According to the company, McCracken will retire by the end of June 2003, following the decision not to separate itself from DTT, which it had intended to sell to Deloitte Consulting’s partners in spring 2003 through a management buy-out after which it would then rename itself Braxton.
However, after spending tens of millions of dollars on rebranding, the business has now abandoned its name change and separation, with the U-turn being blamed on what it called external factors including the tight credit market and the uncertain state of the economy.
Although Deloitte Consulting is no longer performing consulting work for DTT’s auditing clients, the stigma of conflicting interests remain in the market following the Andersen-Enron accounting scandal last year, which brought into disrepute the business of providing consulting and auditing services to the same clients.
A source close to Deloitte Consulting told ComputerWire that the company would now consider a possible sale of the operation. However, finding a suitable acquirer could prove difficult. Demand for IT consulting has effectively dried up over the past 18 months, and Deloitte Consulting may have left it too late to salvage credibility from a defecting client base.
Source: Computerwire
