Accenture’s headcount increases by almost 8,000 in Q3 of FY24

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Information technology major Accenture Plc’s headcount increased by almost 8,000 after a quarter of decline. IT companies have stopped backfilling positions left vacant due to attrition in the recent past because of weak demand.

On June 20, Accenture’s quarterly results showed its headcount increased by 7,882 employees to 750,200 in Q3 of FY24. Accenture follows a September-August financial year.

The company’s headcount had declined by 723 in the previous quarter.

In the fourth quarter ended March 31, 2024, top five Indian IT companies reported a reduction of almost 70,000 employees.

Given that a substantial portion of Accenture's workforce is based in India, its results often serve as an indicator of the broader trends and potential outcomes within the over-five-million-strong Indian IT sector.

The Dublin-headquartered firm's attrition rate increased by 1 percentage point to 14 percent for the quarter.

The world's largest IT services company adding almost 8,000 employees in the quarter is a positive since most IT companies have seen a reduction in the metric. This is because of the existing workforce being put to use, amid uncertain macroeconomic issues.

IT companies have said hiring will resume as and when demand picks up pace.

Meanwhile, Accenture lowered its revenue forecast for fiscal year 2024 due to economic uncertainty leading clients to reduce spending on consulting services.

Accenture's revised outlook on June 20 anticipates full-year revenue growth to be within the range of 1.5 percent to 2.5 percent, compared to its earlier projection of 1 percent to 3 percent. In the first quarter, the world’s largest IT firm had projected the metric in the range of 2 percent to 5 percent.