Deloitte a tale of two divisions

Consultancy firm Deloitte has two separate divisions in New Zealand that advise on IT, says chief executive Nick Main.

Consultancy firm Deloitte has two separate divisions in New Zealand that advise on IT, says chief executive Nick Main.

Deloitte Touche Tohmatsu deals with medium-sized companies and specialises in JD Edwards implementations while larger customers are referred to Deloitte Consulting.

“Of course there is some overlap as JD Edwards moves up the food chain and the big ERP vendors move down, but that’s the basic division,” says Main.

Deloitte Consulting partners with SAP, Oracle and PeopleSoft and, since earlier this year, with BEA Software.

Along with cross-marketing and sales efforts, the BEA partnership calls for Deloitte to train its consultants on the WebLogic platform. They will identify “repeatable solutions” — basically, reusable software parts — that could be used in multiple customer environments. That particular deal is perhaps more notable for BEA than Deloitte, which becomes the last of the big consulting firms with which BEA has signed similar partnerships.

As to how big Deloitte is in New Zealand, Main won’t say how much the business is worth.

“None of the big four would tell you, I would suspect.” He does say that IT implementations make up around 20% of the company’s overall New Zealand business.

The two divisions employ around 120 consultants split between the company’s Auckland and Wellington offices.

According to the its website, its consultants can help with “designing and implementing LANS and WANs and associated midrange technologies”, design hardware and communications infrastructure, select related components and help choose a vendor. It will also take on implementation work. The company has an outsourcing group based in Dunedin.

It also has customer relationship management (CRM) expertise, saying it can take customers through the whole CRM implementation process, including developing a CRM strategy, designing the infrastructure and making it all work.

Earlier this year Deloitte Touche Tohmatsu International announced it would spin off the Deloitte Consulting arm to become a privately held, independent company to avoid the kinds of conflict of interest that were seen with rival accounting firm Andersen’s role in the collapse of power broker Enron.

Although many details still need to be worked out, Deloitte Consulting’s partners would own the majority of the company, and Deloitte Touche Tohmatsu would retain a minority stake, according to a Deloitte Consulting spokesman.

With global revenues of $US12.4 billion last year and around 95,000 employees, Deloitte Touche Tohmatsu is one of the world’s largest professional services organisations.

According to the company’s website, global customers include AT&T, Microsoft, Vodafone Airtouch, AOL Time Warner, Telstra, Nortel and Verizon.

The company has a technology, media and telecommunications (TMT) group with “a deep industry knowledge” of technology, media, and telecommunications companies. The group’s leader, Igal Brightman, says it knows the challenges those industries face in areas such as the internet, software, computers, telecommunications and networking, semiconductor and related industries, along with broadcasting and publishing, and can deliver services anywhere in the world.

Deloitte customers

  • AT&T
  • Microsoft
  • Vodafone Airtouch
  • AOL Time Warner
  • Telstra
  • Nortel
  • Verizon

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