. ↑ Andersen Consulting and Microsoft in $1 Billion Pact To Form Joint Venture and Expand Global Alliance

External links