[spookster]

That’s just not true. Arthur Andersen originally spun off its consulting arm into “Andersen Consulting” under a global holding company. AA did accounting, AC consulting.

AC paid AA 15% of its profits every year. But AC was growing far faster than AA, so AA started growing another consulting arm, which was against the contract.

AC partners claimed contractual breach, and as part of the separation settlement had to change their name and distance themselves from the brand.

This was lucky given what happened with AA’s reputation later.

(Source: I worked there in that time period)

[KiwiJohnno]

Here is another AC story for you: I worked at a bank in the late 90s, on a crunch y2k project that was instigated because AC knowingly installed a non-y2k compliant set of core systems in about 1997, and didn't pass on the vendor's warnings about y2k to the bank management.

The AC project (which ran about 93-97) went kinda rogue, the bank management lost control of the situation. The AC project managers kept bringing in more AC consultants and told the bank management not to worry, everything was good. They were heavily customizing a non-y2k version of the vendor's software, and the vendor warned project management that they were customizing this in ways that would prevent future support and patches, but AC project management covered this up.

Eventually the vendor contacted the bank CEO directly and said "what are you going to do about the y2k issue, we are concerned". CEO: "What y2k issue?"

The bank had to go live with what they had, fire and blacklist AC and burn tens of millions of $$ to re-start the project to deliver exactly the same thing, but using a y2k-compliant version as a starting point, and removing as much customization as possible so they could take future vendor patches.

[hsuduebc2]

Wow. That's ridiculous. Problem with non y2k version was exactly what? Just compatibility with year 2000 to be recognized as valid year? Thanks for replies all!

[acntr_employee]

Correct. The separation did happen before the former parent was involved in the Enron scandal. Or at least before it became public.

Not that Accenture doesn't have enough scandals on their own. So they are by far not the clean guys in this tale.

I remember the German "Berateraffäre" just to state one example.