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Accenture (ACN) Rides on Consulting and Outsourcing Strength

Accenture plc ACN is currently benefiting from strategic acquisitions and collaborations that are driving its consulting and outsourcing businesses.

ACN reported mixed fourth-quarter fiscal 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Earnings of $2.60 per share surpassed the consensus estimate by 1.2% and improved 18.2% from the year-ago fiscal quarter’s reading. Revenues of $15.4 billion missed the consensus mark by 0.2% but increased 15% from the year-ago fiscal quarter’s tally on a reported basis and 22.4% in terms of local currency.

How is Accenture Faring?

Accenture is steadily gaining traction in its outsourcing and consulting businesses, backed by high demand for its services that can improve operating efficiencies and save costs. On the outsourcing front, ACN continues to see strong demand for client assistance with the operation and maintenance of digital-related services and cloud enablement.

In the fourth-quarter fiscal 2022, Outsourcing revenues of $7.09 billion increased 16% from the year-ago fiscal quarter’s number on a reported basis and 23% in local currency.  On the consulting front, Accenture experiences strong demand for digital, cloud and security-related services. In the fiscal fourth quarter, Consulting revenues of $9.03 billion increased 24% year over year on a reported basis and 30% in terms of local currency.

Acquisitions and partnerships have been key growth strategies for Accenture so far. Its solid inorganic growth profile enabled it to enter new markets, diversify and broaden its product portfolio, and maintain its leading position in the operating domain.

The recent buyout of The Beacon Group solidifies Accenture’s capabilities that help C-suite leaders better their decision-making on matters regarding targeting, segmentation and transformation. The transaction also strengthens the capabilities of Accenture’s M&A Consulting Services, providing inorganic growth strategies.

Accenture has strong relationships with SAP SAP and Adobe ADBE. Its collaboration with SAP aims to ease clients’ transition to the cloud and deliver continuous innovation through their joint offerings.

Through its longstanding partnership with Adobe, Accenture uses Adobe Experience Cloud applications to address its clients’ business challenges.

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