Research Notes continued

Displaying Matches 16 thru 30 of 147 Found.  BACK NEXT

Maverick Spend: Strategies for Controlling Unauthorized Consulting Expenditures
Monadnock Research (VIII N24) - 1 July 2010
MR (VIII N24) - Capturing and managing by-pass spending ("maverick spend") on consulting services is a significant challenge for most global sourcing and procurement organizations. But controlling spend in other procurement categories is generally met with much less resistance. Complexity of this service area combines with a dynamic participant marketplace, and the political influence of decision stakeholders, to set consulting apart from other procurement areas. Understanding the consulting category and its many facets and history is crucial to building an effective program to minimize maverick spend on services. This Research Note presents our perspectives and observations on best practices, and our findings from a recent Monadnock Research study on the practices of twelve organizations representing an estimated $7.6 billion in spending on consulting services annually. (5 Charts, 4,425 words) Link to purchase White Paper for non-subscribers: http://www.monadnockresearch.net/products/item37.cfm . . . More

Miami Appeals Court Throws Out $522 Million BES Award Against BDO Seidman; Orders New Trial
Monadnock Research (VIII N23) - 23 June 2010
MR - The $522 million August 2007 Banco Espirito Santo (BES) decision against BDO Seidman has been thrown out in a shocking twist to the 7-year legal battle between BES and BDO. A new trial has been ordered, pending rehearing and appeal of the appellate court's ruling. The original award included $352 million in punitive damages based on BDO Seidman's alleged gross negligence in flawed audits at BES subsidiary, E.S. Bankest, between 1998 and 2002. The audits were found at trial to have concealed a $170 million fraud. The appeals court decision, however, calls the rationale for those findings into question. The trial court's strategic decision to "trifurcate" the proceedings were also a key issue. The appeals court concluded that doing so created a situation where the decision on BDO's liability for gross negligence was decided before the jury even considered other relevant issues that should have been heard and decided simultaneously. It is unclear at this time whether the agency issue is now back in play, or if that element of the case excluding BDO International will stand. The latter point has significant consulting and audit industry implications. What may avert a death sentence for BDO Seidman may ultimately eliminate an important ruling in support of the liability shields of global firm network structures. (Research Note includes full text of decision - 5,835 words) . . . More

State of Alaska Settles with Mercer for $500 Million
Monadnock Research (VIII N22) - 11 June 2010
MR - The Alaska Retirement Management Board (ARMB) has settled its December 2007 suit with Mercer. The suit was brought on behalf of two Alaska benefit plans and relating to work performed by Mercer from 1992 through 2004. Mercer continues to deny its liability in the settlement. This resolves all claims against Mercer by the ARMB and the State of Alaska in the matter. Under the terms of the settlement, Mercer will pay $500 million, with $100 million of that paid by its insurance carriers. Mercer says it would have been difficult to get a fair trial in Alaska given the fact that nearly 11.5 percent of Alaskans were plan participants. The firm also cited the complexity of the claims as another factor that increased the risk of taking it to trial. (Research Note includes copy of complaint - 240 words) . . . More

HP Settles Sky Litigation for £318 million
Monadnock Research (VIII N21) - 10 June 2010
Monadnock Research - Hewlett-Packard has settled its U.K. litigation in Sky v. EDS for £318 million. The court issued its final ruling on in January 2010 finding EDS UK liable to Sky for deceit, negligent misrepresentation, negligent misstatement, and breach of contract. HP made a voluntary payment of £200 million in February, and in March the court ordered it to make another payment of £70 million. The claims related to a failed CRM project that was awarded to EDS in 2000 as its systems integrator. The project was originally estimated by EDS at just under £48 million, but was ultimately completed by Sky at a cost of £265 million. (Research Note includes 468 page court ruling - 865 words) . . . More

California County Files $30 million Fraud Complaint Against Deloitte Consulting
Monadnock Research (VIII N20) - 7 June 2010
Monadnock Research - California's County of Marin has filed a $30 million civil fraud case against Deloitte Consulting for alleged actions associated with an SAP financials and HR systems implementation project. Deloitte filed a response with the Marin County Board of Supervisors after the suit was filed, seeking more than $550,000 it says is still owed. The firm noted that it prefers dispute resolution alternatives other than litigation. The case highlights a number of key issues that all clients should focus on during multi-year high risk projects. The allegations of Marin County against Deloitte, whether or not they are ultimately proven, read like a consulting case in what not to do at every stage of an IT services project. This research note provides detail on the key issues and the project risks that were not appropriately mitigated by highlighting key allegations made by Marin County in its complaint. Includes links to Marin County Superior Court filings, and two consulting agreements, including the parties' implementation services agreement. (7,740 words) . . . More

Consulting Client Insights: Hackett Group
Monadnock Research (VIII, N19) - 21 May 2010
MR - The Hackett Group had stronger than anticipated revenues and earnings for its fiscal Q1 2010, and improved its outlook for Q2. This is an early indication that demand for consulting and research services may be rebounding among mid-market firms, as we have seen among some top-performing large firms. This Research Note explores the operational results of Hackett for the first full period following the Archstone acquisition, and also examines the recently-announced accelerated settlement of its Archstone acquisition earn-out obligations under the November 2009 transaction and the recent departure of former Archstone President and CEO, Todd Lavieri. (760 words, 1 chart) . . . More

Former McKinsey Director Granted $2.79 Million Consent Order and Judgment in Hedge Fund Fraud Case
MR (VIII, N18) - 21 May 2010
MR - A U.S. District Court Judge for the Second District of New York has agreed to a $2,790,621 consent order and judgment related to criminal fraud and conspiracy charges against former McKinsey & Co. senior partner Anil Kumar. Kumar was one of McKinsey's 400 senior partners, capital markets practice leader, and KPO thought leader at the time he was charged in October 2009. Kumar waived his right to be indicted on the charges in late December. Given the favorable settlement terms granted, it is likely that he will be a key witness against any defendants fighting charges associated with Galleon. (includes Consent Order and Judgment, and Complaint; 1,160 words) . . . More

SAP Acquisition of Sybase: Consulting Client Implications
Monadnock Research (VIII, N17) - 14 May 2010
MR - In a new escalation of the SAP Oracle enterprise application war, SAP has agreed to acquire Sybase for $65 per share, valuing the company at approximately $5.8 billion. The transaction is expected to close in the third quarter of 2010. This research note offers MR's perspective on the consulting client implications of the Sybase acquisition. (745 words) . . . More

Monadnock Research 2010 Consulting Firm Labor Category Update
Monadnock Research (VIII, N16) - 7 May 2010
MR - Monadnock Research has recently introduced an update to its consulting firm rate category taxonomy that we use for grouping rates of firms for research, consolidation, statistical analysis, and reporting. There are a total of 15 rate categories across the high-level domains of Principal, Director, Manager, Consultant, Analyst, and Administrator. There are also a number of characteristics that are unique to strategy, operations, HR, marketing, and IT consulting, and financial advisory services. (Includes downloadable spreadsheet - 2,165 words) . . . More

Consulting Client Insights: Infosys
Monadnock Research (VIII, N15) - 6 May 2010
MR - Infosys has shifted its business model over the past 5 years toward one that more closely incorporates consulting services, and it seems to be working. The changes have allowed it to realize a 29 percent quarterly compound annual growth rate (CAGR) in revenues over the period, to $1.3 billion in Q4 fiscal 2010. Infosys added a total of 9,313 employees in the quarter/year-ended 31 March, with a net increase of 3,914. This represents a total voluntary and involuntary attrition rate of 5,399 in the latest quarter, or 5 percent. This is particularly problematic for the firm, since it now expects fiscal 2011 revenues to grow between 16 and 18 percent. (473 words) . . . More

2010 Consulting Services Sourcing & Procurement Trends: Top 18 Strategic Priorities
Monadnock Research (VIII N14) - 23 April 2010
MR - Recent MR research has identified 18 strategic priorities of consulting services sourcing and procurement organizations. Our "Consulting Category Management 2009: Trends and Best Practices" report profiles what 7 leading organizations have done in these areas to better leverage spending on consulting services and to maximize value from strategic firm relationships. This Research Note lists those priorities and sets the stage for an upcoming in-depth series of research studies on the practices of consulting services sourcing and procurement organizations within each of these 18 strategic areas. The first in the series will be a study into reigning in consulting "maverick / bypass spend." Study participants will receive a PDF containing full detail on study results. The survey will take just 15 minutes to complete, and we encourage category managers and other procurement executives familiar with the category to participate. This study is open to participants now. Paste the link inside the parentheses into your browser and select, to be directed to the Monadnock Research Web site for participation details: (http://survey.monadnockresearch.com/limesurvey/index.php?sid=95611<=en) . . . More

Consulting Client Insights: Accenture Q2 2010
Monadnock Research (VIII N13) - 26 March 2010
MR - Accenture reported financial results for Q2 of fiscal 2010, with net revenues of $5.18 billion, a decrease of 2 percent in U.S. dollars and 8 percent in local currency from the same 2009 period. Operating income was $651 million and operating margin was 12.6 percent, effectively flat over the same 2009 period. New consulting bookings were $3.39 billion, and showed improvements in overall transactions and pipeline, while maintaining high quality in the business it has won. In terms of challenges, Accenture had high sustained utilization of 88 percent with voluntary turnover of 15 percent. This will likely challenge Accenture's ability to simultaneously ensure high quality engagement outcomes and client satisfaction, while improving margins. (2 Charts, 1,930 words) . . . More

2010 Large Firm US Public Sector IT Consulting Services Rates Increase by Nearly 3 Percent
Monadnock Research (VIII N12) - 19 March 2010
Rates for IT consulting services provided by the largest firms to US public service organizations in 2010 increased by just under 3 percent over 2009 levels. The mean hourly rate for services across all categories for the 100+ firms surveyed was a little more than $170. This Research Note is the second in our series of rates by practice area and summarizes our analysis of fees under the U.S. GSA's Schedule 70, Sections 135-51, IT Professional Services (ITPS). It also analyzes the consolidated hourly rates of each firm across Monadnock Research's 8 labor rate categories, for the largest of the 3,650 firms providing services in the ITPS category. (1,633 words, 5 Charts) . . . More

Fair and Reasonable Prices for Services More Difficult to Determine; Enhanced Competition at Contract and Order Stages Recommended
Monadnock Research (VIII N11) - 17 March 2010
MR - This Research Note summarizes the key findings and recommendations of a two year study conducted by the U.S. GSA's Multiple Award Schedule Advisory panel into procurement policy regulations, solicitations, and contract provisions, which highlights distinctions between services, solutions, and products. Some key study findings include: (1) It is more difficult to determine fair and reasonable prices for services than for products; (2) Meaningful competition occurs at the contract schedule (MSA) and order levels; (3) The value of a price reduction clause as an effective procurement tool is questionable; (4) Order data is not systematically collected as it should be to leverage client purchasing power; and (5) the best method for determining a fair and reasonable price for services and products is to enhance competition at the contract and order levels, and to ensure that the process of contract and order formation is transparent to both procurement and all authorized ordering activities. Report makes 20 key recommendations to re-architect inter-agency procurement policies, processes, and workflow to increase competition and transparency, and to set the stage for transformation to strategic sourcing within the world's largest organization. (1,653 words) . . . More

2010 US Public Sector Business Consulting Services Rates Increase by 3.5 Percent
Monadnock Research (VIII N10) - 12 March 2010
Rates for business consulting services provided to US public service organizations in 2010 increased by 3.5 percent over 2009 levels. The mean hourly rate for services across all categories was a little under $200. But less than one-fifth of business consulting services firms included executive-level positions in their negotiated rate schedules. This Research Note summarizes our analysis of rates for the business consulting services category under the US GSA's Schedule 874, Mission Oriented Business Integrated Services (MOBIS). It also analyzes the consolidated hourly rates of each firm within MR's 8 labor rate categories, including details on the categories themselves, for the top 5 percent of the 2,000 firms providing related services. Over the next eight weeks we will publish our analysis of rates for financial and business advisory services, human resources and administrative services, advertising and integrated marketing services, and information technology professional services. (1,850 words, 4 Charts) . . . More

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