- While the pandemic has forced some colleagues to stop hiring and expanding, Booz Allen said they want to grow on Friday's earnings call.
- The government-focused consulting firm announced that it has hired more than 200 people in the past three months and will hire more people for the rest of the year.
- Booz Allen also wants to buy other companies, especially technology companies, to close the gaps for customers.
- You can find more stories on the Business Insider homepage.
Since the pandemic is forcing companies from different industries to stop hiring, Booz Allen is in growth mode, executives said on Friday's earnings call.
The pandemic has not slowed down the new contracts for the government-focused consulting firm. Therefore, new employees and new companies are to be added, CEO Horacio Rozanski said in a call to discuss the results of the first business quarter.
Booz Allen, which has around 27,400 employees, has hired 208 employees in the three months to June 30. Last year the company increased its workforce by around 1,000, and according to Rozanski, wear has recently been below average.
"We remain in a growth phase for the year and intend to increase the number of employees to meet demand," he said.
Other consulting firms are focused on maintaining or reducing the number of employees as clients' work dries up during the pandemic.
Accenture cut back on top performers in June and similar reductions could occur. CEO Julie Sweet said on Accenture's profit request that the company has fewer employees and hires, Business Insider previously reported. And Deloitte informed the employees of this at the end of May it would cut about 5% of its 50,000 workers.
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Unlike other consulting firms that work with businesses, nonprofits, and other groups on a short-term basis, Booz Allen works extensively with the government. The multi-year contracts help to protect the company from immediate economic shocks.
This year, Booz Allen’s core contracts included a $ 147 million five-year IT support contract with the National Institutes of Health. a $ 113 million 10-year cyber security contract with the Securities and Exchange Commission; and a $ 178 million contract to modernize the Navy's GPS systems.
According to Booz Allen, the company also wants to grow by buying other companies, especially those with technologies that fill gaps for customers. The company's previous acquisitions include the 2017 acquisitions of Aquilent, which works with the federal government, and the cyber security-focused Morphick business.
Booz Allen had $ 621 million in cash as of June 30, and Rozanski said he wanted to "clear our balance sheet."
"We are very confident about the market opportunities," said Rozanski. "The pipeline is building well … we are ready to take advantage of the volatility in asset prices and ensure that we understand what we need."
The company typically reviews about 100 acquisition opportunities each year and is on the same path this year, CFO Lloyd Howell Jr.
Overall, the company had sales of $ 1.96 billion in the quarter, an increase of 7.2% over the previous year.