Accenture has announced impressive results for the first quarter, highlighting a highly optimistic outlook, primarily driven by substantial growth in the Americas region.
Key highlights include a 9% to 11% increase across their business lines, indicating potential positive impacts on Indian IT organizations as well.
The company has seen a significant headcount increase, adding approximately 25,000 employees this quarter following the addition of 24,000 in the previous quarter.
Revenue has reached an all-time high, rising from $16.41 billion last quarter to $17.7 billion this quarter, underscoring Accenture’s robust performance.
Accenture to Create 80,000 Jobs in India by 2025
Accenture has approximately 40% of its resources in India, and projects 4-7% growth, positively impacting talent-hiring through new additions, investments in campus grads, and attrition replacements.
Q1FY25 results reveal that Accenture’s revenue has exceeded projections by approximately $200 million to $240 million, reflecting positive growth.
Their revised guidance indicates an expected increase of 4% to 7%, further underscoring optimism.
Accenture reported $1.2 billion in generative AI bookings and a cumulative order booking of nearly $100 billion, with consulting at $46 billion and managed services at $53 billion.
Geographic growth is evident, with the Americas up by 9%, EMEA by 10%, and APAC by 6%.
Significant revenue increases were observed in various segments, including a 133% rise in health and public services and a 12% growth in products.
With an estimated workforce of approximately 799,000 and an average revenue production of $80,000 per employee, it is projected that around 58,500 new employees would be needed in India for the projected $4.5 billion revenue growth, where 40% of the workforce currently operates.
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4-5 Lakh IT Jobs in India in 2025
The major Indian IT companies—TCS, Wipro, Infosys, Cognizant, and HCLTech—reported combined revenues of approximately $89-$90 billion for the year ending March 2024.
Their total employee count approaches 20 lakh, with specific headcounts of around 650,000 for TCS, 300,000 for Wipro, and similar numbers for the others.
An analysis indicates that these companies require approximately 2,200 to 3,000 employees for every billion in revenue.
Assuming a collective growth of 5%, an additional 1 lakh employees would be needed.
Accounting for a 20% overseas workforce, the effective employee base reduces to about 16.4 lakh, leading to a projected requirement of 3 lakh new hires, factoring in attrition and growth.
Recent reports suggest a 10% increase in hiring, with an overall projected increase of 23-24%, highlighting significant growth trends in the industry’s hiring landscape, particularly within campus recruitment efforts expected to add up to 2.5 lakh employees.
6-10% Salary Hike in Accenture 2025
Manpower costs significantly impact the overall expenses of organizations providing IT services, particularly in India, where managed services dominate over product implementation.
Currently, the revenue split between managed services and product implementation in India is approximately 50/50.
Consequently, the financial implications suggest that a salary increase of 6 to 10% for employees may be feasible if organizations can absorb a bottom line impact of 3 to 5%.
With anticipated growth of around 5% among leading firms, a salary increase ranging from 5% to 8.5% could occur, reflecting a 2.5% to 4% impact on the bottom line.
However, due to the challenges with client rate increases and the trend of smaller investments declining, organizations must exercise caution with salary increments to safeguard their profitability.
Accenture CHRO predicts that employees in India could expect a salary hike of approximately 6 to 10% this year.
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