WEBVTT - Accenture's Sweet on Q3 Earnings: Driven By Digital (Audio)

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<v Speaker 1>dollar today to fifty dollars. Their team sets son Charlie Pellett,

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<v Speaker 1>that's a bloom Bird business splash. This is taking stock

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<v Speaker 1>with pin Box and Kathleen as on Bloombird Radio. Accenture

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<v Speaker 1>earnings out today, they're boosting their You're adjusted earnings per

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<v Speaker 1>share of view. That's a plus. We have the CEO

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<v Speaker 1>for North America joining us now. And of course you

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<v Speaker 1>know Accenture probably very well, leading global professional services company,

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<v Speaker 1>lots of services and solutions and strategy consoling digital technology

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<v Speaker 1>and operations. I've certainly dealt with a lot of Accenture

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<v Speaker 1>professionals when during the banking crisis and all that. Lots

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<v Speaker 1>of value added there. Julie Sweet adding some value today

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<v Speaker 1>on taking Stock. She's located in the Washington d C

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<v Speaker 1>in metropolitan area, but coming all the way to New

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<v Speaker 1>York to join us in studio today. Absolutely excited to

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<v Speaker 1>be here. Thanks. So, Julie. Uh, how is it looking?

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<v Speaker 1>How about earnings per share looking good? A better luck

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<v Speaker 1>for the future. What's driving it? Well? We had a

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<v Speaker 1>great quarter obviously in North America, where we're at eleven

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<v Speaker 1>percent growth in revenue and local currency and ten percent globally,

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<v Speaker 1>and we raised our outlook for earnings per share to

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<v Speaker 1>ten to eleven percent. We're ten percent year today, so

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<v Speaker 1>very excited. And it's being driven by two big things.

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<v Speaker 1>Our investments in UM acquisitions and in our business which

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<v Speaker 1>are really differentiating us, and then leading in the new

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<v Speaker 1>digital cloud security. It's now forty of our business and

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<v Speaker 1>it's growing double digit. I was gonna say, the security

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<v Speaker 1>part of the business and the cloud part of the business.

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<v Speaker 1>I mean this is, as you said, forty percent. Do

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<v Speaker 1>you see a time when it's going to be more

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<v Speaker 1>than fifty percent of the business. Absolutely. I mean it's

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<v Speaker 1>really based on demand. And we're seeing two big things

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<v Speaker 1>from our clients. The first is amidst the digital revolution,

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<v Speaker 1>they're coming to us to understand how is technology impacting

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<v Speaker 1>our business and then take that from insight to execution.

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<v Speaker 1>And the second thing we're seeing is around productivity, efficiency

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<v Speaker 1>and sustained investment capacity in a large part to be

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<v Speaker 1>able to fuel the investment needed for the digital transformation.

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<v Speaker 1>And it's not ending. There's no finish line in the

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<v Speaker 1>digital revolution, and there's no one and done. Break that

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<v Speaker 1>down for a little bit for us, efficiency productivity, investment, capacity,

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<v Speaker 1>all that kind of thing, real words, a concept and example,

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<v Speaker 1>what what does that mean? Sure? So if you think

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<v Speaker 1>about our portfolio always serve forty industries, they're all in

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<v Speaker 1>different places. So if you're in oil and gas today,

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<v Speaker 1>your focus very much on UM, cost cutting more, being

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<v Speaker 1>able to do more with less because of the pressures

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<v Speaker 1>in that business. If you're in retail, financial services, consumer goods,

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<v Speaker 1>you're trying to take advantage of the digital consumer experience

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<v Speaker 1>and growing your top line. But that takes investment, right,

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<v Speaker 1>that takes modernization, new capabilities, changing the workforce, and so

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<v Speaker 1>in both cases you're looking at better ways to be

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<v Speaker 1>to have UM, to deliver more with less, and to

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<v Speaker 1>have more ability to invest, but driven by different pressures.

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<v Speaker 1>What are some of those pressures? So UM on the

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<v Speaker 1>on we're growing top line, it's around the disruption that's

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<v Speaker 1>coming from the digital revolution, which is about new entrants.

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<v Speaker 1>So you've got Amazon and UM and Netflix, you know,

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<v Speaker 1>pressuring sort of anything that's around content, television, cable. You

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<v Speaker 1>have new entrants in terms of you know, logistics, it's

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<v Speaker 1>not just about uber, it's about how that's transforming the

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<v Speaker 1>business to business. So you've got a lot of every

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<v Speaker 1>industry has some kind of disruption and companies are having

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<v Speaker 1>to step back and say, what does it mean for us?

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<v Speaker 1>Both from an opportunity and from a risk perspective. Who's

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<v Speaker 1>your biggest competition? So we have five different businesses, and

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<v Speaker 1>we have competitors in each of those businesses, so it's

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<v Speaker 1>not a single We have strategy, can sulting, digital, technology,

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<v Speaker 1>and operations, and the competitors are different by business. Is

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<v Speaker 1>it also just different by geography because you are the

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<v Speaker 1>CEO of North America? Absolutely, and so every there's some

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<v Speaker 1>companies that are more global that we're one of the

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<v Speaker 1>most global in terms of we're in fifty six countries

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<v Speaker 1>where people operate in a hundred different countries at any

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<v Speaker 1>given time. But each market also has individual players who

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<v Speaker 1>are competitors. And in fact, we think a lot now

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<v Speaker 1>about leveraging, about being local and leveraging global because it's

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<v Speaker 1>more important that now than ever, and to be really

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<v Speaker 1>in your local markets. Again, who would be the client?

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<v Speaker 1>What kind of company that would be saying? Ge Et

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<v Speaker 1>Centa told me I need to be local and leverage globally?

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<v Speaker 1>What does that mean? What's give me again a concrete

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<v Speaker 1>example sure. So if you're consumer goods company, um, consumers

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<v Speaker 1>today want personalization and the nature of the consumer in

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<v Speaker 1>the US versus China versus Brazil is really different, and

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<v Speaker 1>so the products may be the same, but how you're

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<v Speaker 1>marketing it, how they're the buying patterns, the way they

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<v Speaker 1>buy are very different depending on the market. And that's

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<v Speaker 1>the personalization that consumers now expect, and that's the innovation

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<v Speaker 1>that companies are coming to us to look at, is

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<v Speaker 1>how do we real time personalize for our consumers. Now.

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<v Speaker 1>I know that one of the biggest projects you've been

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<v Speaker 1>working on is the Affordable Healthcare website for the US government,

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<v Speaker 1>trying to make that better and more efficient. How's that going.

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<v Speaker 1>It's going really well. In fact, we were just renewed

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<v Speaker 1>in our contract there and we're extremely proud of that

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<v Speaker 1>work because that's really improving the way the world works

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<v Speaker 1>and lives. It's bringing healthcare to millions of America, and

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<v Speaker 1>we're very proud of the work we do. How do

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<v Speaker 1>you price your services? Can you give us any sense

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<v Speaker 1>of what I would pay if I were that company?

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<v Speaker 1>Needing to figure out how to uh globalize my local company? Kevin,

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<v Speaker 1>it's interesting your asset because what we're really seeing is

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<v Speaker 1>a shift to actually paying a lot more based on

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<v Speaker 1>outcome and well as on service. And so we have

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<v Speaker 1>UM we have a commercial contracts now where just as

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<v Speaker 1>our client is having to deliver an outcome like patient

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<v Speaker 1>improve patient care, we're also saying we will be paid

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<v Speaker 1>based on how we're helping you achieve that. We also

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<v Speaker 1>have commercial contects where you buy as a service, you

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<v Speaker 1>buy as you use, and then of course traditional fees

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<v Speaker 1>for service and so UM. What we find is it's

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<v Speaker 1>important to think about what the client needs and adjust

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<v Speaker 1>our commercials. Thank you very much for coming in and

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<v Speaker 1>spending time with it, and thanks so much for having me.

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<v Speaker 1>Thanks Kathleen, it's great to be here. Julie Sweet the

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<v Speaker 1>chief executive of North America for Accenture. They're based in Alexandria, Virginia.

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<v Speaker 1>Talking about a company to does thirty four billion dollars

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<v Speaker 1>of business a year. This is Bloomberg Radio. Taking stock

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<v Speaker 1>is brought to you by Bentley University. What are talking about?

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<v Speaker 1>The finances at Converse and managing st locations at JP

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<v Speaker 1>Morgan have in common a business degree from Bentley University.

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<v Speaker 1>Because business is everywhere, prepare here,