BSG acquires Microsoft’s Digital Advisory SA team
Mteto Nyati and his team at BSG are betting on a set of rare technology skills to help grow the business, by entering new sectors and industries.
Since Nyati came in as an investor and executive chair, the company has its sights set on competing with large consulting firms such as Accenture.
On Tuesday, BSG said it had acquired Microsoft SA’s Digital Advisory Services team in a move that positions it as “a combined trusted adviser and execution partner” to many of the top 40 JSE-listed companies.
In essence, BSG has absorbed the team from Microsoft into its operation. It also means that this is an area of business that the Silicon Valley giant no longer offers in SA, leaving the door open for BSG to fill the gap.
So far, the company has specialised in assisting financial services and healthcare businesses in SA and the UK. A key part of its strategy is to expand the industries in which BSG offers its services.
In an interview, Nyati told Business Day that The Digital Advisory Services unit would see BSG expanding into telecommunications and media, energy, consumer packaged goods, resources and the public sector.
“There are about 400 of these guys globally. So this is a highly specialised team of people that were deployed in very strategic customers of Microsoft. SA had 15 of those 400. Their experience is across the top 40 JSE listed companies. This is where they have experience and deep relationships. Because of their nature [and skill] they’re the trusted advisers to clients.”
In late 2022, Nyati — a former Microsoft MD for SA — took up a 40% stake in BSG and is now the SA tech and consulting firm’s executive chair. Founded in 1997, the company is based in Johannesburg and Cape Town, with staff of about 200.
Nyati’s plan to grow the firm is premised on two main points: acquiring relevant businesses and scooping up talent in a competitive market for tech skills.
“Out of those 15, 11 were able to come into BSG. Their collective experience is about 250 years. That’s very important of us. That richness in experience, given our relatively youthful employee base. The combination is going to lift the whole company.”
While business analysts, the likes of which BSG typically employs, are able to help organisations to maintain and grow existing revenue lines, “digital architects” are able to chart new lines of business and growth areas for clients.
Microsoft, like fellow tech investors such as Amazon and Google, has been scaling down operations. In January, it announced a 5% cut in staff or about 10,000 jobs globally.
In SA, this specific team had been on the chopping block. While many people who get let go often struggle to find work, this team’s specific skill set was so valuable that they had their pickings of where to go.
“That [digital advisory] is not a service that they sell in SA or anywhere around the globe anymore and it made the team available to the market. We were available for pretty much any organisation to snap up,” Kim Schulze, former customer transformation lead at Microsoft for Middle East and Africa said.
“The intent is not necessarily to take away the business that Microsoft had but, yes, we could be delivering the same sort of service to Microsoft and other customers. And our focus is no longer solely centred on the Microsoft technology stack, but rather on the technology that is of interest to the client.”
He said the choice to end up at BSG came down to values and where the team felt it could have the greatest effect in the local market.
“We were approached by a number of local and global companies that are interested in digital advisory capabilities. The choice was wide. It is always good to be in demand.
“But for us, what mattered the most, was alignment in terms of values and purpose. BSG stood out on both.”
Over the years, BSG has done well as a boutique firm. As a private company, it does not disclose its list of clients or revenue figures. However, it has won a number of awards along the way, being named “Best Employer Brand” in 2019 by the LinkedIn Talent Awards, among others.