Trump Administration-Based Uncertainty Causes Accenture Branch To Lose Sales
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Accenture’s branch, Accenture Federal Services, reported that it had lost sales in the 2024 fiscal year, blaming the uncertainty from the Trump administration as the main reason.
Julie Sweet, who works as the CEO and chair of Accenture, commented on this by saying that Accenture Federal Services is responsible or 8% of the company’s global sales, and 16% of sales that the firm sees in America.
She also noted that the General Services Administration (GSA) wants federal agencies to review contracts with the highest-paid consulting companies in the US government. Doing so would make cuts to non-mission critical services, and Accenture Federal Services happened to be one of them.
Commenting on the matter further, Sweet said that the new Trump administration has a clear goal to run the federal government more efficiently. However, as part of this process, numerous new procurement actions have been significantly slowed. This has had a noticeable negative impact on the company’s overall sales and revenue.
DOGE, Tariffs, and Uncertainty Are Impacting Sales
As many likely already know, US President Donald Trump introduced a new agency called the Department of Government Efficiency (DOGE) with the goal of making cuts within the federal government.
The move was announced even before Trump returned to the White House, and the launch of DOGE followed soon after the inauguration.
As for Accenture Federal Services, it is tasked with managing business related to national security, safety, and defense. Its purpose is also to support initiatives with technology, R&D, and design.
Another reason why sales were affected was the general uncertainty involving the tariff, as Sweet also pointed out. However, this is not exclusive to the Americas, given that there are global discussions trying to address the issue, which is seemingly emerging around the world.
Finally, Sweet concluded by saying. “Based on our significant experience across federal and commercial clients, we see major opportunities over time for us to help consolidate, modernize, and reinvent the federal government to drive a whole new level of efficiency.”
