Business services M&A update: Q3 2018
As new and improved technologies continue to disrupt the market, the business services industry will likely need to quickly learn to adapt. Whether it is leveraging new digital channels for marketing, focusing on digital education or continuing to digitize outsourcing projects, business services consider adjusting to the digital push. This business services mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the business services industry.
Business services trends
- Driving increased customer engagement through an
omni-channelapproach 1: As the number of sales channels that consumers interact with continues to grow, businesses are increasingly utilizing omni-channelmarketing approaches that boost touchpoints with customers and enhance the customer experience. In order to maximize customer engagement, advertising and marketing agencies constantly need to adapt to shifting market needs and be able to provide expertise in both digital and physical channels. Growth and success for marketers will likely be largely predicated on their ability to leverage new and existing channel infrastructure,while managing the advertising mandates of their clients.
- Business process outsourcing in emerging markets 2: As technological advancements continue to spread and trigger disruptions in the market, the business process outsourcing sector has experienced significant growth in several developing countries. The lack of adequate
technologicaltraining and education in these developing countries has created large workforces that are well-suited for performing business process outsourcing services. Many large corporations continue to leverage business process outsourcing services to save time, money, and resources so that their staff can focus on essential core business operations. Consultingindustry may be faced with increased regulations in Europe 3: Due to independence concerns, regulators in the United Kingdom are considering barring auditors from performing consulting services for the companies that they audit. The Financial Reporting Council has administered fines upwards of $30 million on auditors, including KPMG and PwC. This move could potentially open up opportunities for European consulting firms to absorb significant market share from large professional services firms that have traditionally used audit relationships to parlay consulting services.
- Expansion of the millennial workforce drives digital focus 4: As baby boomers age and begin to exit the workforce, bright-eyed millennials continue to take their place. Unlike previous generations, millennials are equipped with the tools to access troves of information in an increasingly decentralized way, a phenomenon that has caused many individuals to seek on-demand delivery of training and educational content. The shifting
demographicof the current workforce demands digital training and education services. This trend is expected to continue to have significant impacts on the education and training services sector as corporations look to acquire or adopt innovative e-learning solutions in an effort to retain top talent.
This newsletter is a periodic compilation of certain capital markets information.
1 Ted Vrountas, “The 7 Biggest Digital Advertising Trends Taking Place Right Now,” https://instapage.com/blog/digital-advertising-trends, accessed October 15, 2018.
2 Market Watch, “Business Process Outsourcing (BPO) Services Market Top Companies Insights and Latest Trends, ”https://www.marketwatch.com/press-release/business-process-outsourcing-bpo-services-market-top-companies-insights-and-latest-trends-industry-valued-to-be-usd-52-million-by-2023-2018-10-10, accessed October 15, 2018.
3 John Glover, “U.K. Audit Watchdog to Review Industry, Considers Consulting Ban,” https://www.bloomberg.com/news/articles/2018-10-08/u-k-audit-watchdog-to-review-industry-considers-consulting-ban, accessed October 14, 2018.
4 Alex Rivas, “How to attract millennial workers - and keep them,” https://www.trainingjournal.com/articles/features/how-attract-millennial-workers-and-keep-them, accessed October 30, 2018.