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.
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.
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