Accenture Delays Global Promotions Amid Economic Uncertainty

Accenture delays promotions globally, after denying salary hikes to employees in India for fiscal year 2023 - Times of India

ccenture Plc is reportedly planning to push back the bulk of its staff promotions by six months in the latest sign of a prolonged slump that's hurt the wider consultancy industry. According to a report in Bloomberg, the Dublin-based technology giant told employees in an internal blog post last week that it will announce most promotions in June, rather than in the usual month of December.The technology giant has over 750,000 employees globally. The blog reportedly cites ongoing economic uncertainties within the consulting industry. This decision comes as a result of decreased client spending and a broader downturn in the professional services sector. Accenture's revenue forecast for fiscal 2024 was lowered earlier this year, reflecting the challenges posed by the current economic climate. No increments for employees in India and Sri Lanka for FY2023 In October 2023, Accenture had communicated to its employees in India and Sri Lanka that they will not receive hikes for the fiscal year 2023 following adverse macroeconomic challenges. In an email sent out by the country, managing director Ajay Vij said that employees will get individual annual performance bonuses where applicable although they will be significantly lower than the previous year due to the company's performance setback. The company also reportedly postponed promotions across senior management until June 2024. "Given the context of our performance, we will not be providing any stay-at-level (base pay) increases this year except where legally mandated or committed in a few critical skill areas," he added. Similar measures are also said to have been adopted by other consulting firms, including McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers, as they navigate the slowdown. While there has been a recent surge in demand for AI and automation-related projects, it has not been sufficient to offset the overall economic pressures. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Accenture delays promotions globally, after denying salary hikes to India staff

Accenture Plc, the global consulting and technology giant, is set to delay the majority of its staff promotions by six months, a move reflecting ongoing challenges in the consultancy sector. According to a report by Bloomberg, Accenture informed employees through an internal blog post that most promotions will now be announced in June 2024, deviating from the traditional December timeline. This change impacts the company's vast workforce of over 750,000 employees worldwide. The decision to defer promotions is attributed to ongoing economic uncertainties within the consulting industry, particularly a decline in client spending and a downturn in the professional services sector. Earlier this year, Accenture revised its revenue forecast for fiscal 2024, indicating the challenging economic conditions it faces. No Salary Increments for Employees in India and Sri Lanka for FY2023 In October 2023, Accenture communicated to its employees in India and Sri Lanka that there would be no salary hikes for the fiscal year 2023 due to adverse macroeconomic factors. Ajay Vij, the country managing director, stated in an internal email that while individual performance bonuses would still be distributed, they would be considerably lower than the previous year due to the company's performance setbacks. Additionally, the company has postponed promotions for senior management until June 2024. "Given the context of our performance, we will not be providing any stay-at-level (base pay) increases this year except where legally mandated or committed in a few critical skill areas," Vij added. Industry-Wide Impact Accenture's measures mirror actions taken by other consulting firms like McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers, all grappling with the economic slowdown. Although there has been a recent uptick in demand for AI and automation-related projects, it hasn't been enough to counterbalance the overall pressures facing the industry. These developments indicate a period of adjustment for consulting firms as they navigate the ongoing economic challenges. The shift in promotion schedules and the halt on salary increments underscore the broader impact of the current economic climate on the professional services sector.