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Accenture

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Accenture plc
Company typePublic limited company
ISINIE00B4BNMY34
Industry
Founded1989; 35 years ago (1989)
HeadquartersDublin, Ireland
Area served
Worldwide
Key people
Julie Sweet (chair and CEO)
RevenueIncrease US$64.11 billion (2023)
Decrease US$8.81 billion (2023)
Increase US$7.00 billion (2023)
Total assetsIncrease US$51.25 billion (2023)
Total equityIncrease US$26.46 billion (2023)
Number of employees
733,000 (2023)
Websitewww.accenture.com

Accenture plc is an Irish-American professional services company headquartered in Dublin, Ireland, that specializes in information technology (IT) services and consulting. A Fortune Global 500 company, it reported revenues of $64.1 billion in 2023.[1]

History

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Formation and early years

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Accenture began as the business and technology consulting division of accounting firm Arthur Andersen in the early 1950s.[2] The division conducted a feasibility study for General Electric to install a computer at Appliance Park in Louisville, Kentucky, which led to GE's installation of a UNIVAC I computer and printer, believed to be the first commercial use of a computer in the United States.[3][4]

Split from Arthur Andersen

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In 1989, Arthur Andersen and Andersen Consulting became separate units of Andersen Worldwide Société Coopérative (AWSC). Throughout the 1990s, tensions grew between the two units. Andersen Consulting was paying Arthur Andersen up to 15% of its profits each year (a provision of the 1989 split was that the more profitable unit – whether AA or AC, pay the other the 15 percent), 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. This dispute came to a head in 1998, when Andersen Consulting put the 15% transfer payment for that year and future years into escrow and issued a claim for breach of contract against AWSC and Arthur Andersen. In 2000, as a result of arbitration, Andersen Consulting broke all contractual ties with AWSC and Arthur Andersen. As part of the arbitration settlement, Andersen Consulting paid $1.2 billion to Arthur Andersen and changed its name to Accenture.[5]

On 1 January 2001, Andersen Consulting adopted the name, "Accenture". The word "Accenture" was derived from "Accent on the future". The name "Accenture" was submitted by Kim Petersen, a Danish employee from the company's Oslo, Norway office. Petersen felt that the name should represent the firm's desire to be a global consulting leader and high performer,[6] and also intended that the name should not be offensive in any country in which Accenture operates, because the word itself was meaningless.[7]

Incorporation and public listing

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Accenture was incorporated in Bermuda in 2001. On 19 July 2001, Accenture's initial public offering (IPO) was priced at $14.50 per share, and the shares began trading on the New York Stock Exchange.[8] Because of the split from Andersen, Accenture avoided prosecution on June 16, 2002, when the U.S. Securities and Exchange Commission prosecuted Arthur Andersen for obstructing justice and accounting fraud.[9]

Reincorporation in Ireland

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On 26 May 2009, Accenture announced that its board of directors unanimously approved changing the company's place of incorporation from Bermuda to Ireland.[10]

Services and operations

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Accenture's business is organized into five segments:

  1. Strategy and Consulting
  2. Interactive
  3. Technology
  4. Operations
  5. Industry X

The company provides services to clients in various industries, including communications, media and technology, financial services, health and public service, consumer products, and resources.[11]

Corporate affairs

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Leadership

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William D. Green became the CEO in September 2004.[12] Green was replaced by Pierre Nanterme in January 2011.[13][14] In January 2019, Nanterme stepped down from his position, citing health reasons. Chief Financial Officer David Rowland was named as the interim CEO.[15] Julie Sweet was appointed CEO in September 2019.[16]

Employees

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As of 2023, Accenture reported having approximately 733,000 employees.[1]

Controversies

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Incorporation in a tax haven

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In October 2002, the Congressional General Accounting Office (GAO) identified Accenture as one of four publicly traded federal contractors that were incorporated in a tax haven.[17] The other three, unlike Accenture, were incorporated in the United States before they re-incorporated in a tax haven, thereby lowering their US taxes. Critics such as former CNN journalist Lou Dobbs,[18] reported Accenture's decision to incorporate in Bermuda was a US tax avoidance ploy, because they viewed Accenture as having been a US-based company.[19] The GAO itself did not characterize Accenture as having been a US-based company; it stated that "prior to incorporating in Bermuda, Accenture was operating as a series of related partnerships and corporations under the control of its partners through the mechanism of contracts with a Swiss coordinating entity."[20]

UK NHS technology project

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Accenture engaged in an IT overhaul project for the British National Health Service (NHS) in 2003, making headlines when it withdrew from the contract in 2006 over disputes related to delays and cost overruns.[21] The government of the United Kingdom ultimately abandoned the project five years later for the same reasons.[22]

Tax avoidance

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In 2012, it was revealed Accenture was paying only 3.5% in tax in Ireland as opposed to the average rate of 24% it would pay if instead based in the UK.[23]

US immigration

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In June 2018, Accenture was asked to recruit 7,500 Customs and Border Protection officers. Under the $297 million contract, Accenture had been charging the US Government nearly $40,000 per hire, which was more than the annual salary of the average officer.[24] According to a report published by the DHS Office of Inspector General in December 2018, Accenture had been paid $13.6M through the first ten months of the contract. They had hired two agents against a contract goal of 7,500 hires over 5 years. The report was issued as a 'management alert', indicating an issue requiring immediate attention, stating that "Accenture has already taken longer to deploy and delivered less capability than promised".[25] The contract was terminated in 2019.[26]

Working conditions

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In February 2019, contractors from Accenture's Austin, Texas, location who performed content moderation tasks for Facebook wrote an open letter to Facebook describing poor working conditions and a "Big Brother environment" that included restricted work breaks and strict non-disclosure agreements.[27][28][29] A counselor in the Austin office stated that the content moderators could develop post-traumatic stress disorder as a result of the work, which included evaluating videos and images containing graphic violence, hate speech, animal abuse, and child abuse.[28][30] Accenture issued a statement saying the company offers opportunities for moderators to advance, increase their wages, and provide input "to help shape their experience."[31][32]

Tax practices

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In February 2019, Accenture paid $200 million to Swiss authorities over tax claims related to transfer pricing arrangements.[33]

Data breach

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In August 2021, Accenture confirmed a data breach due to a ransomware attack, which reportedly led to the theft of six terabytes of data.[34]

Employment practices

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In March 2023, Accenture announced plans to eliminate 19,000 jobs over 18 months, citing reduced revenue forecasts.[35]

See also

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References

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  1. ^ a b "Accenture Annual Report for Fiscal Year 2023". US Securities and Exchange Commission. 12 October 2023. Retrieved 13 October 2023.
  2. ^ "Accenture To Add 500 Jobs in Chicago". WBBM-TV. 11 October 2011. Retrieved 10 December 2015.
  3. ^ Betts, Mitch (29 January 2001). "GE's Appliance Park Still an IT Innovator". Computerworld. Retrieved 10 December 2015.
  4. ^ Betts, Mitch (2 July 1990). "The Univac I: First in the field". Computerworld. Retrieved 10 December 2015.
  5. ^ Martin, Mitchell (8 August 2000). "Arbitrator's Ruling Goes Against Accounting Arm : Consultants Win Battle Of Andersen". The New York Times. New York City. Retrieved 1 March 2014.
  6. ^ "Andersen Consulting Changing Name To Accenture". Information Week. 26 October 2000.
  7. ^ Kotler, Philip; Pfoertsch, Waldemar (22 September 2006). B2B Brand Management. Springer Science & Business Media. pp. 291–292. ISBN 978-3-540-44729-0.
  8. ^ "Accenture IPO gains in first trades". CNN Money. 19 July 2001. Retrieved 4 December 2015.
  9. ^ Salinger, Lawrence M. (2005). Encyclopedia of White-Collar & Corporate Crime. SAGE. p. 57. ISBN 978-0-7619-3004-4.
  10. ^ "Accenture Newsroom: Accenture Announces Proposed Change of Incorporation to Ireland". newsroom.accenture.com. 26 May 2009. Retrieved 6 August 2010.
  11. ^ "Fact sheet". Accenture. Retrieved 24 February 2020.
  12. ^ "William D. Green Profile". Forbes. Archived from the original on 3 April 2009. Retrieved 26 May 2012.
  13. ^ Cyrille Chausson (21 October 2010). "Pierre Nanterme prendra les rênes d'Accenture en 2011". LeMagIT. Retrieved 30 June 2013.
  14. ^ Matthew Monks (24 November 2010). "New Financial Group Chief at Accenture". American Banker. Retrieved 30 June 2013.
  15. ^ "Accenture's former CEO Nanterme dies". Reuters. 31 January 2019. Retrieved 31 January 2019.
  16. ^ "Accenture Appoints Julie Sweet Chief Executive Officer and Names David Rowland Executive Chairman, Effective Sept. 1, 2019". accntu.re. 11 July 2019. Archived from the original on 13 July 2019. Retrieved 17 July 2019.
  17. ^ Information on Federal Contractors That Are Incorporated Offshore; United States General Accounting Office; 1 October 2002
  18. ^ Dobbs, Lou (9 March 2004). "Exporting America". CNN. Retrieved 3 May 2011.
  19. ^ "Accenture". US House of Representatives. Archived from the original on 3 May 2007.
  20. ^ "Information on Federal Contractors That Are Incorporated Offshore". gao.gov. General Accounting Office. Archived from the original on 22 June 2017. Retrieved 4 December 2017.
  21. ^ Bowers, Simon (28 September 2006). "Accenture to quit NHS technology overhaul". The Guardian. Retrieved 18 July 2014.
  22. ^ "NHS pulls the plug on its £11bn IT system". The Independent. Archived from the original on 20 September 2011. Retrieved 18 July 2014.
  23. ^ Simon Moore (26 November 2012). "Revenue's IT contractors accused of tax avoidance". Archived from the original on 27 January 2021. Retrieved 31 May 2019.
  24. ^ Lanard, Noah (14 June 2018). "Border Patrol Is So Desperate for New Agents, It's Spending Millions to Help Recruits Finish Their Applications". Retrieved 19 June 2018.
  25. ^ Geneva Sands (10 December 2018). "'Serious' issues with $297 million CBP hiring contract, internal watchdog says". Retrieved 10 December 2018.
  26. ^ Sands, Geneva (5 April 2019). "CBP terminates controversial $297 million Accenture contract amid continued staffing struggles". CNN. Retrieved 14 September 2020.
  27. ^ Price, Rob (15 February 2019). "Facebook moderators are in revolt over 'inhumane' working conditions that they say erodes their 'sense of humanity'". Business Insider. Retrieved 21 June 2019.
  28. ^ a b Dwoskin, Elizabeth (8 May 2019). "Inside Facebook, the second-class workers who do the hardest job are waging a quiet battle". The Washington Post. Retrieved 21 June 2019.
  29. ^ Brustein, Joshua (25 February 2019). "Facebook Grappling With Employee Anger Over Moderator Conditions". Bloomberg News. Retrieved 21 June 2019.
  30. ^ Wong, Queenie (19 June 2019). "Murders and suicides: Here's who keeps them off your Facebook feed". CNET. Retrieved 21 June 2019.
  31. ^ Dwoskin, Elizabeth (8 May 2019). "Inside Facebook, the second-class workers who do the hardest job are waging a quiet battle". The Washington Post. Retrieved 14 September 2020.
  32. ^ "The Trauma Floor: The secret lives of Facebook moderators in America". The Verge. 25 February 2019. Retrieved 10 August 2024.
  33. ^ "Accenture settles Lux Leaks tax claim for $200m". International Consortium of Investigative Journalists. 26 February 2019. Retrieved 10 August 2024.
  34. ^ "Accenture confirms data breach after August ransomware attack". BleepingComputer. 15 October 2021. Retrieved 10 August 2024.
  35. ^ Anghel, Irina; Boyle, Matthew (23 March 2023). "Accenture Shares Jump After Plan to Slash 19,000 Jobs". Bloomberg.com. Retrieved 23 March 2023.
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