Axe falls on Gartner's consulting division
- 16 May, 2007 14:02
Effective today, Gartner's consulting operations in Australia and Hong Kong will cease to be, according to a leaked email to IDG.
In the email addressed to company staff, president of Gartner Consulting, Bob Patton, announced it would withdraw its consulting operations in Australia and Hong Kong.
"This decision is consistent with our strategy to move from fewer people in a lot of places to critical mass in fewer growth markets," read the email. "By continuing to increase our focus on larger deals in strategic accounts, our consulting practice can drive greater client value and enhanced financial performance."
Patton said Gartner is "committed to the full and satisfactory completion of existing client engagements in the region" and will work with the clients to ensure a satisfactory conclusion.
Worldwide, Consulting represented US$305 million out of Gartner's total US$1.06 billion revenue last year.
Patton said the company will attempt to relocate affected staff.
"We will work hard to find opportunities elsewhere in Gartner for as many of our talented consultants as we can, and where this is not possible, we will help them to find opportunities elsewhere. All existing client commitments will be met."
The email added that the closure of the consulting division would not affect Gartner's research, analysis, events or executive programs businesses in the Asia Pacific region.
A Gartner Australia spokesperson said the closure of the consulting division was based on the company's lack of resources in a market littered by hundreds of competitors, including; Accenture, and IBM Global Services.
"It's all down to a size issue really," they said. "To compete with some of the other IT services companies out there you need to have a fair sized team and we only have a small team in this region. We would have to invest a hell of a lot more people and resources, which we just don't have."
The spokesperson did not provide the number of staff affected by the closure.
For more on this story, read Gartner's consulting demise stemmed from strategy and
Nuances of local consulting market caught Gartner out, competitors say