VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, December 31, 2025
Accenture plc
ACN · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Accenture plc is a global IT and professional services firm delivering two primary types of work: Consulting and Managed Services. Its core advantages are demand-driven (brand and reputation and long-standing enterprise relationships) and supply-driven (a very large global delivery network that supports scale, cost efficiency, and time-zone coverage). Managed Services adds stickiness through multi-year contract structures and operational embedding in client systems and business functions. Key counter-pressures include intense competition (including Big 4, offshore specialists, and in-house GCCs), pricing pressure, and accelerating automation and AI that can commoditize parts of delivery.
Primary segment
Consulting
Market structure
Competitive
Market share
—
HHI: —
Coverage
2 segments · 8 tags
Updated 2025-12-30
Segments
Consulting
Enterprise consulting (strategy, management, technology consulting and technology integration consulting)
Revenue
50.4%
Structure
Competitive
Pricing
—
Share
—
Peers
Managed Services
Managed services and outsourcing (ongoing operations for client systems and business functions, including application development and maintenance and infrastructure management)
Revenue
49.6%
Structure
Oligopoly
Pricing
—
Share
—
Peers
Moat Claims
Consulting
Enterprise consulting (strategy, management, technology consulting and technology integration consulting)
Revenue share computed from FY2025 Form 10-K type-of-work revenues: Consulting $35,106.786M of total $69,672.977M.
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Brand and reputation support enterprise trust in high-stakes transformation programs (including AI-led reinvention).
Erosion risks
- Reputation damage from delivery failures or ethical issues
- Security and privacy incidents affecting client trust
- Perceived AI capability parity vs peers
Leading indicators
- Large-deal win rate and renewal rate
- Client satisfaction and NPS disclosures (if provided)
- Talent attrition and senior leader retention
Counterarguments
- Big 4 and other global firms also have trusted brands in enterprise buying
- Procurement-led buying can commoditize providers into rate cards
Procurement Inertia
Demand
Procurement Inertia
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Longstanding client relationships reduce vendor switching and increase repeat or expanded work in subsequent transformation phases.
Erosion risks
- Vendor rationalization and competitive rebids to reduce concentration
- In-sourcing via global capability centers (GCCs)
- Budget cuts reducing discretionary transformation spend
Leading indicators
- Net new bookings trend for consulting
- Mix shift toward smaller or faster projects vs multi-year programs
- Public commentary on GCC expansion by major clients
Counterarguments
- Large clients routinely multi-source and run frequent RFPs
- Relationship advantage can be offset by price competition and offshore specialists
Suite Bundling
Demand
Suite Bundling
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Broad cross-functional capabilities allow Accenture to bundle strategy-to-implementation offerings and simplify vendor management for large reinvention programs.
Erosion risks
- Clients prefer best-of-breed boutiques for specialized work
- Complexity or coordination overhead in bundled engagements
- Regulatory or governance limits on single-vendor scope
Leading indicators
- Share of large deals involving multi-tower delivery
- Acquisition mix (capability tuck-ins vs scale buys)
- Operating margin stability while scaling integrated delivery
Counterarguments
- Competing global firms also bundle end-to-end services
- Some clients explicitly disaggregate work to keep vendors competitive
Service Field Network
Supply
Service Field Network
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Large global delivery network enables cost-efficient delivery, time-zone coverage, and rapid scaling for implementation-heavy consulting work.
Erosion risks
- Wage inflation and talent scarcity in major delivery hubs
- Geopolitical disruption or regulatory limits on cross-border delivery
- Automation and AI reduce labor-arbitrage advantage across the industry
Leading indicators
- Onshore and offshore mix and utilization rates
- Delivery-center footprint changes
- Gross margin trend vs peer set
Counterarguments
- Global delivery networks are widespread among large IT service providers
- Remote work and standardized tooling reduce differentiation from physical footprint
Managed Services
Managed services and outsourcing (ongoing operations for client systems and business functions, including application development and maintenance and infrastructure management)
Revenue share computed from FY2025 Form 10-K type-of-work revenues: Managed Services $34,566.191M of total $69,672.977M.
Long Term Contracts
Demand
Long Term Contracts
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Managed services is underpinned by multi-year contracts that convert bookings to revenue over longer periods, improving visibility and client stickiness.
Erosion risks
- Early terminations or renegotiations during downturns
- Shift to hyperscaler-managed and SaaS-managed offerings
- Commoditization of run/operate services via automation
Leading indicators
- Managed services new bookings trend
- Renewal rates on large contracts (if disclosed)
- Cloud-managed spend share (partner vs self-managed)
Counterarguments
- Accenture states termination charges may not cover costs or lost profits
- Many enterprise clients rebid managed services regularly and multi-source towers
Switching Costs General
Demand
Switching Costs General
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
When Accenture runs client systems and business functions, operational entanglement and transition risk raise switching costs vs a new provider.
Erosion risks
- Standardization on cloud platforms reduces bespoke operational complexity
- Clients build internal GCCs to take work in-house
- Modular sourcing reduces vendor dependence
Leading indicators
- Client announcements of insourcing and GCC expansion
- Unit-price or outcome-based commercial model adoption
- Contract transition cost disclosures (if any)
Counterarguments
- Switching providers is feasible with structured transition programs and standardized tooling
- Customers can retain architectural control and keep vendors interchangeable
Service Field Network
Supply
Service Field Network
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
A large delivery network supports 24/7 operations, process industrialization, and cost-efficient scaling for run/operate managed services.
Erosion risks
- Geopolitical disruption and cross-border delivery constraints
- Wage inflation in key delivery locations
- Automation reduces differentiation from footprint
Leading indicators
- Utilization and workforce mix by geography (if disclosed)
- Margin trends in managed services
- Automation and GenAI productivity metrics (if disclosed)
Counterarguments
- Other global providers also operate large delivery networks
- Cloud-native operations can reduce reliance on large human networks
Ecosystem Complements
Network
Ecosystem Complements
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Deep partner status with major technology ecosystems can improve access to product roadmaps, certifications, and joint go-to-market, supporting win rates in managed services built on those platforms.
Erosion risks
- Partners shift services in-house or prioritize other integrators
- Certifications and reference architectures commoditize over time
- Regulatory constraints on data residency limit cross-partner delivery
Leading indicators
- Public partner awards and co-sell announcements
- Revenue concentration by platform partnerships (if disclosed)
- Partner program tier changes
Counterarguments
- Ecosystem partnerships are typically non-exclusive and replicable
- Hyperscalers increasingly deliver managed services directly
Evidence
We believe the Accenture brand name and our reputation are important corporate assets that help distinguish our solutions and services ...
Direct statement that brand and reputation differentiate Accenture offerings, supporting demand-side trust.
We have long-term relationships and have partnered with 195 of our top 200 clients for 10 or more years.
Longevity with top clients supports procurement inertia and repeat business dynamics.
Reinvention Services makes it simpler ... to sell and deliver our full range of solutions and services.
Supports a bundling mechanism: integrated go-to-market intended to expand share of wallet across offerings.
A key differentiator is our global delivery capability ... one of the world's largest networks of centers ...
Explicit positioning of global delivery scale as a differentiator; supports field-network scale advantage.
Our managed services contracts typically span several years.
Direct evidence that managed services engagements are commonly multi-year in duration.
Showing 5 of 8 sources.
Risks & Indicators
Erosion risks
- Reputation damage from delivery failures or ethical issues
- Security and privacy incidents affecting client trust
- Perceived AI capability parity vs peers
- Vendor rationalization and competitive rebids to reduce concentration
- In-sourcing via global capability centers (GCCs)
- Budget cuts reducing discretionary transformation spend
Leading indicators
- Large-deal win rate and renewal rate
- Client satisfaction and NPS disclosures (if provided)
- Talent attrition and senior leader retention
- Net new bookings trend for consulting
- Mix shift toward smaller or faster projects vs multi-year programs
- Public commentary on GCC expansion by major clients
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
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