Accenture (NYSE:ACN) bills its clients for the hourly time of Accenture consultants, but billing rates have dipped in recent years. Accenture’s income and profits are significantly impacted by the rates that it can charge for its consultants, and a recovery of these rates can have a meaningful impact on the $52 Trefis price estimate for Accenture’s stock (40% above the current market price of $37).
Accenture competes with HP (NYSE:HPQ), IBM (NYSE:IBM), Infosys (NASDAQ:INFY), Wipro (NYSE:WIT), and Cognizant (NASDAQ:CTSH) in key areas like software application outsourcing and business process outsourcing. A broad economic recovery as well as increases in the bill rates charged by competitors can have an important impact on how Accenture’s rates will trend.
Sourcehttps://www.trefis.com/company?article=22047#
