Deloitte & Touche has acquired TI Consulting, an ERP specialist serving the intelligence community, for an undisclosed amount. Deloitte says the deal will give it a leading presence in the fast-growing market for integration work in the federal intelligence sector.
TI was founded in 1997 and got its start working exclusively in the commercial sector, Karen Druffel, the company’s founder and president, told Computer Business Review. But the company entered the intelligence space-specifically the Department of Defense’s intelligence agencies, and was drawn more to that sector. Now TI works exclusively with the DoD’s the intelligence community, including the National Security Agency and the Defense Intelligence Agency.
The company works around PeopleSoft/Oracle technology, providing implementation services, life cycle management, and custom implementation services, Druffel said. She said a number of Pentagon agencies use PeopleSoft/Oracle back-office systems for functions such as supply chain, logistics, human resources, and financial management.
TI has 25 technical professionals on its staff, which makes it a rather small firm, but Druffel said that the number of employees with security clearances at the company surpasses those of its competitors. Druffel didn’t disclose TI’s revenue but said it grew between 50% and 60% last year.
Of course Deloitte has a fairly sizeable federal practice, with some 1100 employees onboard, 600 of whom have clearances, according to James DuBose, a Deloitte principal who focus on intelligence. The number of specialists in the intelligence community is an even smaller number, he said. DuBose said Deloitte’s intelligence business was also growing rapidly, at some 40% to 50% a year.
He said the competitive field for intelligence work included the usual suspects for federal integration work, such as Booz Allen Hamilton, Accenture, Northrop Grumman, and IBM. TI might appear to be a tiny player among these companies, but its technical capabilities make it a top contender for intelligence deals, DuBose said, citing a recent life cycle deal that TI won against Accenture, the incumbent on the contract.
A lot of the DoD intelligence work is simply body shop or contracting work, DuBose said. Druffel added that the combination of TI’s technical resources and Deloitte’s focus on the process and consulting side of the market should create a very strong player in the market.