Ernst & Young announces significant globalization moves

It also confirmed that more than 700 partners in the Far East had supported a similar integration across 15 countries and territories.

The EMEIA Area will operate as a single unit, led by a single executive team and, where allowed by laws and regulations, be underscored by formal combinations of practices. The new Area will be a $11.2bn organization with more than 60,000 people. The 3,300 partners of EMEIA will vote on the integration by the end of May. The new EMEIA Area will be effective from 1 July 2008.

The integration of the Far East Area creates a $1.2bn organization, with more than 20,000 people. The new structure will also be effective from 1 July 2008.

Mark Otty, currently the head of our UK practice, has been nominated to be the EMEIA Area Managing Partner, while David Sun and Jim Hassett were confirmed as Far East co-Area Managing Partners.
Chairman and CEO Jim Turley said: "Ernst & Young has for years had the most comprehensive and implemented global integration of its practices. The combinations we are announcing today are bold and exciting developments that dramatically further this integration. We are setting a new standard for professional services. Together with the integration of the 29 countries of our Americas practices, which we announced in 2006, we remain the most globally integrated professional services firm."

He added: "At Ernst & Young, our thinking always starts externally - about the world around us - and about all the potential that exists everywhere. The moves we announced today reflect the increasingly global nature of our borderless business environment, which is changing the expectations of both our clients and our people, and which requires nothing less than a truly global approach from our organization. With these changes, I am confident we will provide greater opportunities for our people to achieve their potential as well as superior service to our many clients. We will also strengthen our unique, diverse international culture."

Chief Operating Officer John Ferraro said: "We committed ourselves to the effective global integration of our business several years ago, and we have created the structures necessary to achieve this. Feedback from our clients and the market tells us that this is the right approach. These latest developments in Europe, the Middle East, India and Africa, and in the Far East, will significantly strengthen our business, and allow us to best serve our clients in the global economy."

Jim Turley added: "The European 8th Directive provides a new regulatory environment to support the closer integration of our European operations, and this has enabled us to accelerate our thinking around our globalization plans. EMEIA integration will have many benefits. Our clients want us to mirror the way they behave in these markets and to have access to bigger and more experienced teams. Our people want and expect us to operate across borders and cultures with the increased client experience, career diversity and mobility that will bring. And we want to improve our operational effectiveness, to improve our capacity to invest in the development of market leading services, as well as in the important emerging markets around the world."

Said John Ferraro: "The Far East integration received the overwhelming support of the Ernst & Young partners. This integration is part of our long term investment in Asia's rapidly growing markets. By even more closely integrating these practices, we will further improve our ability to serve the businesses of the Far East, as well as those global businesses which are taking an increasingly active presence in many Far East markets, including China. This milestone is a key building block in responding to the business imperative to provide seamless, consistent, high-quality client service, worldwide."

"These are significant developments that reflect the fact that our world is changing rapidly and increasingly acts without boundaries," concluded Jim Turley. "I am personally very enthusiastic we are taking these steps, and from my discussions with clients, regulators and our people, I believe they share this enthusiasm."

New possibilities for the Middle East

Ahmed Al-Aiban, Middle East Chairman, said: "Ernst & Young in the Middle East already operates as one fully integrated practice across 18 offices. However, the EMEIA integration opens new doors of opportunities and introduces a borderless approach to additional markets. Being part of a larger international and integrated network will enhance our ability to meet the needs of our multinational clients and position us to respond to change more quickly."

Middle East Managing Partner, Fouad Alaeddin, said: "The Middle East region has great potential for growth and we look forward to the possibilities that this integration brings. Through closer alignment with Europe, India and Africa, we can help make big and positive change happen here. For our people, this means unparalleled opportunities for client experience, career diversity and mobility."

The Middle East practice of Ernst & Young currently has over 3,700 professionals and 105 partners.