Accenture CEO reveals strategies and investment for driving growth

Accenture CEO Julie Sweet has revealed how the IT service company’s strategies and investment will be driving business growth in coming years.

Accenture sales Q3 2024 fiscal

Accenture expects annual revenue to grow at 1.5 – 2.5 percent, compared with earlier forecast growth of 1 – 3 percent. Accenture expects revenues of $16.05 billion – $16.65 billion for the fourth quarter of fiscal 2024.

Accenture strategies

First, Accenture’s clients are prioritizing large-scale transformations. This reflects in the achievement of 22 percent rise in order bookings to $21.06 billion in the third quarter of fiscal 2024. Consulting bookings were $9.28 billion, or 44 percent of new bookings. Managed Services bookings were $11.78 billion, or 56 percent of new bookings.

Second, Accenture aims to become the reinvention partner of clients. Accenture reveals that tech order value of 23 clients is more than $100 million each, bringing the total of such clients with these bookings to 92 year to date, seven more than last year at this time.

Third, Accenture is betting on generative AI business, which helps companies automate operations to save on costs and boost productivity. Accenture has recorded an about 50 percent jump in bookings quarter-over-quarter.

“GenAI is acting as a catalyst for companies to more aggressively go after costs … which creates significant opportunity for us,” Julie Sweet said.

Accenture’s new GenAI bookings this quarter have reached over $900 million. Accenture has $2 billion in GenAI sales year to date.

“Leading in GenAI positions us to help our clients take the actions needed to reinvent and to benefit from GenAI, which frequently means large-scale transformations. We’re also taking an early lead with an eye toward long-term leadership in this critical technology, which is still in the early stages of maturity and adoption despite its rapid evolution,” Julie Sweet said.

Fourth, Accenture has stepped up its acquisitions in the quarter. Accenture spent $2.3 billion of capital in Q3 for 12 acquisitions. The number of acquisitions reached 35, with invested capital of $5.2 billion year to date as compared to $2.5 billion for the entire FY23.

Fifth, Accenture enhanced training to employees. For instance, Accenture invested in people with 13 million training hours this quarter. This averages 19 hours per person predominantly due to GenAI. Accenture has 55,000 skilled Data & AI practitioners against the goal of doubling Data & AI workforce from 40,000 to 80,000 by the end of FY26.

Accenture reported revenues of $16.47 billion, a decrease of 1 percent, for the third quarter of fiscal 2024.

Consulting revenues were $8.46 billion, a decrease of 3 percent, while managed Services revenues were $8.01 billion, an increase of 2 percent, for the third quarter of fiscal 2024.

Accenture has generated sales revenue of $2.76 billion (down 4 percent) from Communications, Media & Technology; $2.89 billion (down 8 percent) from Financial Services; $3.52 billion (up 8 percent) from Health & Public Service; $4.98 billion (flat) from Products and $2.31 billion (flat) from Resources during the third quarter.

Baburajan Kizhakedath

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