KPMG today announced it has entered into an agreement with Towers Watson, a leading talent and human capital professional services organization, to acquire the company’s Human Resources Service Delivery (HRSD) practice.
Towers Watson’s HRSD practice is a recognized leader in HR transformation with deep expertise in HR service delivery. As technology dynamics shifted around the globe, Towers Watson’s HRSD practice has understood the importance of cloud-based solutions and developed leading-edge technology skills to keep pace.
“We are excited to have this experienced group of industry-leading HR consultants join the KPMG team. With talent and culture change topping company board agendas, business leaders are looking for providers who understand the linkage between HR management and broader business goals,” said Stephen N. Chase, U.S. Management Consulting leader of KPMG’s Advisory practice.
Through this transaction, KPMG, together with other member firms of KPMG International, will be acquiring Towers Watson’s HRSD practice resources in the United States, United Kingdom, China, Hong Kong, Canada, Singapore, and the Philippines.
Susie Quirk, China Head of People & Change Advisory, KPMG China, says: “Insightful employee data has quickly moved to the top of boardroom agendas in Hong Kong and China. We are very excited as the acquisition will further boost our team’s capacity to deliver HR services in the region and also complements our current offering.”
“Globally we are making tremendous progress in HR transformation and this is being recognized by clients and analysts alike. This acquisition significantly increases our capacity and ability to serve our global clients in all geographies,” said Mark Spears, KPMG’s global head of People and Change and leader of the Global HR Centre of Excellence.
The acquisition marks KPMG’s sixth transaction in the HR transformation space in the past four years. In addition to Towers Watson’s HRSD practice, the firm has acquired EquaTerra, Optimum Solutions, The Hackett Group’s Oracle Enterprise Resource Planning practice, Zanett Consulting Solutions, and the Workday practice of Axia Consulting.
KPMG has been recognized by the analyst community as a leader in HR transformation. It was cited as the only “Kennedy Vanguard Leader” that was “advancing” in the breadth and depth of Human Resources transformation capabilities in the 2013 HR Transformation report from Kennedy Research, an ALM Media, LLC business.
Towers Watson’s HRSD practice has supported a substantial number of Workday implementations during the past seven years. The practice was also named a Workday Consultant of the Year in 2009 and 2010, and recently was named to the Winners Circle in the inaugural HfS Blueprint Report for Workday Services.
“Our practice helps clients create the optimal HR function by aligning their people, processes and technology. We’re a team that’s passionate about our clients’ success,” said Mike DiClaudio, global leader of Towers Watson’s HRSD practice. “Our capabilities and experience fit very well into KPMG’s strategy and organization. We are excited to continue helping HR leaders improve the quality and efficiency of the services they provide to their organization.”
As part of the acquisition, KPMG will continue to invest in Towers Watson’s HR Service Delivery and Technology Survey, a powerful platform that has helped guide HR leaders on issues and opportunities for the last 18 years. The survey is delivered to human resource and technology leaders worldwide via the Towers Watson HR Service Delivery and Technology Forum, in which the firm will also continue to invest.
“Towers Watson has built a strong capability in the HR service delivery and Workday deployment area,” said Max Caldwell, managing director of the company’s Data, Surveys & Technology line of business. “As our focus in this business shifts to growth of Towers Watson’s proprietary HR software solutions, we are pleased the HRSD practice will continue to thrive at KPMG.”
The transaction was signed on July 9 and is expected to close in the coming weeks. Financial terms of the agreement were not disclosed.
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About Towers Watson
Towers Watson (NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. With 16,000 associates around the world, the company offers consulting, technology and solutions in the areas of benefits, talent management, rewards, and risk and capital management. Learn more at towerswatson.com.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 162,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG China has 16 offices in Beijing, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Xiamen, Hong Kong SAR and Macau SAR, with around 9,000 people.
KPMG China refers to the member firms of KPMG International in Mainland China, Hong Kong SAR and Macau SAR.