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Accenture

Accenture

Tagline

Ideate, innovate, change the world, repeat.

Net Worth

$44,330,000,000

Started in (City)

Hamilton

Started in (Country)

Bermuda

Incorporation Date

01st December, 2009

Bankruptcy Date

-

Founders

  • Clarence DeLany

About

Accenture is a global corporation established in 1989 and based in Dublin, Ireland. It falls under the Information Technology and Services type of industry and is one of the world's leading specialist service providers. Their services include planning and consultancy, multimedia, technology, and information technology operations. Formerly known as Anderson Consulting until 2000, Accenture plc has emerged as one of the leading service providers in the world's biggest network of Advanced Technology and Intelligent Operations Centres. The firm specializes in strategic consultancy, systems integration, and technologies, outsourcing of corporate processes, and outsourcing of applications and networks. Accenture operates globally with 5,13,000 workers from all over the world as of 2020 and is well known for its employee-friendly business. Julie Sweet is the Chief Executive Officer of Accenture. The name of the business 'Accent' is derived from 'Accent on the future.' In 2001, the company became a public entity and its shares started trading on the New York Stock Exchange. On the first day of initial public offering (IPO), Accenture raised around $1.7 billion. As of 2019, Accenture's turnover was $43.20 billion, with a net income of $6.31 billion. Accenture is a Fortune Global 500 company and its existing customers include 91 of the Fortune Global 100 and more than 75% of the Fortune Global 500.

Beginning

Arthur Andersen and Andersen Consulting became independent divisions of Andersen Worldwide Société Coopérative in 1989. (AWSC). There was growing friction between Andersen Consulting and Arthur Andersen in the 1990s. Andersen Consulting paid up to 15% of its earnings per year to Arthur Andersen, while at the same time Arthur Andersen was competing with Andersen Consulting through its own newly formed business consulting service line called Arthur Andersen Business Consulting (AABC). This controversy arose in 1998 when Andersen Consulting paid 15 percent of the transfer charge for that year and subsequent years and filed a lawsuit for breach of contract with AWSC and Arthur Andersen. In August 2000, with the end of the arbitration with the International Chamber of Commerce, Andersen Consulting severed all contractual relations with AWSC and Arthur Andersen. As part of the litigation deal, Andersen Consulting transferred the amount kept in escrow (then $1.2 billion) to Arthur Andersen and was obliged to change his name, resulting in the entity being called Accenture. On 1 January 2001, Andersen Consulting adopted its present name, "Accenture." The word "accent" is derived from the word "Accent to the future." The name "Accenture" was submitted by Kim Petersen, a Danish employee of Oslo, Norway, as a result of an internal competition. Andersen thought that the name should reflect his will to be a multinational consultant and high-performing leader, and also intended that the name should not be insulting in any country in which Accenture works. Accenture's banner was hung on the New York Stock Exchange Building for its initial public offering on 19 July 2001. On 19 July 2001, Accenture's initial public offering (IPO) was valued at $14.50 a share, and the shares began trading on the New York Stock Exchange (NYSE); Goldman Sachs and Morgan Stanley acted as the main underwriters.

Road to Success

On 1 January 2001, Andersen Consulting adopted its present name, "Accenture." The word "accent" is derived from the word "Accent to the future." The name "Accenture" was submitted by Kim Petersen, a Danish employee of Oslo, Norway, as a result of an internal competition. Andersen thought that the name should reflect his will to be a multinational consultant and high-performing leader, and also intended that the name should not be insulting in any country in which Accenture works. Accenture's banner was hung on the New York Stock Exchange Building for its initial public offering on 19 July 2001. On 19 July 2001, Accenture's initial public offering (IPO) was valued at $14.50 a share, and the shares began trading on the New York Stock Exchange (NYSE); Goldman Sachs and Morgan Stanley acted as the main underwriters.

Challenges

On 26 May 2009, Accenture declared that its board of directors had unanimously agreed to change the company's place of incorporation from Bermuda to Ireland and will become Accenture plc. In 2012, Accenture was seen to pay just 3.5 percent of tax in the Republic of Ireland, compared to the overall payment of 24 percent for the UK company. In July 2015, the United States Department of Defense granted Cerner, Leidos, and Accenture a large contract for electronic health records. On 29 August 2017, Apple Inc. announced an agreement with Accenture to develop iOS business apps. In June 2018, Accenture provoked an uproar over the price charged by the company to hire 7,500 customs and border protection agents. Under the $297 million deal, Accenture charged about $40,000 per recruit to the US Government, which is more than the average officer's annual salary. According to a report released by the DHS Office of the Inspector General in December 2018, Accenture was paying $13.6 million in the first ten months of the deal. In February 2019, workers from Accenture's Austin, Texas area who conducted content moderation duties on Facebook wrote an open letter to Facebook outlining bad working conditions and the "Big Brother Climate" that involved limited job breaks and stringent non-disclosure agreements.

Failures

We observed the filing of a lawsuit between two of the world's most well-known companies, The Hertz Corporation, and Accenture LLP, alleging that one was unable to meet the demands of the other when developing and producing a new IT system. Though frequently reported in the media as a "modern website," the newly commissioned IT device was simply a new digital portal with e-commerce and other market management capabilities on which Hertz will run all of its customer-facing companies and products worldwide. On the surface, the initiative seemed to be a timely reaction to the increased demands of corporate and retail consumers who are now using ‘omnichannel (e.g., mobile) digital solutions in multiple aspects of their work and personal lives. It was also a smart way to draw on the immense efficiencies afforded by digitalization. Though the conflict is unfortunate for both sides, it can act as a reminder of the dangers of system development projects in general, and outsourced system development projects in particular.

Achievements

  • Forbes’ Global 2000
  • Wall Street Journal’s Management Top 250

CEOs

  • Julie Sweet
  • David Rowland
  • Pierre Nanterme