Technology Business Research says short-term struggles in professional services drove a revenue decline in Accenture’s CMT group.
Accenture’s Communications, Media & Technology (CMT) group was one of only two verticals to post declining revenue in calendar 2Q13. CMT posted $1.4 billion in sales, representing a 5.3 percent decrease.
Accenture was negatively impacted by one contract in Europe, which TBR believes was the outsourcing contract it won in 2011 from Nokia to manage Symbian’s operations. Revenue from this contract will continue to wind down throughout 2H13 as Symbian phones fall further out of favor with consumers. Accenture was also impacted by the industry-wide slowdown in professional services, causing CMT to experience a drop in its consulting revenues.
Operators remain selective in the consulting projects they put out for bid, especially in Europe. Those projects that have been awarded are also of longer duration and are converting to revenue at a slower rate, which continues to impact Accenture’s results.
CMT will recover in the long-term as operators’ need for assistance in implementing new business models and obtaining operational efficiencies remains strong and will fuel growth in C&SI revenue in over the next two years.
Accenture’s Q2 acquisitions will expand the solutions the company can offer telecom service providers
In April 2013 Accenture acquired change management analytics provider ChangeTrack Research, which delivers the ChangeTracking analytics tool to customers to collect data, measure progress, and identify areas of an organization that require transformation.
The ChangeTracking tool is not exclusively aimed at telecom operators, but its application in the telecom space is practical on multiple levels. Operators worldwide remain focused on reducing their operating expenses and often hire Accenture to perform organizational transformations. This tool gives Accenture the ability to track progress and better identify problem areas.
Additionally, operators are increasingly turning their attention to OSS/BSS transformation. Accenture has a growing opportunity to provide BSS transformation to operators that are introducing tiered data pricing and shared data billing models.
Accenture also acquired Acquity Group and Fjord through separate transactions in May 2013. Both acquisitions significantly expand Accenture’s digital marketing capabilities within its Accenture Interactive group, a sub segment of the company catering to chief marketing officers that provides clients with media management services.
Accenture purchased Acquity Group, a digital marketing and eCommerce company, immediately followed by the acquisition of Fjord, a global service design consultancy. Fjord specializes in building digital customer experience platforms and bring Accenture Interactive its extensive expertise in mobility and design.
Accenture can leverage both acquisitions to improve its customer experience management offerings to operators. Demand is ramping up for solutions in the nascent CEM segment as telecom service providers seek to deliver more personalized services and a better user experience.
Michael Soper, Networking & Mobility Analyst, Technology Business Research
editor@infotechlead.com
