IT services and consultancy firm Accenture said it would lay off 19,000 staffers, or 2.5% of its workforce,  over the next 18 months to reduce costs amid uncertain macroeconomic conditions.

“While we continue to hire, especially to support our strategic growth priorities, during the second quarter of fiscal 2023, we initiated actions to streamline our operations and transform our non-billable corporate functions to reduce costs,” the company said in an Securities & Exchange Commission (SEC) filing on Thursday.

“Over the next 18 months, these actions are expected to result in the departure of approximately 19,000 people (or 2.5% of our current workforce), and we expect over half of these departures will consist of people in our non-billable corporate functions,” the company added.

The job cuts reflect stabilizing demand, following explosive post-pandemic growth, and prudent cost management, according to Ignacio Rasero, vice president for Moody’s Investors Service.

In addition, the company has revised its fiscal year 2023 revenue growth.

“Accenture expects revenues for the third quarter of fiscal 2023 to be in the range of $16.1 billion to $16.7 billion, an increase of 3% to 7% in local currency, reflecting the company’s assumption of an approximately negative 3.5% foreign-exchange impact compared with the third quarter of fiscal 2022,” the company said in a statement.

Despite the reduced forecast, Accenture’s diversified business and industry mix can help offset weakness in specific sectors, such as technology, and provide stability, Rasero said, adding that long-term demand prospects for Accenture’s services remain high as the company continues to benefit from digital transformation trends.

Accenture’s decision to cut jobs comes just after Amazon decided to fire another 9,000 more workers from several business units, including AWS, at the beginning of the week.

Earlier this month, Meta announced that it would fire 10,000 employees, over and above the 11,000 job cuts that it announced four months ago. 

Uncertain macroeconomic conditions have forced technology companies to announce massive layoffs since 2022 through 2023.

IT Consulting Services, Technology Industry

When it comes to IT resourcing during tough economic times, cutting costs in the wrong places can be dangerous. Short-term money-saving steps can be counter-productive – actually damaging the brand in the long term. Smart companies, however, are building powerful third-party Technology partnerships to maximise budgets and simplify their IT operations, so they can continue to grow and innovate.

Here are five key reasons why a third-party IT partnership makes sense:

Delivering a hybrid working environment

‘Work from anywhere’ is the new mantra for all forward-thinking organisations, but delivering a hybrid working environment in-house can be risky and expensive. Partnering with a trusted third-party, however, can help you deliver the following benefits safely and without breaking the bank: 

Hybrid working significantly reduces real-estate footprint and costs. Recent research by IWG suggests that firms can save up to £8,100 per employee annually.A recent study by PWC also suggests that hybrid working can boost productivity.Hybrid working models are also an investment in the future, providing resilience against future crises, such as a spike in covid-19 infections and public transport strikes.Retaining talent with slick hybrid cloud experiences

Collaboration, effortless productivity and user-friendly workplace tools are key to ensuring employee satisfaction in the ‘work from anywhere’ era. Get this wrong and your brightest talent is likely to vote with its feet.

Seamless hybrid-cloud experiences, however, ensure staff have the information and apps they need to get their job done with minimum fuss and from any location. Cloud-powered home working can also improve employee work/life balance, save staff as much as £300 a month on travel and ultimately boost employee retention.

Cutting costs and boosting innovation

Organisations with on-prem servers might think they can’t afford cloud migration with a recession on the horizon. The fact is they can’t afford not to. With guidance from a trusted third-party IT partner, organisations can find the most cost-effective mix of private/public/hybrid cloud, simplifying their complex IT systems, delivering significant long-term savings, while also boosting innovation.

That’s because the right cloud mix reduces capital expenditure on hardware as well as ongoing maintenance. It also increases enterprise agility and innovation, because cloud apps are faster and more cost effective to spin up and down, enabling businesses to experiment with new products and services.

Ensuring systems reliability and availability

Whether you’re providing IT services to external customers or internal stakeholders, systems reliability and availability are key to building your brand. Leading public cloud providers generally offer a 99.9% systems uptime guarantee, they maintain three copies of data at all times in different data centres, provide automatic access to backup servers to minimise downtime, and host apps on at least two servers in case of hardware failure. Few, if any on-premise data centres, can offer anywhere near these levels of reliability and availability without incurring huge cost.

Maintaining and increasing cybersecurity

Working with a trusted IT partner will enable you to audit your cyber security, ensure your resources (both in-house and out-sourced) are aligned to the real-world risks and your in-house cyber security team is focused on core risk-management activity.

With a recession looming and budgets being squeezed, IT leaders face a huge challenge, and they can’t do it alone. The answer is to reach out to a third-party IT provider and explore the benefits, cost efficiencies and opportunities that a sensitive mix of out-sourcing can deliver.

Contact Intercity now to find out how they can help your IT function prepare for the recession.

Education Industry, Hybrid Laptops, IT Management