• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • 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

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Trump Mobile quietly rewrote its fine print to say the gold Trump phone may never be made, a year after taking $100 deposits
North AmericaU.S. Politics
Trump Mobile quietly rewrote its fine print to say the gold Trump phone may never be made, a year after taking $100 deposits
By Marco Quiroz-GutierrezMay 11, 2026
6 hours ago
Nvidia co-founder and CEO Jensen Huang is driving a squeeze of memory chips.
AISemiconductors
Wall Street thinks memory is AI’s golden ticket. Harvard’s chip expert warns: ‘Curves that just go to the sky with no end…never continue forever’
By Eva RoytburgMay 11, 2026
8 hours ago
Shark Tank’s Kevin O’Leary wants to build a massive $100 billion data center in rural Utah. Residents are revolting
AIData centers
Shark Tank’s Kevin O’Leary wants to build a massive $100 billion data center in rural Utah. Residents are revolting
By Marco Quiroz-GutierrezMay 11, 2026
10 hours ago
Santa Clara County is suing Meta over allegations it profited from scam advertisements that particularly targeted seniors and families
LawMeta
Santa Clara County is suing Meta over allegations it profited from scam advertisements that particularly targeted seniors and families
By Bloomberg and Kurt WagnerMay 11, 2026
10 hours ago
Nvidia CEO Jensen Huang
Economyconstruction
Jensen Huang’s message to electricians and plumbers: ‘This is your time,’ as AI buildout leads to soaring demand for skilled trades
By Tristan BoveMay 11, 2026
12 hours ago
worker alone in empty office
Future of WorkTech
AI isn’t paying off in the way companies think. Layoffs driven by automation are failing to generate returns, study finds
By Jake AngeloMay 11, 2026
12 hours ago

Most Popular

Forget U.S. debt, China's total borrowing is in 'a league of its own'—much worse and deteriorating faster, analyst says
Economy
Forget U.S. debt, China's total borrowing is in 'a league of its own'—much worse and deteriorating faster, analyst says
By Jason MaMay 11, 2026
12 hours ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
Tech
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
By Sydney LakeMay 10, 2026
2 days ago
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMay 10, 2026
2 days ago
Microsoft’s CFO admits she joined the tech giant without even knowing her salary—and then missed her first day of work
Success
Microsoft’s CFO admits she joined the tech giant without even knowing her salary—and then missed her first day of work
By Preston ForeMay 11, 2026
13 hours ago
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
Success
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
By Orianna Rosa RoyleMay 9, 2026
3 days ago
Current price of oil as of May 11, 2026
Personal Finance
Current price of oil as of May 11, 2026
By Joseph HostetlerMay 11, 2026
16 hours ago

© 2026 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.