Accenture to restructure operations with new integrated business unit

NEW YORK - Accenture (NYSE: ACN), a prominent player in the IT Services industry with a market capitalization of $191.8 billion and annual revenue of $67.2 billion, announced Thursday it will implement changes to its growth model and leadership structure effective September 1, 2025, creating a single integrated business unit called Reinvention Services. According to InvestingPro analysis, the company maintains strong financial health with robust profitability metrics.

The new unit will consolidate Accenture’s Strategy, Consulting, Song, Technology and Operations services under Manish Sharma, the company’s current CEO of the Americas, who will become Accenture’s first Chief Services Officer.

According to the company, the restructuring aims to create solutions faster and more effectively embed data and AI capabilities into its service delivery. Accenture will maintain its three geographic markets—the Americas, EMEA, and Asia Pacific—and continue its industry-focused approach to market engagement.

The reorganization includes several leadership changes. John Walsh, currently global Chief Operating Officer, will succeed Sharma as CEO of the Americas. Kate Hogan will replace Walsh as global Chief Operating Officer.

The new integrated business unit will have five division leaders reporting to Sharma: Muqsit Ashraf continuing as Group Chief Executive for Strategy; Jason Dess becoming Group Chief Executive for Consulting; Ndidi Oteh leading Song; Rajendra Prasad appointed as Group Chief Executive for Technology and Chief Technology Officer; and Arundhati Chakraborty continuing to lead Operations.

Additionally, Kate Clifford will become the global Chief Leadership and Human Resources Officer.

"Today, our clients need more value faster, and Accenture is their reinvention partner of choice," said Julie Sweet, chair and CEO of Accenture, in the press release statement. "These changes to our growth model will allow us to deliver that value and continue to scale our business."

Accenture currently employs approximately 791,000 people serving clients in more than 120 countries.

In other recent news, Accenture has reported several key developments that may interest investors. The company modestly increased its fiscal year 2025 guidance, projecting 5-7% nominal revenue growth and 3% organic growth for the full year. This adjustment comes amidst challenging market conditions, with Stifel maintaining a Buy rating and a $355 price target. Meanwhile, Morgan Stanley has lowered its price target for Accenture to $340, citing macroeconomic concerns but maintaining an Equalweight rating. The firm anticipates an increase in the lower end of Accenture’s fiscal year 2025 growth guidance.

Accenture has also expanded its AI Refinery platform in Europe, enhancing its capabilities to address data sovereignty concerns. This platform is expected to play a significant role in the European sovereign AI market by 2030. Additionally, Accenture announced an investment in Reserv, an AI-driven insurance claims firm, aiming to improve efficiency in claims processing. This investment underscores Accenture’s commitment to integrating advanced technology into its services. Furthermore, Ndidi Oteh has been appointed as the new CEO of Accenture Song, succeeding David Droga, who will transition to a strategic role. Droga’s leadership saw Accenture Song’s revenue grow significantly, reflecting his impactful tenure.

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