Quarterly Update
published on Jul 10, 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 outsourcing services and identifying vendor suitability for IT 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’s 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:
Q3 FY17: Double digit growth in ‘The New’, now at ~50% of revenues (~$4.5bn), with double-digit growth in all three components (digital, cloud and security)
- Revenues were up 7% in CC, at the mid-range of guidance
- EBIT margin was down 572 bps y/y at 9.8%, impacted by U.S. pension plan settlement charge
- Within the operating groups, Products continues to see the fastest growth (15% in CC)
- New MD appointed for Health & Public Services in North America; with softness in U.S. market
- Growth in energy has not materialized, and CMT in Europe remains soft, both likely to impact Q4
- New bookings were $9.8bn, Consulting ($5.2bn) and Outsourcing ($4.6bn).
FY17 capital allocation for M&A increased to $1.8bn
- Continues to expand capabilities of Accenture Digital (including Accenture Interactive in Australia) and Accenture Technology (adding ServiceNow and Salesforce capabilities)
- Completed two acquisitions in Cyber.
