Managed Services News
“Technology is at the heart of the strategy and so we expect to have a tight job market and we are continuing to… truly excel,” says Julie Sweet, CEO of Accenture. “Despite that market, we added 100,000 people last year too, so the fact that there have been layoffs in some markets won’t change much, I think.”
Despite the macroeconomic environment, inflation and hiring shortages, Julie Sweet, CEO of Accenture, said the Dublin-based solutions provider continues to excel when it comes to the talent supply chain.
“Technology is at the heart of the strategy and so we expect to have an ever-tense job market and we are continuing to … truly excel,” Sweet said Thursday during Accenture’s FY22 fourth quarter earnings call Thursday. “Despite that market, we added 100,000 people last year too, so the fact that there have been layoffs in some markets won’t change much, I think.”
Accenture has, what Sweet called, an integrated talent watchtower that can predict in advance and in advance in the sales cycle where skills will be needed and what kind of skills.
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“For us, this is just normal business,” he said. “The demand for technology is truly incredible. All strategies lead to technology and we are very satisfied not only with our performance but also with what we are seeing in the future as clients continue to build the digital core as fundamental to all of their other strategic needs. Our talent supply chain is able to see it, predict it, understand its skills and move forward ”.
Accenture reported a 15% revenue increase to $ 15.4 billion for the fourth quarter. For the full fiscal year, Accenture reported revenues of $ 61.6 billion, a record increase of 22%.
KC McClure, Accenture’s chief financial officer, said the company was able to grow and grow profitably by managing wage inflation throughout the year.
“We expect wage inflation to continue and have taken that into account in our guide,” McClure said during the earnings call.
During the question and answer portion of the call, a question was asked about inflation, macroeconomics, and how it will affect Accenture in the future.
McClure said the company continues to see “really strong demand” for services.
“The most recent estimate for IT services continues to show that growth for our industry will be around five percent,” he said. “We are calling for double-digit growth at the top of our range and another year of double-digit growth that would lead us to add significant scale, once again, on top of our current $ 62 billion business.”
Sweet said that when Accenture thinks about the macroeconomic climate, the company thinks about what customers need.
“This environment affects different sectors differently,” he said. “There are those who are really tied to supply chain disruption and inflation and continue to focus on costs. It really makes all customers think: ‘OK, what’s my resilience? Is there more than I can do? Can I use the environment to achieve deeper cost cuts that require changing behaviors? ‘”
This makes Accenture think about what they need to orient themselves to help customer needs, similar to what they did during the pandemic, he said.
“It is always an opportunity to better serve our customers,” he added.
For the fourth quarter, EPS increased 17%, to $ 10.71, for the full fiscal year. Free cash flow was $ 3.6 billion for the fourth quarter and a record $ 8.8 billion for the full year.
New bookings were $ 18.4 billion for the fourth quarter and a record $ 71.7 billion for the full year, a 21% increase over the previous year.
For fiscal year 2023, Accenture expects revenue growth of 8% to 11% in local currency. The company’s fiscal year ends on August 18, 31.
Accenture has also been involved in the acquisition since the summer. Its most recent acquisition came Thursday with the acquisition of Inspirage, an IT services company based in Bellevue, Washington. Inspirage will bring its 710 employees to join Accenture Oracle Business Group to further enhance Oracle’s supply chain expertise and expand its capabilities to help product-centric customers build intelligent and innovative supply chain networks. Terms of the deal were not disclosed.