BUSN369 APA_6th_template_Guerrero_M2-1.docx

Consulting llp is another strong competitor but only

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Consulting LLP is another strong competitor, but only provides business and information technology consulting services (Hawley, 2015). While not exhaustive, Figure 1 presents a list of competitors by business concentration. Accenture has recently added Accenture digital to its portfolio to provide clients with digital and marketing consulting and solutions. The largest competitor with comparable capabilities to Accenture in the digital arena is Sapient Corporation. Accenture’s strategy consulting business has several main competitors—most private companies—including Deloitte, McKinsey & Company, Bain, Boston Consulting Group, and IBM. Outsourcing has become a fiercely competitive arena with many strong competitors vying for market share. Offshore information technology outsourcers are currently selling directly to end-users competing with United States suppliers of these services gaining traction in the market. Aegis and Tata Consultancy, two companies located in India listed in figure 1, sell directly to end-users and compete with Accenture for outsourcing market share. Of all competitors, Accenture’s strongest competitor is IBM who competes in all three arenas and boasts impressive profitability. The profitability chart in Appendix B depicts ratios for Accenture and IBM as contrasted to the industry and market averages (Hoovers, 2017). 10 Fig 1 Accenture Competitors Technology Strategy Digital Outsourcing IBM Bain Sapient Aegis Deloitte BCG Capgemini Capgemini Deloitte Cognizant DSX Tech McKinsey DSX Tech SAP SE IBM IBM Ericsson SE Infosys Cognizant Tata Consultancy Nokia Wipro
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Albeit IBM has consistently outranked Accenture in revenue and profitability for years, Vault.com’s “2018 Best Consulting Firms Survey” still ranks them second behind Accenture for IT Strategy and IT Operations consulting (Vault, 2017). Demographics of Consumers Accenture derives its revenue primarily from the Fortune 500, a few middle market companies, governments and government agencies. Of the Fortune 100, 98 are Accenture clients and have worked with Accenture for more than 10 years (Hoovers, 2017). Organization structure Accenture is an organic organization with a five-dimensional matrix structure (UK Essays, 2013). Accenture is a company that needs the simultaneous benefits of technological expertise within functions and the horizontal coordination across functions (Gaspar, 2014 p. 252). Figure 3 below graphically depicts the organization as the five operating business units with five dimensions of customer service expertise. Every project has a project manager and a functional manager. The authority of the functional manager flows down vertically from the operating group, and the authority of the project manager flows sideward from the customer service expertise. Therefore, each worker reports to the functional manager, but works directly under a project manager. Hence, each worker has two managers, who will jointly ensure the success of the project. Projects in Accenture follow the Strong Matrix model where most of the authorities lie with the project manager [Fre12].
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  • Fall '16
  • Vanessa Moses
  • Andersen Consulting, Accenture Consulting, Accenture Digital, Accenture Technology, Accenture Labs

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