Compliance – Convergence of Services, Technology and Data

At Clearsight we are strident believers that Technology, Services and Data are converging and that businesses are looking for more complete solutions as opposed to trying to cobble together pieces of a puzzle.

The recent announcement of Cap Gemini, a leading Consulting organization; PegaSystems, a leading BPM software provider; and DLA Piper, one of the largest law firms globally that they have teamed to develop and are unveiling a FACTA compliance application is a great example of how companies are reacting to the needs of the marketplace. This application is aimed at financial institutions to help them address the complex requirements of the US Foreign Account Tax Compliance Act (FATCA). FATCA requires foreign financial institutions to notify the IRS if accounts are owned by US citizens and if so require them to abide by IRS regulations. This type of complex compliance issue is by no means only applicable in the financial services vertical, but similar complex compliance requirements exist in Healthcare, Government and almost every other industry vertical.

As a result, Clearsight has seen a dramatic shift in Consulting companies looking to acquire software tools, and proprietary data sets; Data companies looking to acquire consulting expertise and technology, and Technology firms looking to acquire consulting and proprietary data. This trend has not only led to more robust M&A processes given the interest from adjacent markets, but has also resulted in premium valuations as a consequence of the heightened competitive environment created from the dramatic increase in number of interested buyers for a given asset. We expect this trend to accelerate throughout 2013 and beyond as the lines continue to blur and vendors look to deliver the more comprehensive solutions corporations are demanding.