Brief Analysis of Accenture’s Business Model
Accenture is among the world’s leading professional services companies with around 505,000 employees and serves clients in a wide range of industries. It has divided its business into three geographic regions that include North America, Europe and the growth markets. The growth markets include Asia Pacific, Latin America, Africa and the Middle East. Its services are organized into five operating groups on the basis of industries they serve –
1. Communications, Media & Technology –
Accenture helps its clients in this segment accelerate and deliver digital transformation, develop comprehensive industry-specific solutions for seizing new opportunities and generating improved results. The communications, media and technology segment is further divided into subgroups that include – communications and media, hi-tech and software & platforms. The first group communications and media accounted for around 51% of the communications, media & technology segment’s revenue in 2018. It serves the leading wireline, wireless, broadcast, entertainment, print, publishing, cable and satellite communications service providers of the world. The high tech industry group accounted for around 25% of the net revenues of the communications, media and technology segment of Accenture and software and platforms group accounted for around 24%.
2. Financial Services –
The financial services operating group of the company is further divided into subgroups – a) banking & capital markets. b) Insurance. This group serves the banking, capital markets, and insurance industries. In this group, Accenture offers its clients solutions to address growth, cost and profitability pressures, industry consolidation, regulatory changes and the need to continually adapt to new digital technologies. The Banking and capital markets industry group accounted for around 72% of the entire revenue of the financial services segment. The insurance industry group, on the other hand, accounted for around 28% of the net revenues of the entire financial services group.
3. Health & Public Services –
The health and public service operating segment of Accenture serves healthcare payers and providers, government departments and agencies, public service organizations, educational institutions and non-profit organizations on a global basis. The health and public service operating segment is comprised of two separate operating groups which are – 1. Health and 2. Public service. The first of the two subgroups accounted for around 38% of the total net revenues of the group in 2018 whereas the second accounted for around 62%.
4. Products –
The products operating segment of Accenture helps the clients improve their performance in distribution and sales and marketing; in research and development and manufacturing; and in business functions like finance, human resources, procurement, and supply chain while leveraging technology. It is divided into three subgroups that include – 1. Consumer Goods, Retail & Travel Services 2. Industrial 3. Life Sciences The first of three subgroups accounted for 55% of the entire net revenues of the Product operating segment of Accenture. The second one (Industrial) accounted for around 26% of the net revenues of the entire Products operating segment and the third (Lifesciences) accounted for around 19% of the net revenues of the entire operating segment.
5. Resources –
This operating segment serves chemicals, energy, forest products, metals and mining, utilities and other related industries. It is further divided into three subgroups – 1. Chemicals & Natural Resources 2. Energy Industry 3. Utilities
The chemicals & natural resources group accounted for around 30% of the resources operating segment’s net revenues. The energy industry group and utilities each accounted for 27% and 43% of the operating segment’s net revenues respectively.