A study predicts new and renewed deals as the economy emerges from its doldrums.

 
By Debbie Bolla
 
 

Houston-based sourcing consultant EquaTerra has acquired Morgan Chambers of London, creating one of the biggest independent consulting firms in the outsourcing segment. Terms of the deal were not disclosed.

Information Services Group, Inc. said it will acquire sourcing advisory firm TPI for $280 million in cash. TPI’s founder and members of management will invest 30 percent of their proceeds from the transaction in ISG stock at closing.

TPI and EquaTerra, two of the industry’s leading outsourcing consulting firms, have terminated their merger plan, which was made public late last year and signed in February. The March 10 announcement, which came as a surprise to even some employees of both firms, followed recent disclosure by executives of both companies that it had gone as far as picking out a new name, Veritage, for the merged organization.

While demand for outsourced services continues to grow, it is showing signs of a slowdown, according to London, U.K.-based EquaTerra, a multi-national sourcing advisory firm. In its third-quarter “Outsourcing Pulse Survey”, the firm found 16 percent of service providers reported a decline in its demand pipeline, the first negative report of the year.  Furthermore, only 68 percent of providers reported that their pipeline was up in the quarter compared with the year before.

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