Accenture expects better profitability amid lower costs

Accenture, whose outsourcing business competes with India's Infosys Ltd (INFY.NS) and Tata Consultancy Services (TCS.NS), has faced pricing pressure amid sluggish business spending and stiff competition in the last few quarters. "(Contract profitability) has been sequentially better in quarter three as compared to quarter two, and then again in quarter four as compared to quarter three," Chief Financial officer David Rowland said on an earnings call with analysts. Accenture forecast full-year profit of $4.74-$4.88 per share, including a 2 percent hit related to currency-rate fluctuations. Accenture said it expects $34 billion-$36 billion of new contracts for the full year, compared with $35.88 billion in the previous year.

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