The Scoop...

Links to the government

AMS has its roots with Nixon Administration officials and continues its legacy through frequent projects it undertakes at the behest of the United States government - though, we trust, without any requests for wiretapping. The firm was founded in 1970 by five men, one of whom, Charles Rossotti, was a protege of Nixon defense secretary Robert McNamara and considered one of McNamara's so-called "whiz kids." The founders raised $300,000 in venture capital from Lehman Brothers, then wrote to 24 former Pentagon peers, offering consulting services "from some of the people who brought you Vietnam and the ABM." AMS made $15,000 in profits in its first year in business and won its first big contract - with Burlington Northern Railroad - after another six months. Today, AMS has over 8,750 employees and 51 offices worldwide. In 2000 revenues topped the $1 billion mark for the third straight year.

Clients and growth

AMS concentrates on systems and operations consulting in a variety of industries, and it still maintains close links with the U.S. government. Including state and local governments, approximately one-half of the firm's revenue comes from government clients in both the U.S. and Canada. The remainder of AMS's revenues comes from the financial services, telecommunications and utilities markets. The past decade was a prosperous time for AMS. Revenue growth averaged just over 19 percent, and earnings grew at a robust 26 percent per year. AMS went public in 1979, and its stock has split six times. According to CEO William Purdy, the growth was good but "could be better." Global expansion is in the works, particularly in European nations. "Looking ahead," Purdy explained, "our approach is to develop strong European-wide practice groups. Europe has been a strategic priority for us since 1991, and we've achieved some spectacular results."