Infosys enters digital advertising space through acquisition of Wongdoody

20 April 2018 Authored by Consultancy.in

In a further step towards consolidating its presence in the US, Indian tech consulting giant Infosys has acquired Seattle-based advertising firm Wongdoody. The acquisition provides it with a much sought-after foothold in the digital advertising segment, where the competition is heating up amongst consulting firms.

The trend is apparent across global markets: consulting firms are now looking to capitalise on the sphere of advertising, particularly as the segment becomes increasingly digitalised. Larger consultancies are encroaching upon the digital advertising space, primarily through inorganic means.

Accenture, for instance, has been considerably assertive in its efforts to enter the segment, having spent over $1 billion on acquisitions in the design sphere in the last year alone. Other big names engaging in similar inorganic expansion include McKinsey & Company and Big Four accounting and advisory firm Deloitte, who spent $144 million and $17 million, respectively, acquiring ad agencies last year.

Indian tech firm Infosys, which is on a substantial expansion drive, has now decided to edge its way into the market as well. Last year, the firm’s acquisition of London-based digital product design firm Brilliant Basics contributed to its global network of digital agencies, which spans the UK, Australia, and India.

The latest addition to the growing consulting firm ad agency portfolio is Seattle-based creative agency Wongdoody, which offers Infosys a foothold in the US market. The firm was established in 1993, and has a presence in the key financial centres of Seattle and Los Angeles. Wongdoody differentiates itself by operating at the intersection between advertising, retail, and technology.

Infosys acquires digital advertising agency Wongdoody

Services offered by Wongdoody include: brand engagement, which involves the construction of media campaigns; multi-platform content, which involves the use of data analytics to generate the most popular content, and retail innovation, wherein digital techniques are used to enhance the physical consumer experience.

The acquisition of Wongdoody allows Infosys to enter the US market for digital advertising and product design, utilising the firm’s extensive infrastructure in the country. The US has become a key market for the firm in recent years after it established Technology and Innovation Hubs in a number of cities, adding to its 16 locations spread across the country.

The firm also recently ramped up its employment of local professionals, in response to the increased complications brought about by the inward-looking polices of the latest US administration. The firm recruited 2,500 US employees over the last year — a number that it plans to increase to 10,000 over the next two years.

Commenting on the acquisition, Infosys President and Deputy COO Ravi Kumar said, “We are focused on partnering with global brands and chief marketers to help them on their digital transformation journeys. Wongdoody's expertise in driving innovative, creative solutions is already yielding significant results in our initial collaborations with clients, and this acquisition will further enhance Infosys' capabilities in this space.”

Wongdoody Founder and Chairman, Tracy Wong added, “Joining forces with Infosys gives us the power to implement our creativity in ways that weren't possible before. Brand experiences, powered and backed by Infosys' digital and technological might, can change the trajectory of our clients' businesses and revolutionise how customers experience their brands. It's a great honour for us to complete a true end-to-end Infosys engagement offering."

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