IT and management consultancy Accenture saw revenues decline 17% year-on-year during the third quarter of its financial year.

Combined revenues fell to $5.15 billion in the three months ending May 31 2009. The company had previously warned investors to expect such a steep drop.

Continuing the trend of the last few quarters, it was the company’s consultancy practice saw the steepest decline in revenues ¬– down 20% to $2.95 billion. This was the result of three factors, the company said: a move away from large consulting contracts, customers postponing the decision to extend existing contracts, and pricing pressure in the market.

Meanwhile, the outsourcing division saw a 9% drop in revenues to $2.19 billion. “Outsourcing growth has slowed moderately overall due to the continuing shift to lower cost resources at a reduced price level [and] lower volume of scope expansions on existing contracts,” said chief financial officer Pam Craig.

Accenture’s profitability also took a tumble during the quarter. Operating income fell by 15% to $732 million. The company attributed this decline to a “significant negative foreign-exchange impact”, a common complaint among global businesses these days.