Frugal retail clients prompt Accenture warning on weak consulting business

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Accenture flags pressure on consulting business as clients turn cautious

After a pandemic-led boom, spending on IT and transformation projects is slowing as companies prioritize projects that deliver stronger return-on-investments in an uncertain economy.

Sweet said Accenture's strategy and consulting business would decline slightly in the second quarter. She added clients were still spending on technology, cloud services and on projects that helped cut costs, but advertising and marketing initiatives were shrinking, and retailers had cut back majorly.

There will be softer demand for new consulting projects in fiscal 2023, said Julie Sharma, equity analyst at Morningstar.

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Consulting orgs, especially McKinsey are grifters anyway

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