Company Overview

BearingPoint, formerly known as KPMG Consulting, is a systems integrator and business advisor. BearingPoint offers a range of consulting services primarily to large and mid-sized businesses and government agencies. Its commercial services segment works with consumer goods, communications and content, aerospace, chemicals, and natural gases, among other industries. The firm works with banking, insurance, global, and technology through its financial services sector, and with state, local, and national governments, health services, and education agencies, for example, through its public service division. U.S. government agencies comprise about 30 percent of the company’s business. Alliances with technology companies such as Cisco Systems, Microsoft, Oracle, and SAP demonstrate the firm’s prowess with digital business services. The firm has operations in 60 countries.

In 2004, BearingPoint started the India Global Development Center, complementing its China Global Development Center in offering software development and IT services. By mid-2005, business appeared good, but financial controls were not: the firm reported to the SEC that it didn’t know when it would be able to report 2004 financial results and cautioned that results dating back to 2002 might be inaccurate. A $200 million debt offering created a cash cushion, but new CEO Harry L. You, who came on in March 2005 after 8 months as CFO of Oracle, faced the challenge of winning back investor confidence. In 2005, the firm found that some of its executives in China may have violated the company’s financial controls and provisions of the Foreign Corrupt Practices Act. The problems led to management changes in the company’s Asia-Pacific operations, and an SEC investigation with which BearingPoint—subpoenaed in 2006—is cooperating. The company is hoping to effect a change of its fortunes in the region, and concentrating on its service strengths. While North American accounts have accounted for a major portion of the firm’s sales, it’s looking for growth overseas, including Asia Pacific.