why is Accenture stock cratering?
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How much better did your WLB get after leaving consulting? I’m moving to an internal strategy role at a client. Financial Services - Banking. In consulting - standard day was closing my laptop between 9pm - 10pm and eating dinner at my desk. I’m expecting industry to be better, but not that much. Maybe closing my laptop between 6pm - 7pm? I haven’t been able to ask anyone in the bank what it’s like, as this is a new team. I’m benchmarking on other client strategy offices.
People being let go bc of comparing performance against peers is bs. upgrading the team? how come other rigorous fields (investment banking, medicine, Big Law, oil & gas engineering, trading firms, etc) don’t feel the need to do this, yet they have the right people the teams need every year 😂 consulting isn’t the most rigorous/difficult/or prestigious career. just say it’s for the greed of the firm, at the cost of unempathetically uprooting employees lives & at least you’ll be honest.
I like my job alot. I work with smart people. I have a ton of flexibility. All in (salary, bonus, equity) I make $300k mcol. It's kind of a dead end, I'm not gonna make partner and it's PE backed so I could lose my job at any time. At some point I'll probably be laid off because that just seems to be the new reality. I struggle with looking for a new role because I like my role. But also I feel lazy just chilling. Sanity check if I should try to jump and get back on the escalator or enjoy it?
Accenture is winning more business, but the revenue per project won in the long term is projected to shrink. AI is creating outcome based pricing, which eats into the margins of hour based pricing. And the market is repricing professional services accordingly.
I’ve read that MBB is leaning more into AI services. It already accounts for about 40% of revenue to date. But if Accenture is repricing at the top of the market, trickle down effects are bound to happen.
okay I’m not smart then, why should I be screaming?
Accenture chose technology, offshoring and outsourcing a long time ago and is now paying the price. Too many people, too commoditized, and a clueless leader who never ran a consulting engagement in her life.
It’s over. AI came for SaaS and ppl were laughing. Now it’s come for professional services.
I make decks all on my own, build and deploy my own demos .. all using Claude .. no one needs a heavy team of fresh college grads that have zero business context. This is unfortunately where the world is at irrespective of whether we like it or not. Personally, I don’t love it.. because what’s the new generation to do? What are they supposed to go to college for?
Outsourcing is dying?
Because consulting is dying
Do you think Accenture will cut over half of its employees now given the trajectory in which AI is heading towards with the firm having around 800,000 employees
Eventually they will have to, unless we can find new sources of growth.0
Ppl saying ai is eating consulting are junior or disconnected. It’s because a huge portion of accentures business is outsourcing/offshoring and work that is in fact being automated away. Consulting has always had value based pricing. That narrative is dumb as well. Cost projects have always had variable components.
The same tool used to find the stock price history will tell you, likely by merely scrolling down.
Se also: Julie Sweet
This is a reset. Consulting will shrink but I think it will still be needed at lower pricing and scale.
Accentures primary business is outsourcing. That’s the easiest work to leverage AI. The rest is tech implementations. That’s not happening with interest rates. It’s doomed.
Because consulting is a dying business. No one wants those useless PPTs