Cisco Systems, Inc. (CSCO), General Electric Company (GE): Accenture Plc (ACN) Earnings: An Early Look

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A big reason for Accenture’s success has been its ability to identify promising opportunities. Ever since India started emerging as a growing economic power, Accenture has turned to India to take advantage of its profit-making potential, with 70,000 employees in the emerging nation covering a wide variety of sectors. Moreover, the fast-growing energy industry has also benefited Accenture, as energy companies and investors turn to the consulting giant for data and expertise on all facets of the industry.

But recently, Accenture Plc (NYSE:ACN) has had to deal with a huge number of competitors realizing the value in providing high-margin, low-cost services. Especially in technology, International Business Machines Corp. (NYSE:IBM) and Cisco Systems, Inc. (NASDAQ:CSCO) have worked hard to go beyond their relatively low-margin commodity-like hardware businesses to capture a bigger share of the IT consulting market, squeezing Accenture’s early-mover advantage in the space. Moreover, General Electric Company (NYSE:GE) has aimed squarely at the energy industry, with its expertise in nuclear, solar, wind, and other forms of energy production and infrastructure becoming an increasingly important part of its overall business.

In its quarterly report, watch for Accenture Plc (NYSE:ACN)’s take on its future strategy. More important than the numbers will be how Accenture sees itself beating its increasingly plentiful competition. If it can return to its roots by using its people as its biggest asset, then Accenture should continue to adapt and grow in the long run.

The article Accenture Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Accenture and Cisco Systems. The Motley Fool owns shares of General Electric and IBM.

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