Investment Analyses –
Accenture, plc
Overview
Accenture plc provides management consulting, technology and outsourcing services. The Company’s business is
structured around five operating groups, which together consists of 19 industry groups serving clients in industries
globally. The Company’s segment includes: Communications, Media & Technology, Financial Services, Health & Public
Service, Products and Resources. The Communications, Media & Technology segment serves the communications,
electronics, technology, media and entertainment industries. The Financial Services
Ticker
ACN
segment serves the banking, capital markets and insurance industries. The Health &
Public Service segment serves healthcare payers and providers, government
Market
departments, public service organizations, educational institutions and non-profit
Value of
organizations. The Products segment serves consumer-relevant industries. The
Investment
Resources segment serves the chemicals, energy, forest products, metals and mining,
utilities and related industries. The company is headquartered in Dublin, Ireland.
Investment Student
Accenture is the world’s largest consulting firm in regards to amount of revenue taken
Group
Equity
in.
Management
Industry
Industry Outlook
Software and
Services, & IT
Consulting
AAA
The information technology consulting industry continues to experience growth
IVA Rating
because of worldwide technological advances associated with just about all industries.
The necessity of data management continues to be imperative in order for businesses
across the globe to adjust their business functions in order to become more efficient,
turn a profit, and properly manage companies. The IT industry is expected to grow 3% annually over the next five years
(IbisWorld). “Key economic drivers for this growth will be rising corporate profit and increased private investment in
computers and software” (IbisWorld). The barriers to enter the industry are relatively low, but the competition is very
high. Large, powerful firms such as IBM & Accenture dominate the Industry. Regardless, smaller corporations continue
to enter the market due to the increase in demand.
ESG Related Issues
The key issue with Accenture is Privacy and Data Security. A surge in privacy and data breach controversies for Software
and Services companies are up 400% since 2010, 10x more than any other industry. However, Accenture scores an 8.2,
vs. the industry average of 4.3 in the Privacy and Data Security Category. Accenture has strong privacy and data security
in place to deal with possible risks: such as hackers and others factors leading to unintentional information disclosures.
In the issue of Human Capital Development, Accenture has “sector leading training and engagement programs for its
extensive and highly skilled workplace” (IVA Assessment) and the employee benefits help score ACN in the 72nd
percentile, scoring a 4.6 in comparison to an industry average of 3.3 in the Human Capital Development category in
comparison with other IT Consulting companies. For the sixth year in a row, Accenture has been listed as “Fortune’s Top
100 Companies to work for.”
-
David Zucker for the Sustainable Investing Advisory Committee
October, 2015
References
"About Accenture." About Accenture. Web. 22 Sept. 2015.
“Accenture Plc.” Yahoo! Finance. Web. 22 Sept. 2015
"Industry Research Reports." Industry Research Reports. N.p., n.d. Web. 06 Oct. 2015.
“TD Ameritrade Login.” TD Ameritrade Login. Web. 23 Sept. 2015.