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Accenture’s IT TransformationThe journey to high performance

Presented by:

Lincy Joseph

Vineet Sansare

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Neha Sharma

Deepak Popalkar

Paramita Saha

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Agenda

• Brief Overview

• Business Challenge

• Defining IT Strategy

• Enterprise Resource Planning

• Internal Outsourcing

• Communication enhancements

• High performance delivered

• Results

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Brief Overview

• Accenture’s Information Technology (IT) organization delivers high performance IT capabilities that enable more than 261,000 Accenture professionals serving clients in more than 120 countries to work anytime, anywhere.

• Accenture’s journey to high performance IT began back in the year 2000.

• The initial stage of the transformational change involved aligning Accenture’s IT operating model with Accenture’s go-to-market strategy and instituting a strong IT governance model.

• More than ten years later, the results are impressive: Increased efficiencies, stunning cost reductions and a 300+ percent return on Accenture’s transformational IT initiative.

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The Business challenge

• In the late 1990s, the company was expanding rapidly, entering new markets, and enhancing its global delivery capabilities.

• The systems were ill-suited to the global enterprise that Accenture intended to become.

• Mobility was becoming increasingly important as employees worked flexibly from office, home or client premises.

• With so many employees always on the move, Accenture needed the latest technology solutions and a robust messaging and collaboration platform.

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Defining IT Strategy

• Create a strong, central IT governance

• Align Accenture’s IT operating model with the company’s go-to-market strategy.

• Run IT like a business based on a managed services approach.

• Consolidate, standardize and centralize operations

• Focus the workforce strategy on variable resources and low-cost locations

• Strengthen IT performance measurement processes

• Communicate successes and benefits realization at every opportunity

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Defining IT Strategy

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Enterprise Resource Planning• Another step in the transformation journey was to implement an

Enterprise Resource Planning (ERP) system based on SAP technology, which better integrates core business functions such as Finance and Human Resources, and reduces Accenture’s technology costs.

• The SAP Financials implementation was an ambitious undertaking to replace more than 450 different finance applications around the world with integrated SAP modules.

• The decommissioning of old financial applications alone saved Accenture more than US$12 million.

• Accenture subsequently transitioned human resource systems to the same SAP platform, multiplying the savings.

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Internal outsourcing• Internal outsourcing was a key element of the transformation,

allowing the CIO Organization to extend its capabilities, standardize delivery and drive rapid, cost-effective implementation.

• Accenture sourced business application, development and maintenance to the Accenture Global Delivery Network, a network of offshore, near-shore and onshore resources.

• In addition, Accenture outsourced the delivery of infrastructure services and messaging and collaboration products to Accenture Infrastructure Outsourcing

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Communication enhancements

• Beginning in 2007, Accenture has introduced a family of collaborative tools ranging from unified communications platforms and high-definition videoconferencing to business networking tools, all designed to help Accenture professionals work smarter and deliver results more effectively than ever before.

• Accenture colleagues are finding subject matter experts faster, tapping the company’s intellectual assets to create solutions and allowing clients to tour offshore delivery centers on the other side of the world just by visiting the closest videoconferencing location.

• When it comes to delivering work, teams are collaborating more closely with reduced communications costs, interacting more frequently with clients without the need for travel and mobilizing the global resources of Accenture to help clients achieve high performance in all areas of their organizations.

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High performance delivered

• Accenture has enjoyed dramatic growth since 2001, as employees increased by 248 percent (from 75,000 to 261,000) and revenue increased by 143 percent (from US$11.44 billion to US$27.9 billion). Despite this expansion, Accenture’s total IT costs fell substantially over the period, as measured by several key metrics:

• IT costs as a percentage of net revenue fell by 64 percent.

• IT spend per person was cut by 73 percent.

• Global applications fell from 600 to 246.

• Local applications dropped from 1,500 to 249.

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Results

• Accenture’s IT transformation has resulted in improved decision-making, enabled better business analysis and planning, reduced total cost of ownership, eliminated redundancies, and consolidated purchases of products and services.

• From 2000 through 2010, Accenture invested approximately US$1 billion in its transformational initiative.

• Over the same period, Accenture calculates that it has saved US$3.5 billion in IT costs, netting an impressive 300+ percent return on its transformation program.

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Thank you…