TBR 1Q11 Accenture Report
 

TBR 1Q11 Accenture Report

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Technology Business Research is a different kind of research company. Our bottoms-up approach provides a look at the technology industry unlike anything you’ve seen before. We analyze company ...

Technology Business Research is a different kind of research company. Our bottoms-up approach provides a look at the technology industry unlike anything you’ve seen before. We analyze company performance in professional services, networking and mobility, computing and hardware, and software on a quarterly basis, leveraging our data to create industry benchmarks and landscapes that provide a business perspective on leaders and laggards and their business plans. We are experts in the business of technology.

Accenture will continue to expand its market share in key geographies (both developed and emerging) and verticals as demand improves. The firm is now seeing a strong comeback in consulting & SI with revenue and signings building. TBR expects this momentum to continue as Accenture attracts clients with its strong transformational value proposition. In addition, the firm will see more outsourcing opportunities, which will add to the consulting expansion. ccenture’s strong offerings portfolio, coupled with its differentiated talent and skill sets, will help it attract clients as they continue to look for opportunities to recover from the downturn.

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TBR 1Q11 Accenture Report TBR 1Q11 Accenture Report Presentation Transcript

  • Technology Business ResearchAccelerating Customer Success Through Business Research TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
  • PROFESSIONAL SERVICES BUSINESS QUARTERLYSMAccentureFirst Calendar Quarter 2011Second Fiscal Quarter 2011 Ended Feb. 28, 2011 TBR OUTLOOK – POSITIVE TBR SCORE (0-10 SCALE)  5.95Publish Date: April 14, 2011Author: Elitsa Bakalova (elitsa.bakalova@tbri.com), PSBQ AnalystContent Editor: Alison Crawford, PSBQ Senior Analyst TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
  • Contents TBR Company Analysis Company Data Models 3 Executive Summary 25 Income Statement 6 Strategy Overview 26 Balance Sheet 8 Corporate SWOT Analysis 27 Service Line Model 9 Scenario Discussion 28 Operating Group Model 12 Financial Model Strategy 29 Geographic Model 16 Go-to-Market & Services Strategies 30 Operating Expense Model 20 Alliance & Acquisition Strategies 31 Headcount Model 22 Geographic Analysis 32 Financial Strategy Graphs 23 Resource Management Strategy 34 Go-to-Market Graphs 35 Resource Management Graphs 37 Acquisitions Table 38 Portfolio of Services Table 39 Services Announcements 41 Quarterly Signings Tables 50 Strategic Alliances Tables 52 Org. Structure 53 Worldwide Locations Table 55 About TBR3 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Executive Summary TBRAccenture is prepared for a full year of growth as it continues investingto capture business momentum around the globeTBR Position Accenture Objectives • Accenture will continue to expand its market share Achieve profitable growth (grow revenue 11.0% to in key geographies (both developed and emerging) 14.0% in local currency and reach operating margin of and verticals as demand improves. 13.6% to 13.7% in FY11) • The firm is now seeing a strong comeback in • Accenture is investing in growth and in the consulting & SI with revenue and signings building. functionality to run as a high-performance business (e.g., focus on operational efficiency, higher TBR expects this momentum to continue as offshore leverage, automation for service delivery, Accenture attracts clients with its strong etc.). Given such measures, TBR expects the transformational value proposition. In addition, the company to reach its FY11 revenue growth and firm will see more outsourcing opportunities, which profitability targets (profit targets are not too will add to the consulting expansion. aggressive in our view). • Accenture’s strong offerings portfolio, coupled with Expand business from three dimensions: core its differentiated talent and skill sets, will help it business, outside of core in complementary service attract clients as they continue to look for areas, and in emerging and developed markets opportunities to recover from the downturn. • Growth in Accenture’s core business (consulting, technology and outsourcing) will be augmented by ACCENTURES 1Q11 PERFORMANCE VS. EXPECTATIONS (in $ millions) Consensus Guidance Range Actual increased traction in high-growth areas (e.g., Net Revenue $5,570 $5,600 - $5,800 $6,054 analytics, cloud computing); however, competition Operating Margin N/A 13.6% - 13.7% (FY11) 12.7% in those high-growth areas is increasing, which Non-GAAP EPS $0.69 $0.7- $0.9 $0.75 could create challenges for Accenture’s expansion. Recruit people to expand onshore and Global ACCENTURES 2Q11 GUIDANCE AND EXPECTATIONS Delivery Network to accommodate demand (in $ millions) TBR Estimate Consensus Guidance Range • Accenture is on track to achieve its goal of hiring Net Revenue $6,300 $6,000 - $6,200 $6,300 - $6,500 Operating Margin 13.4% N/A 13.6% - 13.7% (FY11) more than 64,000 people globally during FY11. The Non-GAAP EPS N/A $0.85 $0.8- $0.95 firm’s strength lies in its ability to quickly train and deploy people, allowing it to generate operational efficiencies and meet increasing market demand.4 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Executive Summary TBRAccenture’s scores reflect its expanded revenue base, stable financialperformance metrics and high utilization TBR Company Average Standard CALENDAR QUARTER RESULTS TBR SCORING SUMMARY:FINANCIAL METRICS Score Figure in Class Deviation/2 1Q10 2Q10 3Q10 4Q10 1Q11Operating Margin 5.52 12.7% 9.4% 6.5% Financial Model Strategy: 5.91 5.96 6.03 6.23 6.29Current Ratio 4.61 1.55 1.77 54.4% Go-to-Market & Services Strategies: 6.23 6.68 6.31 6.46 6.35Debt-to-Asset Ratio 3.87 0.71 0.57 12.8% Resource Management Strategy: 5.10 5.03 4.97 5.19 5.22Return on Assets (TTM) 6.59 15.6% 8.1% 3.5% TOTAL AVERAGE TBR SCORE: 5.75 5.89 5.77 5.96 5.95Return on Equity (TTM) 8.26 56.3% 17.8% 11.8%TOTAL AVERAGE TBR SCORE 6.29 TBR Company Average StandardGO-TO-MARKET & SERVICES METRICS Score Figure in Class Deviation/2Revenue (in $ Millions) 7.61 $6,054 $2,400 $1,401Revenue Growth YTY 5.16 16.9% 14.3% 16.9% Accenture continues to outperformBacklog/Revenue 6.30 2.49 1.96 0.37 its peers through its financial metricsDay Sales Outstanding 6.68 45.67 65.69 11.88 largely due to its stable operatingTOTAL AVERAGE TBR SCORE 6.35 income and net income. Accenture’s revenue stabilization continued TBR Company Average Standard through 1Q11, leading the firm toRESOURCE MANAGEMENT METRICS Score Figure in Class Deviation/2 outperform its peers in the Go-To-Gross Margin 5.11 31.7% 31.0% 5.9%Operating Expenses as a % of Revenue 5.22 18.9% 20.0% 5.0% Market & Services metrics.Revenue per Employee (TTM) 4.08 $112,550 $178,720 $71,920Operating Income per Employee (TTM) 4.86 $15,188 $18,405 $22,335Utilization Rate 8.10 86.0% 77.2% 2.8%Turnover 5.38 14.0% 15.0% 2.7%TOTAL AVERAGE TBR SCORE 5.22Key Represents an area where Accenture is currently challenged versus peers Represents an area where Accenture is outperforming its peers Represents an area where Accenture is neither significantly outperforming nor underperforming its peers 5 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Executive Summary TBRWhile there are pockets of uncertainty in some verticals and geographies,Accenture will see improved growth during 2011TBR assessment of Accenture’s two-year strategic outlookKey takeaways Strategic outlookFinancial: Accenture’s revenue will continue to • Though the economic environment in Europe remainsimprove through FY11 as recovery in the IT services mixed as countries recover from the downturn atmarket solidifies and spreads geographically. different rates, stabilization in North America andGo to market: Accenture will strengthen its offerings growth opportunities in emerging countries in APAC isportfolio and vertical expertise through organic helping Accenture position for long-term revenue gains.investments as well as alliances and acquisitions. • Accenture’s investment in business development, go toResource: The company will continue hiring (the goal market (strengthening core business with new offerings,is to hire 64,000+ people in FY11), manage utilization investing in new business initiatives with high-growthand attrition and increase its offshore leverage. potential such as analytics, cloud computing, etc.) and hiring efforts will help the company take advantage of ACCENTURES REVENUE, GROWTH AND PROFITABILITY opportunities that arise. TBR $30.0 • Accenture’s strong vertical expertise and $27.50 $25.0 $24.80 25% transformational value proposition will help it gain $22.21 15% traction in a wide range of industries. The company will $20.0 see more work in the recovering financial services In $ Billions $15.0 5% industry, both in outsourcing and consulting & SI as well $10.0 $5.18 $5.57 $5.42 $6.05 $6.05 $6.30 $3.00 $3.40 $3.93 -5% as in products, resources and communications & high- $5.0 $0.65 $0.80 $0.71 $0.83 $0.77 $0.84 tech. While pockets of uncertainty will continue to $0.0 -15% challenge growth in the public sector, Accenture will see 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 CY10 CY11 CY12 Est. Est. Est. expansion in the global healthcare vertical and will Total Revenue (Net Revenue) Operating Income continue to invest in IT to improve the quality of Revenue Growth Y/Y Operating Margin healthcare. SOURCE: ACCENTURE AND TBR6 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Strategy Overview TBRAccenture is seeing success (e.g., revenue and signings growth) as a resultof its increased focus on delivering value to clientsFunction Key Strategies TBR Assessment  Accenture’s value proposition of well-balanced offerings combining consulting & SI and outsourcing with Increase Accenture’s business innovative high-growth service offerings (e.g., analytics, momentum by focusing onOverall cloud computing, mobility, etc.) is proving attractive to delivering value to the client clients. Continuous improvement in the firm’s top line and signings as well as a healthy bottom line signify it has been successful in executing its strategy. Deliver profitable growth:  An uptick in FY11 guidance from 8% to 11% in local • Grow FY11 revenue by 11% to currency provided in 4Q10 demonstrates improved 14% in local currency, faster than environment and growth potential.Financial the market  Efficiency on the OPEX side is driving operating margin • Reach operating margin of 13.6% improvement. This trend will continue as Accenture to 13.7% in FY11, up year-to- works toward its operating margin goal, which TBR sees year by 10 to 20 basis points as not overly aggressive and thus achievable.  Accenture is experiencing a growth recovery in its core business (consulting, technology, outsourcing) and is Expand business from three gaining traction in high-growth service areas such as dimensions: core business as analytics, cloud computing and smart energy. The firm’sGo to primary growth engine, outside of combined reach in developed and emerging markets isMarket core business in growth service proving successful. Economic stabilization in North areas, and in emerging and America and growth opportunities in Brazil allowed developed markets Accenture to post record-high revenue in the Americas, growing 21.4% year-to-year. Key:  Working: Short-term impact expected on bottom/top line  Not working: No major impact or differentiation expected7 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Strategy Overview TBRAccenture continues to invest in hiring and training to addressmarket demandFunction Key Strategies TBR Assessment  Alliances are key to the development of Accenture’s portfolio, especially in new service areas and verticals • Make strategic alliances to with high-growth potential, such as cloud computing, expand in new areas of analytics and healthcare offerings (e.g., public health technology and vertical- solutions with Plexis). Accenture will continue to utilizeAlliances & partners to augment its offerings and capabilities. specific offeringsAcquisitions  Accenture is strong at identifying and integrating small- • Leverage tuck-in acquisitions scale acquisitions that help fill gaps in its portfolio. TBR to fill gaps in its portfolio expects additional tuck-in acquisitions during FY11, as Accenture looks to supplement its organic growth and augment its portfolio, IP and vertical expertise. • Recruit people to expand  Accenture will continue to increase headcount to GDN and invest in training to capitalize on market growth. The company is building out accommodate for demand resources in its GDN, particularly in lower-cost regions (e.g., the Philippines, India). Service areas with improving • Develop and increase demand, such as consulting & SI, also are seeing staffResources & leverage of global delivery increases as a response to returning discretionaryInvestments capabilities spending. Hiring and training will dilute gross margin in fiscal 2H10, but they are necessary to drive growth. • Invest in automation to offer  The development and shifting of service delivery to the differentiated, less risky GDN – especially for outsourcing and, increasingly, SI – implementations with more and use of assets to automate delivery will support rapid ROI Accenture’s long-term profitability and attract clients. Key:  Working: Short-term impact expected on bottom/top line  Not working: No major impact or differentiation expected8 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Corporate SWOT Analysis TBRAccenture’s well-developed resources and capabilities allow it to winnew growth opportunities Corporate SWOT Analysis Strengths Opportunities • Transition of executive power in CEO succession (new • Target growth opportunities in emerging markets CEO as of Jan. 1) • Increasing demand for analytics to support • Broad Global Delivery Network and developed Accenture’s growth presence in low-cost locations 1 • Expansion of Global Delivery Network in Latin • Leverage of a standard framework for building and America due to demand for services delivered from delivering services the region • Alliance relationships with 150+ partners • Stabilizing consulting/SI demand will drive growth in • Strong vertical market focus and expertise Accenture’s consulting & SI business. • Core competency to attract, hire, train, deploy and • Growth potential of cloud computing can help retain skilled talent Accenture gain traction. • Accenture’s Technology Labs turn technology into business results Weaknesses Threats • Price competitiveness is limited in commoditized/sole 1 • Uneven economic recovery in Europe will challenge sourcing deals – unlike in large/complex Accenture’s near-term performance in the region. engagements. • Indian vendors are becoming more active in business • Recruiting and training costs tied to hiring as well as consulting, analytics and remote management ITO. wage and salary increases used as means to hold off • Competition from other MNCs (e.g., IBM, HP/EDS, rising attrition are having a temporary negative etc.) and European firms for top clients 1 impact on cost of services. • Competition for lower-cost labor by other MNCs as well as Indian and European vendors may challenge hiring in India and the Philippines.9 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Scenario Discussion TBRAccenture will achieve double-digit growth in FY11 as demandfor consulting & SI improvesScenario Discussion: Positive revenue, signings and demand trends indicate growth for AccentureScenario SWOT Assessment • TBR believes Accenture will see growth during the rest of FY11 Strength: balanced combination of consulting, (ends in August) as its core business segments, outsourcing and SI and outsourcing offerings (core business) consulting & SI, as well as key verticals, such as products, financial Weakness: prices tend to be higher than its services, communications & high-tech, sustain growth recovery competitors (based on type of engagement) driven by improving demand trends. Opportunity: improving consulting & SI • Accenture is experiencing strength in outsourcing, where cost demand is creating business prospects optimization is playing a key role. While outsourcing growth is expected to slightly moderate during fiscal 2H11, the consulting & Threat: high competition in Accenture’s core SI arena is gradually recovering from the economic downturn. business areas as vendors strive to capture demand and stabilize revenue growth levels • Consulting & SI bookings reached its second-highest level ever as management and IT consulting as well as SI fueled expansion across a range of verticals. Positive demand trends coupled with ACCENTURES NET REVENUE AND GROWTH intensified hiring efforts in consulting & SI will allow Accenture to TBR $30 40% gain traction in its larger service line (accounted for 58% of Net Revenue Growth Y/Y (in $) $25 $23.4 $21.6 $21.6 $24.3 revenue in 1Q11 and 57.4% in FY10). $19.7 $20 20% 18.3% • Accenture will gain additional momentum entering 2Q11 (fiscal In $ Billions $15 18.7% 12.8% 3Q11) as it looks to build wallet share among clients for higher- $10 0% -0.1% value transformational consulting services, the firm’s key $5 -7.7% differentiator, which will ultimately bring more work in areas such $0 -20% FY07 FY08 FY09 FY10 FY11 Est. as SI and outsourcing. Net Revenue CAGR FY07 - FY10: • As Accenture strives to sustain its growth, the company will see Net Revenue Growth Y-t-Y 3% (in U.S. dollars) increased competition from other MNCs, European and Indian SOURCE: ACCENTURE AND TBR vendors that, in a similar fashion, are looking to regain traction with clients and expand their market shares. 10 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Scenario Discussion TBRAccenture will face continuous competition at its lower-cost headcountand local market expansion plans Scenario Discussion: Expansion in India will strengthen Accenture’s lower-cost delivery capabilities and create avenues for local market growth Scenario SWOT Assessment • Expansion of Accenture’s lower-cost resources is Strength: well-developed presence in low-cost strengthening its Global Delivery Network (GDN), allowing locations (47% of total headcount in 1Q11) the company to provide services at competitive prices. Weakness: concentration of resources in India • India and the Philippines, where Accenture is currently and the Philippines creates operational risk investing, are the firm’s two dominant lower-cost delivery Opportunity: demand for offshore service locations (made up ~66% of Accenture’s near/offshore delivery and economic growth in emerging headcount in 1Q11) and will remain so in the long term. markets (for local market expansion) • Accenture will continue to add people in the two countries Threat: competition for talent and pricing but will face intensified competition for talent, which is pressures from MNCs and Indian vendors currently driving up attrition and may drive up salary levels and negatively affect cost of services.TBR ACCENTURES GDN HEADCOUNT AND GROWTH • While the greater focus for the two regions is on global 130,000 service delivery, offshore expansion is allowing Accenture to 30.0% establish resources that also serve the local market. 110,000 Headcount Growth Y/Y 20.0% • With a new managing director in India (Avinash VashisthaHeadcount 90,000 will replace Harsh Manglik, the current country managing 70,000 10.0% director), Accenture is ready to expand in India (TBR estimates India comprises ~$250 million in annual revenue). 50,000 0.0% • The firm is making progress in winning local clients in India as 30,000 -10.0% well as other emerging high-growth markets, but 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Near/Offshore GDN competition in the region is increasing (e.g., other MNCs, Near/Offshore Growth Y/Y GDN Growth Y/Y European and Indian vendors), which could challenge Total Headcount Growth Y/Y Accenture’s expansion efforts. SOURCE: ACCENTURE AND TBR 11 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Scenario Discussion TBRAccenture’s ability to tailor analytics offerings to demand createsavenues for growth Scenario Discussion: Gaining traction in areas like predictive analytics will support revenue growth Scenario SWOT Assessment • TBR estimates Accenture is seeing $1.0 billion in business Strength: analytics offerings from strategy to opportunities in analytics. While TBR believes Accenture’s execution, vertical expertise, client relationships analytics business is still smaller than the aspired size, the Weakness: expanding but still relatively small business is growing despite intensified competition. predictive analytics business • Accenture will see more traction in the long run due to its Opportunity: increasing demand in emerging, ability to lead the market by using its research capabilities fast-growth market segment to identify key trends and adjust its offerings. Threat: high competition from other MNCs, • Accenture is seeing demand for predictive analytics European and Indian vendors embedded in decision-making. To address demand, Accenture has developed offerings, assets and intellectual Accenture’s Analytics Offerings property to help clients gain insights for future actions from Cross- Drive business outcomes from their data, optimize decision processes and improve functional enterprise analytics, outcomes. analytics organizational effectiveness • A key differentiator is Accenture’s ability to move from Functional Transform functions or insights to decisions to outcomes by providing a holistic- analytics business processes (e.g., sales service approach that starts with strategy (Accenture’s core and marketing, customer strength lies in its consulting business) and ends with service, procurement, etc.) execution (implementation, outsourcing). Industry- Specific solutions across a • In addition to building analytics capabilities at the client, specific wide range of industries Accenture provides analytics as a service, built on its own analytics platform (on a subscription or utility basis). This flexible Information Business intelligence, portals & service that can be scoped to the client’s needs, reduces management content management, data up-front costs and accelerates speed to outcome. management and architecture • A robust network of alliance partners and tuck-in Source: Accenture and TBR acquisitions help Accenture fill portfolio gaps.12 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Financial Model Strategy: Revenue TBRAccenture will maintain growth momentum throughout 2011 Revenue Performance and Strategies 1Q11 Net Revenue: $6.1 billion, 16.9% YTYTBR ACCENTURES NET REVENUE, GROWTH AND PROJECTIONS • Accenture’s revenue exhibited year-to-year growth for Net Revenue Growth Year-to-year 20.0% $30 $22.2 $24.8 $27.5 15.0% the fourth consecutive quarter in 1Q11, driven by $25 16.9% 8.3% 12.3% 13.1% 10.0% increasing demand for both outsourcing and consulting $20 11.6% 10.9% engagements.In $ Billions $15 5.0% -1.7% 5.3% 6.1% 0.0% • Strong bookings in the U.S., Canada, and Brazil across $10 $5.2 $5.6 $5.4 $6.0 $6.1 $6.3 Accenture’s service lines additionally contributed to $5 -5.0% top-line performance in 1Q11. $0 -10.0% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 CY10 CY11 CY12 Net Revenue Est. Est. Est. Revenue and Growth Outlook Revenue Growth Year-to-year NOTE: Annual revenue and projections are for calendar 2010, 2011 and 2012, respectively. • Continually improving demand for services supporting cost optimization and growth, IT transformation, ACCENTURES TRAILING 12-MONTH REVENUE virtualization and ERP implementation will supportTBR $26 sustained revenue growth in 2Q11 and the rest of $23.4 $24 $23.1 $23.8 2011. $22.4 $22.2 $22 $21.6 $20.9 $20.8 $21.3 $21.6 • Consulting & Systems Integration will be a key driver of In $ Billions $20 growth through 2011 as clients intensify their $18 investments in growth and transformation. FY09 FY10 $16 • Accenture will intensify efforts to build out its global $14 service delivery capabilities and expand into high- 2Q08- 3Q08- 4Q08- 1Q09- 2Q09- 3Q09- 4Q09- 1Q10- 2Q10- 3Q10- growth geographies, supporting the diversification of 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 its revenue base. Est. SOURCE: ACCENTURE FINANCIALS AND TBR13 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Financial Model Strategy: Operating Groups TBRWhile temporary challenges remain in the public sector, the restof Accenture’s verticals will see expansion in the near term Operating Group Performance and Strategies Communications & High-Tech experienced TBR ACCENTURES REVENUE BY OPERATING GROUP positive growth for consulting and outsourcing (IN $ BILLIONS) CHT services related to cost takeout, customer 100% $0.85 $0.93 $0.86 $0.93 $0.96 $1.02 $1.3 Billion acquisition and retention, and web development. % of Net Revenue 75% $0.93 $1.00 $1.01 $1.13 $1.17 $1.18 New demand for wireless services engagements $1.08 $1.15 $1.12 $1.30 $1.27 $1.32 also drove growth within the segment. 50% $1.11 $1.18 $1.16 $1.28 $1.27 $1.32 FS regained strength in outsourcing and 25% Financial continued to see traction in consulting & SI in $1.21 $1.31 $1.27 $1.40 $1.37 $1.45 Services 0% (FS) post-merger integration, banking and insurance 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. $1.3 Billion replatforming, risk and regulatory compliance and Health & Public Service Resources Financial Services Communications & High-Tech business transformation. Products SOURCE: TBR AND ACCENTURE HPS is seeing growth in healthcare (e.g., cost Health & reduction, back-office transformation, health ACCENTURES OPERATING GROUP PROFITABLITY Public administration and electronic medical records). TBR Service Repositioning of the public sector business, 19.0% (HPS) especially in EMEA, and increased volumes in % of Net Revenue 17.0% $1.0 Billion outsourcing and SI with the U.S. federal sector 15.0% 13.0% will help Accenture improve performance. 11.0% 9.0% Products Products growth was largely driven by consulting 7.0% services across verticals and an increase in $1.4 Billion 5.0% transformational ERP projects in North America. 3.0% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. Resources was the fastest-growing, up 26.0% Communications & High-Tech Financial Services Resources year-to-year due to strong growth in consulting & Health & Public Service Products Resources $1.2 billion SI (ERP, operating model design and rollout, SOURCE: TBR AND ACCENTURE supply chain optimization, smart grid).14 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Financial Model Strategy TBR Consulting & SI will be the near-term revenue driver as demand continues to improve and clients initiate transformational projects Service Line Performance and Strategies • Consulting & SI saw strong performance ACCENTURES SERVICE LINE REVENUE in verticals such as resources, financial TBR services, communications & high-tech (IN $ MILLIONS) $7,000 25.0% and products. Growth Year-to-Year $6,000 20.0% In $ Millions $2,478 $2,589 $5,000 $2,346 $2,326 $2,544 15.0% • Consulting & SI will continue to regain $4,000 $2,244 $3,000 10.0% Consulting & SI: growth momentum during FY11 as $2,000 $3,225 $3,568 $3,509 $3,648 5.0% $3.5 billion, up demand stabilizes. $2,932 $3,094 0.0% $1,000 $0 -5.0% 19.7% year-to- • Consulting will be driven by cost take- 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. year out, revenue growth, compliance, Outsourcing C&SI application modernization, virtualization C&SI YtY Growth Outsourcing YtY Growth and adoption of cloud computing. SOURCE: TBR AND ACCENTURE • SI will be driven by ERP (implementation of SAP, Oracle and Microsoft platforms), ACCENTURES SERVICE LINE REVENUE AND package enhancements and analytics.TBR PROFITABILITY • Outsourcing was driven by verticals such 75% as resources, communications & high-% of Net Revenue 56.6% 57.9% 57.1% 59.0% 58.0% 58.9% 60% 43.4% 42.9% tech and financial services. 45% 42.1% 41.0% 42.0% 41.1% Outsourcing: • Outsourcing reflected demand for cost 30% 15.0% 16.5% 15.0% 15.1% 14.0% 14.8% take-out, improving operational efficiency $2.5 billion, up 15% and outsourcing of business processes. 0% 9.4% 11.6% 10.7% 11.6% 11.0% 11.4% 13.4% year-to- 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. year • Outsourcing growth is expected to slightly Consulting & SI Revenue Outsourcing Revenue slow down during fiscal 2H11 as Consulting & SI Operating Margin* Outsourcing Operating Margin* Accenture regains strength in consultingSOURCE: TBR AND ACCENTURE * Operating margin is a TBR estimate & SI driven by its transformational value proposition, which will drive business. 15 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Financial Model Strategy: Expenses TBRAccenture will achieve its operating margin target for FY11by driving efficiency on the SG&A side 1Q11 Operating Expenses: $1.2 billion TBR OPERATING EXPENSES AS A PERCENTAGE OF SALES Cost of Aggressive hiring, salary increases and 22.0% Revenue subcontractor use boosted cost of services, 17.0% 12.0% 12.8% 12.9% 12.1% $4.1 but this was a necessary step to help drive 12.0% 11.7% 11.6% billion growth turnaround and long-term expansion. 7.0% 8.0% 7.4% 8.0% 7.2% 7.0% 6.4% 2.0% 0.1% 0.1% 0.0% 0.0% 0.0% Accenture was able to manage its SG&A 0.0% SG&A -3.0% expenses despite business development 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. Expense efforts (SG&A expenses as a percentage of Sales and Marketing General and Administrative $1.1 Reorganization cost (benefit) revenue fell 110 basis points from 20.0% in billion SOURCE: ACCENTURE AND TBR 1Q10 to 18.9% in 1Q11). • Hiring and training will continue to impact ACCENTURES GROSS AND OPERATING PROFIT gross margin in fiscal 2H11; however, salaryTBR AND PROJECTIONS increases and bonuses were all absorbed in 40% 1H11, alleviating margin pressures from pay Gross and Operating Margin 32.7% 34.7% 34.0% 32.2% 31.7% 32.0% 30% increases. • As the pricing environment stabilizes, Margins 20% Accenture will absorb higher cost of services 14.4% 13.7% and 12.6% 13.2% 12.7% 13.4% with higher pricing and more efficient Outlook 10% resource mix. • Efficiency on the opex side is driving operating 0% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. margin improvement, a trend that will Gross Margin Operating Margin continue as Accenture works toward its SOURCE: TBR AND ACCENTURE operating margin goal of 13.6% to 13.7% for FY11, which TBR sees as achievable.16 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Go-to-Market & Services Strategies: Sales Strategy TBRAccenture’s emphasis on client relationship building will continue to boostsignings and revenue in the long runSales Strategy & Customer SegmentationTBR Assessment Accenture’s Sales Strategy Accenture is strongly focused on Accenture’s global sales organization is comprised of a traditional building client relationships. The use of sales channel supported by a small direct sales channel. senior executives (partners and • Internal/Traditional sales channel: Responsible for the bulk of principals) in the bulk of sales activities Accenture’s sales. The sales function is tasked to the firm’s helps create long-lasting customer partners, associate partners and managers (or senior executives) – relations (e.g., diamond clients), 4,500 people globally. Each client has account executives account growth and revenue benefits. responsible for the relationship, business development, etc. • Direct sales channel: Covers new clients with whom Accenture Accenture’s Sales Structure does not yet work, and is comprised of: o Equally small and direct sales team in BPO that targets SMBs. Internal/Traditional Sales (Accenture’s Senior o Direct sales team in applications outsourcing (~80 sales Executives; 4,500 people) directors) and ITO that works with client senior executives. • Third-party advisors: These advisors work with clients to score Direct Sales deals for Accenture and constitute only a minor portion of the (~150 people, TBR company’s sales force. estimate) Accenture’s Customer Structure Source: Accenture and TBR. Accenture defines its “diamond,” or “foundation,” clients as those Outside with $100+ million, long-term, established accounts that have a Advisors strong relationship with the company. The number of Accenture diamond clients across the globe reached 100 at the end of FY10. • The United Kingdom, a key region for Accenture’s business, has ~20 Client diamond clients. Diamond clients are also located in emerging markets (e.g., one in China, four in Brazil).17 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Go-to-Market & Services Strategies: Service Line Deep Dive TBRIndustry-specific offerings allow Accenture to broaden its client base Accenture’s Services Line Deep Dive TBR Assessment While consulting & SI slightly led in terms of revenue contribution in 1Q11, overall Accenture has a well- balanced business mix that combines strong vertical expertise with high-value transformational offerings, ACCENTURE REPORTED 1Q11 SERVICE LINE DEEP DIVE implementation and cost-optimization capabilities. ITO, 4.3% This allows the company to target a wide range of clients and achieve account growth along the services Outsourcing, BPO, 24.4% continuum. 42.0% Service Lines Deep Dive Strategies AO, 13.3% • C&SI: place strong emphasis on cost take-out, growth and transformation, ERP, package enhancements and analytics to increase bookings • ITO: emphasize remote infrastructure management to C&SI, 58.0% accommodate strong demand as clients become C&SI, 58.0% increasingly attuned to transferring assets due to lighter capital costs (cost optimization is a key client priority) • BPO: benefit from providing a combination of horizontal offerings (e.g., demand for F&A) and industry-specific solutions (e.g., healthcare, insurance) • AO: bundle AO with other outsourcing services; provide client value and use IP for AO service delivery18 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Go-to-Market & Product Strategies TBROutsourcing demand remains, and consulting & SI has improved itscontribution to bookings, which will support near-term revenue growthSignings & Pipeline TBR ACCENTURES TTM NEW BOOKINGS AND Y/Y GROWTH• Improving demand is positioning Accenture for revenue $30,000 25% Year-to-year Growth growth during the rest of FY11. While there may be 20% (In $ Millions) $25,000 TTM Bookings 15% pockets of uncertainty in geographies like Japan due to $20,000 10% the recent natural disasters, TBR expects Accenture’s $15,000 5% 0% bookings will land somewhere in the middle of its $10,000 -5% expectations range of $25 billion to $28 billion in FY11. $5,000 -10% -15%• Consulting & SI demand is heating up, with consulting 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. signings growing 12.1% year-to-year in 1Q11 and TTM Outsourcing Year-to-Year Growth TTM Consulting returning to levels experienced in FY08 before the SOURCE: TBR AND ACCENTURE recession. Accenture is showing its strength in all three Key 1Q11 Customer Wins areas, including management and technology consulting and SI, and TBR expects this trend to Company TBR Assessment continue during the rest of FY11. Such deals will help Israel Electric This consulting & SI deal showcases support near-term revenue performance. Corporation Accenture’s ability to work with• Accenture’s strong transformational capabilities and its Israel clients in different business areas as mix of cost improvement and growth offerings will help Two years it covers six different projects. The it gain traction with clients in consulting & SI as well as deal extends Accenture’s relatively outsourcing. Demand for innovation will help small market presence in the Middle Accenture gain traction outside its core business in East. areas such as cloud computing, analytics, etc. RSA This insurance BPO deal showcases• Accenture is seeing more larger-sized deals (signed U.K. Accenture’s ability to build strong eight deals over $100 million in 1Q11), which will help Four years relationships with its clients and support long-term revenue generation. expand existing business. The original deal was signed in 2003 and will extend until 2016.19 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Go-to-Market & Services Strategies: Pricing TBRPricing is stabilizing and slowly improving, allowing Accenture to expandits revenue and improve contract profitability in the long term Pricing Environment & Strategies Accenture’s market and pricing environment remains competitive; prices are now more stable across a broader • As the economic environment stabilizes across share of its business and geographies, allowing the the globe, TBR believes Accenture is seeing company to sustain the recovery in its growth. pricing stability in the Americas, APAC and some countries in Europe (e.g., Germany, the Nordics). ACCENTURES U.S. GOVERNMENT HOURLY RATES In such regions, we believe Accenture is able to TBR (05/10-05/11) test and push slight price increases with clients SKILL LEVEL/EXPERIENCE that are broadening their IT investments.TITLE 1 2 3 4Business Integration Analyst $91 $100 $114 $123 • At the same time, TBR believes pricing pressuresBusiness Integration Consultant $111 $125 $139 $153 still exist in regions in Europe that lag inBusiness Integration Manager $157 $177 $183 $202 economic recovery and have tight public sectorBusiness Integration Senior Manager $236 $274 $303Business Integration Associate Partner $316 $347 $378 $417 spending (e.g., the Netherlands, the U.K., Spain).Business Integration Partner $494 N/A N/A N/A • During 1Q11, Accenture experienced lowerClient Financial Management Assistant $64 N/A N/A N/AClient Financial Management Analyst $81 $91 N/A N/A contract profitability year-to-year largely inClient Financial Management Specialist $110 $121 N/A N/A consulting & SI but also in outsourcing (i.e., inClient Financial Management Manager $157 N/A N/A N/A the health & public service vertical). AccentureClient Financial Management Senior Manager $231 N/A N/A N/A was unable to fully recover the higher annualClient Financial Management Associate Partner $340 N/A N/A compensation increases and subcontractor costsExecutive Assistant $64 $73 $83 N/ANOTE: Net rates (discount deducted). with better pricing and more efficient resourceSOURCE: TBR AND GENERAL SERVICES ADMINISTRATION. mix. TBR expects contract profitability will The hourly billing rates above are based on Accenture’s General Purpose Commercial IT stabilize and improve in 2H11, as all salary Equipment, Software and Services government contract with the U.S. General Services increases and bonuses were absorbed in 1H10, Administration, launched in 2010. while the pricing environment is improving.20 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Alliance & Acquisition Strategies TBRAccenture will remain steadfast in supporting organic growthvia small-scale strategic acquisitions through FY11 Acquisition Assessment Recent Acquisitions Accenture will be looking to make more small-scale CAS Computer Anwendungs- und Systemberatung AG acquisitions given its ability to fund such transactions • In January, Accenture completed the acquisition of as well as its history and expertise in integrating Germany-based CAS Computer Anwendungs- und companies. Systemberatung AG (CAS). Accenture gained 234 Accenture Acquisition Strategy employees in Germany, the U.K., the U.S. and Australia. • Accenture’s main goal is to grow its business organically; however, the company supplements • Accenture will strengthen its existing software organic growth with acquisitions when it finds the capabilities by adding CAS’ customer relationship right transaction in terms of price and capabilities management (CRM) and mobility software focused on that will be added. retail execution and trade promotions for the consumer products industry. • Accenture is successful at finding and integrating small-scale, tuck-in acquisitions that are not • By increasing the functionality of the software post- disruptive to overall business performance. acquisition in areas such as digital merchandising, distributors’ management and analytics, Accenture • The acquired companies help Accenture fill in gaps in will be able to expand its client base and geographic its offerings and capabilities, augment its assets and reach to LATAM, China and India. drive overall competitive differentiation. • The bundling of consulting & SI services with the software will help Accenture gain broader revenue opportunities and provide higher-value to the client.21 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Alliance & Acquisition Strategies TBRAlliances are a strong contributor to Accenture’s competitiveness anddiverse set of service offerings Alliance Assessment Recent Alliances • TBR expects Accenture will expand its partnership NetApp base of technology developers to broaden its • Accenture and NetApp are expanding their existing offerings with high-growth potential and vertical- relationship for the joint development, marketing and specific solutions. delivery of solutions focused on datacenter • Alliances will continue to be vital, allowing Accenture optimization and virtualization, cloud computing and to provide services and solutions in high-growth application optimization. This will help Accenture areas. TBR believes Accenture will continue this trend solidify its strategy of growing in high-growth areas, as a means to gain global traction for its services. such as cloud computing. Accenture Alliance Strategy • The agreement is a win-win situation for both parties • Accenture’s internal organization, the Accenture as Accenture will provide consulting & SI resources to Alliances Group with 300 dedicated alliance NetApp to strengthen its implementation capabilities. professionals, is responsible for forming alliances and Plexis partnerships to provide the company with new • Accenture and Plexis announced a joint solution to channels, incremental revenue streams and access to optimize the efficiency, cost and reliability of emerging technologies. Medicaid Management Information Systems. The • Alliances complement and extend Accenture’s Accenture Public Health Platform combines solutions and capabilities. Accenture’s SI, project management and software • Alliances and partners are centered on the company’s development capabilities with Plexis’ software. client service business (consulting, SI, outsourcing, • The alliance is a good example of how Accenture etc.). The company has an alliance network of more augments is offerings with partner software. than 150 partners. Accenture will be able to gain share in the growing healthcare market.22 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Geographic Analysis TBRAccenture will continue its geographic expansion in the major andemerging markets across the majority of its verticalsGeographic Revenue Strategies ACCENTURES REVENUE AND YtY GROWTH Accenture reported record-high revenue from TBR BY GEOGRAPHY United its Americas geography in 1Q11 driven by 40.0% States/ strong growth within the U.S., Canada and Revenue Growth Year-to-Year $6.0 30.0% Brazil. This shows Accenture can not only grow Net Revenue in $ Billions $5.0 20.0% Americas $4.0 10.0% in major markets that are strong in economic $3.0 0.0% $2.7 billion recovery but can also capture fast-growth $2.0 -10.0% opportunities in emerging markets. $1.0 -20.0% $0.0 -30.0% Performance in EMEA was subdued due to 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. EMEA uneven economic recovery among the Asia Pacific Axis Title EMEA countries in Europe; however, growing local Americas EMEA YtY Growth Americas YtY Growth APAC YtY Growth $2.6 billion economies are supporting business in the SOURCE: TBR AND ACCENTURE region.TBR ACCENTURES SEQUENTIAL GROWTH BY GEOGRAPHY Despite being the smallest revenue 20% APAC contributor, APAC outpaced Accenture’s otherNet Revenue Grwoth Sequentially 15% 10% $787 geographies in year-to-year growth terms in 5% million 1Q11. Accenture continues to invest in the 0% expansion of its footprint in the geography. -5% -10% -15% Accenture continues to aggressively pursue -20% Emerging & opportunities in six key emerging markets 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Developed (BRIC, South Korea, Mexico) and other high- Est. Americas Sequential Growth EMEA Sequential Growth Markets growth geographies to diversify its revenue APAC Sequential Growth base and increase its global presence.SOURCE: TBR AND ACCENTURE23 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Resource Management Strategy: Headcount TBRAccenture will continue aggressively hiring to encourage geographicexpansion into emerging marketsHeadcount Strategies & Investments • Hiring is helping Accenture address market growth and Total headcount in 1Q11: 215,388 improving demand. Accenture will continue hiring in ~22% of people FY11, at similar levels as in FY10 – on track to reach ~34% of people hiring goal of more than 64,000 people across the GDN are in North are in EMEA America and onshore. • Accenture is positioning India as a key lower-cost service delivery location. Accenture has 60,000 people in India, or ~50% of the GDN headcount, which stood at~4% of people ~40% of people 122,100 in 1Q11. are in South are in APAC o In 1Q11, Accenture opened a new delivery center for America technology in Kolkata, India. The center will provide application development and management and infrastructure support. ACCENTURES HEADCOUNT • Accenture continues to pursue hiring initiatives in the TBR Total headcount: 215388 (+18.7% YTY) Philippines, its second-largest offshore location. The 200,000 company is increasing its local workforce to 25,000 by 101,400 August to improve its BPO-heavy service delivery 150,000 Nearshore & Offshore capabilities in the region. TBR estimates the Philippines Total Headcount 79,200 Headcount had ~21,000 people in 1Q11. 100,000 Other GDN locations and onshore • Accenture is investing in onshore recruiting efforts to 50,000 102,236 113,988 enhance its cadre of client-facing management consulting, technology consulting and technology 0 architect expertise. 1Q10 1Q11 Calendar Quarter24 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Resource Management Strategy: Efficiency & Org. Changes TBRAccenture will drive growth with new leadership in key functional areasand geographies TBR Accentures Efficiency Metrics (In $) Organizational Changes 1Q10 1Q11 Accenture is strategically repositioning its Revenue per Employee $ 117,189 $ 112,550 ↓ organizational leadership team to propel growth. Operating Income per Employee $ 14,327 $ 15,188 ↑ • Accenture appointed Oliver Benzecry as geographic Utilization 88.0% 86.0% ↓ unit managing director for the U.K. and Ireland as Turnover 15.0% 14.0% ↓ well as country managing director for the U.K. • Kay Kapoor was selected to lead Accenture’s U.S. Federal Government practice. Efficiency Performance • Avinash Vashistha was appointed country managing • Accenture continues to alleviate utilization through increased hiring efforts. The utilization level of nearly director for the company’s India operations. 88% in FY10 was not sustainable in the long run, so Vashistha will serve as co-chairman of India alongside the actions taken are in the right direction. current co-chairman Harsh Manglik. • Attrition decreased on a year-to-year basis as • Sander van’t Noordende was named group chief escalated investment in employee retention executive of Accenture’s Management Consulting initiatives, including salary and bonus hikes, is platform. van’t Noordende’s previous role as group alleviating turnover. chief executive of Accenture’s Resources platform will • Revenue per employee fell on a year-to-year be filled by Jean-Marc Ollagnier. van’t Noordende will comparison as organizational hiring efforts outpaced succeed Mark Foster, who will retire. the rate of revenue growth during the period. • Shawn Collinson was appointed senior managing • Operating income per employee jumped 6.0% year- director of Growth & Strategy for Accenture’s global to-year in 1Q11, positively affected by Accenture’s operations. Collinson succeeds Karl-Heinz Floether, increased reliance on offshore (GDN) resources and tools for service delivery. who will retire.25 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Income Statement TBRACCENTUREConsolidated Statement of Income(in $ Thous ands Except Share Data) AS A PERCENTAGE OF REVENUE YEAR-TO-YEAR CHANGECalendar Period Feb. 10 May 10 Aug. 10 Nov. 10 Feb. 11 May 11 Feb. 10 May 10 Aug. 10 Nov. 10 Feb. 11 May 11 Feb. 10 May 10 Aug. 10 Nov. 10 Feb. 11 May 11CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est.FISCAL QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est.Revenues $ 5,537,823 $ 5,975,495 $ 5,833,073 $ 6,478,193 $ 6,496,293 $ 6,757,615 107.0% 107.3% 107.6% 107.2% 107.3% 107.3% -2.1% 7.9% 6.0% 12.7% 17.3% 13.1%Reimbursements 361,385 404,478 412,492 432,543 442,672 457,615 7.0% 7.3% 7.6% 7.2% 7.3% 7.3% -7.6% 3.1% 14.7% 18.5% 22.5% 13.1%Net Sales (Revenues before Reimbursements) $ 5,176,438 $ 5,571,017 $ 5,420,581 $ 6,045,650 $ 6,053,621 $ 6,300,000 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% -1.7% 8.3% 5.3% 12.3% 16.9% 13.1%Cost of Services 3,486,107 3,639,367 3,575,769 4,101,170 4,136,397 4,284,000 67.3% 65.3% 66.0% 67.8% 68.3% 68.0% -4.3% 4.7% 2.6% 14.0% 18.7% 17.7%Gross Profit 1,690,331 1,931,650 1,844,812 1,944,480 1,917,224 2,016,000 32.7% 34.7% 34.0% 32.2% 31.7% 32.0% 4.2% 15.6% 11.1% 9.0% 13.4% 4.4% Sales and Marketing 623,386 714,487 698,325 731,471 709,779 730,800 12.0% 12.8% 12.9% 12.1% 11.7% 11.6% 20.1% 36.1% 26.5% 17.6% 13.9% 2.3% General and Administrative 413,335 410,057 432,793 385,726 435,499 441,000 8.0% 7.4% 8.0% 6.4% 7.2% 7.0% -5.8% -0.1% 0.0% -6.4% 5.4% 7.5% Selling, General and Administrative Expenses 1,036,721 1,124,544 1,131,118 1,117,197 1,145,278 1,171,800 20.0% 20.2% 20.9% 18.5% 18.9% 18.6% 8.2% 20.2% 14.9% 8.0% 10.5% 4.2% Reorganization cost (benefit) 2,637 3,276 60 348 369 100 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 120.3% 3.1% -98.3% -90.2% -86.0% -96.9%Operating Expenses 1,039,358 1,127,820 1,131,178 1,117,545 1,145,647 1,171,900 20.1% 20.2% 20.9% 18.5% 18.9% 18.6% 10.0% 20.2% -8.8% 7.7% 10.2% 3.9%Operating Income 650,973 803,830 713,634 826,935 771,577 844,100 12.6% 14.4% 13.2% 13.7% 12.7% 13.4% -3.9% 9.8% 70.1% 10.8% 18.5% 5.0%Interest Income and Other, Net (11,583) (550) 2,960 17,693 2,570 1,967 -0.2% 0.0% 0.1% 0.3% 0.0% 0.0% -153.9% -103.5% 2.2% 103.4% 122.2% 457.6%Income before Taxes 639,390 803,280 716,594 844,628 774,147 846,067 12.4% 14.4% 13.2% 14.0% 12.8% 13.4% -8.5% 7.4% 69.6% 11.9% 21.1% 5.3%Provisions for Taxes 177,511 239,761 206,331 239,072 208,397 238,598 3.4% 4.3% 3.8% 4.0% 3.4% 3.8% -9.7% 13.5% 77.1% 3.8% 17.4% -0.5%Net Income before Minority Interest 461,879 563,519 510,263 605,556 565,750 607,469 8.9% 10.1% 9.4% 10.0% 9.3% 9.6% -8.1% 5.0% 66.8% 15.4% 22.5% 7.8%Minority Interest (62,119) (72,922) (64,781) (70,842) (62,733) (74,493) -1.2% -1.3% -1.2% -1.2% -1.0% -1.2% 31.7% 21.2% -26.3% 11.4% -1.0% -2.2%Net Income $ 399,760 $ 490,597 $ 445,482 $ 534,714 $ 503,017 $ 532,976 7.7% 8.8% 8.2% 8.8% 8.3% 8.5% -2.8% 10.5% 74.9% 20.2% 25.8% 8.6%Net Earnings per Share of Common Stock $ 0.60 $ 0.73 $ 0.66 $ 0.81 $ 0.75 n/aCommon Shares Outstanding 769,188,236 766,597,090 758,133,742 742,961,409 742,852,436 n/aSOURCE: ACCENTURE 26 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Balance Sheet TBR ACCENTURE Consolidated Balance Sheets (i n $ Thous a nds ) TBR CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 FISCAL QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 ASSETS Current Assets Cash and Equivalents 4,114,751 4,312,111 4,838,292 4,160,452 4,677,544 Short-Term Investments 7,323 8,094 2,987 3,164 5,192 Accounts Receivable 2,470,983 2,350,493 2,534,598 2,846,561 3,072,103 Unbilled Services 1,118,919 1,165,857 1,127,827 1,354,854 1,373,376 Other (Deferred Income Taxes, etc.) 1,062,476 1,006,835 1,059,921 1,104,679 1,151,062 Total Current Assets 8,774,452 8,843,390 9,563,625 9,469,710 10,279,277 Property, Plant, Equip. (Net of Dep.) 646,727 625,534 659,569 673,697 694,788 Other Non-Current Assets 2,468,909 2,448,734 2,612,059 2,725,467 2,919,608 Total Assets $ 11,890,088 $ 11,917,658 $ 12,835,253 $ 12,868,874 $ 13,893,673 LIABILITIES AND EQUITY Current Liabilities Short-Term Borrowings $ 206 $ 573 $ 143 $ 332 $ 422 Accounts Payable 683,632 683,094 885,328 824,354 846,365 Employee Compensation and Benefits 2,137,896 2,409,544 2,683,492 2,691,323 2,495,790 Deferred Revenues 1,796,394 1,688,069 1,772,833 1,769,439 2,114,235 Other Current Liabilities 1,191,091 1,047,774 1,225,808 1,161,403 1,160,284 Total Current Liabilities $ 5,809,219 $ 5,829,054 $ 6,567,604 $ 6,446,851 $ 6,617,096 LT Debt, Net of Current 199 198 1,445 - 4,129 Other Non-current Liabilities 2,639,767 2,627,006 2,991,481 3,110,913 3,224,677 Total Liabilities $ 8,449,185 $ 8,456,258 $ 9,560,530 $ 9,557,764 $ 9,845,902 Total Stockholders Equity $ 3,440,903 $ 3,461,400 $ 3,274,723 $ 3,311,110 $ 4,047,771 Total Liabilities & Equity $ 11,890,088 $ 11,917,658 $ 12,835,253 $ 12,868,874 $ 13,893,673 FINANCIAL RATIOS Days Sales Outstanding 42.96 37.97 42.08 42.38 45.67 Fixed Asset Turnover 31.09 35.03 33.74 36.28 35.39 Days Cash Outstanding 71.67 69.79 80.38 61.98 69.62 Total Asset Turnover 1.72 1.87 1.75 1.88 1.81 Debt/Asset Ratio 0.71 0.71 0.74 0.74 0.71 Current Ratio 1.51 1.52 1.46 1.47 1.55 Return on Assets 13.1% 13.2% 14.6% 15.2% 15.6% Return on Equity 49.9% 48.0% 52.8% 55.7% 56.3% SOURCE: ACCENTURE27 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Financial Models TBR ACCENTURES SERVICE LINE REVENUE AND ESTIMATED PROFITABILITY TBR CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. FISCAL QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. NET REVENUE (IN $ MILLIONS) Consulting & Systems Integration $ 2,932 $ 3,225 $ 3,094 $ 3,568 $ 3,509 $ 3,711 Outsourcing $ 2,244 $ 2,346 $ 2,326 $ 2,478 $ 2,544 $ 2,589 Total Net Revenue $ 5,176 $ 5,571 $ 5,421 $ 6,046 $ 6,054 $ 6,300 AS A PERCENTAGE OF REVENUE Consulting & Systems Integration 56.6% 57.9% 57.1% 59.0% 58.0% 58.9% Outsourcing 43.4% 42.1% 42.9% 41.0% 42.0% 41.1% YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS) Consulting & Systems Integration -3.2% 9.1% 6.2% 14.3% 19.7% 15.1% Outsourcing 0.4% 7.1% 4.2% 9.5% 13.4% 10.3% Total Net Revenue -1.7% 8.3% 5.3% 12.3% 16.9% 13.1% SEQUENTIAL CHANGE Consulting & Systems Integration -6.0% 10.0% -4.0% 15.3% -1.6% 4.0% Outsourcing -0.8% 4.6% -0.9% 6.5% 2.7% 4.5% Total Net Revenue -3.8% 7.6% -2.7% 11.5% 0.1% 4.2% OPERATING INCOME (IN $ MILLIONS) Consulting & Systems Integration $ 440 $ 532 $ 464 $ 539 $ 491 $ 549 Outsourcing $ 211 $ 272 $ 249 $ 288 $ 280 $ 295 Total Operating Income $ 651 $ 804 $ 714 $ 827 $ 772 $ 844 ESTIMATED OPERATING MARGIN Consulting & Systems Integration 15.0% 16.5% 15.0% 15.1% 14.0% 14.8% Outsourcing 9.4% 11.6% 10.7% 11.6% 11.0% 11.4% Total Operating Margin 12.6% 14.4% 13.2% 13.7% 12.7% 13.4% SOURCE: TBR ESTIMATES AND ACCENTURE28 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Financial Models TBR ACCENTURES OPERATING UNITS REVENUE AND INCOME TBR CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. FISCAL QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. NET REVENUE (IN $ THOUSANDS) Communications & High-Tech $ 1,110,147 $ 1,178,355 $ 1,164,475 $ 1,284,476 $ 1,274,449 $ 1,323,000 Financial Services $ 1,076,879 $ 1,149,863 $ 1,115,259 $ 1,301,118 $ 1,265,620 $ 1,324,890 Health & Public Service $ 851,563 $ 926,618 $ 856,109 $ 931,600 $ 964,612 $ 1,020,600 Products $ 1,205,575 $ 1,307,903 $ 1,267,809 $ 1,396,041 $ 1,373,646 $ 1,449,000 Resources $ 929,309 $ 1,004,056 $ 1,013,513 $ 1,128,317 $ 1,171,016 $ 1,178,100 Other $ 2,965 $ 4,222 $ 3,416 $ 4,098 $ 4,278 $ 4,410 Total $ 5,176,438 $ 5,571,017 $ 5,420,581 $ 6,045,650 $ 6,053,621 $ 6,300,000 AS A PERCENTAGE OF REVENUE Communications & High-Tech 21.4% 21.2% 21.5% 21.2% 21.1% 21.0% Financial Services 20.8% 20.6% 20.6% 21.5% 20.9% 21.0% Health & Public Service 16.5% 16.6% 15.8% 15.4% 15.9% 16.2% Products 23.3% 23.5% 23.4% 23.1% 22.7% 23.0% Resources 18.0% 18.0% 18.7% 18.7% 19.3% 18.7% Other 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% YEAR-TO-YEAR CHANGE Communications & High-Tech -7.0% 2.0% 4.2% 10.8% 14.8% 12.3% Financial Services 3.5% 12.0% 9.6% 17.9% 17.5% 15.2% Health & Public Service -2.8% 2.8% -9.0% -1.6% 13.3% 10.1% Products 0.8% 13.7% 13.0% 15.9% 13.9% 10.8% Resources -2.5% 11.0% 7.5% 17.0% 26.0% 17.3% Other -57.8% -25.0% -44.0% -7.8% 44.3% 4.5% SEQUENTIAL CHANGE Communications & High-Tech -4.2% 6.1% -1.2% 10.3% -0.8% 3.8% Financial Services -2.5% 6.8% -3.0% 16.7% -2.7% 4.7% Health & Public Service -10.0% 8.8% -7.6% 8.8% 3.5% 5.8% Products 0.1% 8.5% -3.1% 10.1% -1.6% 5.5% Resources -3.6% 8.0% 0.9% 11.3% 3.8% 0.6% Other -33.3% 42.4% -19.1% 20.0% 4.4% 3.1% OPERATING MARGIN Communications & High-Tech 12.8% 14.3% 13.8% 15.0% 11.8% 12.2% Financial Services 17.2% 17.5% 17.2% 18.8% 16.1% 17.0% Health & Public Service 4.3% 8.0% 4.7% 6.2% 9.3% 10.2% Products 11.7% 14.1% 11.9% 11.3% 9.2% 11.4% Resources 15.7% 17.5% 16.8% 15.4% 17.2% 16.0% OPERATING INCOME Communications & High-Tech $ 141,633 $ 168,166 $ 160,598 $ 193,241 $ 150,445 $ 161,406 Financial Services $ 185,015 $ 201,235 $ 191,382 $ 244,581 $ 204,214 $ 225,231 Health & Public Service $ 36,799 $ 74,530 $ 40,219 $ 57,783 $ 89,569 $ 104,101 Products $ 141,209 $ 183,780 $ 151,129 $ 157,261 $ 125,785 $ 164,866 Resources $ 146,317 $ 176,119 $ 170,306 $ 174,069 $ 201,564 $ 188,496 Total $ 650,973 $ 803,830 $ 713,634 $ 826,935 $ 771,577 $ 844,100 SOURCE: TBR AND ACCENTURE29 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Financial Models TBR ACCENTURES GEOGRAPHIC REVENUE TBR CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. FISCAL QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. NET REVENUE (IN $ MILLIONS) Americas $ 2,203 $ 2,513 $ 2,520 $ 2,633 $ 2,675 $ 2,904 EMEA $ 2,386 $ 2,433 $ 2,213 $ 2,638 $ 2,592 $ 2,646 Asia Pacific $ 587 $ 625 $ 688 $ 775 $ 787 $ 750 Total $ 5,176 $ 5,571 $ 5,421 $ 6,046 $ 6,054 $ 6,300 AS A PERCENTAGE OF REVENUE Americas 42.6% 45.1% 46.5% 43.6% 44.2% 46.1% EMEA 46.1% 43.7% 40.8% 43.6% 42.8% 42.0% Asia Pacific 11.3% 11.2% 12.7% 12.8% 13.0% 11.9% YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS) Americas -4.1% 11.0% 11.3% 18.1% 21.4% 15.6% EMEA -1.2% 3.9% -2.7% 3.4% 8.6% 8.8% Asia Pacific 6.0% 15.9% 13.1% 28.4% 34.1% 20.0% SEQUENTIAL CHANGE Americas -1.2% 14.1% 0.3% 4.5% 1.6% 8.6% EMEA -6.4% 1.9% -9.0% 19.2% -1.7% 2.1% Asia Pacific -2.7% 6.5% 10.1% 12.7% 1.5% -4.7%30 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Financial Models TBR TBR ACCENTURE OPERATING EXPENSE MODEL (IN $ THOUSANDS) CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. Net Revenue $ 5,176,438 $ 5,571,017 $ 5,420,581 $ 6,045,650 $ 6,053,621 $ 6,300,000 Operating Expenses $ 1,039,358 $ 1,127,820 $ 1,131,178 $ 1,117,545 $ 1,145,647 $ 1,171,900 Sales & Marketing Expense $ 623,386 $ 714,487 $ 698,325 $ 731,471 $ 709,779 $ 730,800 General and Administrative Expense $ 413,335 $ 410,057 $ 432,793 $ 385,726 $ 435,499 $ 441,000 R&D Expense $ 81,356 $ 87,557 $ 85,193 $ 95,017 $ 95,142 $ 61,729 Restructuring Costs $ 2,637 $ 3,276 $ 60 $ 348 $ 369 $ 100 SALES AND MARKETING EXPENSE BREAKOUT (IN $ THOUSANDS) Sales Expense $ 591,040 $ 680,373 $ 665,555 $ 696,013 $ 674,290 $ 694,260 Marketing Spending $ 32,346 $ 34,114 $ 32,770 $ 35,458 $ 35,489 $ 36,540 Advertising $ 17,092 $ 18,395 $ 17,898 $ 20,500 $ 20,000 $ 21,000 Total Sales and Marketing Expense $ 623,386 $ 714,487 $ 698,325 $ 731,471 $ 709,779 $ 730,800 SPENDING AS A PERCENTAGE OF REVENUE Total Operating Expenses 20.1% 20.2% 20.9% 18.5% 18.9% 18.6% Sales and Marketing Expense 12.0% 12.8% 12.9% 12.1% 11.7% 11.6% Sales Expense 11.4% 12.2% 12.3% 11.5% 11.1% 11.0% Marketing Spending 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% Advertising 0.33% 0.33% 0.33% 0.34% 0.33% 0.33% General and Administrative 8.0% 7.4% 8.0% 6.4% 7.2% 7.0% Restructuring Costs 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% CORPORATEWIDE HEADCOUNT Sales 4,500 4,500 4,460 4,460 4,460 4,460 General and Administrative 13,398 13,732 14,154 14,342 14,484 16,637 Total Employees 181,436 190,442 203,860 210,951 215,388 220,500 SOURCE: TBR ESTIMATES AND ACCENTURE FINANCIALS31 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Financial Models TBR ACCENTURES HEADCOUNT BREAKDOWN TBR CALENDAR QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 FISCAL QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 Consulting 46,149 48,415 50,181 51,955 53,636 Solutions 62,085 65,911 75,791 79,028 80,814 Total Consulting & Solutions 108,234 114,326 125,972 130,983 134,450 Services 59,804 62,384 63,734 65,626 66,454 Total Billable 168,038 176,710 189,706 196,609 200,904 Enterprise 13,398 13,732 14,154 14,342 14,484 Total Headcount 181,436 190,442 203,860 210,951 215,388 SOURCE: ACCENTURE AND TBR ACCENTURES HEADCOUNT TBR Total headcount: 215388 (+18.7% YTY) 200,000 14,484 13,398 53,636 Enterprise Total Headcount 150,000 46,149 Consulting 66,454 Services 100,000 59,804 Solutions 50,000 62,085 80,814 0 1Q10 1Q11 Calendar Quarter32 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Graphs TBRFinancial Strategy Graphs OPERATING MARGIN CURRENT RATIO TBR TBR 20.0% 2.00 14.4% 13.7% 16.0% 12.6% 13.2% 12.7% 1.50 1.51 1.52 1.55 12.0% 1.46 1.47 1.00 8.0% 4.0% 0.50 0.0% 0.00 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR DEBT/ASSET RATIO TBR 1.00 0.71 0.71 0.74 0.74 0.71 0.80 0.60 0.40 0.20 0.00 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR33 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Graphs TBRFinancial Strategy Graphs RETURN ON ASSETS TBR 20.0% 14.6% 15.2% 15.6% 16.0% 13.1% 13.2% 12.0% 8.0% 4.0% 0.0% 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR TBR RETURN ON EQUITY 100.0% 80.0% 49.9% 48.0% 52.8% 55.7% 56.3% 60.0% 40.0% 20.0% 0.0% 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR34 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Graphs TBR Go-to-Market Graphs REVENUE TBR REVENUE GROWTHTBR $7,000 30.0% $5,571 $5,421 $6,046 $6,054 20.0% 16.9% $6,000 $5,176 8.3% 5.3% 12.3% $5,000 10.0%In $ Mi l lions $4,000 0.0% $3,000 -10.0% -1.7% $2,000 -20.0% $1,000 -30.0% 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGESOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR BACKLOG/REVENUE RATIO TBR DAYS SALES OUTSTANDING 3.00 75.00 2.49 2.43 2.49 2.49 2.44 2.50 60.00 Number of Days 42.96 42.08 42.38 45.67 2.00 37.97 45.00 1.50 30.00 1.00 0.50 15.00 0.00 0.00 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR 35 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Graphs TBRResource Management GraphsTBR GROSS MARGIN TBR OPERATING EXPENSES AS A PERCENTAGE OF SALES 40.0% 30.0% 32.7% 34.7% 34.0% 32.2% 31.7% 25.0% 30.0% 20.1% 20.2% 20.9% 18.5% 18.9% 20.0% 20.0% 15.0% 10.0% 10.0% 5.0% 0.0% 0.0% 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGESOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR REVENUE PER EMPLOYEE $200.0 In $ Thousands $150.0 $117.2 $117.4 $114.7 $112.6 $112.9 $100.0 $50.0 $0.0 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR36 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Graphs TBRResource Management Graphs TBR UTILIZATION RATE TBR TURNOVER RATE 20% 100% 15% 17% 17% 15% 14% 88% 88% 86% 87% 86% 16% 80% 60% 12% 40% 8% 20% 4% 0% 0% 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR OPERATING INCOME PER EMPLOYEE $30.0 $25.0 $14.3 $14.5 $15.5 $15.2 $15.2 In $ Thousands $20.0 $15.0 $10.0 $5.0 $0.0 1Q10 2Q10 3Q10 4Q10 1Q11 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR37 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Recent Acquisitions ESTIMATED ACQUISITION COMPANY ACQUISITION SYNERGIES NO. OF DATE EMPLOYEES CAS Computer CRM and mobility software for the consumer products Anwendungs-und January 2011 industry that augments Accenture’s industry-specific 230 Systemberatung AG software offerings November Strengthens Accenture’s embedded software services Mogenesis N/A 2010 capabilities Knowledge Rules, November Enhances Accenture’s Pegasystems capabilities in key U.S. and European markets N/A Inc. 2010 Ariba’s Sourcing Purchased for $51 million, strengthens Accenture’s November Services & BPO existing sourcing and procurement consulting and 160 2010 outsourcing capabilities Assets Management consulting; complements Accenture’s Acceria July 2010 30 automotive and industrial manufacturing capabilities Enhance vertical analytics (CadenceQuest provides CadenceQuest, Inc. June 2010 35 customer data and analytics for the retail sector) February Risk consulting and software capabilities; allows RiskControl (Brazil) N/A 2010 Accenture to expand in the local Brazilian market Nokia’s Symbian Consulting services for mobile operating systems; Professional Svcs. October 2009 165 embedded software services for mobile devices Operations38 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Portfolio of Services MANAGEMENT CONSULTING: TECHNOLOGY: OUTSOURCING: Service Lines Systems Integration Service Lines Service Lines • Finance & Performance • Enterprise Solutions and Enterprise • Application Outsourcing Management Resource Planning • Infrastructure Outsourcing • Process & Innovation Performance • Industry and Functional Solutions • Business Process • Talent & Organization • Information Management Services Outsourcing (BPO) Performance • Cloud Computing • Bundled Outsourcing • Strategy • Custom Solutions • Customer Relationship • Software as a Service (SaaS) Management • Mobility Solutions • Supply Chain Management • Microsoft Solutions • Risk Management Technology Consulting Service Lines • Application Portfolio Optimization and Renewal • Enterprise Architecture • IT Strategy and Transformation • Infrastructure Consulting • IT Security Consulting • Digital Solutions • Research & Development BPO BUSINESSES: Accenture’s industry-specific BPO businesses: Accenture’s function-specific BPO businesses that serve clients • Accenture Health Administration Services across industries are: • Accenture Insurance Services • HR BPO • Customer Contact BPO • Navitaire, Inc. • Learning BPO • Supply Chain BPO • Accenture Utilities Services • Finance and Accounting BPO • Engineering Services Accenture Custom Services • Procurement BPO39 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Recent Services Announcements SERVICE/SOLUTION DATE DESCRIPTION 1Q11 Expanded line of postal services with a digital mail offering; Digital mail is a March digital version of printed mail delivered to an online mailbox. Accenture Digital Mail 2011 will be partnering with postal agencies to offer digital post services to citizens. Expanding partnership agreement with NetApp to develop offerings Datacenter optimization and February related to datacenter virtualization, application optimization and cloud- virtualization services 2011 based service delivery Accenture will combine its SI capabilities with Plexis’ software to offer Accenture Public Health January APHP, a comprehensive, integrated solution for managing Medicaid Platform (APHP) 2011 processes. 4Q10 Accenture and Universal Music Group (UMG) formed an alliance in 4Q10 Accenture Digital Supply December following a successful two-year collaboration to develop and deploy Chain Platform 2010 Accenture’s Digital Supply Chain Platform. NHN Corporation, a leading South Korean Internet service provider, will December Mobile smartphone solutions partner with Accenture to introduce a suite of mobile services for NHN’s 2010 Naver mobile search engine. In an expansion of their existing partnership, BMC Software and Accenture Business service November will partner to develop and deliver an integrated, end-to-end IT management solutions 2010 automation and management platform designed for cloud environments.40 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Recent Services Announcements SERVICE/SOLUTION DATE DESCRIPTION3Q10 Accenture and Cisco are expanding their relationship to offer core BPODatacenter virtualization and September services designed around collaboration and virtualization service deliverycollaboration 2010 to firms in South Africa.2Q10 Partnering with XTEL, a European provider of sales automation solutions,Sales and Marketing May 2010 Accenture will offer systems integration services for an end-to-end solutiontransformation solutions for transforming organizational sales and marketing processes. Along with CedarCrestone, a provider of implementation services,Public center pension April 2010 Accenture will offer its expertise to support Oracle’s development of itssolution Public Sector Pension Solution.1Q10SAP application management February Along with Verizon Business, Accenture will offer an end-to-end service forservice 2010 managing SAP applications and its corresponding network structures.Child welfare and protective January Working with Oracle, Accenture will offer a comprehensive, integrated caseservices solution 2010 management solution for child welfare agencies.41 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE1Q11 Contract extension to provide insurance process BPO services, including portions of RSA’s sales and service,RSA April 2011 claims, finance and commercial administration 4 N/AUnited Kingdom functions that support RSA’s direct, affinity and broker customersMarathon Accenture is deploying its Life Safety Solution at client’sPetroleum refinery in Robinson, Ill. The gas and chemical hazard April 2011 N/A N/ACompany solution utilizes wireless technology to connect andUnited States alert workers of potentially hazardous environments. Accenture will provide IEC with Consulting & SI servicesIsrael Electric March on six projects, including roadmaps, applicationCorporation 2 N/A 2011 systems, a smart electrical grid, business intelligence,Israel enterprise architecture and business continuity.City of London Accenture will develop and implement a shared service MarchCorporation center for the city’s procurement and sourcing 5 N/A 2011United Kingdom functions. Accenture will develop, build and maintain anConsip Spa February eProcurement system to support the Italian 4 $6 millionItaly 2011 government‘s overall procurement operations.42 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUELan Cargo February Accenture will implement a cargo reservation solution N/A N/AUnited States 2011 to streamline Lan Cargo’s order fulfillment processes. Accenture will support Carlsberg’s companywide ITCarlsberg January infrastructure transformation through a variety of C&SI,Breweries 5 N/A 2011 application development, and SAP and OracleDenmark implementation services.4Q10 Accenture will implement and manage the state’sNagaland State December public service portal, state service delivery gateway andGovernment 42 Months N/A 2010 e-forms to help facilitate the delivery of servicesIndia offered by multiple government departments. Accenture will provide Hilton Worldwide withHilton Worldwide December application development and support services for multiyear N/AUnited States 2010 client’s property management systems and websites. Accenture will provide a suite of Oracle-basedNational Water December solutions, maintenance and support and changeCompany N/A N/A 2010 management services to modernize the client’s wasteSaudi Arabia water service operations in Riyadh and Jeddah.Ace Private Risk Accenture’s claims management application (Accenture DecemberServices Claim Components) was selected to support ACE‘s N/A N/A 2010United States claims management operation in the U.S.KF Shared Accenture will provide BPO services in finance and NovemberServices AB accounting in support of improving KF Shared Services 6 N/A 2010Sweden AB’s cost-effectiveness and delivery capabilities.43 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUEProton Holdings November Accenture will expand and improve the client’s 21 months N/AMalaysia 2010 enterprise resource planning (ERP) system.Centers for ID/IQ contract; Accenture was selected as the prime $3 billion andDisease Control November contractor to provide information management and IT 10 $1 billionand Prevention 2010 infrastructure services. ceilingsUnited StatesAmerican Water November Accenture will assist in the development of a strategy for N/A N/AUnited States 2010 the company’s business transformation program.Allianz Life Allianz Life Insurance Company selected Accenture toInsurance November license and implement the Accenture Life Insurance N/A N/ACompany 2010 Platform to enhance product development and improveUnited States customer services. Accenture will develop and implement a new riskSEC SERVIZI November calculation engine to help the bank consortium’s clients N/A N/AItaly 2010 and members assess the probability of loan defaults.Olympus Memory Accenture will provide ongoing support for strategic NovemberWorks planning, systems integration, development using a N/A N/A 2010Japan public cloud computing environment and BPO services. Contract extension in which Accenture will continue toRSA October Additional provide development, implementation and ongoing N/AUnited Kingdom 2010 3 maintenance services for RSA’s IT applications.44 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Caja de Ahorros Accenture will implement its Alnova Financial October del Mediterráneo Solutions core banking platform to support the bank’s N/A N/A 2010 Spain operations in Spain. Along with ST Electronics, Accenture has been Singapore’s October selected to design and implement Phase 1 of the Energy Market N/A N/A 2010 client’s Intelligent Energy System pilot project Authority (advanced metering infrastructure and smart grid). Takeda Accenture will provide application and infrastructure Pharmaceuticals October outsourcing services, including development, testing Multiyear N/A North America 2010 and management services as well as end-user United States computing and network management. Zurich Financial Zurich Financial Services will apply Accenture’s October Services Group underwriting solution to support its international N/A N/A 2010 Switzerland insurance operations. Accenture won a bid as the prime contractor under U.S. Social 1 year base the Information Technology Support Services Contract Security October period, 6 (ITSSC), which will enable Accenture to apply $2.8 billion Administration 2010 additional 1- innovative applications in streamlining the SSA’s United States year options service delivery capabilities. 3Q10 BGE teamed with Accenture and Oracle to implement Baltimore Gas a smart meter network for its 1.2 million customers. September and Electric (BGE) Accenture will provide SI (design, build and manage), N/A N/A 2010 United States project management support and change management.45 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUESingapore Energy Accenture has been selected by the EMA to design andMarket Authority September implement Singapore’s Intelligent Energy System project. This 2 Multimillion(EMA) 2010 system is intended to enable households to monitor energySingapore consumption and reduce overall usage. Accenture signed an agreement to develop, implement andDnB NOR September manage the financial services group’s life and pension 5 N/ANorway 2010 insurance applications. Accenture extended its contract with the subsidiary of NationalNational Australia September Australia Bank for application development and managementGroup 3 N/A 2010 services to a range of the bank’s enterprise and customerAustralia applications.U.S. Defense Accenture was awarded a contract by the DLA to integrate theLogistics Agency September group’s energy supply chain into its Enterprise Business System 4 $73 million(DLA) 2010 program, intended to streamline the DLA’s logistics andUnited States distribution platform.Stanford Hospital Accenture was selected to work with Stanford to improve September& Clinics clinical processes and develop new analytic tools for patient- 7 N/A 2010United States centric solutions.EducationalTesting Service August Accenture extended its contract with the ETS to continue 7 $160 million(ETS) 2010 offering BPO services in end-to-end supply chain management.United States Accenture signed an application outsourcing contract with theNorsk Hydro ASA August client to provide support and maintenance services to two of 3 N/ANorway 2010 Hydro’s SAP systems.46 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUEUniversity of North Selected to assist in the planning phase for development August Multi-Texas System (UNTS) and implementation of an IT and HR/payroll shared service N/A 2010 yearUnited States for UNTS across campuses and officesSingapore Ministry Accenture was awarded a contract to deploy the National Augustof Health Electronic Health Record system for Singapore, which is N/A N/A 2010Singapore designed to improve healthcare quality and lower costs.UniqueIdentification Accenture will implement the biometric identificationAuthority of India July 2010 system, a component of the “Aadhaar” program designed 2 N/A(UIDAI) to offer Indian residents a unique ID number.IndiaSun Life Assurance Provide application development and management Multi-Company of Canada July 2010 services in support of the Sun Life Financial group N/A yearCanada subsidiary’s operations in Canada Accenture was awarded a contract to provide IT systemsTaxation and management and development for the EuropeanCustoms Union Commission’s CUST-DEV2 program, a platform for an July 2010 3 N/ADirectorate General eCustoms system for use by 2013. Accenture will manageBelgium the legacy customs system and specifications for the new platform.Statoil Statoil awarded Accenture a BPO contract to manage July 2010 5 N/ANorway Accounts Payable processes for the energy firm. 47 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE2Q10Asprea Applications outsourcing (development and management)United June 2010 and infrastructure outsourcing (service desk, workplace, 8 N/AKingdom network and telephony, and datacenter service) 1-year base The IRS awarded Accenture a one-year contract to create aIRS order (four June 2010 system for online registration and renewal to improve the N/AUnited States 1-year quality and efficiency of paid tax return preparers. options)Henkel Accenture will provide application management services June 2010 6 N/AUnited States to Henkel’s operations in North America.Hong Kong Accenture will provide its services to design, develop andHousing maintain a new enterprise resource management (ERP) June 2010 8 $30 millionAuthority system to improve the efficiency of the processes forChina financial management in two phases. 1-year baseU.S. Navy Accenture was awarded a contract to provide financial order (four Up to $182 June 2010United States management services to the U.S. Navy. 1-year million options) Accenture will work with the University of Michigan on a comprehensive assessment of IT at a campus level andUniversity of how it is distributed and provided across campus. TheyMichigan May 2010 N/A N/A will be striving to improve interoperability of applicationsUnited States and achieve more efficient products, infrastructure and services.48 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Accenture has helped Media Prima update its legacyMedia Prima broadcast system with state-of-the-art technology, whichBerhad May 2010 N/A N/A has led to better time to market, higher productivity andMalaysia more efficient operations.SICREDI Accenture will provide SICREDI, a credit union in Brazil, May 2010 N/A N/ABrazil with IT support and systems development services. Accenture will license, implement and maintain theAnadolu Sigorta Accenture Claims Components Solution (a claims May 2010 N/A N/ATurkey management application) for the Turkish property and casualty insurer.Ministry of Accenture will update Singapore schools’ web-basedEducation April 2010 administrative system by enhancing the existing business 3 N/ASingapore processes and providing application maintenance. Implement a centralized global claims managementXL Insurance April 2010 system and update core claims-processing to improve N/A N/AUnited States customer service and reduce costs. Accenture has been awarded a contract to updateElectrolux IT Electroluxs current portfolio of enterprise applicationsSolutions AB April 2010 Multiyear N/A and provide application development and managementSweden services. 49 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Accenture will provide technical assistance (application management) to the Korean Bank. The two companies willHanwha Group April 2010 partner to market IT solutions and services to other banks, 8 $80 millionSouth Korea insurers and other financial service companies throughout South Korea.Telefonica Accenture will manage the development and maintenance ofGroup April 2010 applications related to consumer systems, billing and N/A N/AArgentina collections across 17 markets in Latin America and Europe. An application outsourcing contract to develop and maintainNordea April 2010 applications that support the bank’s customer websites (30 5 N/ADenmark websites). Accenture National Security Services will provide accounting 1 base plus $40.6 billionU.S. Navy April 2010 and financial management services to the Navy as part of its 4 one-year base; $181.8United States financial improvement program. options billion total50 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Strategic Alliances by Client Service BusinessAPPLICATION INFRASTRUCTURE: BUSINESS OPERATIONS: CUSTOMER RELATIONSHIPAvanade Business Objects MANAGEMENT:BEA/Oracle Citrix Systems Siebel Systems (part of Oracle)EMC/Documentum Comverse KXENMicrosoft Epitome Systems Interwoven Management Controls VignetteDATA WAREHOUSING: ENTERPRISE INTEGRATION: ENTERPRISE MANAGEMENT:Acxiom BEA/Oracle OracleTeradata Microsoft PeopleSoft (part of Oracle)Oracle TIBCO SAPInformatica webMethods Sun MicrosystemsSymantec AT&T Business Services AprimoFINANCE MANAGEMENT AND HUMAN RESOURCE MANAGEMENT: PLATFORM:ENTERPRISE PERFORMANCE PeopleSoft HR (part of Oracle) EMCMANAGEMENT: SAP HR HPCognos/IBM Siebel Employee Relationship Sun MicrosystemsCallidus Software Management (part of Oracle) Cisco Systems Advantage Interactive Corporation UnicaSUPPLY CHAIN MANAGEMENT: OTHER: IBM Hardware and Software TechnologyAriba Reuters Group IntecAspen Technology Mercury/HP Open TextPeopleSoft (part of Oracle) Daon Telcordia TechnologiesSAP Fast Search & Transfer (FAST) Vendavo SAS Xign Dell Genesys 51 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRTBR’s Showcase of Major Accenture AlliancesCOMPANY SCOPE OF PARTNERSHIP Oracle’s Fusion Middleware was integrated into the Accenture Communications Solutions suite. TheOracle partnership targets the telecommunications industry, allowing Oracle to prepackage its solutions for telecom customers while Accenture provides support from a systems integration perspective. • Since 2003, SAP and Accenture have been jointly developing, deploying, supporting and selling software products and services for banks and insurance companies worldwide. Initially, the joint portfolio consisted of the companies’ banking and insurance software products, which cover business functions such as insurance claims management, insurance policy administration, core banking operations and riskSAP management. • SAP and Accenture have assigned approximately 800 people to the combined development effort. The IT experts are located in Germany, Spain and the United States. Revenue is split according to services purchased by the customer. • Since the 2000 announcement of the Microsoft and Accenture (then Andersen Consulting) global alliance and the formation of a joint venture – Avanade – to deliver enterprise solutions on the Microsoft platform, including Windows 2000 Server, TBR believes the global alliance has been capitalizing on the unique assets of Accenture, Avanade and Microsoft. • The alliance combined scalable enterprise software from Microsoft, Avanade’s deep Microsoft-based skillsMicrosoft/ focused on technology infrastructure optimization and application development and integration, and theAvanade industry-specific business and technology expertise of Accenture consultants. • Accenture Customer Relationship Management Solutions for Siebel on Microsoft.NET is a good example of the joint solutions the alliance has been offering the marketplace. The solutions take advantage of the Microsoft platform’s scalability and are efficient for Siebel applications. CRM solutions also benefit from the lower total cost of ownership provided by reduced hardware acquisition fees and overall lower operating costs.52 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRAccenture’s Org. Structure Pierre Nanterme TBR Chief Executive Officer Johan (Jo) Deblaere Pamela J. Craig Chief Operating Officer Chief Financial Officer GROWTH PLATFORMS OPERATING GROUPS GEOGRAPHIES AND GLOBAL DELIVERY CORPORATE FUNCTIONS Basilio Rueda Roxanne Taylor Kevin M. Campbell Martin I. Cole Global Delivery Network Chief Marketing & Communications Group Chief Executive Group Chief Executive Senior Managing Director Officer Technology Communications Adrian Lajtha Jean-Marc Ollagnier David C. Thomlinson Chief Leadership Officer Sander van’t Noordende Group Chief Executive Sr. Managing Director Group Chief Executive Resources Geographic Strategy & Operations Julie Spellman Sweet Management Consulting & General Counsel, Secretary Global Markets Gianfransco Casati & Chief Compliance Officer Harsh Manglik Group Chief Executive . Managing Director Jill B. Smart Products India Chief Human Resources Officer Michael J. Salvino Richard Lumb Robert N. Frerichs Group Chief Executive BPO Group Chief Executive Group Chief Executive Thomas Pike Financial Services North America Chief Risk Officer Stephen J. Rohleder Oliver Benzecry Shawn Collinson Group Chief Executive Managing Director Chief Strategy & Corporate Health & Public Service U.K. & Ireland Development Officer K.C. McClure Investor Relations Managing Director Donald J. Rippert Chief Technology Officer & Managing Director of Technology SOURCE: ACCENTURE AND TBR53 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRPhysical Infrastructure and Worldwide Locations ACCENTURE’S LOCATIONSAMERICASBuenos Aires, Argentina Rio de Janeiro, Brazil Sao Paulo, Brazil Brasilia, BrazilCuritiba, Brazil Calgary, Canada Edmonton, Canada Fredericton, CanadaNiagara Region, Canada Mississauga, Canada Montreal, Canada Ottawa, CanadaToronto, Canada Toronto West, Canada Vancouver, Canada Santiago, ChileBogotá, Colombia Mexico City, Mexico Monterrey, Mexico Caracas, VenezuelaTHE UNITED STATESPhoenix Los Angeles Sacramento, Calif. San DiegoSan Francisco San Jose, Calif. Denver Hartford, Conn.Wilmington, Del. Walnut Creek, Calif. Miami Tallahassee, Fla.Tampa Bay/ Washington D.C. Chicago IndianapolisSt. Petersburg, Fla. Atlanta Milwaukee SeattleKansas City, Kan. Boston Irving, Texas Austin, TexasReston, Va. Houston Minneapolis St. LouisPittsburg Detroit New York City Charlotte, N.C.Florham Park, N.J. Albany, N.Y. Cleveland Columbus, OhioRaleigh, N.C. Cincinnati Murray Hill, N.J. San AntonioPhiladelphia Dallas54 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
  • Appendix – Tables TBRPhysical Infrastructure and Worldwide Locations ACCENTURE’S LOCATIONSEMEAWien, Austria Brussels, Belgium Prague, Czech Republic Copenhagen, DenmarkHelsinki, Finland Paris, France Lyon, France Sophia Antipolis, FranceFrankfurt, Germany Berlin, Germany Dusseldorf, Germany Muenchen, GermanyAthens, Greece Budapest, Hungary Dublin, Ireland Belfast, IrelandHerzelia, Israel Milan, Italy Rome, Italy Turin, ItalyLuxembourg Casablanca, Morocco Amsterdam, The Netherlands Lagos, NigeriaBergen, Norway Lillehammer, Norway Oslo, Norway Stavanger, NorwayWarsaw, Poland Lisbon, Portugal Moreira da Maia, Portugal Bucharest, RomaniaMoscow, Russia Riyadh, Saudi Arabia Bratislava, Slovak Republic Cape Town, South AfricaJohannesburg, South Pretoria, South Africa Barcelona, Spain Bilbao, SpainAfrica Sevilla, Spain Goteborg, Sweden Malmo, SwedenMadrid, Spain Zurich, Switzerland Istanbul, Turkey Abu Dhabi, The United ArabStockholm, Sweden Aberdeen, United Kingdom Edinburgh, United Kingdom EmiratesLondon, United Kingdom Manchester, United Kingdom Newcastle, United KingdomASIA PACIFICBrisbane, Australia Canberra, Australia Melbourne, Australia Perth, AustraliaSydney, Australia Wollongong, Australia Beijing, China Dalian, ChinaGuangzhou, China Hong Kong, China Shanghai, China Bangalore, IndiaChennai, India Gurgaon, India Hyderabad, India Mumbai, IndiaNew Delhi, India Noida, India Pune, India Jakarta, IndonesiaTokyo, Japan Kuala Lumpur, Malaysia Manila, The Philippines Singapore, SingaporeSeoul, South Korea Taipei, Taiwan Bangkok, Thailand55 Accenture 1Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.
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