Quarterly Update
published on Jan 06, 2017
Report Overview:
NelsonHall’s Quarterly Update on Accenture provides a snapshot of developments at Accenture in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on Accenture provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on Accenture, looking at financial performance and key developments during the period.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at Accenture’ IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Q1 FY17 revenue growth continues to be driven by ‘digital-related services’
Solid Q1 FY17 results:
- Total revenues at mid-point of guidance, at upper end of CC guidance. ‘The New’ accounted for 40% of overall revenues. Some of this has come from inorganic growth.
- Fifth consecutive quarter of margin expansion.
Revenue growth trends by businesses:
- Strategy and Consulting combined had mid-single-digit growth
- Operations continues to enjoy double-digit growth
- Applications Services (Technology) had mid-single digit growth
- Across those four businesses, double-digit growth in ‘The New’ (digital, cloud and cyber).
Of the Operating Groups, Products continues to see the fastest growth.
By region, growth was strongest in Growth Markets, which represent 19% of global revenues. Growth in North America slowed down, impacted by a decline in FS.
Minor spending spree to support the pivoting to ‘the New’
Following the transfer in August of its Duck Creek business to Apax Partners plus a minority interest in the newly formed jv, in Q1 FY17, Accenture went on a bit of a spending spree with multiple small to mid-sized acquisitions expanding the company’s cyber, Accenture Digital, Accenture Cloud First Applications, and Accenture Strategy global practices.