lllrtrr ProfessEonal Services

Thlnklngnhead
IMAGINE A SHARPENED PENCIL stantially this year compared with with Microsoft's Windows 95. Among
I in front of you. The point repre- 1995.The increases range from 3% at other things, Windows 95 is needed
I sents companies leading the way Coopers & Lybrand to a whopping to support an integtated suite of
into the information age, where 50%at KPMG,whidr spent $95 million internally developed applications
intellectual assets count for more on IT in the United Statesin 1995. called Audit System 2, now used bY
than the ability to make and sell Frank says the higher level of Deloitte & Touche's 7,000-plus audi-
products. The eraser symbolizes the spending at KPMG will continue for tors in the United States.The suite
industrial past. \tVhile most compa- at least three or four years, as the automates much of the auditiag
nies belong somewhere along the organization prepares for the 21st process, dramatically reducing the
pencil's shaft, the professional ser- century. The goal is a knowledge paperwork involved.
vices sector is at its very tip. management environment tfiat ties Next for Deloitte & Touche's 24G
That's the analogy used by Ellen together legary systems, an intranet, person IS department in Nashville,
Ihapp, vice chairman and chief the World Wide Web, data ware- Tenn., is deployment of SAP RP
knowledge officer at New York ac- housing, document management, client-server applications. The soft-
counting firm Coopers & Lybrand, to new applications, networking, and ware could be used to combine De'
describe where professional services network management. loitte & Touche's internal operations,
companies stand in an increasingly All this is meant to give IGMG especially in the area of consulting
services-driven economy. "It's the professionals ubiquitous accessto services, according to Greenleaf.
only pure play in the knowledge the firm's brain trust. "You can no Other technology projects at De'
economy," Ihapp says. "All of our longer separate our technology loitte & Touche include slashing the
assetsare knowledge assets." strategy from our business strategy," number of servers deployed in the
SaysAllen Frank, chieftechnology Frank says. United States by
ofifi.cerat IGMG Peat Marwick in New The pace of almost half, ftom
York and partner in charge of IGMG's innovation is simi-
enabling technologiespractice, "We're lar at other profes-
I Prolessional
seruiccs 550 to 300. That in-
cludes phasing out
basicaily a giant brain. For us, the sional servicescom-
knowledge-management environment
c0mpanlesa18ollen Novell NetWare
and IBM OS/2 serv-
panies. Technologtrr
is the core system to achieve compet- managers at these
itive advantage."
amongtheearlyad0pters ers and replacing
them with Win-
organizations are
That thinldng explains why the deploying new soft-
InformationWeek500 professional ser- ware, developing
ofnewflechnology. dows NT systems.
The firm also is
vices companies-a diverse group intranets, putting adding about 500
dominated by Big Six accounting systems in place to employees per
fums such as Coopers & Lybrand, support Internet month to its in-
IGMG, and Deloitte & Touche-are service offerings, ternational Lotus
often among the early adopters of and extending en- Notes network.
new technology. Windows 95, Lotus terprise networks Coopers & Ly-
Notes-intranet integration, and SAP to suPPort remote brand is in the pro-
AG's R/3 enterprise applications are a users and interna- cessof building an
few of the things on their 1996 agen- tional sites. intranet to supPort
das. "We've got to larow the technol- For instance, Coopers & Lybrald
ogy before our clients do," says Doug Deloitte & Touche Intellectual Capital
Greenleaf, CIO of Deioitte & Touche. has upgraded all of (CLIC),an initiative
The IT budgets of many profession- its 16,000 PCs in to cleliver up-to'
al sewices companies will grow sub- the United States the-minute indus-

!86 ' IW ' SEPT.9,7996 + http:llwww.informatiottweek.com

try information to its professional soundfi]es. computing as a
staffworldwide. The accounting firm The most sig- way to dramati-
also is converting physical libraries nificant problem cally cut the cost
in 120 U.S. locations to virtual li- Scielzoforeseesis of expensive of-
braries, called Cyber$bs,on its intra- getting the net- fice space. The
net. Earlier this year, Coopers& Ly- work capacity to firm has begun
brand launchedits three-year-oldTax support all that settingup metro-
NewsNetwork ffNN on the Internet. traffic. "The hard- politan officesfor
"CLICand Cyberlybare internal- ware and software "hoteling,"where
ly focused,"Ihapp says."They exist exist to do what equipment and
to assistour partners and staff.TNN we want to do." he workspace ate
is one of the first examplesof creat- says."The biggest assigned on an
ing an electronic community be- challenge for the as-neededbasis.
tween Coopers& Lybrand and our future for us is "We believe we
client base." going to be band- will be able to
Coopers& Lybrandis readyto offler width. The cost put $40 million
even more servicesover the Internet really needs to back on the bot-
as the market develops.It has trade- drop more quicldy tom line on a
marked the Cyber$b term and regis- than it has." recurring basis
tered the grberlyb.comdomain name. Ernst & Young as these initia-
"We have the option to take this con- is facing the same tives mature."
cept and create subscription-based problem. "Traffic Ituapp says.
library servicesrelated to highly pro- has gone up dra- The infra-
fessionaltechnical data," I(napp says. matically, by a fac- strucnrre em-
Deloitte & Touchealso has estab- tor of 10, in the ployed by Ernst
lished an Internet presenceby selling last couple of & Young, which
tax advice and other financial ser- years," says E. Al- indudes the Af,N,I
vices on the Microsoft Netr,vork. len Hershey, na- network, is set
tional director of up to accom-
CyberGhances technology innova- modate nomadic
Other professionalservicescom- tion. The NewYork groups ofprofes-
panies, propelled by the nature of Big Six accounting sionals that set-
their business,alsoare cashingin on firm is solving the tle in at client
cyber opportunities. James Scielzo, bandwidth dilem- sites for days-
senior VP and chief technology offi- ma by building orye:rrs.Hershey
cer at advertising and public rela- a 45-Mbps back- says the biggest
tions specialistYoung& RubicamInc. bone using asyn- challengeis sup-
in New York,estimatesthat one-third chronous transfer porring teams of
to one-half of the firm's 12,000 mode (ATM) ser- 50 or more con-
employeesare involved in the cre- vicesfrom Sprint. sultants involved
ative processor production of com- Professional in a major re-
mercial communications. services compa- engineeringproj-
Multiple lines of businessat Young nies also are con- "0urassets areknowledgeassets," ect. "We have
& Rubicamare leveragingthose slcills tinually pouring saysCoopers KnaPP.
& Lybrand's the biggestteams
to help customerscreateWeb sites. more computer for the long-
"It's a significant and strategicbusi- and communica- est times at the
nessfor us," Scielzosays. tions resourcesinto overseasloca- strangestplaces,"he notes.
Young& Rubicamis wired for mul- tions. For many of these organiza- The accounting firm is experi-
timedia. Nearly 35%of the company's tions, more than half their work force menting with wirelesstechnologyfor
desktop computers are Apple Macin- is locatedoutsidethe United States. auditors, who often find themselves
toshes(the other 65%are Microsoft Then there are the growing ranks working in out-of-the-wayconference
Windows-basedPCs),and by year's of mobile workers. At Deloitte & rooms at client sites. "They have to
end, all employees will have Web Touche,8Oo/o of employeesare now go piaces where there may not be
browsers.The fum usesvideoservers equipped with Pentium notebooks much of a local infrastructure,"Her-
along with its 3,500-userNotes net- running Windows 95. "We're a port- shey says."Wireless tends to be of
work, and is building links between able, mobile company,"says Green- interest to thosepeople."
that network and an intranet. Its leaf. "You don't make money sitting Jay Pursell, director of computer
worldwide frame relay network in- in the office." servicesat manufacturing and ser-
creasinglycarriesgraphics,video,and Coopers & Lybrand sees mobile vices conglomerate the Marmon

. SEPT.9, 1995 ' IW' 187

http:llwww.informationweek.cotn
TTIITII Professional Services
I
I Group Inc. in Chicago, says the goals.At I(PMG,theo- I
This kind of lead-
group's 60-pluscompaniesare large- rists are pushing the
I ly autonomouswhen it comesto the idea of "thought opti- ':,,,:.r, .,'r,:.,; tr.."'.:t ilff"ttff"HffilI
use of IT.The companiesinclude Getz mization." Frank de- ,'; t rl,, comPaniesoPtimistic
T Bros.exporters,the TransUnion cred- scribes it as a way of
it agency,and Marmon/I(eystone,a problem-solving in Expanding
Lotus Notes networks
ir'"""T.#:, rffi"ff:
I distributor of alloy tubing. which there is less
andintesratins
newintranets
Noteswith
;;;#";"";i n i*-
Half of the group's $6.1billion in emphasison'ScientiF orementors to fuel
I 1995revenuecamefrom sewicesand ic method" as a way Offeringservices over growth, especially
half from manufacturing, which of reaching a goal. the Internet [hrough their already
explainsits heavyinvestmentin engi- "We think there's a Upgrading supportfor mobileand fast-growingtechnol'
neering and computer-aideddesign physical limitation as remoteusers ogy consulting prac-
systems.On the flip side,fewer than to how far you can providing anyrime,anywhere tig9,sThat combined
half the group's 28,000employees take that," he says. accessto corporatetttorfues ]"tl o growing real-
have their own PCs.
One thing the Marmon Group
companies have in common is a
The better approach,
he says,is hypothesis-
driven: "You focus on in the future will
r lxtiT"f;:i:f:::':
desireto establisha presenceon the the problem as early in the process come from innovative thinking and
Internet. Half have Internet connec- as possible.Youwant to get to the big knowledge management,leavespro-
tions, and one-third have Web sites. answersearly." fessionalservicescompaniesfeeling
"There's a pretty big audience out IGMG's philosophy has an IT re- that they are sitting pretry'.
there on the Internet, and all of them quirement-the organization's work- "There'sa real trend awayfrom the
are potential customers," Pursell ers and information resourceshave focuson downsizing,cost-cutting,and
says.The group's total IT spending to be seamlesslynetworked. That ex- businessprocessreengineering,and a
for 1996 is $rgs million, a slight plains why the firm's directors decid- gxeatdeal more focus on innovation,"
increaseover last year. ed to increase IT spending by 50% Coopers& Lybrand'sI(nappsays."It's
Other professionalservicescom- this year. "The systemaligns itself to an enornous opporfunity for profes-
panies are pursuing even loftier IT the thinking process,"Frank says. sional servicesfirms." -Johnfuley

rllllltrtllrllltlltlllltlllrlllrl

RAill( Rtm( cll c0ilrPrtY ISBUDGET ISSUDGET TOTAI TotatE

t996 t995 It0Et( ilAME t996 r995 EMPTOYEIS EMPIOYCIt
' ' 's- -
t3 30 43007 Deloitte
& Touche sb,aod,ooo $ 2,s110,000 56,000 1,500
19 28 't,078
40800 Ernst& Young' $ 162,088,668 s 138,924,552 61,000
25 127 37315 HGroup Holding Inc. .-. , :- '._.
26 84 36688 Marmon Group lnc. q 13q,099,00q$ 125,000,000 ?9,990 1,200
33 41 esod6 KPMG PeatManivick $ 680,000,000 s 200,000,000 73,000 1,500
48 60 31139 PriceWaterhouse LLP $ r11,000,000 53,000 850
50 40 30M2 ArthurAndersen & Co.' $ 191p94,936 s 155,493,959 73,000 1,277
oo 61 28278 Coopers & Lybrand $ 120,000,000 $ 110,000,000 71,000 800
224' a2 13678 SverdrupCorp.' s to,zsz,soo $ 146t0,002 3,800 98
zoE 259 rzoos ParsonsCorp,' $ 37,766,400 9,s00
'10763 ....
298 323 ServicaMaster Co.LP' b rs,ssr,goa 34,000 503
309 348 10366 Young& Bubicam Inc. $ 35,000,000 $ 25,000,000 11,000 t/7

322 322 9857 Towers Perrin $ 120,000,000 6,000 500

344 zao
^^^; BechtelCorp.' $ 200,728,416 $ r69,317,r82 r 21r
JZJJ
?9ooo
375 sazs DynCorp $ 2,000,000 17,000 29
J/V

380 TJ 8380
6J IJ
Interpublic
Browning
Group
Ferris
ofCos.
Industries
Inc.'
$ 70,000,000
$ 136,415,80r
$ 20,000,000 19,000
37,000
290
907
395 8014 CentexCorp. $ 1,400,000 3,500 ll
397 +oz 7983 Mari?lnc.' $ 25,445,112 $ $,2n,276 . 6,400 169
78S4 Pinkerton's
lnc.' $ 20,388,970 45,000 tJo

415 7529 TurnerCorp. $ 3,000,000 .:.. 2,700 20

417 7520 BorgWarner Security Corp.' $ 43,962,450 $ 41,377,362 92,000 292
418 " t1 9
4 7496 Battelle
Memorial lnstitute $ 29.300,000 s 20,054,059 7,500 ODJ

'fS
numbersare lnlomaionweek estifrates.
S e es t o r i e ss t a n i 0 go n p . 4 4f o . e x p l a n a t i o no sf C I II n d e r .l S b u d 0 e e
t s r i m . l e sa, n dl S e m p t o y eees t j m a t e s .

f88 ' IW' SEPT.9, 1996 + http:llwww.informationweek.com