01—Abstract
Summary
Summary of the 8-K filed January 13, 2020. Cited figures are marked; the original filing is the authoritative source.
Accenture plc (ACN) announced significant organizational changes via an 8-K filing on January 13, 2020, effective March 1, 2020.
These changes are designed to simplify the company's structure and better align with its growth strategy. The primary impact for investors is the shift in reporting segments from five operational groups to three geographic markets: North America, Europe, and Growth Markets. This new structure will be adopted starting in the third quarter of fiscal year 2020.
While the reporting segments are changing, Accenture will continue to provide revenue disclosures by the former operating groups and by type of work (consulting and outsourcing), as well as supplemental information on digital, cloud, and security services. The company also highlighted leadership changes within its Global Management Committee, aligning with the new operational framework. These adjustments aim to enhance Accenture's ability to capture market opportunities and drive innovation across its service lines.
02—Key points
Key Highlights
- Accenture is restructuring its reporting segments from five operating groups to three geographic markets (North America, Europe, Growth Markets) effective March 1, 2020.
- The new segment structure will be adopted for reporting starting in the third quarter of fiscal year 2020.
- Organizational capabilities will be consolidated into four services: Strategy & Consulting, Interactive, Technology, and Operations.
- Leadership changes within the Global Management Committee are effective March 1, 2020, to support the new structure.
- Accenture will continue to disclose revenues by former operating groups and by type of work (consulting and outsourcing).
- Supplemental information regarding digital, cloud, and security services will continue to be provided.
- The changes are intended to align with Accenture's growth model and enhance market responsiveness.
03—Questions
Frequently Asked Questions
What are the main changes to Accenture's reporting segments?
Accenture is shifting from five reportable operating segments to three, based on geographic markets: North America, Europe, and Growth Markets. This change will take effect starting in the third quarter of fiscal year 2020.
Will Accenture stop reporting revenues by its previous operating segments?
No, Accenture will continue to disclose revenues by its former operating groups (Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources) and by type of work (consulting and outsourcing), in addition to the new geographic segments.
Are there any changes to how Accenture reports on its digital, cloud, and security services?
Accenture will continue to provide the same supplemental information regarding its 'New' services, which include digital, cloud, and security services, as it has historically.
When do these organizational and reporting changes become effective?
The organizational changes, including leadership appointments and the new service structure, are effective March 1, 2020. The new segment reporting structure will be adopted starting in the third quarter of fiscal year 2020.
04—Continue