Accenture is a market leader in telco IT in the Americas and Europe, and we do not expect it to lose this position in the near future.
Its reputation would be dented if there was a significant failure in execution for a telco customer, and this would have a knock-on effect on revenues, but we perceive no other significant short/medium-term threats.
In the longer term, commoditisation of telco software will squeeze Accenture’s position, but by then, we expect Accenture to have significantly increased its business process outsourcing (BPO) revenues from telcos to compensate.