AB InBev insources Bengaluru business operations back from Accenture

09 February 2018 Consultancy.in 3 min. read

The build-operate-transfer (BOT) contract between global consulting giant Accenture and the world’s largest brewer, Anheuser-Busch InBev (AB InBev), will terminate later this month. The contract has lasted for a period of three years, providing Accenture with business of more than $100 million per year. 

Founded in 2008 as a result of a merger between InBev and Anheuser-Busch, AB InBev is the largest beer-brewing entity in the world, employing 200,000 employees worldwide and generating annual revenues of over $45 billion. The Belgium-based firm is also regarded as one of the largest fast-moving consumer goods firms in the world, supplying to leading brands across the world including Budweiser, Corona, and Stella Artois.

In 2014, drawing on the rapid growth of the Indian consumer market, the firm ventured into India, establishing a centre in Bengaluru, and delegating the operations to Accenture on a BOT basis. In essence, BOT models are ideal for companies that are looking to expand operations, allowing for external support during the period of growth, and then complete control and ownership in the subsequent period of stability.

As a result, the global consulting firm has deployed an impressive 1,100 employees over the last three years to the AB InBev project, covering operations in the business process management, accounts, financial reporting, and data management domains. The costs of the operations amount to over $100 million a year, classifying AB InBev as one of Accenture’s ‘diamond customers.’

AB InBev insources Bengaluru business operations back from Accenture

Now, as operations begin to stabilise, the brewing company has commenced its preparations to take the reigns of the Indian outfit.  Early last year, AB InBev devised a transition plan to internalise the Indian operation, which included a comparative analysis of internal and external capacities, exploring the possibility of productivity boosts through automation.

The assessment was supervised by Ricardo Farias and Guilherme Isidoro, the Vice President of Global Solutions, Services and Operations, and the Director of the Global People Business Services at AB InBev. Having reviewed the situation, the firm has decided to terminate the contract with Accenture later this month and transfer the operations to its internal framework.

Nevertheless, the firm appeared happy with Accenture’s services. Peter Dercon, the Global Director of External Communications for AB InBev in Europe said, “AB InBev and Accenture look back on a successful partnership. InBev will continue to work with Accenture on various other engagements.”

Now in control, the company has commenced the establishment of its own network in the region, hiring a number of professionals in Bengaluru for its IT and operations. In addition, AB InBev has a growth analytics centre in the city, which comprises 70 professionals who produce real-time analysis and forecasts. The choice of Bengaluru as the centre of operations appears to be a strategic one, as the city places among the top markets in the world for business.