Accenture is trying to streamline operations and its presence in various business segments. It remains to be seen how the company and the broader IT industry will adapt to evolving market dynamics.
Revenue (FY 22-23)
Rs 416,248 mn
Accenture’s FY23 Revenue Guidance Adjustment Raises Concerns for Indian IT Industry: Accenture, a global professional services company, reported its financial performance for the fiscal year 2022-2023, along with revised revenue guidance for FY23. While Accenture’s Q3 results exceeded expectations with a YoY CC revenue growth of 5 percent, the company has adjusted its FY23 revenue growth guidance band, lowering the upper end by 100 basis points (bps) to 8-9 percent YoY constant currency (CC). This adjustment has raised concerns and is viewed as a negative signal for Indian IT companies.
Streamlining operations and cost reduction
In an effort to reduce costs, Accenture initiated actions in the second quarter of fiscal 2023 to streamline its operations. The company focused on transforming non-billable corporate functions and consolidating office space. These measures aimed to enhance operational efficiency and achieve cost savings.
the company’s efforts to streamline operations and its presence in various business segments position it to navigate challenges and provide innovative solutions to clients. It remains to be seen how Accenture and the broader IT industry will adapt to evolving market dynamics.
Key Business Segments
Accenture operates across various business segments that contribute to its revenue in India. The key segments include:
- Consulting Services: Accenture provides advisory and consulting services in areas such as strategy, operations, technology, and digital transformation.
- Technology Services: The company offers a wide range of technology services, including application development and maintenance, system integration, cloud computing, cybersecurity, and emerging technologies.
- Outsourcing Services: Accenture handles business process outsourcing (BPO) and IT outsourcing (ITO) services, managing specific functions or IT operations on behalf of its clients.
- Digital Services: Accenture’s digital services encompass digital strategy, customer experience, interactive marketing, and the implementation of digital technologies like AI, analytics, blockchain, and IoT.
- Industry-Specific Services: Accenture serves clients across various industries, delivering tailored solutions and expertise in financial services, healthcare, telecommunications, consumer goods, energy, utilities, and more.
Accenture’s adjusted FY23 revenue growth guidance, despite exceeding expectations in Q3, has raised concerns in the Indian IT industry. However, the company’s efforts to streamline operations and its presence in various business segments position it to navigate challenges and provide innovative solutions to clients. It remains to be seen how Accenture and the broader IT industry will adapt to evolving market dynamics.
Sandeep Dutta and Ajay Vij
Managing Directors (From July 2023)
(Rekha Menon, Chairperson and Senior Managing Director, stepped down in June 2023)