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Outsourcing drives Accenture sales

Accenture bounces back

Healthy second-quarter sales helps firm remain strong. Dave Friedlos reports

Written by Dave Friedlos

Record outsourcing revenues of $1.9bn (£967m) have helped consultancy Accenture to increase second-quarter sales by 16 per cent to $4.75bn (£2.4bn).

The firm’s outsourcing activity grew 12 per cent in the quarter, faster than its traditional consulting business, which rose nine per cent to $2.83bn (£1.4bn).

‘We achieved revenue growth across every dimension of our business and double-digit earnings growth,’ said Accenture chief executive William Green. ‘Our solid bookings reflect the continued demand for our services.’

The results underline Accenture’s almost legendary ability to bounce back from setbacks, which last year included its exit from the £6bn National Programme for NHS IT, says Ovum analyst Angel Dobardziev.

‘Healthy bookings of $5.3bn (£2.7bn) for the quarter implies that Accenture’s brand and ability to win business remain robust,’ he said.

The financial services and resources divisions were Accenture’s top performers with 18 per cent growth, whereas communications and high-tech activities rose just one per cent and government business six per cent.

Accenture must pay close attention to Indian outsourcers, says Dobardziev. ‘The firm’s aggressive build-up to 35,000 Indian staff by the end of the financial year will make it half the size of the major Indian players.

‘Accenture remains a formidable operation and a leader among its peer group, but it will have to continue to draw on the high-performance advice it generates for its clients to remain so.’

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