This page contains Monadnock Research articles that offer insights on trends, and information of global search traffic associated with consulting and management topics, as measured by Google's Insights for Search.
Freddie Mac Consulting Contracts with Gingrich Group at Center of US Presidential Campaign Politics Monadnock Research (Vol V, No 2) - 9 February 2012 The former consulting firm of US Republican Presidential candidate Newt Gingrich has released 1999 and 2006 contracts between Gingrich and US mortgage giant Freddie Mac (NYSE: FMCC). Gingrich relinquished ownership in his former consultancy in May 2010, after announcing his candidacy for US President. While Gingrich characterizes the work as strategy consulting, the Romney campaign has called it lobbying and influence peddling on behalf of Freddie Mac. Part of the scope of services in the 1999 agreement appears to support the Romney campaign's assertion. Research Note includes copies of the two agreements; a profile of the Gingrich Group; analysis of agreement terms; detail on fee structures; and potential impact of allegations against Gingrich, and by Gingrich against Romney's work at Bain and Bain Capital, on the presidential campaigns of the two former consulting firm leaders. (1,500 words) . . . More
Deloitte Onch Launches in Mongolia Monadnock Research - 30 January 2012 Deloitte Touche Tohmatsu Limited (DTTL) has established a new member firm in Mongolia after reaching an agreement with Mongolian professional services firm Onch Audit. The new firm, Deloitte Onch LLC, will offer a full range of professional services in addition to audit, including consulting, financial advisory and tax to clients in Mongolia. Mongolia is one of the fastest-growing markets in the world, with significant untapped natural resources in gold, copper, coal, molybdenum, fluorspar, uranium, tin and tungsten. Deloitte Onch will continue to be led by its founder, Ms. Onchinsuren Dendevsambuu. (460 words) . . . More
Accenture Buys Analytics Consultancy, Neo Metrics Monadnock Research - 24 January 2012 Accenture (NYSE:ACN) has agreed to acquire Madrid-based Neo Metrics Analytics S.L., a leading niche firm that specializes in predictive analytics and optimization. The firms expect the acquisition to close within 30 days. Accenture says that Neo Metrics' R&D capabilities and IP will be integrated within its analytics portfolio, including Neo Metrics' advanced modeler, a tool that generates analytical models and insight from organizational information. The advanced modeler will enhance Accenture says this capability will allow it to help clients rapidly analyze and predict customer behavior, and respond to key outcomes. Neo Metrics will also add to Accenture's capability around analyzing social network to identify and leverage hierarchies within online customer communities. Accenture believes this approach outperforms traditional models that may disregard relationships between an organization's customers, and this capability will help clients target key influencers in customer communities more effectively. (510 words) . . . More
BDO Wins Arkansas Supreme Court Appeal to Arbitrate Fraud Allegations Monadnock Research (Vol V, No 1) - 14 January 2012 BDO Seidman has won an appeal against Straits Steel & Wire, forcing the client's allegations of fraud to be heard by arbitrators and not the courts. The Arkansas Supreme Court decision reverses a ruling of the Sebastian County Circuit Court, which had denied a motion by BDO to compel arbitration against Straits Steel & Wire, Co. and its affiliates. The case involves tax consulting services and allegedly fraudulent tax shelters. BDO successfully argued on appeal that the circuit court erred in denying arbitration because it was the dispute resolution mechanism of choice in agreements signed by the parties. SSW attempted to get around the dispute resolution choice by claiming unconscionability of the alleged fraud. SSW claims breach of fiduciary duty, negligence and professional malpractice, negligent misrepresentation, disgorgement of excessive and illegal fees, fraudulent inducement, fraudulent concealment, fraud, civil conspiracy and breach of contract. Research Note includes Arkansas Supreme Court ruling and MR perspective on the inherent system bias of arbitration clauses in consulting agreements. (1,375 words) . . . More
KPMG Advisory Practice Grows 2.5 Times Faster than Audit in 2011; $2 Billion Management Consulting Business Up 29% Monadnock Research (Vol IV, No 44) - 22 Dec 2011 MR - KPMG International's advisory practices grew at 14.76% in fiscal 2011, for the period ended 30 September. That was 256.7% faster than the firm's global audit businesses grew. KPMG says its global management consulting practices had fiscal 2011 revenue growth of 29% in US dollars and 24% in local currency terms. KPMG has built its $2 billion management consulting business in just six years. Its acquisition of EquaTerra in 2011 dramatically increased the firm's outsourcing and shared services advisory practice. Revenues increased across each of KPMG's geographic regions. Asia Pacific growth was 16.6% in US dollars. Americas revenues were up 10.7%. Europe, Middle East and Africa, including India, increased by 7.7%. Much of the geographic expansion occurred in high growth markets. India was up 25% and Brazil 22% in local currency terms. Research Note includes 1 graphic and MR perspective on Big Four divestitures of advisory operations. (815 words) . . . More
Expert Network Consultant Sentenced to 40 Months for Insider Trading Scheme Monadnock Research - 21 December 2011 James Fleishman, a sales manager at expert network consultancy Primary Global Research (PGR), was sentenced in Manhattan Federal Court to 30 months in prison for his role in an insider trading scheme. Fleishman was found guilty of helping pass inside information about publicly traded companies to executives at several hedge funds so they could trade ahead of its public release. He had been convicted on 20 September 2011 after a three-week trial. Fleishman, 42, of Santa Clara, California, was also sentenced to two years of supervised release in addition to his prison term. (355 words) . . . More
And in other news: Accenture, Oracle, US Justice Department, BCG, CBIZ, Warbird Consulting and Monadnock Research Monadnock Research - 20 December 2011 Accenture Consulting Revenues Increase by 14% in Q1 2012; Issues Cautious Outlook. Oracle growth hits the brakes in current quarter; Services revenues dip slightly. US Justice Department Records $3 Billion in 2011 Fraud Settlements. FINRA Attacks BCG Report. CBIZ acquires defined benefit consulting practice of PSA Insurance. Former Huron principals Launch Warbird Consulting. Monadnock Research Publishes Compilation of 2011 Consulting Rate Research. (1,150 words) . . . More
Monadnock Research Publishes Compilation of 2011 Consulting & Advisory Services Rate Research Monadnock Research (Vol IV, No 42) - 3 Dec 2011 This report (2011 Consulting and Advisory Services Rates - Vol IV, No 42) provides the Monadnock Research analysis of consulting rates from a series of comprehensive studies on negotiated client rates from organizations across a number of industries. Rates have been analyzed and presented across the entire range of consulting practice areas, including: Strategy, Operations, Human Capital, Information Technology, and Financial, Transaction and Risk Advisory. "We thank the many client organizations that made this series of consulting rate research possible," said Mark O'Connor, Monadnock Research CEO and Cofounder. "We believe that the analysis presented in this research report, and that of the previously published practice area reports, represents the most comprehensive study of consulting and advisory services rates ever published." The report is more than 225 pages in length, with over 190 charts and tables. For clients that have purchased individual practice area reports published throughout 2011, this report contains full detail for each of those reports. More information, including a detailed table of contents, can be reviewed on the report summary page: http://www.monadnockresearch.net/products/item54.cfm (460 words) . . . More
Lions Gate Sued for Non-Payment Under Terms of Performance-Based Consulting Agreement; Highlights Challenges Small Firms Face in Client Litigation Monadnock Research (Vol IV, No 41) - 1 Dec 2011 MR - A small consulting firm based in Los Angeles, GBB Consulting, has sued Lions Gate Films over non-payment in a performance-based fee arrangement associated with Nicole Kidman's film, "Rabbit Hole". The suit, filed on 22 November 2011, alleges breach of contract. Kidman was nominated for an Oscar and won a Screen Actors Guild (SAG) award for her performance in the film. GBB claims it wasn't compensated for its services and role in helping to secure Kidman's award and nomination. While the claimed damages are only around $115,000, the case highlights the challenges many small firms face in working with larger organizations with significant resources in high-stakes engagements. Research Note includes a copy of the complaint and MR perspective on the consequences of playing hard-ball and cost-shifting to small and mid-market firms in the current economic environment. (740 words) . . . More
P&G Awards Ernst & Young and Infosys for Supplier Excellence Monadnock Research - 10 November 2011 MR - P&G conferred its highest supplier honor, Business Partner of the Year, upon Ernst & Young, Infosys, and 10 other companies for 2011. E&Y was honored for its non-audit advisory work. P&G has more than 75,000 suppliers globally. This year under 1% of its partners were among those selected for awards. Business partners consistently performing at high levels within P&G's internal performance management system earned an Excellence Award. A total of 86 external partners were recognized this year. Beyond Business Partner of the Year recipients Ernst & Young and Infosys, 12 firms providing consulting services as part of their offering were also 2011 Excellence Award recipients. (450 words) . . . More
Former McKinsey MD Indicted on Securities Fraud Charges Monadnock Research (Vol IV, No 36) - 27 October 20 MR - Rajat Gupta, the former global Managing Director of McKinsey & Co., has been indicted on six criminal charges, and has also been charged civilly by the SEC, for allegedly communicating inside information about leading American publicly-traded companies to his friend and business colleague, Raj Rajaratnam. The SEC also filed new charges against Rajaratnam, found guilty on 14 securities fraud and conspiracy charges in May 2011. The charges against Gupta come just a few months after the US found it would likely not prevail in its former strategy to go after Gupta using a controversial SEC administrative action. That proceeding was simultaneously dropped in early August with Gupta's suit against the SEC for treating him differently than other defendants in associated litigation and criminal proceedings. This Research Note includes a copy of the criminal indictment and SEC complaint, as well as numerous previous associated filings and documents. (2,390 words) . . . More
Oracle to Pay $199.5 Million to Settle Claims Involving Software and Support Services Procurement Violations Monadnock Research - 11 October 2011 MR - Oracle has agreed to pay $199.5 million plus interest for failing to meet its General Services Administration (GSA) contractual obligations. The Oracle settlement is the largest False Claims Act resolution ever obtained by the GSA. The agreement relates to a contract entered into with Oracle in 1998 to license software and technical support services to government entities through the GSA's MAS program. Former Oracle employee, Paul Frascella, will receive $40 million as his share of the recovery in the case. The settlement resolves his lawsuit filed on behalf of the US government under the whistle-blower provisions of the False Claims Act. In the US, private citizens can bring lawsuits on behalf of the US and will receive up to 25 percent of any recovery. (600 words) . . . More
PricewaterhouseCoopers Regains Largest Professional Services Firm Title, Fueled by 20 Percent Advisory Business Growth Monadnock Research (Vol IV No 35) - 8 October 2011 MR - PricewaterhouseCoopers (PwC) has taken back the largest global professional services firm title from Deloitte. Revenues for PwC's Advisory businesses grew by 20% in F-2011, to $7.5 billion. Growth was driven by the consulting, particularly in the US, and inorganic growth through a series of strategic acquisitions that included management consultancy, Diamond. Statutory audit services now represent just 40% of PwC's total revenues. The PwC network reported total gross revenues of $29.2 billion in fiscal 2011, ended 30 June. That's an increase of 10% over fiscal 2010 - 8% in constant currency. The increase was the strongest growth in revenues since 2008. Headcount grew to around 169,000 in the period. PwC had revenue increases in all regions. Asia rose by 14%, Australasia by 38%, and the Middle East and Africa by 20%. The firm returned to growth in the Americas with North American revenues increasing by 10%, and South and Central America doubling last year's growth to 23%. Growth was less in Western Europe at 4%, and Central and Eastern Europe at 7%. Revenue figures are gross and include expenses billed to clients. (880 words) . . . More
Global First-to-File Patent System Harmonization: Consulting Implications of "America Invents Act" Monadnock Research (Vol IV, No 34) - 7 October 201 MR - The US "Leahy-Smith America Invents Act", H.R. 1249, was passed by the US Congress and Senate, and became law on 16 September 2011. The legislation harmonizes the first-to-file (FtF) patent systems of the world's largest economies, and at first glance poses little downside for the largest global corporations. It promises to be a revenue windfall for the US government at a time when it has never needed it more, as its US Patent and Trademark Office (USPTO) gears up for the onslaught of new filings. We believe, however, the implications of this shift from First-to-Invent to FtF will be profound. This Research Note discusses the impact on demand for consulting services; practice areas most affected; arguments for and against the legislation; global implications; and organizational sponsors. (2,335 words) . . . More
KPMG Acquires UK Strategic IT Advisory, Xantus Monadnock Research - 5 October 2011 MR - KPMG has acquired Xantus, a leading UK-based IT strategic advisory services firm. Xantus' services span the range of strategic and operational change including IT due diligence, market assessment, IT strategies and sourcing solutions, operating model design and expert program delivery. The deal expands KPMG's advisory capabilities, particularly at the Board and CIO levels. (430 words) . . . More
Accenture Posts Record Fiscal 2011 Q4 Results; 2011 Consulting Bookings Increase by 21 Percent Monadnock Research - 27 September 2011 MR - Accenture has set a number of new records in Q4 and fiscal 2011 for the period ended 31 August. Accenture's fiscal 2011 Q4 net revenues were $6.7 billion, an increase of 23% in US dollars and 14% in local currency compared with the same 2010 period. Operating cash flow was $1.4 billion and free cash flow was $1.2 billion, both quarterly records. New bookings were $8.4 billion, Accenture's highest quarterly bookings in the firm's history. Consulting net revenues for Q4 were $3.9 billion, an increase of 25% in US dollars and 16% in local currency, compared with the fourth quarter of fiscal 2010. Consulting net revenues for fiscal 2011 were $14.9 billion, an increase of 21% in US dollars and 17% in local currency compared with fiscal 2010. Accenture finished fiscal 2011 with 236,000 people serving clients in more than 120 countries, with global net revenues of $25.5 billion (US). Accenture's extraordinary performance seems contrary to the global economic picture and economic projections for many of the markets it serves. Accenture's strategic focus remains clearly on the world's top performing and fiscally stable companies, who themselves are performing well in tough economic times. Accenture is also benefiting from a sourcing and procurement trend in management and IT consulting, outsourcing, and technology-based services where clients are rationalizing suppliers and placing more business with a smaller number of strategic suppliers. Accenture continues to execute well on translating its strategic vision into operational discipline and profitable growth, even in tough economic times. (2,550 words) . . . More
2011 Operations Consulting Rates Monadnock Research (Vol IV, No 30) - 23 Sept 2011 This study presents an analysis of operations consulting rate structures for clients across a number of industries, including manufacturing, healthcare, pharmaceuticals, biotech, high tech, communications, energy, financial services, public services, and metals and mining. More than 85 percent of the rate structures were from global entities, and all were from organizations that fall within the 1,000 largest global organizations. Rates from 75 firms were analyzed across the operations consulting category, including a total of 126 firm-rate structures. This report presents statistics across 15 professional classifications, including a percentile analysis for each labor class. Rates from firms that were a subject of this analysis for the operations consulting rate category included: Accenture, ADL, A.T. Kearney, Bain, BCG, Booz&Co, Capgemini, Celerant, CSC, Deloitte, Huron, IBM, McKinsey, PA Consulting, PRTM, and PwC. Research Note includes 5 graphics and 15 tables - 8,000 words. . . . More
PwC Completes Acquisition of PRTM Monadnock Research - 22 August 2011 MR - PricewaterhouseCoopers (PwC) has completed its acquisition of management consultancy PRTM. PwC says the addition of PRTM's experience in strategy, supply chain, product development, customer value management and business model innovation will strengthen and support its commitment to deliver a full range of consulting services from strategy through execution. More than 700 consultants joined PwC's global advisory practice in the transaction, including 124 principals. Over two-thirds of PRTM's professionals are located in the U.S., with the remainder in the U.K., France, Germany, the Nordics, the UAE, India, China and Japan. See our Research Note (Vol IV, No 18 - 24 June 2011) for Monadnock Research perspective on the transaction. (480 words) . . . More
A Future Retrospective: The Silent Tectonic Shift in IT Services Monadnock Research (Vol IV, No 27) - 15 July 2011 MR - The business models of large consulting and technology product and service providers are in the early stages of a tectonic shift. Changes like this are infrequent in any marketplace, but technology products and services are utilized by clients in all sectors. So the implications are not only significant for consultancies and technology product and service firms, but for the client organizations they serve. The shift is driven primarily by a combination of three factors: (1) ever-spiraling IT system costs; (2) protracted implementation timeframes; and (3) application functional capabilities that don't meet client expectations. What we refer-to as the "Oracle Factor" is fueled by dramatic discontinuities between it and the current offerings of alternatives other than Oracle, and the traction Oracle is getting from clients today offers proof. Ironically, it is fueled by an architectural change that is more reminiscent of environments of the past than any new innovation. This Research Note presents the Monadnock Research perspective on the emerging vendor business models that clients will choose between for technology products and services that will carry them through the next generation of business system expenditures. We preview the emerging models, and review many implications for clients, and for services associated with IT strategy and operations consulting, IT services, and outsourcing of IT infrastructure and enterprise applications. We also make predictions for the shifting technological landscape and offer 5 key recommendations for consulting client organizations. (5,625 words) . . . More
2011 HR Consulting Rates Monadnock Research (Vol IV, N 23) - 23 July 2011 This Research Note includes the findings a client study of Human Resource (HR) consulting rate structures across a number of industries. More than 85 percent of the rates analyzed were from global entities, including a total of 45 firm-rate structures. All were from organizations that fall within the 1,000 largest global organizations. This report presents statistics across 15 professional classifications, including a percentile analysis for each labor class and detailed descriptive statistics. Rates from firms that were a subject of this analysis include Accenture, ACS, AON Hewitt, Booz&Co, Capgemini, Deloitte, Hay, IBM, Mercer, North Highland, Plus Delta, PA, Point B, PwC, and Towers-Watson. (1 graphic, 16 tables, 6,980 words) . . . More
EC Commissioner Barnier Considers Prohibiting Auditors from Offering Consulting Monadnock Research (Vol IV, N 21) - 1 July 2011 MR The EC Commissioner for Internal Market and Services, Michel Barnier, addressed a conference of the Federation of European Accountants on 30 June, and advocated for a number of auditor regulatory changes that could include a total ban on audit firms providing consulting services and mandated rotation of auditors. Barnier is the EC official responsible for the Internal Market and Services Directorate General and Office for Harmonization in the Internal Market. Speaking before the federation of European CPA's Barnier intimated that he believes the regulatory environment for auditors in Europe is deeply flawed and in need of reform. He proposes the EC focus on: auditor independence issues; opening of the audit services market; and a more integrated European auditor regulatory and certification environment. The issue of auditors offering consulting and advisory services was addressed in his remarks. He believes that a key factor that fuels excessive familiarity between auditors and their clients lies in providing too many consulting and non-audit advisory services. Barnier asks, "How can we view an auditor as independent when the firm also advises the client in the area of strategy?" Research Note includes translation and interpretation of key points from speech associated with consulting. (865 words) . . . More
SAIC Subcontractors Indicted in $40+ million Alleged Fraud; SAIC Consultant Pleads Guilty in Scheme Monadnock Research (Vol IV, N 20) - 1 July 2011 MR - Nine defendants have been indicted in connection with an elaborate scheme to defraud the City of New York on its CityTime project. The people named in the indictment are Mark Mazer, Gerard Denault, Padma Allen, Reddy Allen, Dimitriy Aronshtein, Svetlana Mazer, Larisa Medzon, and Anna Makovetskaya. The SAIC subcontractors allegedly complicit in the scheme, along with 2 SAIC employees and a New York Office of Payroll Administration staffer, are Technodyne LLC, D.A. Solutions, Inc. and Prime View, Inc. The contractors are alleged to have grossly over-billed for consultant time on the engagement, and to have employed a network of shell companies and bank accounts in the US and elsewhere to conceal more than $40 million in fraudulently-billed consulting fees. Mark Mazer was a city employee authorized to approve consultant invoices. SAIC employee, Carl Bell, a Chief Systems Engineer in the firm's New York Office, pled guilty to multiple charges in the fraud, and has admitted to receiving millions in kickbacks. Another SAIC employee, Gerard Denault, was charged and is out on bail. Ironically, CityTime, a project that endeavors to properly report time worked, has itself ballooned to 950% of its original budget due, in part, to fraudulently reported time. "IT contracts that involve hundreds of millions of dollars and multiple layers of consultants are a new frontier for fraud, and DOI has been at the forefront of exposing it," said Rose Gill Hearn, Commissioner, New Your City Department of Investigation. (updated 1-July-2011, Research Note includes allegation details, indictment and complaint - 2,975 words) . . . More
And in other news: Accenture, CSC, Medtronic, Capgemini, Deloitte, and Philippine Airlines Monadnock Research - 23 June 2011 MR - Accenture announces strong quarterly results; finalizes Nokia Symbian deal; S&P 500 to include ACN. CSC receives antitrust clearance to acquire iSOFT. Thomson Reuters acquires CorpSmart from Deloitte. Surgeons that failed to report Medtronic clinical trial complications in research received at least $62 million in consulting and other fees from the company. Capgemini in exclusive negotiations to acquire Prosodie. Judge rules in favor of Philippine Airlines in success fee dispute. Another expert network consultant found guilty of fraud for disclosing confidential information. (857 words) . . . More
Recent Firm Research: Accenture, KPMG, and PwC Monadnock Research - 23 June 2011 MR - Physician employment trends will drive business strategy changes for payers, providers, and vendors; Businesses say it's possible to sustain growth, drive innovation, and simultaneously address societal challenges facing nations and communities - (Accenture). Multinational tax executives say global regulatory pressure to increase transparency is most significant change ahead; Banking execs look to M&A to fuel growth; complete economic recovery not expected in near-term (KPMG). Leveraging innovation to develop new products and services as important as raising existing market share (PwC) . . . More
Three More Convictions in Professional Services Confidential Client Info Leak Cases; Cooperating Government Witness Dies in Apparent Suicide Monadnock Research (Vol. IV, No. 17) - 15 June 11 MR - Former Galleon trader, Zvi Goffer, his brother Emanuel , and Michael Kimelman, a former colleague, have been convicted of multiple counts of securities fraud and conspiracy. According to prosecutors, the segment of the insider information network they uncovered was responsible for more than $20 million in known trading profits. This brings to 39 the total number of people that have been found guilty or pled guilty. Former Ropes & Gray attorney Brien Santarlas admitted during the proceedings that he and Arthur Cutillo, another lawyer at the firm, routinely scoured its intranet and offices for potential tips on confidential transactions and business information that could be conveyed to network contacts. A cooperating government witness, Ephraim Karpel, was found dead in his office on 28 May, the victim of an apparent suicide. FBI surveillance of Karpel, a former commodities trader, was played at the Goffer trial two days before his body was discovered in his New York office. The network of executives at professional services firms offered tips to hedge fund leaders and staff about confidential transactions and financial information that they were privy-to given the nature of their work as lawyers, consultants, and financial advisors. According to William R. Barzee, attorney for Zvi Goffer, in his closing arguments at trial, "It's the real world. Things get out." (Research Note includes copies of complaints and some FBI surveillance transcripts - 1,500 words) . . . More
Accenture Buys Stake in Saudi Arabian IT Services Firm Monadnock Research - 7 June 2011 MR - Accenture will expand its Middle East presence by forming a joint venture with Saudi Arabia-based Al Faisaliah Group (FG). The deal calls for Accenture to acquire a majority stake in FG subsidiary, Al Faisaliah Business & Technology Company (FBTC). FBTC is a leading IT services firm in Saudi Arabia. Accenture expects the deal to close within 90 days. FBTC is a leading ERP solution provider in Saudi Arabia and offers integrated business and technology services to a wide range of clients in the region. Accenture plans to expand its offerings to clients in the Middle East by combining FBTC's enterprise architecture, systems implementation and technology consulting skills, with its own management and technology consulting competencies, industry expertise, innovation capabilities, and outsourcing and global delivery capacity. (490 words) . . . More
Former BDO and Jenkens & Gilchrist Senior Advisory Leaders Convicted in Fraudulent Tax Shelter Scheme Monadnock Research (Vol. IV, No. 16) - 24 May 2011 MR - Paul Daugerdas, Donna Guerin, Denis Field, and David Parse were convicted in Manhattan federal court on 24 May for designing, marketing and implementing fraudulent tax shelters used by wealthy individuals to avoid paying taxes. Daugerdas, Guerin, and Field made a collective $130 million in profits from the 10-year scheme. They were convicted of conspiring to defraud the IRS and to evade taxes, and of corruptly endeavoring to obstruct and impede the internal revenue laws. They were also convicted on multiple counts of tax evasion related to the use of tax shelters, and of mail fraud. Field was the former CEO and Chairman of BDO Seidman. Daugerda was a lawyer and former head of the Chicago Office of the tax practice of the law firm, Jenkens & Gilchrist (J&G). Guerin was a tax attorney and shareholder at J&G's Chicago office. Parse was a former Deutsche Bank Broker. Five others previously pled guilty as co-conspirators in the scheme. Deutche Bank admitted to criminal complicity and agreed to pay a fine of more than $550 million in December 2010. Daugerdas, Guerin, Field, and Parse will be sentenced in October. Research Note includes original complaints. (1,580 words) . . . More
Infosys Technologies to Rebrand as Infosys Ltd., Acknowledging Strategic Importance of Consulting in Service Offerings Monadnock Research (Vol IV, No 15)- 16 May 2011 MR - Infosys plans to rebrand the company as Infosys Ltd. to underscore the strategic importance of management consulting, industry capabilities, and non-technology elements of the firm's service offerings. Infosys has also introduced a number of new growth platforms. Cloud Computing, Enterprise Mobility, and Sustainability have been added to learning solutions and business platform solutions as the main engines of future growth. The firm will focus its offerings around seven themes: Digital Consumers, Emerging Economies, Sustainable Tomorrow, New Commerce, Healthcare Economy, Smarter Organizations, and Pervasive Computing. (391 words) . . . More
Rajaratnam Guilty of Securities Fraud and Conspiracy; Wiretaps of Conversations with Former McKinsey Leaders Proves Key Monadnock Research (Vol IV, No 14) - 11 May 2011 MR - Galleon Management's former CEO, Raj Rajaratnam, has been found guilty on 14 counts of securities fraud and 5 counts of conspiracy. The 54 year-old faces a maximum sentence of 205 years in prison at his 29 July sentencing. Until then, he will be confined to his New York City residence, and was immediately fitted with a monitoring bracelet. Rajaratnam was convicted after an eight-week trial before U.S. District Judge Richard J. Holwell, which included jury complications that required substitution of one juror after more than a week of deliberations. The defense plans to appeal both the verdict and the introduction of U.S. FBI surveillance that included conversations with two high ranking former McKinsey executives, including its former global managing director, Rajat Gupta, and Anil Kumar, one of the firm's highest ranking principals and its first employee ever to be indicted since the firm's 1926 formation. Kumar testified at trial for the prosecution. His testimony proved instrumental in convicting Rajaratnam. Gupta continues to deny allegations against him for allegedly leaking confidential information about Goldman Sachs, and other publicly traded companies. (Research Note includes associated complaints and case materials, 1,270 words) . . . More
CSC Launches Infrastructure Utility Service Monadnock Research - 9 May 2011 MR - CSC has introduced CSC Infrastructure Utility (IU), a cloud-based infrastructure utility in support of SAP applications, and built on Vblock Infrastructure Platforms. CSC says it enables organizations to rapidly migrate SAP workloads to the cloud and move workloads between dedicated and shared infrastructures. CSC is an SAP global services partner with more than 6,500 dedicated consultants with expertise in SAP software in 50 countries that have completed more than 2,000 implementations of SAP. (635 words) . . . More
Location-Based Rating Schemes for Consulting Services Monadnock Research (Vol IV, No 13) - 28 Apr 2011 MR - Some firms are willing to negotiate location-based rating schemes for strategic clients. So what are the average differences in rates for work provided exclusively at the client site when compared to rates for the same work provided at the firm site? Monadnock Research recently concluded an analysis of location-based rating (LBR) from more than 30 consulting firms that proposed 56 separate LBR schedules. Our study included analysis of 242 rate structures from 153 large and very large consulting firms providing services to the U.S. public sector to find those 56 schemes. Of the 153 firms, discounts were offered by 34 firms, primarily by level of professional providing services exclusively from the client facility. The study included rating schemes for IT Consulting, Management Consulting, Financial and Business Advisory Services, Human Resources Consulting, and Marketing Consulting. Research Note includes 2 graphics and firm-level rate analysis for the 34 firms and 56 LBR schedules. (840 words) . . . More
SEC Fines Satyam $10 Million for Fraud; PCAOB and SEC Sanction PwC $7.5 Million for Not Detecting It Monadnock Research (Vol IV No 12) - 6 Apr 2011 MR - Mahindra Satyam has agreed to pay a $10 million penalty to settle charges with the U.S. Securities and Exchange Commission (SEC) over its predecessor entity, India consultancy and IT service provider Satyam Computer Services, and its fraudulent overstatements of revenue, income, and cash by more than $1 billion over five years. The Public Company Accounting Oversight Board (PCAOB) settled its disciplinary order against five PricewaterhouseCoopers (PwC) affiliated firms based in India, which included a $1.5 million penalty against two of those entities. The PwC entities violated rules and standards in connection with the audit of Satyam. The PCAOB penalty is in addition to the $6 million penalty imposed by the SEC against the PwC affiliates. The sanction is the largest-ever civil penalty issued by the PCAOB, and the largest regulatory penalty imposed by the SEC and PCAOB against any registered foreign accounting firm. Associated investigations have been ongoing since 7 January 2009, when Satyam's Chairman and Founder, Ramalinga Raju, admitted to perpetrating the fraud. Research Note includes 6 SEC and PCAOB orders. (2,500 words) . . . More
Honest Services Crisis: Professional Poison and the Chicago Connection Monadnock Research (Vol IV, No 11) - 30 Mar 2011 This Research Note was written by Monadnock Research CEO and Cofounder, Mark O'Connor, for re:TheAuditors, Francine McKenna's Big Four Weblog. The article has been published in its entirety at www.retheauditors.com; no subscription required. Research Note includes 7 recommendations for clients and firms to minimize risk; Big Four firm metrics; recognition of 2010's best and worst examples; three graphics; and 45 minute audio version. (6,200 words). . . . More
2011 Big Four Consulting and Advisory Services Rates Monadnock Research (Vol. IV, No. 10) - 17 Mar 2011 MR - This Monadnock Research Note summarizes the findings of a recent client study into Big Four consulting and advisory services rates. Since we find that rate data for the Big Four is not particularly useful unless it is presented across individual rate categories, this Note provides median rates for firms across the following 12 categories: Strategy; Operations; Accounting and Financial Strategy; Legal, Forensic and Risk Advisory; Internal Audit and Compliance; Transaction Advisory; Tax Advisory; Performance Services; IT Audit; Human Resources; IT Consulting; and IT Strategy. Research Note includes 4 charts. (850 words) . . . More
Big Four Advisory Practice Rankings Monadnock Research (Vol IV, No 9) - 17 March 2011 MR - Global non-audit advisory services of Big Four firms, including tax services, again broke the $50 billion (USD) mark in fiscal 2010 after retreating briefly in 2009, representing a 3.23 percent increase over 2009 levels. Total non-tax advisory services of Deloitte, KPMG, PricewaterhouseCoopers, and Ernst & Young were $27.8 billion, an increase of 8.1 percent over fiscal 2009. This Monadnock Research Note ranks the Big Four firms across their non-audit service categories. It also includes ratios of audit to non-audit advisory work for the Big Four, and provides MR perspective on what it all means to buyers, sellers, and regulators of associated services. Research Note includes 6 charts. (3,075 words) . . . More
About Us
A.T. Kearney