Financial consulting giant Deloitte Touche Tohmatsu has made a serious entry into outsourcing with the acquisition of a 20 per cent stake in Outsource Australia, Australia's largest independent corporate services firm.
Sara Cullen, head of Deloitte's internal business management group, said the alliance "creates a corporate services firm which releases clients from IT, human resources, finance and back office services so they can focus on core businesses".
"At a time when e-business revolutionises the provision of services and products, we will help firms focus on surviving and flourishing in the fast paced e-world," she said. "Increasingly we will see smart companies utilising outsourcing to accommodate change and flexibility, particularly in the area of corporate services."According to Domenic Martino, Deloitte's NSW managing partner, the deal will put Deloitte in a leading position in the lucrative corporate services market which has an estimated growth rate of $1 billion annually. The more mature US corporate services market is generating $US10 billion annually and growing at a rate of 30 per cent per year.
Martino believes that the traditional services provided by accounting firms have been usurped by the needs of the new e-economy. "Outsourcing is not just about cost saving, it's about efficiency," he said. "Businesses should be concentrating on their core services and they are beginning to realise how much energy they are expending on services they could be outsourcing.
"We have been working in this space with OSA for about two years on a number of projects," continued Martino. "They form a good cultural fit with Deloitte and have received a good response from customers with regards to service and solutions."OSA will operate independently from Deloitte's offices and will benefit from Deloitte's global corporate services expertise and the injection of capital which will allow it to maximise its growth potential.
Deloitte will also use OSA to accelerate the growth of its Asia-Pacific business outsourcing centres currently located in Hong Kong and Singapore.
OSA is one of four companies that have formed alliances with Deloitte in recent months. Deloitte announced a merger with financial services firm, Trowbridge Consulting, and took a 20 per cent stake in e-content provider Eclipse Group.
Adding the acquisition of Criterion Technology, announced recently, Deloitte is in a powerful position to offer total outsourcing solutions to both existing and new clients.