Larilyn L.

Magro

June 27,2015

ACCENTURE

Accenture is a multinational management consulting, technology services,

and outsourcing company. Its incorporated headquarters have been
in Dublin, Ireland since September 1, 2009. It is the world's largest consulting firm as
measured by revenues and is a Fortune Global 500 company. As of 2014, the company
reported net revenues of $30.0 billion with approximately 323,000 employees, serving
clients in more than 200 cities in 120 countries. In 2012 Accenture had about 80,000
employees in India, more than in any other country, about 40,000 in the US, and about
35,000 in the Philippines. Accenture's current clients include 89 of the Fortune Global
100 and more than three-quarters of the Fortune Global 500.
Accenture common equity is listed on the New York Stock Exchange, under the
symbol ACN, and was added to the index on July 5, 2011.
Accenture began as the business and technology consulting division of
accounting firm Arthur Andersen. The division's origins are in a 1953 feasibility study
for General Electric. GE asked Arthur Andersen to automate payroll processing and
manufacturing at GE's Appliance Park facility near Louisville, Kentucky. Arthur Andersen
recommended installation of a UNIVAC I computer and printer, which resulted in the first
commercially-owned computer installation in the United States in 1954. Joe Glickauf, an
early pioneer of computer consulting, held a position as head of Arthur Andersen's
administrative services division for 12 years.
Splitting from Arthur Andersen
In 1989, Arthur Andersen and Andersen Consulting became separate units
of Andersen Worldwide Socit Cooperatives (AWSC). Arthur Andersen increased its
use of accounting services as a springboard to sign up clients for Andersen Consulting
more lucrative business.
Throughout the 1990s, there was increasing tension between Andersen
Consulting and Arthur Andersen. Andersen Consulting was upset that it was paying
Arthur Andersen up to 15% of its profits each year (a condition of the 1989 split was that
the more profitable unit whether AA or AC paid the other this sum), while at the
same time Arthur Andersen was competing with Andersen Consulting through its own
newly established business consulting service line called Arthur Andersen Business
Consulting (AABC). This dispute came to a head in 1998 when Andersen Consulting
claimed breach of contract against AWSC and Arthur Andersen. Andersen Consulting

put the 15% transfer payment for that year and future years into escrow and issued a
claim for breach of contract. In August 2000, as a result of the conclusion of arbitration
with the International Chamber of Commerce, Andersen Consulting broke all contractual
ties with AWSC and Arthur Andersen. As part of the arbitration settlement, Andersen
Consulting paid the sum held in escrow (then $1.2 billion) to Arthur Andersen, and was
required to change its name, resulting in the entity being renamed Accenture. [12]
Accounts vary on why the split occurred. Executives on both sides of the split cite
greed and arrogance on the part of the other, and executives on the Andersen
Consulting side maintained breach of contract when Arthur Andersen created AABC,
because AABC competed directly with Andersen Consulting in the marketplace. Many of
the AABC firms were bought out by other consulting companies in 2002,
including Hitachi Consulting and KPMG Consulting, which later changed its name
to BearingPoint.
Andersen Consulting's change of name was fortunate, as it avoided damage to
its reputation later, when Arthur Andersen was effectively dissolved as a result of its role
in the Enron scandal.
Emergence of Accenture
On January 1, 2001 Andersen Consulting adopted its current name, "Accenture".
The word "Accenture" is supposedly derived from "Accent on the future". The name
"Accenture" was submitted by Kim Petersen, a Danish employee from the company's
Oslo, Norway office, as a result of an internal competition. Accenture felt that the name
should represent its will to be a global consulting leader and high performer, and also
intended that the name should not be offensive in any country in which Accenture
operates.[13]
Accenture's banner hanging on the New York Stock Exchange (NYSE) building
for its initial public offering on July 19, 2001.
On July 19, 2001, Accenture offered initial public offering (IPO) at the price of
$14.50 per share in New York Stock Exchange (NYSE);Goldman Sachs and Morgan
Stanley served as its lead underwriters. Accenture stock closed the day at $15.17, with
the day's high at $15.25. On the first day of the IPO, Accenture raised nearly
$1.7 billion.[14]
Services and Operations
A world map showing the countries where Accenture has operations as of 2015
(colored in blue)

Accenture organizes its services and people in these three primary crossfunctional groupings. Accenture client engagement teams typically consist of a
combination of industry experts, capability specialists and professionals with local
market knowledge.
Operating Groups
As most consulting firms, Accenture operates in a matrix structure. The first axis is
dedicated to the operating groups, or industries of its clients. Broadly, the five Operating
Groups are:

Communications, Media & Technology

Financial Services

Products

Resources

Health & Public Services

The five Operating Groups comprises 19 industry subgroups that focus on industry
evolution, business issues, and applicable technologies. [22]
Growth Platforms
The second axis is the growth platforms, which broadly refers to the functional or
technical domains in which Accenture creates and delivers solutions to clients.

Accenture Strategy was launched in December 2013 to provide services for

clients related to business strategy, technology strategy and operations strategy.[23]

Accenture Digital was also launched in December 2013 to provide clients

with digital marketing, analytics and mobility services.[24]

Accenture Technology provides technology consulting and IT services, and

focuses on research and development, including work on emerging technologies by
its Technology Labs arm.[25][26]

Accenture Operations provides business process outsourcing (BPO) and

infrastructure services.[27]

Accenture launched seven advanced analytics applications for financial

services including banking and insurance sector. The applications include, Customer

Churn Management, Customer Potential, Next Best, Wealth Advisory Toolkit, Real
Time Credit Decision, Allowance for Loan and Lease Losses, and Claims Fraud.