Accenture raises its growth projections for FY25, indicating emerging trends in Indian IT sector.

Nasdaq-listed IT services giant Accenture has revised its annual revenue growth forecast for fiscal year 2025 to a range of 4-7%, an increase from the previous estimate of 3-6%. This adjustment is primarily due to a diminished adverse effect from foreign exchange fluctuations, which are now anticipated to be around 0.5%, a significant decrease from the earlier forecast of 1.5%.

Accenture’s performance and future outlook hold particular importance for India, where more than 40% of its global workforce, totaling nearly 800,000 employees, is located. The company’s results frequently act as a barometer for the Indian IT industry, which closely monitors Accenture’s trends as a reflection of global demand. As Indian IT leaders prepare for their Q3 FY25 earnings announcements in January, Accenture’s Q1 results underscore vital growth areas, notably the robust demand for generative AI solutions.

Accenture announced a revenue of $17.7 billion for the first quarter, marking an 8% increase from the previous quarter. The company’s operating margin improved to 16.7%, reflecting a rise of 170 basis points compared to the last quarter. New bookings reached $18.7 billion, with contributions of $9.2 billion from consulting services and $9.5 billion from managed services. Significantly, generative AI accounted for $1.2 billion of the new bookings in Q1, indicating a sequential increase of $200 million.

Accenture follows a financial year that runs from September to August.

Domestic IT companies, especially those concentrating on emerging technologies, are poised to gain from the heightened demand for generative AI. Analysts suggest that Indian firms may experience a positive impact from Accenture’s investments in AI-enhanced client transformation strategies.

Regionally, Accenture’s revenue in North America rose to $8.73 billion in Q1, while revenues from Europe, the Middle East, and Africa (EMEA) climbed to $6.41 billion. Other regions also experienced growth. In terms of industry sectors, the products segment increased to $5.43 billion, with significant advancements noted in health and public services as well as financial services.

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