Accenture 3Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“In Management Consulting, the macro environment continues to be challenging and volatile. Our clients held back on spending more than we expected, particularly in Europe and Brazil, and the environment is more competitive.”

“we do see growth in demand for transformational projects in operations, CRM and risk management”

“Technology consulting bookings reflected demand for infrastructure consulting projects that span data centers, networks and workplaces, as well as IT strategy projects.”

“System integration bookings, on the one hand, reflected rising demand for industry-specific Software solutions, where emerging technologies such as Mobility, Analytics and cloud are part of the mix. On the other hand, the bookings also reflected lower demand and a more competitive environment for ERP systems work.”

“The decrease in ERP work was most pronounced in some European countries, as clients are slowing down their investments in add-on work to existing solutions and generally starting fewer large programs right now.”

“Turning to outsourcing. New bookings were well above our expectations. Technology outsourcing bookings were strong, as our clients continue to seek solutions for driving operational efficiencies and flexible cost-effective sourcing.”

“Marketing is one of the key functions that digital is having a huge impact on. Chief Marketing Officers are increasingly looking for integrated solutions that bring together strategy, technology and analytics, add scale to get more value out of their investments.”

“the overall environment has not been progressing probably the way we all expected, including our clients, when you look at our Q3. The situation in Europe is not even slightly better. It’s probably slightly worse. Even if we do not have a Greece event, if you will, the environment is moving from an economic standpoint to recession. And so the mood with our clients over there is still to be thoughtful and to be very mindful about the way they invest. And when clients are thoughtful and mindful, they tend to wait a little bit more and to think further on when and how much they’re going to invest. It’s particularly true when it’s about smaller projects, as we mentioned, but indeed, this is what I would characterize as the softness, particularly true in Europe and in Europe, in South Europe, to be even more specific. And it’s definitely true that — to be honest, not something we anticipated at that level in Brazil, situation has changed recently.”

“Consulting, it’s all about launching projects, programs…So it’s slightly different from the mindset on outsourcing, which most of the time is more driven through cost optimization. Consulting is more about building for the future, if you will, for clients. And building for the future is requiring confidence, confidence in the economic outlook, confidence in the business… The level of confidence is not at the level we expected. And there is an eroding economic conditions in some parts of the world.”

“I mentioned the Digital Marketing as a fast-growing area is where we have been deploying our capital into acquisitions.”

“I love the U.S. I love that market, and I love the U.S. for Accenture…the overall economic environment in the U.S. is better than in the rest of the world.”

“U.S. companies are more than any other companies in the world early adopters of new technologies”