EQUATERRA ACQUIRES INSOURCE PARTNERS; AUGMENTS INFORMATION TECHNOLOGY CAPABILITIES

NEW YORK (March 1, 2005) —EquaTerra, a multi-national outsourcing and insourcing advisory firm, today announced it has completed the acquisition of InSource Partners, a technology advisory firm that focused exclusively on helping companies efficiently structure, design, operate and manage their technology organization.

The acquisition will enable EquaTerra – already a recognized advisory market leader in areas including HR, Finance and Accounting (F&A) and Procurement – to provide its clients with more information technology (IT) expertise, robust assessment tools and methodologies.  Utilizing EquaTerra’s solution-oriented and consultative approach for effective service delivery strategies, the combined organization will enable enterprises to improve their global Sales, General & Administrative (SG&A) service delivery capabilities through an optimal mix of outsourcing and in-house transformation.  InSource Partners shares an approach similar to EquaTerra’s with respect to IT initiatives – helping clients increase efficiency while improving service delivery.  This comparable blended sourcing approach in complementary areas of expertise creates a combined firm supporting clients’ broad SG&A improvement initiatives.

Market data supports continued industry growth and opportunities for EquaTerra.  Gartner Dataquest predicts that worldwide BPO revenue will grow from a projected $131 Billion in 2004 to $161 Billion in 2006.  IDC provided a Worldwide Services 2004-2008 Forecast Update projecting a 6.9% compound annual growth rate in IT services over the next five years from the estimated $553 Billion in 2004.

Said Mark Toon, CEO of EquaTerra, “Following an exhaustive search, we determined that InSource Partners was the ideal organization to deliver the technology expertise, strategy and assessment tools our clients require, and was also a perfect cultural fit for EquaTerra.  We are excited about the added benefits our clients will receive as a result of this acquisition.”

InSource Partners has an extensive client base across multiple industries including pharmaceutical, manufacturing, and the public sector.  InSource Partners helps clients evaluate which processes to insource and outsource, and also helps them develop and execute improvement strategies for optimal performance in their technology organization including retained organization redesign and IT transformation. 

Kyle Spencer, InSource Partners’ CEO added, “Joining EquaTerra  is a great move for us as we look to complement EquaTerra’s SG&A focus by serving as its foundation in the technology sector.  Our organization is full of former CIOs and technology executives adept at utilizing our tools and methodologies to create more efficient IT organizations for clients.”

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