Accenture sees revenues fall 17%

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.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media (now Bonhill Group plc) from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The...

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