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Accenture
Sep 8, 2025 12:12 PM

  

Accenture1

  Accent on the future (but, technically, it's on the “t”).© OleksKao/stock.adobe.comAccenture PLC is a global professional services company providing consulting and information technology (IT) services. Headquartered in Dublin, the company is ranked among the Fortune Global 500. At the end of its 2024 fiscal year, it had about 774,000 employees worldwide and reported revenues of $64.9 billion with a net income of $7.26 billion, making it one of the world’s largest consulting firms.

  Origins and separation from Arthur AndersenAccenture evolved from the consulting division of Arthur Andersen, a public accounting firm. Formed in the early 1950s, its early projects included designing and installing a UNIVAC-based payroll system for General Electric (GE), one of the first commercial uses of electronic computers.

  The practice grew quickly as companies turned to outside experts for systems design and management consulting, and in 1989, it was formally established as Andersen Consulting. Disputes with the parent firm culminated in a 2000 arbitration ruling that allowed the consultancy to separate; it forfeited the Andersen name and finalized a settlement.

  On January 1, 2001, the company adopted the name Accenture and incorporated in Bermuda. Eight years later, it moved its headquarters to Dublin. The name change allowed the firm to distance itself from Arthur Andersen just as the accounting firm faced Securities and Exchange Commission (SEC) sanctions in 2001 over its audits of Waste Management, Inc. (WM) and, in 2002, a federal criminal case for obstruction tied to Enron that precipitated Arthur Andersen’s collapse.

  Expansion and transformationAccenture went public on the New York Stock Exchange in July 2001 in what was then one of the largest initial public offerings in U.S. history. The IPO raised nearly $1.7 billion and marked the firm’s transition into a fully independent consultancy.

  In the 2010s, Accenture moved beyond its roots in technology systems and outsourcing and expanded into corporate management. It began advising companies directly on business strategy, created new units focused on digital innovation, and acquired design and marketing firms such as Fjord and Droga5. These moves were part of a strategy to compete not only with other technology consultants but also with creative agencies and strategy firms, so that Accenture could both advise companies on high-level business decisions and build the digital infrastructure and marketing campaigns to carry them out.

  By the end of the decade, Accenture had established itself as a leader in digital and cloud services, while continuing to provide large-scale outsourcing and systems integration. Revenues and headcount surged as the company embraced emerging technologies and new service lines.

  In the 2020s, Accenture made artificial intelligence (AI) and data central to its strategy. In 2023, the company said it would open six generative AI studios in North America, part of a planned network of 10 worldwide, and spend $3 billion over three years on deploying AI.

  In early 2024, it expanded that plan to include nine additional studios in Asia-Pacific and Latin America. The company also continued to grow through acquisitions in technology, design, and marketing. In June 2025, Accenture said it planned to consolidate its five main business divisions—Strategy and Consulting, Technology, Operations, Industry X, and Song—into a new umbrella unit called Reinvention Services, effective September 1. The reorganization was intended to present Accenture as a single business built on AI and its role in helping companies overhaul their business strategy, technology systems, and operations.

  LeadershipAs CEO from 1999 to 2004, Joe W. Forehand oversaw the firm’s independence from Arthur Andersen, its 2001 IPO, and its renaming as Accenture. In addition to helping the company establish itself as a respected global consultancy, Forehand nearly doubled annual revenues—to $13.7 billion from $6.9 billion—during his tenure.

  He was succeeded by William D. Green (2004–10), who expanded Accenture’s international presence and strengthened its outsourcing services. Green grew the company’s revenues to $21.6 billion.

  Pierre Nanterme (2011–19) accelerated Accenture’s move into digital services, creating new units such as Accenture Digital, and oversaw major acquisitions in design and marketing. Under his leadership, both revenues and headcount grew sharply. Under his leadership, revenues rose to $43.2 billion.

  After Nanterme’s resignation for health reasons, David Rowland briefly served as interim CEO before Julie Sweet was appointed in 2019. Sweet, previously Accenture’s general counsel and head of its North America business, became the first woman to lead the firm. Under her leadership, the company expanded into AI and cloud services, lifting revenues to record levels by 2024.

  

Accenture2

  Julie Sweet, CEO of Accenture since 2019, noted for leading the company's digital and cloud strategy.© Saul Loeb—AFP/Getty ImagesChallenges and criticismIn February 2025, the Trump administration directed the General Services Administration (GSA) to review federal consulting contracts and demand lower costs. Because about 8% of Accenture’s global revenue came from U.S. federal work, the company warned of “ongoing uncertainty” as procurement slowed, which resulted in fewer and smaller deals companywide and a drop in its share price.

  Although Accenture beat Wall Street revenue expectations in the second and third quarters of its 2025 fiscal year, the value of new contracts fell in both periods, raising investor concerns about growth. Its stock declined more than 18% in the first seven months of 2025, making it one of the weaker performers in the S&P 500.

  Accenture’s expansion into marketing services also drew mixed reviews. The company created Accenture Song through the acquisition of more than 40 agencies, but some of its campaigns, such as a rebranding campaign for Jaguar, were criticized for misjudging the automaker’s audience. In May 2025, Accenture said Song’s founding creative leader, David Droga, would step down as CEO of the unit effective September 1, while remaining at Accenture as vice chair.

  Reinvention and legacyAccenture’s history has been defined by reinvention—from its origins in Arthur Andersen’s consulting arm to its embrace of outsourcing, digital services, and AI. Independence from Andersen in 2001 positioned the firm to grow into one of the world’s largest consultancies. Its scale has made it central to global business, even as its dependence on government contracts and its expansion into marketing services have drawn criticism. The company’s legacy rests on adaptability, and its future depends on whether that strength can sustain it through technological and political change.

  Laura Payne

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