Accenture Warns Investors Things Will Be Sucky Until They Can Overcharge the Government For Slides Again

Posted on by Going Concern News Desk
Guy with modified will work for food sign

In case you haven’t heard, billable prospects aren’t looking so hot for Accenture these days. Pick any one of these stories from the last 24 hours:

Let’s go with Financial Times since they appear to be first as usual:

Consulting giant Accenture warned that Elon Musk’s efforts to slash costs across the US federal government had started to affect its revenues and geopolitical developments had raised economic uncertainty around the world.

The company said on Thursday that new work for the US government, which accounted for about 8 per cent of its $16.7bn in global revenue in the quarter ended February 28, slowed sharply after President Donald Trump’s administration took office.

“The new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue,” said Accenture chief executive Julie Sweet during an analyst call.

Yeah, that call went about as well as it could have:

This image has an empty alt attribute; its file name is Accenture-five-day-stock.png

Pulling back a year:

Looking closer at Accenture’s fiscal 2024 performance [PDF] we can see they were already feeling the consulting freeze that’s had the big consultants iced up for a while now:

Bloomberg reported today that the General Services Administration has already canceled 1,700 consulting contracts and reached out to the government’s top consulting firms asking, nay, demanding, they justify their contracts:

In a letter to the top 10 highest-paid consulting firms working for the government, the General Services Administration’s new top procurement official requested a trove of information on the companies’ billions of dollars in government contracts, as well as how they intend to help “reduce or eliminate spend,” according to a copy of the letter obtained by Bloomberg News.

“Do not submit a scorecard that does not identify any waste and spend reduction opportunities,” Josh Gruenbaum, who is leading cost-cutting efforts at the GSA said in a letter to the consulting firms’ executives. “Scorecards that do not identify waste and spending reductions will not be deemed credible and your firm will be seen as unaligned with the Administration’s cost cutting goals.”

Those 10 firms are:

  • Accenture Federal Services
  • Booz Allen Hamilton
  • CGI Federal
  • Deloitte Consulting
  • General Dynamics IT
  • Guidehouse
  • HII Mission Technologies
  • IBM
  • Leidos
  • SAIC

Hey, now would be a great time for Sikich to swoop in in their Toyota Camry and grab some of the work the Armani consultants are about to lose.

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One thought on “Accenture Warns Investors Things Will Be Sucky Until They Can Overcharge the Government For Slides Again”

  1. Accenture has miked the American taxpayer for way too long and Musk won’t listen to their bullshit answers. Accenture better trim their fat now or become extinct in a matter of months.

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