IT services provider Accenture exceeded net revenue and earnings expectations for its 2003 third quarter, as it continued to expand its outsourcing business.
Net income for the quarter 31 May was $132.1m, compared with net income of $114.5m, in 2002's third quarter.
Net revenue for the quarter came in at $3.04bn.
Accenture's bottom line was helped by a tax rate reduction, which cut provision for taxes by $21m. Its outsourcing business generated $944m of net revenue compared with the same period last year. The outsourcing net revenue represented 31% of all net revenue, up from 23% in 2002's third quarter. This is consistent with the company's strategy to expand its outsourcing business.
Accenture's core consulting business generated net revenue of about $2bn. Spending on IT consulting in general has been weak over the past two years, as chief information officers grapple with reduced IT budgets.
Juan Carlos Perez writes for IDG News Service