Question Brian Business & Management

Challenges faced by Accenture PLC

1) challenges faced by accenture company 2)how to tackle that challenges

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Answer Internal Staff

Accenture PLC is a leading global services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations (Accenture 2016). Conflict management between project teams is one of the challenges faced by Accenture. The type of conflict can either be task based or process. There can also be conflicts between teams and clients. Furthermore, communicating a complex solution to the client in laymen terms to enable them to understand the reasoning behind the designed solution and its benefits can prove to be a challenge.

Conflict resolution techniques based on Robbins (1974) include superordinate goals, expansion of resources, compromise, authorative command, communication etc. These could be applied to tackle the conflict management and negotiation challenges faced by Accenture.

The business environment in which Accenture operate remains challenging. In particular, their IT services. Clients have been shying away from discretionary IT spending. In addition, it has been reported that the Brexit vote will put a drag on global IT spending. Accenture’s clients are major firms. In fact, Accenture’s clients span the full range of industries around the world and include 94 of the Fortune Global 100 and more than 80 percent of the Fortune Global 500. One way of tacking the IT services demand challenge is by signing new contracts with smaller firms. It was reported that average IT spend per employee was higher for small businesses compared to large companies (ZDNet, 2014).

Accenture is also facing pricing pressure. Vendor consolidation in the industry and continued customer pressure to manage costs is hurting Accenture as it tries to build its market share. The company has been tackling this by acquiring companies to strengthen Accenture Interactive (their digital business). On the whole, Accenture has acquired a host of new companies and this should add to its topline.

References

Accenture (2016) Accenture Fact Sheet Q4 FY16. Available from: https://newsroom.accenture.com//content/1101/files/ACCN_Q4Earnings_092816v6.pdf

Robbins, S., P. (1974) Managing Organizational Conflict: A Non Traditional Approach, NJ: Prentice Hall, pp-59-89

ZDNet (2014) IT budgeting in 2015: What the surveys tell us. Available from: http://www.zdnet.com/article/it-budgeting-in-2015-what-the-surveys-tell-us/