Regional Round-up for the UK for June 2008

Contribution from Mark Edwards, CEO, Document Boss

The strong interest in the UK eDM, Document Capture and BPO services sectors continues, despite the forecasts for the downturn in the economy.  Cash surplus companies are seeing this as a good time to buy. Despite being a relatively small island, the UK has quite a spread of companies. Recent high profile incidents with the Government mislaying documents, have also created a high demand for RFID solutions.  Radio Frequency IDentification solutions enable organisations to insert an RFID tag into physical document files for the purpose of identification, using radio waves.  This information is linked to a DM system, enhancing the efficiency of inventory tracking and management.  Will this prevent important documents from being left on trains? Maybe not, but at least the culprits would be able to be identified before the train has reached its destination.

The acquisition of Graphic Data by Mailsource (subsidiary company of the Swiss Post) in April http://www.graphicdata.co.uk/ could change the dynamics a little for the numerous document capture BPO services companies in the UK.  However, it is too early to tell what effect this will truly have.

There are as many companies outside the UK looking to establish themselves in this country.  Could it be that the UK is seen as the best first stepping stone into Europe? Acquisition activity includes rumoured activity from outsourcing companies in India, seeking an acquisition in the UK The next few months will tell if they have been successful.

Despite the high activity and interest levels in acquiring for corporate growth, many organisations have still not learnt the lessons of the past.  More than 50% of acquisitions fail to reach their strategic objectives.  The solutions are relatively easy to achieve but…………….. 

The bean counters will study for weeks financial spreadsheets in an earnest attempt to make a good job of their acquisition but dedicate consideration that seems to be measured in minutes to the their future employees.  Post acquisition integration of the people within the company is notoriously poor.  It is not uncommon to see the wrong people involved in the most important stages of an acquisition, without the required skills, resulting, on occasions, in new staff being treated with as much thought as the newly acquired office furniture.  This will only generate a loudly banging “EXIT” door and a consequential loss of intellectual IP, customer relationships and loyalty.

It need not happen this way. If you are interested in reducing your risk in acquiring in this sector within the UK, then we would be pleased to speak with you. Email mark@documentboss.com