BearingPoint: making good progress towards achieving its goal of becoming a €1bn consulting firm!

BearingPoint demonstrates a strong performance and has reaffirmed its ambition to reach the 2020 revenue target of €1 billion. In this regard, inorganic growth will play a more important role than has been the case in the last few years.

BearingPoint hosted its annual Analyst Event in Paris at the start-up facility “Le Village“, which belongs to Credit Agricole and was built and also runs with the support of BearingPoint.

I would like to start with a statement we already put out last year in our blog post on the BearingPoint Analyst Event: „Continuity and transformation do not necessarily have to exclude each other!“ I can only underline what we said in 2016, since over the last 12 months BearingPoint has managed to continuously follow its long-term growth strategy and its goal of becoming a global company. And it has systematically continued to transform its consulting portfolio and methodologies, its innovation process as well as company culture in order to adapt to the digital age.

The company’s 2016 overall performance was very good, which is reflected by its turnover of € 622m, a 10% increase on the previous year. What is remarkable is the fact that more than 95% of this growth has been organic. Nevertheless, BearingPoint made two smaller acquisitions to strengthen its positioning in selected areas.

Meanwhile, its solution business has reached a substantial size (22% of the total revenue) and was clearly an overperformer in the company’s portfolio (with a 27% growth).

The focus of the solution business still lies on selected growth topics around digital, analytics and compliance (regulations). The solution unit is also systematically working on building a dedicated sales force and partner ecosystem around several of their solutions.

With regard to the so-called “Accelerators”, BearingPoint also moves on in the development of such and has reached a number of 50 (+8 compared to last year) within their portfolio.

Accelerators can be additional software components but also tools, templates and methodologies that are reusable and speed up projects.

 

In terms of its 2020 strategy and the levers to become a €1bn company, BearingPoint is focusing on certain key elements which fit the strategy it has been following for several years:

- Extending its global reach

- Positioning BearingPoint as a global player with a focus on the G20 countries

- Having a stable and reliable consulting network of key partners and a number of selected EME partners to fill white spots

To reach these strategic goals, BearingPoint is also focusing on further acquisitions of a “string of pearls“ to increase its positioning in selected areas of expertise and geographies.

Last but not least, I would like to share with you some of the key feedback I received from BearingPoint customers about the firm’s consultants, the reason they work with BearingPoint as well as what makes it different:

- BearingPoint is easy to work with; its consultants are not arrogant but quite the contrary (“fairly humble”)

- At CEO level one can talk about business strategy and in the next moment jump into technology

- BearingPoint is super operational; they know the market very well, have a quick understanding and start projects immediately

 

All in all, BearingPoint demonstrates once again that continuity is compatible with transformation into a company that can help its customers get ready for a disruptive digital world.

BearingPoint demonstrates a strong performance and has reaffirmed its ambition to reach the 2020 revenue target of €1 billion. In this regard, inorganic growth will play a more important role than has been the case in the last few years.