UK specialist engineering group McLaren Applied Technology resolved a commercial tug-of-war with two Big Four accounting firms by switching its allegiance from KPMG to Deloitte.
McLaren emerged from top flight motor racing, where small, data-driven performance improvements can make the difference between success and failure. With its high publicity profile and cutting-edge reputation, what McLaren really needs, it seems, is a Big Four accountant partner to bring its innovations to the wider business world.
The focus of the new partnership will be to develop data-driven business products, which are expected to generate an annual revenues of £1bn by 2022. McLaren and Deloitte plan to open joint headquarters in London in early 2018 and hire 150 new employees.
According to Deloitte, the new products will draw on the firm’s digital and analytics experience and McLaren’s engineering, sensor, simulation and analytics experience. The partnership will combine McLaren’s proven expertise with Deloitte “global digital advisory experience” to create “revolutionary data-driven products for our clients”, said Deloitte vice chairman and senior consulting partner Mike Dobby.
Ian Rhodes, chief executive officer at McLaren Applied Technologies, commented: “McLaren is first and foremost a technology company and among the pioneers of collecting data through sensors and then interpreting and using that in clever ways to generate insight.
“We realise the huge potential for us to take that kind of experience to improve businesses and solve some of their most pressing challenges. So it makes sense for us to partner with a company like Deloitte, who have a range of complementary digital and analytics skills, combined with a global network of clients and locations, to scale our co-created data driven business products.”
Back at KPMG, managing partner Philip Davidson said the firm reached a “mutual decision with McLaren to end our formal alliance". In spite of the switched allegiance to its Big Four rival, KPMG will “continue to work with McLaren on a range of client engagements”, he added.