Why Is Accenture Not In the Fortune 500?

Accenture is one of the best IT services and consulting firms in the world. But it’s not a part of the Fortune 500 companies, which might make you wonder why!

Accenture is included in the prestigious list of Fortune Global 500 companies. Unfortunately, it misses out on the Fortune 500 list. When I researched the reasons, I came across the fact that it’s a Dublin-based firm. To appear on this list, the company has to be a US-based entity. 

In today’s read, I’ll explore:

• What is a Fortune 500 company? 
• Why is Accenture not in the Fortune 500?

What is a Fortune 500 Company?

A Fortune 500 company is the one that appears in the Fortune 500 list. 

It is an annual list published in Fortune magazine. Edgar P. Smith (assistant managing editor for Fortune magazine) started this tradition, and now it’s grown into a way of documenting the most powerful and successful companies in the United States. (Source)

It ranks the 500 biggest organizations (only in the US) based on how much they’ve earned in the previous year (with a few other factors, too). 

Fortune magazine has been making this list every year (since 1955) and is considered very prestigious in the corporate world. (Source)

Is Accenture a Fortune 500 company?

Accenture is a well-reputed IT services and consulting firm and has been included in many prestigious lists. Unfortunately, it is not a part of the Fortune 500 list of companies, and the question arises, “Why?”

Every entrepreneur dreams of getting into this list, but only a few achieve this feat because it isn’t too easy! There are so many boxes a company needs to tick before becoming one of the companies on the Fortune 500 list. 

So, let’s discuss what could be the reasons for Accenture not making the cut into the Fortune 500:

1. Fewer Innovations & Adaptability 

Talking about Accenture, it’s doing really well with Artificial Intelligence (AI), but it seems the firm might be missing out on innovating in other areas, such as:

• Healthcare and Life Sciences
• Financial Technology (Fintech)
• Education Technology (EdTech)

(Source)

Accenture is not focusing enough on innovations and adapting to the current market trends (Almost all companies on the Fortune 500 list do so). 

Accenture hasn’t been able to welcome new ideas! If its performance remains the same, it will not be following the world and be left behind by miles. Also, being named in any of the prestigious lists (like Fortune 500) will remain a dream!

2. Less Growth & Progress 

The growth of Accenture has remained a cause of concern! In fact, the firm shared news saying that it’s not expecting a revolution (mainly AI) in the IT industry as of now and will not earn a huge amount of money. This made Accenture’s shares drop more than 5%. (Source)

The CEO, Julie Sweet, mentioned that its clients are being cautious at the moment and not making many deals because the future of the economy is uncertain. This has slowed down the overall progress of Accenture.

Accenture offers consulting services in many industries (technology, media, and communications), but none of them have done so well recently. 

That being said, if Accenture’s growth remains the same, it might be impossible for the firm to get into the Fortune 500 list.  

3. Lack Of Training Programs

All the major firms in the world pay attention to training their employees in the best possible way. That’s how they can compete in this fast-paced world! 

That’s why these companies come up with a number of training programs to guide their workforce and help them learn new skills. 

Let me give you an example: Amazon (Placed second on the Fortune 500 list) has a world-class training program. 

Before you start working there, you go through a special and intense training program that lasts for a month. It focuses on teaching you the critical skills and leadership qualities.

Amazon also has a program called the “Virtual Contact Center.” It offers special training for those employees who want to work from home. It teaches them how to do their jobs remotely. (Source)

There’s no doubt that Accenture also has a few great training programs, but they don’t come close to the caliber of what the Fortune 500 companies are exercising. (Source)

In my opinion, that is one of the major reasons for Accenture not making the Fortune 500 list. 

4. Regular Downsizing 

Accenture has been downsizing its workforce regularly. The firm thinks that it’s the best cost-cutting strategy. (Source)

On the other hand, Fortune 500 companies think differently! They know that people are their most valuable resource. That’s why they treat them with a lot of respect and love.

So, if Accenture aims to secure a spot in the Fortune 500, it has to slow down the downsizing process and make every employee feel good.

This will help Accenture create a positive work environment and also increase the company’s overall reputation.

A former consultant working at Accenture wrote on Glassdoor: “In my experience at Accenture, I observed a heavy reliance on artificial intelligence (AI) in various aspects of the company’s operations. While the integration of AI brings technological advancements, it also became apparent that the firm engages in regular downsizing, which impacts the workforce. As an employee, it was disheartening to witness frequent downsizing, and unfortunately, it played a role in my decision to leave the company.” (Source)

5. Based Outside The United States

Here’s the most important reason! To be in the Fortune 500 list, a company must be a U.S.-based entity. (Source)

But, Accenture is based and incorporated in Dublin, Ireland. (Source)

Despite having offices worldwide, the specific rule of being headquartered in the United States is what keeps Accenture from making it to the Fortune 500. (Source)

Toward the end, here is a table that will show you the top 10 Fortune 500 companies, along with their revenues in the previous year. This will give you a bit of an idea about the effort a firm needs to make to be on this prestigious list.

(Source)