IBM Business Consulting Services has sold the international consulting group of its public sector practice to Abt Associates, a privately held international research and consulting firm, for an undisclosed amount. The international group is made up of IBM’s consulting work with the US Agency for International Development.
The group consults on issues such as privatization, capital markets, trade, and tax reform. It was previously part of PricewaterhouseCoopers Consulting before IBM acquired the company in 2002.
The practice does about $12m in revenue from its current USAID contracts, according to Peter Broderick, Abt’s corporate communications director. But a lot of these contracts are indefinite quantity arrangements, with potential values in the billions, he said.
So Abt will now be able to compete for task orders under these contracts. Because much of the group’s work is subcontracted, only eight IBM employees will transfer over to Abt, Broderick said.
The work is right up Abt’s alley, with its experience in project consulting for governments, agencies, foundations, and businesses across the globe. The firm has a long history with USAID, including mostly healthcare work, but also in areas such as agriculture, Broderick said.