Accenture predicts tough market in 2010

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Accenture predicts tough market in 2010

Paul Kunert

Accenture has seen its Q4 profits slump 41% to $254.7m and warned that demand for technology outsourcing and consultancy services will remain tight again in the next financial year.

Turnover for the 3 months ended 31 August fell 16% on a year ago to $5.51bn with a 19% and 7% drop in consulting and outsourcing sales respectively.

Profits were hit by a $253m restructuring charge related to senior level workforce cuts and global real estate consolidation.

For the full fiscal year, revenues were flat in local currency to $21.58bn and profits were $1.58bn, down 7.2% on 2008. The communication and high tech segment saw revenues fall 4% to $4.8bn.

William Green, Accenture CEO, sought to put a brave face on the earnings "in challenging economic conditions" and said the company continued to invest in preparation for the upturn.

"We remain focused on operational discipline," he said and had taken "proactive steps - including refreshing our core business and investing in new high-growth areas - that have positioned us very well for the upturn."

Accenture said it expected full fiscal year 2010 revenues to range from a 3% drop to 1% growth.

A version of this story appeared on Microscope.


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