Accenture revenue surges 11%: What is aiding growth?

Accenture reported revenue of $10.3 billion (+11 percent) with operating income of $1.62 billion for the third quarter of fiscal 2018, ended May 31, 2018.
Accenture digital strategyAccenture said Digital, cloud and security services account for approximately 60 percent of total revenues.

“We continue to invest to build highly differentiated capabilities and capture new growth opportunities. These investments and our innovation-led approach position us to continue gaining market share,” Pierre Nanterme, Accenture’s chairman and CEO, said.

Accenture has generated consulting revenue of $5.69 billion (+18 percent) and outsourcing revenue of $4.63 billion (+14 percent) in the third quarter of fiscal 2018.

Accenture has generated revenue of $2.13 billion from Communications, Media & Technology, $2.14 billion from Financial Services, $1.70 billion from Health & Public Service, $2.84 billion from Products and $1.47 billion from Resources.

Accenture generated revenue of $4.58 billion from North America, $3.73 billion from Europe and $2 billion from Growth Markets.
Accenture revenue growthKawaljeet Saluja and Jaykumar Doshi of Kotak said Accenture impressed with constant-currency revenue growth of 11 percent in May 2018 (3QFY18) quarter. The company also raised FY2018E revenue growth guidance to 9.5-10 percent from 7-9 percent earlier.

Accenture’s early participation in digital led by a comprehensive portfolio of offerings across verticals and geos is reaping rich dividends. Accenture results demonstrate that the spending environment is robust but requires an optimum portfolio mix and capabilities to capitalize on it. From IT companies’ perspective, the progress made by TCS is impressive but other IT companies can do more to make the most of solid enterprise IT spends.

The CMT vertical has three major components—hi-tech, telecom and software & platforms. The driving force of growth in CMT is software and platforms for Accenture. Software and platforms companies are investing heavily in establishing leadership and dominance in the market.

Accenture is helping these companies in the development and rollout process resulting in elevated growth rates. Telecom and hi-tech industries are undergoing significant changes; Accenture is participating in the same but this does not seem to be the primary growth driver in the CMT vertical.

What is helping Accenture’s growth

Accenture’s participation in the full lifecycle of clients’ digital journey through its consulting, design and full spectrum of digital competencies that is strong across verticals and geos. This full spectrum of competencies becomes especially important in an environment of constant disruption and changes ensuring Accenture participates early in every element of change and is in sharp contrast to participation in late-cycle opportunities for technology-focused companies and

Accenture’s has a portfolio that is nicely balanced between legacy and new, reducing the friction on growth. New services contributed close to 60 percent of Accenture’s revenues in 3QFY18.

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