ASG takes aim at global integrators amid post-acquisition rebrand

ASG takes aim at global integrators amid post-acquisition rebrand

ASG goes for a bigger play in the large enterprise and Federal Government space

ASG Group COO, Dean Langenbach

ASG Group COO, Dean Langenbach

Credit: ASG Group

ASG Group is talking up its attack on the big IT players in Australia’s enterprise and government space, as it unveils its new consolidated brand after wrapping up its post-acquisition integration with SMS Management & Technology.

ASG Group completed its $124 million acquisition of the then publicly-listed SMS Management & Technology in late September.

The acquisition came after a drawn out bidding war between fellow publicly-listed Australian IT services player, DWS (ASX:DWS) and ASG Group, which is owned by the Japanese company Nomura Research Institute (NRI).

Following the completion of the acquisition, SMS and ASG began the process of being integrated into a single operating business, with the process slated to take three months. It was led by head of operations, Andrew Rose, who joined ASG from DWS, where he had been the company’s chief operations officer, in mid-September.

Now, the company has largely wrapped up its integration, with the official launch of its new corporate branding as a combined entity on 11 December.

Along with the integration and new branding comes a new focus on the upper end of the market that is largely populated by big enterprise and Federal Government customers, and the global systems integrators that habitually service them.

“The integration is going very, very well,” ASG Group COO, Dean Langenbach, told ARN. “It’s ahead of schedule. We actually wrapped up most of the integration last week.

“Now we see ourselves in the position where we have a lot more depth. ASG had very good outsourcing and Oracle and SAP capabilities, and analytics. And now we have great Salesforce, Microsoft and very deep consulting and change management capabilities,” he said.

For Lenganbach, one of the most critical factors that will help ASG tackle the top end of the Australian market is that the company’s Japanese parent, NRI, has given the company autonomy in the local market, boosting its agility and flexibility.

“Whilst we are owned by a large global company, the way it’s structured is that we have complete autonomy…the senior management has been maintained,” Langenbach said. “So, we really do feel that it’s a fantastic time for the organisation to launch the market hard."

Additionally, the balance sheet of the new combined entity along with its depth and breadth in terms of capability has given it the ability to make a run at much larger contracts than either ASG or SMS were able to as individual companies, according to Langenbach,.

Already, the company is in the process of bidding for two major contracts with the Federal Government that are larger than any jobs ASG has bid for previously.

One of the claims the company is making as it attacks the traditional focus area of the top tier global systems integrators is that, not only is the new ASG able to move swiftly due to its independence from its global parent, it is also entirely technology agnostic – a trait it suggests many of the incumbents in the market cannot boast.

While ASG has not named the specific companies it intends to challenge with its new focus, the area of the market it is now taking on is populated by the likes of IBM, Dell EMC and HPE, as well as large consulting firms such as Deloitte and Accenture, the latter two of which are also largely technology agnostic.

Regardless, Langenbach maintains that the local leadership and autonomy puts ASG in good stead to offer clients something others cannot.

“All the decisions here are made locally. Our organisation is a very agile and direct approach where our CEO and myself, we get involved intimately with each customers, and I would argue whether any other organisation would have that level of involvement with their customers,” he said.

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