Mini-Case Avanade, Created Through a Joint Venture, Now Has More Than 50,000 Employees

Avanade was created in 2000 through a joint venture between Accenture and Microsoft. Earlier in this chapter, we discussed a much different type of partnership that included a unit of Accenture (Rothco), Warner Music, and Apple to help children with speech disorders. This venture with Microsoft was formed to combine strategy and technology to help clients improve their information technology (IT) capabilities, and thus improve their business performance. Avanade now has more than 50,000 employees around the world and thousands of clients, including many Fortune 500 companies.

In early 2019, Avanade, working with Accenture and Microsoft, launched the Accenture Microsoft Business Group. This new group expanded combined service capabilities on a global level to help clients overcome disruptions caused by digital technologies and assume positions of leadership in their industries. Specifically, the group is focused on using technology to transform businesses, helping clients innovate their use of digital technologies, and bringing together professionals to produce joint products and services built on the Microsoft cloud. With proven methodologies, deep expertise and leading-edge technology, we can help you maximize cloud platforms, mobile applications, social media and big data securely to transform the way you do business.

The expansion continues. In 2022, Shawn Simmons, vice president of North America Engineering Hubs at Avanade, explained his companys decision to open an engineering hub in Tampa, Florida, as follows: As our clients seek solutions for adapting to the accelerated pace of change in a new, hybrid world, its imperative we continue to enhance our team with the best and brightest, forward-thinking talent. Watching Tampa emerge as one of the nations hottest tech cities, we felt in made sense for us to plant our flag here and become an active part of this burgeoning community. Avanade expects to hire hundreds of employees in Tampa over the next three years.

Why has Avanade been so successful? For one thing, the company seamlessly integrates learning and development into its business strategy. Also, in 2021, the company was recognized by Newsweek, in collaboration with the Best Practice Institute, as a Most Loved Workplace. This list is made up of only 100 companies, so this recognition is indeed significant. Pamela Maynard, CEO of Avanade, wants to foster a culture at Avanade where everyone is welcome to bring their authentic selves to work and where diverse perspectives, backgrounds and skills are value as critical differentiators in our ability to serve our clients. The word love is not used a lot in business, but Maynard has no problem using it: When our people feel loved, when they feel a sense of purpose, when they feel they can be authentic and they belong, theres nothingI truly believe there is nothing that we cant accomplish as a business.

When asked how to create a Most Loved Workplace, Maynard cited three things. The first was: Unite your organization around a common objective. Maynard said her employees wanted to know that they were having a positive impact on the world, so Avanade made this idea their purpose. Second was to Create a culture of innovation. One thing Avanade does is run a global innovation contest for employees, companies, and research centers. Also, geek allowances are provided to employees so they can stay current on the latest technologies. The third is: Diversity and inclusion. To achieve this objective, the company focuses on its hiring process. Avanade also hired a chief diversity and inclusion officer, who runs leadership and development programs.

Case Discussion Questions

What are the resources each of the companies in this joint venture brought to the creation of Avanade? Were these resources complementary or redundant?

What have you learned in this chapter and previous chapters about what was taking place in the external environment (i.e., technological, social, global) that contributed to the success of this joint venture?

Why does the work environment and culture fostered in Avanade fit particularly well with the type of work the company does? Creating this sort of work environment is costlydo you suppose it would be worth it to invest so much into the internal work environment in all types of businesses? Why or why not?

Microsoft and Accenture presumably invested a lot of time, talent, money, and other resources into their venture over the years. What do you suppose Microsoft has received from these investments in addition to the profits the firm makes? What has Accenture received?