Accenture Boosts Digital Capabilities In Public Sector With Agilex Acquisition

Accenture acquired Agilex Technologies as the systems integrator, No. 3 on the CRN 2014 Solution Provider 500 list, is looking to stake a claim as a leader in digital technologies in the public sector.

Agilex is a provider of digital technologies to the federal government, including software development, systems integration, cloud, big data and analytics and mobility.

Terms of the deals were not disclosed.

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Accenture sees the federal government as at an "inflection point" when it comes to digital technologies, said David Moskovitz, CEO of Accenture Federal Services. As the public sector market opens its arms to digital technologies, Moskovitz said Accenture is strategically positioning itself to bring innovative digital solutions to the federal government.

"I think this is very much on our strategy. It's the right time for us and particularly for our clients to bring these capabilities to market. We're very excited about it," Moskovitz said.

That strategy, and in turn the Agilex acquisition, is driven by a turning point Accenture sees in the federal government in its attitude toward digital technologies, Moskovitz said. As one of the predominant federal systems integrators, Moskovitz said Accenture is looking to get ahead of that trend, which he said would be a "game-changer" for clients looking to take advantage of digital trends such as analytics, cloud and big data.

"We really believe the federal government is at an inflection point where these technologies will be critical to how our clients deliver their mission and find efficiencies. This will really accelerate and complement Accenture's own capabilities in digital," Moskovitz said.

That "inflection point" is driven by two major trends hitting the public sector, he said. First, as the federal government is pushed by budget cuts and other factors to be more flexible and cost-effective, the appeal of cloud technologies is growing. Second, Moskovitz said citizens are raising their expectations for interactions with the government, driven by similar changes in the commercial space.

Agilex will be fully integrated into Accenture Federal Services, including around 800 employees, after the anticipated acquisition close date of Sept. 1. Company leadership will transition into new roles at Accenture Federal Services, the company said, and founders Jay Nussbaum and John Gall will leave Agilex after the acquisition is closed.

Moskovitz said clients will really be able to feel the "power in the acquisition" as Agilex's digital capabilities are combined with Accenture's current consulting and technical offerings. That combination will boost the ability of Accenture's clients looking to "seize the power of digital" technologies, he said.

"That full life cycle of capabilities that Accenture can bring to combine together ... that would be an example of one plus one is greater than two," Moskovitz said.

Going forward, Moskovitz said to look out for Accenture "expanding its footprint" in agencies throughout the government with the combined digital capabilities of Accenture Federal Services and Agilex. In particular, he said to expect more from Accenture in terms of ERP, mobility, analytics, and citizen- and employee-facing interactions.

"I think that’s the key characteristic of our Accenture services -- our heritage of delivery. ... We're doing that with very innovative technologies in the marketplace," Moskovitz said.

PUBLISHED FEB. 10, 2015