Competition / Competitors
We operate in a highly competitive and rapidly changing global market and
compete with a variety of organizations that offer services similar to those
that we offer. In addition, a client may choose to use its own resources rather
than engage an outside firm for the types of services we provide. Our
Information technology outsourcing and services companies. In addition
to information technology outsourcing, these companies also offer consulting
and systems integration capabilities for a complete solution.
Big 5 accounting and consulting firms. Over the past few years, the
Big 5 accounting firms have built significant consulting operations with
broad capabilities and geographic coverage. Many of these firms are currently
undergoing restructuring to separate audit and consulting practices to meet
regulatory requirements, as well as to gain access to equity markets.
Management and strategy consulting firms. These firms continue to focus
on high-level corporate strategy for their traditional clients and emerging
companies. Many have recently added a focus on information technology and
electronic commerce strategy.
Specialized electronic business consulting firms. The fragmented nature
of this industry, coupled with constant changes in technology, results in the
formation of boutique consultants. The rapid rise of the Internet resulted in
the emergence of many specialized services firms, typically focused on a small
segment of the overall market, such as Web design and development.
Information technology product and service vendors. Product vendors
offer technical consulting to support their own products while also maintaining
alliance relationships with major consulting firms, and these organizations
typically attempt to broaden their services beyond their product suites. We
also compete with application service providers.
Changes in our marketplace may create new, larger or better-capitalized
competitors with enhanced abilities to attract and retain professionals.
Our revenues are derived primarily from Fortune Global 500 and Fortune
1000 companies, medium-sized companies, governmental organizations and other
large enterprises. There is an increasing number of professional services firms
seeking consulting engagements with these organizations. We believe that the
principal competitive factors in the consulting industry in which we operate
skills and capabilities of people;
reputation and client references;
scope of services;
service delivery approach;
technical and industry expertise;
perceived ability to add value;
quality of advice given;
focus on achieving results on a timely basis;
availability of appropriate resources; and
global reach and scale.