Another Year Another $1Billion – the SI Creative Agency Spending Spree Continues

In March 2018 TechMarketView published a report on the $5+ billion spent by Systems Integrators (SI’s) on buying Creative Agency businesses. Judging by how well both the acquired personnel had been retained and the associated skills pools had been expanded, the gamble appeared to be paying-off.

Twelve months on the logic that had driven these inorganic growth investments – fueled by SI’s needs to unearth and secure large volumes of larger scale digital business transformation programmes – has remained clear and compelling. It therefore comes as little surprise that this particular spending spree shows no sign of abating.

The last year has seen a further sixteen creative agencies snapped up by the leading SI’s for a total price tag that we estimate is in excess of $1bn. There are, however, still questions over whether this is proving to be money well spent. Just how successful are the acquiring SI’s being at bringing these new capabilities fully into the mainstreams of their businesses to generate increased market leverage? Time for another look.

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