Accenture Federal Services, a division of Accenture, has experienced a decline in sales during the fiscal year 2024, largely attributed to the prevailing uncertainties stemming from the Trump administration.
Julie Sweet, chair and CEO of Accenture, indicated that Accenture Federal Services constitutes 8% of the company’s total global sales and 16% of its sales in the United States. During a recent quarterly earnings call, she highlighted that the General Services Administration (GSA) has mandated federal agencies to reassess contracts with high-paid consulting firms in an effort to reduce expenditures on non-essential services, which has impacted Accenture Federal Services.
Sweet remarked, “The new administration is focused on increasing the efficiency of the federal government. As a result, numerous procurement activities have slowed down, adversely affecting our sales and revenue.”
In this context, President Donald Trump established the Department of Government Efficiency (DOGE) shortly after taking office, aiming to implement cost-cutting measures within the federal government. Accenture Federal Services plays a critical role in managing initiatives related to national security, defense, and safety, providing support through research and development, technology, and design.
Sweet noted a heightened sense of uncertainty surrounding tariffs, a situation not confined to the Americas, as global discussions are ongoing to tackle the issue. “Drawing from our extensive experience with federal and commercial clients, we see considerable opportunities to help streamline, modernize, and transform the federal government, driving unprecedented levels of efficiency,” Sweet concluded.