Increased competition means that clients are less willing than they were in the 1990s to pay a brand premium in many parts of the IT services market.
Accenture faces challenges in managing its prices and its brand as it juggles a mixture of traditional premium-price services with a new generation of low-cost services.These challenges are tough but not insurmountable.
Accenture expects to continue its record of double-digit growth and operating margins in 2007, and we don’t disagree.