Factors contributing to European market growth
Accenture’s (ACN) European market continues to witness impressive growth buoyed by strong double-digit growth in Germany, Italy, Ireland, France, and Spain.
Moreover, the deployment of the GDPR (General Data Protection Regulation) compliance policy in Europe may further create an opportunity for the technology giant to win more contracts in the future.
In the last five quarters, business from the European region has grown at a CAGR (compound annual growth rate) of 5.1%. In the graph above, we can see the European business trend for Accenture over the last five quarters. During the period, the company maintained an increasing trend. In the fiscal third quarter, the Europe segment generated YoY (year-over-year) revenue growth of 22% to $3.7 billion.
Large technology players Microsoft (MSFT) and IBM (IBM) are also strengthening their European markets through new and innovative product launches. To boost its market share, Accenture is making different acquisitions on a regular basis across Europe.
Other market performances
Accenture continues to gain from higher IT spending in different organizations driven by the improving economic scenario and the ongoing digitization trend around the world.
Accenture’s North American market, which makes up more than 45% of its total revenue, has maintained stable revenue growth over the last five quarters. In the fiscal third quarter, its revenue improved 7.6% YoY to $4.6 billion. In the last five quarters, its revenue from the region has expanded at a CAGR of 2.7%.
Even the growth markets for Accenture are gradually transforming into potential markets. In the fiscal third quarter, it saw double-digit growth in Japan, Australia, Brazil, and Singapore. In the last five quarters, the company’s revenue has climbed at a CAGR of 4.4%.