Big deals boost growth
Building power plants in Afghanistan, running corporate computer networks, and providing economics consulting expertise may have nothing to do with each other.
But three Massachusetts service sector companies competing in those industries found similar ways to increase their revenue by more than 30 percent last year.
For Perini Corp., a Framingham construction management firm, and CRA International, a Boston financial consulting company that until last month was known as Charles River Associates, striking big deals and maintaining diversified businesses resulted in rapid revenue gains.
Likewise, reaping the fruits of well-nurtured relationships with a wide array of clients proved to be the key for Sapient Inc., a business consulting and technology services firm in Cambridge.
Perini increased its overall revenue by 34.1 percent through contracts for US construction projects in Iraq and Afghanistan. It also won marquee hospitality deals, including an $80 million contract to serve as the construction manager of a retail and restaurant complex in Atlantic City.
Perini ranks 15th on the Growth 50 list, posting average annual revenue growth of 30.3 percent in 2003 and 2004 and average annual net income growth of 28.9 percent. ''Having diversified revenue sources from various market niches within the construction industry paid off," said company president Robert Band.
Meanwhile, CRA International pumped up revenues by 32.6 percent last year -- bringing in $216.7 million -- in part by several acquisitions of consulting firms across the world. Jim Burrows, CRA International's chief executive, said when corporate merger activity increased last year, the company was poised to benefit.
Through the post-2000 market slump and beyond, Burrows noted, CRA resisted downsizing -- and even hired new staff -- which helped it garner new business when a rebounding economy led to more deals.
Also, said Adams Harkness Inc. stock analyst Colin Gillis, ''The more there's conflict in the world and business, the better it is for companies like Charles River. Companies are more and more looking to retain and get the best advice that they can."
Across the Charles River in Cambridge, Sapient boosted revenues by 36.9 percent last year while achieving the highest client satisfaction since its 1991 founding, said Jerry A. Greenberg, Sapient's co-chief executive.
Over the last year, the company landed a passel of new deals with customers including Avis Europe, Cingular Wireless LLC, Cisco Systems Inc., Sony Electronics Corp., State Street Corp., and England's National Health Service.
Stuart Moore, Sapient's co-chief executive, said the company aims to ''understand how your clients define success and value better than anyone else in the world."
Jenn Abelson can be reached at abelson@globe.com.
