Accenture

Type :

Public (NYSE: ACN, ISIN: BMG1150G1116)

Founded

1989

Headquarters

Hamilton, Bermuda (registered)

150 offices in 49 countries Chicago, Illinois, United States (largest [1])

Key people

William (Bill) D. Green

Industry

Management consulting, technology services and outsourcing

Revenue

$18.228 billion (2007) 1-Year Revenue Growth 6.63% (2007)

Market Capitalization $28.569 billion (2006) Net income

$973.3 Million (2007) 1-Year Net Income Growth 3.5%

Employees: about 158,000 (2007) 1-Year Employee Growth 13.8% Slogan:

High performance. Delivered.

"Great learning experience" "Ability to run your own business" "If you are looking to get into technology consulting, this will be the place to be" Expanding business in Asia and Europe

"It is far too easy to get lost in the shuffle" "Bureaucracy" "Hard to overcome a lot of the political aspects in order to advance your career" "Quality of hiring plummeting with lots of salesmen coming in"

Accent on IT In the technology consulting arena, there's just no avoiding Accenture. With more than 145,000 employees and counting, the company managed to rake in over $16 billion in revenue in 2006, up 9

percent from 2005. From pie-in-the-sky digital technologies to practical software applications, the company seems to have a hand in every conceivable IT market--and by all accounts, it plans to keep it that way. It's hard to believe that in 2001, the mere mention of the name Accenture might have inspired a snicker or two. The brand was established in 2001, following a lengthy arbitration process in which Andersen Consulting successfully petitioned to break away from Andersen Worldwide Société Coopérative (AWSC), a Swiss administrative entity responsible for coordinating the practices of Accenture and its disgraced sibling Arthur Andersen (of Enron infamy). Even before its incorporation in July 2001, Andersen Consulting prepared to reinvent itself, conducting a companywide "BrandStorming" initiative earlier in the year to come up with a new name. To the surprise of many cynical observers, the name Accenture (invented by a Norwegian rank-and-file Andersen consultant) took off. Having been ranked the 51st most valuable global brand by BusinessWeek in 2005, and the No. 1 most admired company in its industry in the U.S. by Fortune for 2003, 2004 and 2005, Accenture now can boast of having established a solid name for itself in just a few years. The firm divides its services regionally into the Americas, Asia-Pacific and EMEA (Europe, the Middle East and Africa), with both the Americas ($7.74 billion in 2006) and EMEA ($7.64 billion) making the largest contributions to annual revenue. And hiring remains strong, too; Accenture added more than 43,000 people globally in fiscal 2006, including approximately 6,000 in the U.S. alone. Full of capabilities The company organizes its business capabilities around five operating groups: communications and high tech, financial services, government, products and resources. Of these groups, the communications and high tech and products divisions contributed the largest share of revenue in fiscal year 2006, posting $4.1 and $4 billion, respectively. Accenture's solutions are brought to clients through three service areas, which the company refers to as "growth platforms": business consulting, systems integration and technology, and outsourcing, with the majority of revenue--just over 59 percent in 2006--derived from business consulting (which often involves systems integration and IT work). Under the technology umbrella, Accenture offers a menu of services, including enterprise integration, enterprise solutions, information management, infrastructure solutions, IT strategy and transformation, Microsoft solutions, mobile technology solutions, radio frequency identification, SAP solutions, service-oriented architecture and systems integration. The company's outsourcing platform offers application outsourcing, business process outsourcing and infrastructure outsourcing. A rough start Accenture's success is all the more surprising when you consider the fallow terrain the firm was working in as of 2001 and 2002. Just before the economy went sour, the company, led by Joe Forehand, launched its $1.7 billion IPO in July 2001, and another public offering completed in May 2002 raised an additional $93 million. But the firm's attempt to profit from the venture capital boom suffered from poor timing; a technology ventures unit, developed shortly after the company's incorporation, was abruptly shut down in March 2002 when its investments turned out not to be worth the $500 million Accenture had staked in the project. Job cuts swept through the company between 2001 and 2003, but Accenture tried to make its belt-tightening easier for its staffers, introducing a voluntary FlexLeave program, which allowed consultants to take sabbaticals of six to 12 months at 20 percent of their current pay, and continued benefits, with a guarantee that their job at Accenture would still be there when they came back. Forehand got the credit for these types of forward-thinking programs, which earned him recognition as Most Influential Consultant of the year by Consulting Magazine in 2001. Since September 2004, the company has been led by 29-year Accenture/Andersen veteran William Green, who also took over the chairman's role when Forehand retired at the end of August 2006. Green's job has been to take Accenture

from dubious startup to industry-leading behemoth, with an eye toward making Accenture the "must-have adviser for Corporate America," according to an interview in 2004. The executive suite shuffle In late August 2006, the company announced some management changes, appointing new group chief executives for its business consulting and outsourcing growth platforms and four of its five operating groups, along with a new chief financial officer. Named to the CFO position was Pamela J. Craig, taking over for Michael G. McGrath, who moved on to become one of Accenture's international chairmen. Craig formerly served as Accenture's senior VP of finance. Kevin M. Campbell, formerly the senior managing director for BPO, was named the group chief executive for outsourcing, while Mark Foster, former group chief executive for the products operating group, was named head of business consulting and integrated markets, the organization that oversees the business consulting division. The new operating group chief executives include Gianfranco Casati, who heads up the products group; Martin I. Cole, leading communications and high tech; Lisa M. Mascolo, in charge of government; and Sander van 't Noordende, leading resources. Adrian Lajtha maintains his role as head of financial services, and Tim Breene continues to lead the company's growth and strategy and corporate development functions, under the new title of chief strategy and corporate development officer. Island living Accenture draws a number of fat checks from government contracts, making the company a prime target for scrutiny. In particular, critics (including some in Congress) carp about Accenture's choice to incorporate in tax-friendly Bermuda. But while some say that a company incorporated outside the U.S. shouldn't have access to federal contracts, Accenture counters that it indeed pays all appropriate taxes in the countries in which it does business, including the U.S. Besides, the company says, prior to its IPO, more than half of its partners were non-U.S. citizens, so the neutral location of Bermuda makes sense. Accenture continues to fend off some congressional challenges to its status, and keeps on winning gigs from the public sector in the U.S. and elsewhere. Exhaustive interviews Accenture recruits on a number of college campuses all over the country, such as the University of Illinois, Baylor University, Emory and Georgia Tech, to name a few. According to sources, the hiring process is straightforward--for campus hires, there are three interviews. Explains an insider, "I had three rounds: The first was kind of a 'do you have a pulse and can you talk' kind of thing. They were really just looking for communication skills to see if you could speak clearly." The source continues, "The second interview was more challenging in that they asked for specific examples. They asked about my work background and history. The interviewer might say something like, 'Based on your past experience at X company, tell me about a time when you disagreed with your boss; what did you do and what happened?' Cultural shift One thing is clear: The Accenture culture has undergone a transformation over the last few years, according to a few longtime insiders who are nostalgic for the days when Accenture was privately held. "The corporate culture has definitely changed since Accenture became a public company. Gone are the days of the elaborate (i.e., expensive) Christmas parties! I miss those," declares a nostalgic source. Another staffer moans, "Culture used to be better before Accenture went public. Now, the company is too big and concerned about quarterly earnings instead of doing what is correct for the stakeholders." A colleague agrees, explaining that "the culture has changed a lot over the last four-and-a-half years. It really changed when we went public. It went from being a laid-back, 'work hard, play hard' place to more of just a 'work hard' place, with not nearly the same frills. You don't hear the same outlandish stories about taking extravagant trips on the partners' dime, as you used to hear. But it's still a very good culture."

Aside from going public, respondents assert that the trend toward outsourcing and the demand for more experienced hires have also altered the company's formerly youth-oriented culture. Acknowledges a manager, "Another big impact is the larger percentage of nonconsulting resources in project work. These days, projects are staffed by many services and solutions resources and offshore resources. This means that a project team is now very diverse in geographical location, age and background." A colleague agrees, explaining, "We are also bringing on contractors to do the technical work, rather than training the people with lower seniority to do the technical work." He adds that while it may not be as entertaining as it once was, Accenture is still a great place to be: "You end up with a lot more people now who are older, who don't understand the party culture ... The more fun part of working has dwindled, but overall, I still really enjoy it." Competition heats up There's another reason for the shift in the company's culture. With business now booming and staff expanding, Accenture's management is more focused on beating out new competition than on training inexperienced new hires. Says one senior manager, "It's become difficult just keeping track of that many people, so it's hard to customize things or keep things tailored to certain individuals. I definitely think that the management is feeling the heat from Indian consulting and outsourcing firms--Tata, Wipro, Infosys. In the past, the enemies were EDS, IBM, BearingPoint and Deloitte--and they still are, but I don't think management perceives the Big Four as the main competitors anymore." A colleague reiterates this sentiment, noting that "the firm is getting away from hiring straight out of college, where they used to groom new hires to learn the 'Accenture way' from the start. Now there is so much competition, and so much business out there, we are bringing in a lot more experienced hires." It's about the people And although the freewheeling days are long gone, sources seem to be satisfied with what Accenture has become, thanks to their co-workers. "Predominately, it's a young company, very intelligent and very outgoing. You get on a project, and a bunch of people are flying in from other cities on a weekly basis. That leads to lots of hanging out together after work. You might work 50 to 70 hours a week with these people, and then you go hang out somewhere after. That's because people really get along," an employee explains. Insiders also praise their comrades' hardworking attitude. One source claims that the diligent mindset of fellow staffers has had a positive impact on him: "I think the culture is definitely different than senior year in college. By that, I mean, the people pretty much think of themselves as individual high-performing businesses. I didn't think of myself that way when I first joined, but being around [my colleagues] forces me to be more like that and think like them." The consultant adds that Accenture has a lot of Type A personalities--the 'get it done' attitude is the thing here." Associates avow that at this company, devotion to the business is the name of the game. States an insider, "It's definitely a working culture. People are very dedicated to [the] job and the responsibilities they have. Because of this, I think the people are the most interesting aspect of the company. The way they perform their jobs and they way they collaborate and [foster] a team atmosphere--those are the best things about being here." Our fearless leaders For the most part, consultants rate their supervisors as top notch. "My relationships with my managers are outstanding. The people are phenomenal to work with. They are demanding, but they are very good at helping you grow and develop your skills, whether in technology or personal skills," a source glowingly remarks. Managers are reportedly accessible and open to the lower ranks, according to a first-year analyst who says, "My manager is my direct supervisor, so we interact every day. There is also a senior executive on my project, and he has made himself available for conversation. If I feel I'm not talking to the senior executive much, it's my fault, because he is open to chatting with us and invites us to come by and talk to him. There is plenty of exposure here."

Of course, not every manager gets such praise. "I have had very good supervisors that have become counselors and friends. I have also had terrible supervisors that have taught me how not to manage people," comments one insider. But most respondents assert that "direct supervisors are great." A young analyst suggests that Accenture "is the kind of place where relationships among different career levels are very encouraged. I work in conjunction with my manager all the time." "Far too many hours" Consultants are not too thrilled about the long hours that are routine at Accenture. One insider, who logs at least 70 hours a week, simply states, "We work far too many hours." Most respondents say weeks tend to hover around 60 to 70 hours, though a handful of sources claim hours can vary across the board. "Right now, for me, I work an average of 50 hours a week. That hasn't been average for my entire career. It totally depends on your engagement. Some projects are limited to 40 hours a week, but the majority of projects require more than that. My average over time has been 55 to 60 hours a week," recounts a manager. An analyst claims, "My weeks are about 80 hours. However, we do get a good amount of vacation each year (27 days a year), and there are times where the workload is less." Another source declares that he has a consistent, albeit stressful, schedule: "There are no spikes for me; just constant pressure and deadlines." Though the weeks may seem long at times, a number of sources deny that weekend work is always required. "I've worked on the weekend only one or two times. The average week is about 65 hours and right now the extra work is constant, which makes it a little easier to plan and manage," reveals one staffer. Another consultant suggests that each individual office has its own built-in workday expectations. "The corporate culture sometimes depends on which office you work out of." For example, in the New York office, "it is not unusual for teams to work extremely long hours and go out drinking afterwards. By contrast, some Midwest employees are home by 6 p.m. every night, even during project life." Just accept it Travel is a big part of an Accenture consultant's life. A senior consultant outlines the general schedule: "A typical week includes catching an early Monday morning flight to the client location. Once at the client site, the day ends late to catch up for the time missed because of traveling to put in the hours for the project. The workweek wraps up up on Thursday evenings, catching the red-eye flight back home. Fridays are work-from-home days." Most consultants seem to take this itinerary in stride, realizing that it's a fact of life for those who choose this industry. Not every consultant at Accenture is staffed away from his hometown. But for those who are (the majority), one insider advises, "Be prepared to live in a hotel." As consultants advance, individual preference plays a larger part in setting the travel schedule. "You do get some say over where you are placed on an assignment. The more senior you are, and the better ratings you have, the more say you have. But, if you're a brand-new analyst, they will tell you where you are going," claims a source, adding, "If you've been with the company for a few years, however, you really try to do your own staffing. You need to look for the next project when you know you're about to roll off of a project." And how do you take control over your placement? An insider instructs, "You seek out engagements through your network and people you know at the firm. You can go through your HR rep to find the next project, but that is usually not the best way to do it." Break them in slowly When it comes to traveling, hires straight out of college might be given a little slack at first, before they are sent on the road. Notes a consultant, "For new hires, the firm has tried to keep them at home. Entry-level folks were being burned out, so now they keep them at home as long as possible. That's really the first priority for new hires now--staffing at home. If they can't staff them on an engagement at home, they try to staff them close by their home office." That doesn't last too long, however. A colleague explains that "within about three months of starting, I was traveling.

Imp News MR BILL GREEN, Chairman and CEO, Accenture (right), and Mr Harsh Manglik, Chairman and Managing Director, Accenture India, at a press conference in Bangalore on Monday. — G.R.N. Somashekar

Bangalore, Jan. 29 2007 India is set to become Accenture's largest centre in the world as the consulting major plans to add 30 per cent more jobs in the country taking the total number of employees to 35,000 by the end of the current fiscal. Accenture's Chairman and Chief Executive officer, Mr William D. Green, told newspersons on Monday that by the end of the company's fiscal (August), the total number of employees in its Indian operations will be 35,000 including 10,000 employees in its BPO business thereby replacing the US as its largest location. The US operations will have around 32,000 employees towards the end of this fiscal. Mr Green said with this addition, the global delivery network will have a total of 65,000 employees boosting the total strength to over 1.5 lakh. He said the outsourcing business of the company globally had grown to 40 per cent of the total business of the company from 17 per cent four years ago.