Capita buying Northgate MS puts spotlight back on ITS

Capita’s purchase of Northgate Managed Services (NMS) last week (see Capita acquires Northgate Managed Services at knock-down price) left us with plenty of questions as to what the deal means for the future of Northgate and its other two divisions Northgate Public Services (NPS) and Northgate Arinso (NGA) now that one of its three core divisions has been cast off.

As for Capita, the deal begs many questions about its strategy in IT services, and what it wants to achieve with this additional capability. Organisationally we think Capita faces its biggest challenge however as it struggles to articulate how NMS and other M&A ‘fit’ its core in business process services.

Subscribers to TechMarketView's Foundation Service and BusinessProcessViews research can read the analysis and implications for both players here.

Posted by John O'Brien at '07:34' - Tagged: acquisition   bps   itservices   M&A