Thursday, 26 March 2009

Accenture feels the effects of the downturn too

(By Richard Holway 10.00pm 25th March 09) Given that Accenture operates at the highest end of the IT value change, it is salutary to learn that they are starting to suffer too. Accenture reported revenues down 6% (+3% in local currency) at $5.27b for the Q2 quarter ending 28th Feb 09.

Accenture’s CEO William Green said that the “uncertain environment has had a dramatic impact on some of our clients”. Accenture said its consulting business, particularly systems integration, has been hit by a slowdown since January and that several of its operating groups experienced either a decline or slower growth in revenue during the second quarter.

Accenture lowered guidance for the full year to between flat and 4% growth. Total new bookings in the three-month period fell 7.1% to $5.98b yoy. In a microcosm of the fortunes of the sector as a whole Accenture’s Consulting bookings dropped 10% to $3.14b, while outsourcing contracts gained 7.2 % to $2.84b.

EMEA suffered particularly badly because of the $ exchange rate - with a 13% decline (+1% in local currency) to $2.415b

Financial Services was the worst hit – down 5% in local currency. Public Sector (+12%) and Resources (+14%) fared best.

Accenture’s shares fell 6% in after hours trading.

But there was some good news for Accenture today. They won a $100m/2 year deal with Santander to assist in integrating Abbey’s IT operations onto its proprietary banking IT platform, Partenon.

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