Accenture sets up unit for low-priced contracts

BANGALORE: Accenture, the world’s third-largest IT services major known for premium pricing of its services, has formed a separate unit to handle the low-priced contracts it has been securing. The name of the unit is not known, but the move underlines the growing reality in the IT services market, where newer contracts are coming at lower price-points, thanks to the continuing slowdown. IT majors like Accenture are left with little choice but to bid for such projects, people familiar with the development said.

Accenture’s new unit will handle all low-priced projects, especially the ones that are below its benchmark pricing. Accenture normally charges about $27-28 per hour from its premium clients. The new contracts are believed to be about 10% cheaper. The company did not respond to a detailed e-mail sent by ET last Friday.

Accenture is regarded as a premium pricing player, with the ability to get a higher price on IT contracts vis-à-vis its competitors. Industry observers say Accenture has been able to do this due to its strength in consulting, which is almost about 20% higher than the existing rates.