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Accenture targets more acquisitions

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Accenture has been busy beefing up its technology muscles by acquiring tech companies. Since April 2015, it bought about 20 companies to the tune of USD 835 million, and it shows no signs of stopping.

Accenture chairman and CEO Pierre Nanterme said this was part of the company’s plans over the last few years, “I’m very pleased with the momentum we are creating,” he said.

He said investing in technology areas was the right growth strategy, and hinted at more acquisitions to follow.

More recently, Accenture bought a majority stake in IMJ Corp, a full-service digital agency; it purchased OPS Rules, an analytics consultancy and added Israel-based Maglan as part of its global network of cybersecurity centers.

To date, digital, cloud and security-related services represent about 40 percent of the company’s revenue for its third quarter ended 31 May. Nanterme said the company will continue to focus on these areas but is also considering potential acquisitions in the field of artificial intelligence.

For the quarter, net revenue for its consulting services grew 12 percent to USD 4.62 billion, compared to outsourcing services which grew 4 percent to USD 3.81 billion. The company reported that 54 percent of its USD 9.1 billion in new bookings was for consulting services.

Nanterme attributed this trend to a high level of transformation across all industries, which led to higher demand for consulting services. When businesses did not have to undergo transformation, they would lean towards outsourcing, he explained.

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