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Accenture, Andersen Report Revenue Growth For Fiscal 2001

Rival services firms use their size and global diversity to overcome a downturn in the IT services market.

InformationWeek Staff

October 11, 2001

2 Min Read

Rival systems-integration and consulting firms used their size and global diversity to overcome a down year for the IT services market. Andersen reported Thursday $9.34 billion in revenue for fiscal 2001, ended Aug. 31. Revenue for the year grew about 10% over fiscal 2000's $8.51 billion. Accenture, which last year split from Andersen, Thursday reported earnings of $1.06 billion on net revenue of $11.44 billion for fiscal 2001, ended Aug. 31. That compares with earnings of $2.46 billion on revenue of $9.75 billion for fiscal 2000.

The struggling economy took a toll on Accenture's fourth-quarter earnings. It lost $369.8 million, despite revenue of $2.78 billion, an increase of 16% over the same period last year. Net revenue for Accenture's government contracts topped $1 billion for fiscal 2001, a 26% increase from fiscal 2000.

"What you've seen over the course of the year is the government automating and Web-enabling key business processes," says Dirk Godsey, a senior J.P. Morgan H&Q analyst. Such projects include database integration and Web access that will improve government agency, private company, and constituent access to government data.

Andersen cites strength in the assurance, consulting, corporate finance, tax, and legal services worldwide as the reasons for the growth. Managing partner and CEO Joseph Berardino said in a statement that 70% of his firm's clients hire Andersen for consulting work in more than one country. Berardino also says that, although the Sept. 11 attacks on the World Trade Center and the Pentagon will likely have an adverse affect on the next fiscal year, he expects Andersen's profits will continue to grow.

Both firms performed well despite an economy that has caused many companies to delay spending money on large systems integration and consulting projects, Godsey says. "It's important for a systems-integration and consulting company to be global to offset weakness in the U.S. market."

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