Accenture Overview Page 1 Company Overview Accenture is one of the world s leading management consulting, technology services and outsourcing organizations, with more than 246,000 employees; offices and operations in 53 countries around the globe; and revenues before reimbursements ( net revenues ) of $25.5 billion for fiscal 2011. Our high performance business strategy is to use our expertise in consulting, technology and outsourcing to help clients perform at higher levels so they can create sustainable value for their customers, stakeholders and shareholders. We use our industry and business-process knowledge, our service offering expertise and our insight into, and understanding of, emerging technologies and new business and technology trends to formulate and implement solutions for our clients. Our strategy is focused on helping clients improve operational performance, deliver their products and services more effectively and efficiently and grow their businesses in existing and new markets. We operate globally with one common brand and business model designed to enable us to provide clients around the world with the same high level of service. Drawing on a combination of industry expertise, functional capabilities, alliances, global resources and technology, we seek to deliver competitively priced, high-value services that help our clients measurably improve business performance. Our global delivery model enables us to provide a complete end-to-end delivery capability by drawing on our global resources to deliver high-quality, cost-effective solutions to our clients. In fiscal 2011, we continued to implement a strategy focused on three dimensions: our core business, which includes the vast majority of management consulting, technology and outsourcing services that we have traditionally provided; strategic initiatives including analytics, digital marketing, mobility, and smart grid, as well as technology areas such as cloud computing; and geographic expansion. Our geographic expansion strategy focuses on emerging and mature markets with significant growth potential for us. Our priority emerging markets are the ASEAN (Association of Southeast Asian Nations) countries, Brazil, China, India, Mexico, the Middle East, Russia, South Africa, South Korea and Turkey. Go-to-Market Strategy Our business is structured around five operating groups Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources which together comprise 19 industry groups serving clients in major industries around the world. Our industry focus gives us an understanding of industry evolution, business issues and applicable technologies, enabling us to deliver innovative solutions tailored to each client or, as appropriate, more-standardized capabilities to multiple clients. We manage our business by industry and manage our people by geography. Our three growth platforms management consulting, technology, and business process outsourcing are the innovation engines through which we develop our knowledge capital; build world-class skills and capabilities; and create, acquire and manage key assets central to the development of solutions for our clients.
Accenture Overview Page 2 The professionals within these areas work closely with those in our operating groups to develop and deliver integrated services and solutions to clients. Client engagement teams which typically consist of industry experts, capability specialists and professionals with local market knowledge leverage the capabilities of our global delivery model to deliver price-competitive services and solutions. We provide a complete end-to-end capability (design, build and run), leveraging the right professionals with the right skills for each task, who work as a cohesive team with consistent Accenture processes globally. Regardless of where our professionals are located, they work together with our clients seamlessly. We have distilled the collective experience of our people into a standard set of methods, tools and architectures, which together provide common parameters to enable our global teams to deliver consistent, high-quality solutions. The result: a cohesive, virtual project team delivering reliable, quality solutions on time and at a competitive price point. The depth and scope of our services and capabilities are unmatched in the industry. We have hundreds of offerings designed to help our clients respond to a number of challenges in their industries. We can take total responsibility for all aspects of technology and outsourcing delivery. Our focus is always on delivering business value, which is typically outcomes-based. Accenture s differentiated approach from planning to mobilization to operation ensures a smooth start-up and quick value realization. We are uniquely positioned to draw on a combination of industry expertise, functional capabilities, alliances, global resources and technology to deliver high-quality services that help our clients improve business performance. Growth Platforms / Service Areas Our management consulting growth platform is responsible for the development and delivery of our strategic, operational, functional, industry, process and change consulting capabilities, working closely with the professionals in our operating groups and the other growth platforms. Our management consulting professionals help large, complex organizations design and execute changes to their business and operating models, either for one or more critical business units or across the entire organization. This growth platform comprises six function-based service areas, as well as industry-focused teams of management consulting professionals with deep skills in the numerous industry segments that we serve. The six function-based service areas are Customer Relationship Management, Finance & Enterprise Performance, Operations, Risk Management, Strategy, and Talent & Organization. Our Technology growth platform comprises three service areas: Systems Integration, Technology Consulting and Information Technology (IT) Outsourcing. Services within Systems Integration include enterprise solutions and enterprise resource planning; industry and functional solutions; information management services; Cloud computing; custom solutions; software as a service (SaaS); mobility services; and Microsoft solutions. Services within Technology Consulting include IT strategy; infrastructure consulting; IT security consulting; application modernization and optimization. IT Outsourcing includes applications outsourcing and infrastructure outsourcing. Within our Business Process Outsourcing growth platform we offer clients across all industries a variety of function-specific BPO services, including finance and accounting, human resources, learning and procurement, among others. We also offer industry-specific BPO services designed to address the unique needs of client organizations and deliver business outcomes. For external reporting purposes, revenues from our Management Consulting growth platform and from the Systems Integration and Technology Consulting components of our Technology growth platform are
Accenture Overview Page 3 categorized as consulting, and revenues from our Business Process Outsourcing growth platform and from the IT Outsourcing component of our Technology growth platform are categorized as outsourcing. Clients Accenture's clients span the full range of industries around the world and include 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Our commitment to client satisfaction strengthens and extends our relationships. For example, 99 of our top 100 clients in fiscal 2011, based on revenue, have been clients for at least five years and 92 have been clients for at least 10 years. Employees We have approximately 246,000 employees worldwide, including 5,300 senior executives with an average of 15 years of Accenture experience. We have an exceptionally strong leadership team, comprising experienced professionals who have built their careers at Accenture. For instance, each of the 20 members of our Global Management Committee has, on average, 25 years of Accenture experience. Our employees are broken out into four distinct workforces: Our Consulting workforce includes experienced professionals in business, industry, systems integration and technology. They help our clients design, build and deliver solutions that can transform companies into high-performance businesses. Our Solutions workforce comprises a global network of technology professionals who use their knowledge and experience to take on practical programming and technology implementation for our clients. People in our Services workforce work on Accenture s outsourcing projects, specializing in a variety of areas including finance, human resources, customer care and IT. Enterprise is Accenture s internal workforce efficiently managing and supporting all activities across our business. Enterprise people work in areas such as finance, HR, legal, marketing & communications, and facilities & services. With such a diverse global and culturally diverse workforce, one of our strengths has been to build and maintain a strong corporate culture through our core values: Stewardship; Best People; Client Value Creation; One Global Network; Integrity; and Respect for the Individual. We are deeply committed to the continued development of our employees, who receive significant and focused technical, functional, industry, managerial and leadership skill development and training appropriate for their roles and levels within our company throughout their careers with us. In fact, in FY11 we spent over US$800 million on the professional development and training of our people. We have a strong distribution of classroom, virtual classroom and on-line training. Our on-line global learning portal directs our people to thousands of online courses, virtual classroom courses and other learning resources to meet almost any business need. Global Delivery Network (GDN) Accenture s world-class global delivery capabilities help our clients achieve extraordinary business results through brining innovative ideas, coupled with reliable, cost-effective and consistently high-quality services.
Accenture Overview Page 4 With 151,000 professionals in more than 50 centers, Accenture offices and client locations, the Accenture Global Delivery Network is the largest and most diversified group of management consulting, technology, business process and outsourcing professionals in the world. We team with our clients to meet their current business and IT issues and opportunities drive a new era of innovation. Delivery excellence is about making sure we achieve our High Performance promise for our clients. Our environment of continuous improvement helps us reach ever-higher levels of productivity, precision and predictability. Supported by deep industry, technology and business acumen, and by an unmatched breadth of industrialized capabilities including processes, methods, tools, architectures and metrics Accenture delivers gamechanging services and solutions to help our clients attain high performance. For Accenture, global sourcing is not a recent phenomenon. We built our first delivery center more than 25 years ago, in 1985 in Manila, and began our first major outsourcing deal with British Petroleum six years later managing accounting, finance and support functions from our center in Aberdeen, Scotland. In the early 90 s we pioneered the concept of industrialization and serving our clients through delivery centers rather than working only on-site at the client s location. By the late 90 s we had greatly expanded our delivery center network around the globe. Since then, our global delivery capabilities have been further extended and strengthened in Accenture s Global Delivery Network, from which today we serve many clients from multiple locations. By further applying the concept of industrialization to our global delivery capabilities, we are providing clients with significant value, balancing high-quality services with cost efficiency. All of Accenture s top 100 clients have work supported through our Global Delivery Network. The vision and long-term plan for our Global Delivery Network has been to set up delivery centers in strategic locations, which we have been very successful in doing. And, we continue to expand and grow, particularly in strategic and emerging markets. Besides having a leading presence in India, Accenture s Global Delivery Network includes established centers around the world including in the Philippines, China, the United States, Eastern and Central Europe and Latin America, as well as in emerging locations such as South Korea and Malaysia.
Accenture Overview Page 5 Financial and People Metrics From a historical perspective, we have provided below details of some of the key financial metrics from FY02 to Q2FY12: We continue to fulfill our commitment to return cash to shareholders. From FY02 to FY11, we generated over $21 billion in free cash flow and have returned 91% to shareholders through stock buybacks and dividends. Our balance sheet remains strong. Details of the balance sheet metrics for previous years are shown below: Below are key headcount metrics from FY02 through Q2FY12: