Accenture talks down credit crunch gloom

Accenture’s revenue for its first fiscal quarter was 19 per cent up on the corresponding period last year, and its chief executive is bullish in the face of widespread economic concerns.

Sales for the three months to 30 November hit $5.67bn (£2.86bn), compared with $4.75bn (£2.4bn) in 2006. Profit was $726m (£367m), also up 19 per cent.

Chief executive William Green said that the credit crunch is not hampering business spending.

“Even in places where they are challenged, people continue to invest broadly,” he said. “We have not seen any impact on our results.”

But the firm’s US growth was slower than the global average, up just nine per cent compared with 14 per cent in the Europe, Middle-East and Africa region, and 21 per cent in Asia-Pacific.

And outsourcing growth outstripped consulting – 14 per cent and 12 per cent respectively – for the first time in more than a year, suggesting clients might already be tightening their belts.

All the major IT services firms, including Accenture, will rely more heavily on their outsourcing businesses if the credit crunch leads to a major economic slowdown, said Ovum analyst Angel Dobardziev.

“If the downturn is serious, Accenture will be affected – but it will lessen the impact by offering outsourcing services to businesses cutting costs,” he said.

Accenture’s revenue growth was in double digits across all vertical markets except the two most established – public sector and financial services – where growth was eight per cent and nine per cent respectively.