Interview Discourse - Accenture

Impact of the Economic Downturn Affected Accenture in the IT Services and Outsourcing Sector later compared to many other industries, similar to the trend seen in the field.

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2025 September 13 . 3:49 PM

2 min read

Interview Discourse - Accenture

Accenture, one of the world's leading professional services companies, has demonstrated a consistent approach to IT investment, regardless of economic conditions.

While it's unclear whether Accenture has ever halted a project midway due to economic conditions, the company has shown a commitment to modernizing its infrastructure. For instance, the oldest application in the company, the treasury system, dates back to 1999 and is currently being replaced.

The IT department's operating expenditure per person at Accenture has significantly decreased over the years. In 2001, it was over $9,000, but today, it stands at $3,000. This reduction has been achieved through a series of upgrades and replacements, with Accenture replacing all old equipment to improve efficiency and reduce costs.

During the cost-cutting phase of the recession, specific information about Accenture's IT investments was not readily available. However, it's worth noting that Accenture maintained IT investment throughout the recession. This commitment is evident in the company's decision to automate its treasury system, a move aimed at reducing mind-numbing reconciliation work, not a response to the economic phase.

Accenture's IT projects are more reflective of improvements they want to make in the business rather than the economic phase they're in. This approach is exemplified by the company's network transformation project, which was approved by the IT steering committee and is expected to pay for itself within 2.5 to 3 years.

However, the company's consultancy business was significantly affected by the recession. Clients were reluctant towards ambitious new projects, leading to slower growth for Accenture compared to other businesses. Sales dropped 16% compared to the previous year in the third quarter of the 2009 financial year.

Accenture's IT investment spend is not generally tied to the economic performance of the world. The company's CFO, Pamela Craig, has opposed the idea of extending the replacement cycle for laptops due to its negative effects on employee productivity in the past.

Accenture's approach to IT investment is not universally applicable and depends on an organization's specific circumstances. For instance, the company standardized all of its systems on Microsoft's technology platform in 2000 and moved to a single instance of SAP across the entire organization in 2004. However, these decisions may not be suitable for every business.

Despite these challenges, Accenture has invested $1 billion in IT over the past ten years, resulting in a reduction of $3 billion in IT operating cost. The company's IT infrastructure is now relatively new, with all database software, operating systems, data centres, and network being upgraded.

In conclusion, Accenture's approach to IT investment has been consistent, focused on modernization and efficiency, regardless of economic conditions. This strategic approach has helped the company maintain its competitive edge in the professional services industry.