Accenture - Market Share Shift Away From Indian Peers, FY23 Margin Pressure Underestimated?: Nirmal Bang

Accenture Q2 Review - Market Share Shift Away From Indian Peers; FY23 Margin Pressure Underestimated?: Nirmal Bang

A sign outside Accenture Ltd. offices. (Photographer: Dennis Brack/ Bloomberg)
A sign outside Accenture Ltd. offices. (Photographer: Dennis Brack/ Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

While Accenture Plc’s good Q2 FY22 (August year ender) performance, record order booking and upward revision of its guidance can be seen as a good read-through for the Indian IT services industry, a closer look at the numbers reveals a different picture-

  1. Accenture has seen accelerated market share gains in FY20-FY22 compared to Tata Consultancy Services Ltd. and Infosys Ltd., indicating that its capability set is probably seeing greater market traction. It has been talking about three times industry growth in recent days versus two times in the past. The pivot to a different market-facing structure under Julie Sweet in early 2020 has likely been very rewarding (pivoting to a post 'Digital' world),

  2. while the narrative among Indian IT players has been about mid-sized and more importantly small-sized deals over the last 12 months, the record signing of more than $100 million deals in Q2 FY22 indicates that Accenture is gaining even greater share in mid and large deals, which are probably complex, multi-service line deals and which involve business transformation.

Click on the attachment to read the full report:

Nirmal Bang Accenture-Q2 FY22 Result Update-19 March 2022.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.