Accenture has reported a slowdown in Federal procurement projects due to reviews initiated by Elon Musk's Department of Government Efficiency, affecting the company's sales and revenue. CEO Julie Sweet noted that, while the administration aims for efficiency, many procurement actions are postponed, impacting their Federal Services division significantly as it contributed to 8% of global revenue. The guidance from the General Service Administration to evaluate contracts with major consulting firms may add further uncertainty for Accenture. The firm's share price has also declined amid these developments, reflecting investor concerns.
Accenture's Federal procurement projects are slowing due to efficiency reviews initiated by Musk's unit, negatively affecting sales and revenue, claiming about 8% of global revenue.
CEO Julie Sweet highlighted that the new administration aims to run the government efficiently, leading to a slowdown in procurement actions impacting Accenture's growth.
Changes under the new government have raised concerns, with thousands of federal employees let go, including from key agencies like CISA and the National Science Foundation.
The GSA's directions for federal agencies to review top consulting contracts could further complicate Accenture's future, despite their belief in the essential nature of their federal work.
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