DBT Bureau
Bengaluru, 21 June
Accenture’s large deal bookings have risen in the third quarter that ended May as the company bagged seven more $100 million deals during this period.
The NYSE-listed firm, which announced its Q3 earnings on Thursday, said it has successfully positioned itself as the leading service provider to bag large cost takeout deals coming to the market place.
The global IT industry has seen several large cost takeout deals since last year as enterprises in the US and Europe are focussed on cost savings owing to an inflationary environment. The lack of digital deals has prompted service providers to focus on winning large cost takeout deals.
“We leaned into what do clients need, and they need these reinventions, they need these big, large-scale transformations. … And so, we have accelerated our leaning into these large transformation deals, which is why you see that we have seven more than last year at this time of clients with bookings of over $100 million,” Julie Sweet, CEO of Accenture said.
She, however, noted that the conversion of revenue from these large deals remained low, a phenomenon that several Indian IT services firms have been highlighting for quite some time now.
Accenture said that though the flow of small digital deals remained constrained, its early lead on generative AI (GenAI) has helped the company to win several small deals in the GenAI space.
“Our leaning into where we are seeing growth in smaller deals because remember that discretionary spending is constrained, overall spending constrained, and particularly in smaller projects. But what did we do, right? We see GenAI as the new growth. We have an incredible ability to pivot our people,” Sweet added.
Accenture, which follows the September-August financial year cycle, reported a strong new booking of over $21 billion, up 22% over last year. The IT and consulting major added another 23 clients with quarterly bookings of over $100 million, bringing the total of such bookings to 92 year-to-date.
In the GenAI space, the company bagged deals worth $2 billion in this new technology domain in the first three-quarters of the ongoing fiscal with a revenue conversion of $500 million year-to-date.
The share price of Accenture closed at $306.16, up 7.2% in NYSE on Thursday.
