Quarterly Update
published on Jan 07, 2019
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 and execs 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 or investors specializing in BPO/IT services sectors.
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 FY19 performance: maintains organic growth level of FY18
- 9.5% LC growth, again topping guidance, with double digit growth in three of the five Operating Groups, and two of the three regions
- Renames Application Services as Technology Services, with transfer of IT infrastructure services from Operations. Highlights continuing strong momentum in Intelligent Platform Services
- Operating margin expands by 20 bps.
The relative spots of weakness – where there are initiatives in place to address them – include:
- Financial Services, with negative growth in Banking & Capital Markets in Europe. Expects to see a recovery in FS to mid-single digit growth from H2 FY19
- Health & Public Service (uncertainties in U.S. Federal)
M&A activity
Recent activity includes:
- Expansion of Accenture Interactive in Nordics
- Expansion of Accenture Interactive Programmatic Services
- Enhancement of Industry X.0 capabilities
- Expansion of its Intelligent Platform Services capabilities.
FY19 outlook: fundamentally healthy despite macro trends; return to 10+ bps y/y margin improvement
