Thomson Reuters continues facing the dual challenge of integrating its legacy businesses while facing competitors in converging marketplaces. Governance, Risk and Compliance is driving change across the competitive landscape according to Elisabeth Mason, Outsell Inc. in her recent Outsell Insight.

The most recent reorganization announcement demonstrates that Thomson Reuters is evolving towards a strategy centered on a wider Governance, Risk, and Compliance market, and is now formally framing the bridge that it had previously sketched between the Markets and Professional divisions.

Thomson Reuters has not been growing and nimble Bloomberg and other competitors are taking away share. The driving forces for the new organization are the increasing overlap between the Reuters/financial/news side of the business and the legal and tax sides. There’s too much data and expertise in the separate units not to want to bring them together. The second is the opportunity to further consolidate and share internal IT and support functions and resources.  The third is the competitive environment, embodied most visibly in the new, soon-to-be-improved Bloomberg since its acquisition of BNA(see Insights 26 August 2011, Bloomberg Joins Top Ranks in the Legal Market With Acquisition of BNA). The threat of nimble Bloomberg accelerating competition in converging, overlapping markets forces Thomson Reuters to keep pace. By acquiring BNA and showing it was serious about the legal market, Bloomberg also signals that other players will have to broaden their scope to the wider range of content and services Bloomberg brings to the table – not just legal but financial data, news, and government data.

Source: Outsell Insights Thomson Reuters Reorganizes to Compete