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Saturday, March 11, 2006

IT Consulting Landscape Change Signalled by Offshore Merger

American IT consulting firm Darwin Partners merged with an offshore Chinese technology company Suzsoft. This offshore merger displays the changing business model that includes more global outsourcing.

Darwin Partners is an IT consulting firm that offers subject matter and expert domain services to several industries, including financial services, high-tech products and health care. Suzsoft specializes in software design and development, engineering, localization and work in quality assurance. The companies are well-suited to each other and have decided on a share swap, which means neither group of owners will either have to cash out or acquire the other company. The perfect merging of the companies will hopefully create a unique partnership that will increase business growth and the quality of the services provided, according to Frank Robinson, CFO at Darwin.

Even though Robinson calls this marriage of companies “unique,” it is fast becoming a model for outsourcing throughout the world. Offshore companies are attempting to better their services and move into the spotlight in technology fields including IT consulting. Because these companies need the help of businesses and IT consulting firms that are already experienced and have made a name for themselves, they seek them out for opportunity and to help them increase their revenue and visibility in the business sector.

Darwin Partners and Suzsoft will be legally separate, with Suzsoft taking a subsidiary role. Both companies have 400 employees each. Because the two companies are not separate profit-wise, Darwin customers will experience a cost savings.

Other offshore companies are expected to continue to follow suit in the near future, partnering with high profile, growing businesses and IT consulting firms to help with globalization and with increasing their visibility and reputation.

U.S.-based companies like IBM already have a large number of employees working from other countries such as India, which holds 40,000 employees of the company within its borders alone.

Those providing outsourcing intend to reduce customer concerns about late projects and poor quality by providing better accountability for the finished product. Because employees in different countries can be on different schedules, project completion time, particularly in the case of projects that are split between several consultants in different time zones can vary.

Blogged By: Computer Consulting Kit