Andersen Consulting Revenues Reach $8.9 Billion for 1999.Business Editors NEW YORK--(BUSINESS WIRE)--March 15, 2000 Andersen Consulting See Accenture. today announced revenues of $8.9 billion for the year ended Dec. 31, 1999, an 8 percent increase over 1998 results and a 10 percent increase after removing the impact of international exchange rates. The firm estimated its electronic commerce revenues to be $1.5 billion in 1999, triple the firm's $500 million eCommerce See e-commerce. revenues in 1998. Managing partner and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Joe W. Forehand forehand the head, neck, shoulders, withers and forelimbs of the horse. said, "Andersen Consulting's clients are benefiting from a wide-scale reinvention of Andersen Consulting around electronic commerce. We are positioning ourselves to provide the world's foremost global eCommerce capability for blue-chip firms and start-ups alike." Andersen Consulting's clients include more than half of both the Fortune Global 500 and The Industry Standard 100 most important companies of the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . (The Industry Standard 100 also includes Andersen Consulting.) Forehand said that in 1999, Andersen Consulting focused its resources on long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. initiatives such as AC Ventures, which gives start-ups and spin-offs access to $1 billion in capital and know-how for starting their operations. The firm's 1999 growth was affected by an industry slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. caused by buyers delaying their consulting investments until after 2000. The firm's Government and Communications industries communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. led all industries with 35 percent and 29 percent growth, respectively. Its Consumer & Pharmaceutical Products, Electronics/High Tech and Insurance industries also showed double-digit growth. (Note to readers: a complete statistical breakout follows the end of this announcement.) "Just as our clients are reinventing themselves across many industries, Andersen Consulting is leading a reinvention of our own industry," Forehand said. "We are expanding our role to be both a consultant and an active participant. Our willingness to redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. our own firm makes us uniquely qualified to understand our clients' needs as they change themselves for the electronic economy." New Business Models Help Clients Succeed Forehand said that Andersen Consulting's ability to create new business models for its clients will fuel the firm's future success in the new economy. For example, in December 1999, AC Ventures was formed to generate superior economic return by investing in new electronic businesses. And in February 2000, Andersen Consulting announced the creation of 17 Dot-Com (1) Refers to the period (dot) followed by the abbreviation of the commercial domain (.com) at the end of an Internet address. Since the .com domain is so widely used, the Internet became known as the "dot-com" world, and dot-com companies are those formed to offer services or Launch Centres, which are production studios that help initially-funded start-ups and spin-offs mature into successful operations. (The firm expects to increase the number of Dot-Com Launch Centres shortly.) Andersen Consulting will take up to $1.2 billion in equity over three years from companies as partial compensation for its services and assets. "The electronic economy is too new and fast changing for consultants to offer advice from the sidelines Sidelines Hypothetical position referring to noninvolvement in a stock; merely watching. ," Forehand said. "We must be right in the thick of the industries we serve, learning from our own experiences for the benefit of our clients. So we are pursuing new types of business arrangements such as investments into start-ups, creation of business-to-business exchanges and launching of joint ventures." The firm has helped implement Internet exchanges See IXP and NAP. like the Web-based electricity trading system The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. created with ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . The firm now has investments in and alliances with 175 dot-com firms. The firm recently announced the creation of a joint venture with Telewest Communications. Managing Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Complexity through Global Capability Forehand also said that Andersen Consulting's clients, regardless of their size or location, are benefiting from the firm's ability to manage complex change brought about by electronic commerce. "Our strength extends beyond creating splashy splash·y adj. splash·i·er, splash·i·est 1. Making or likely to make splashes. 2. Covered with splashes of color. 3. Showy; ostentatious. See Synonyms at showy. Web sites," Forehand said. "We anticipate and manage the multiple impacts that eCommerce has across an organization, including its relationships with customers and suppliers." For example, Andersen Consulting helped Sharp use the Internet to build a new product business. The firm helped Sharp build an Internet system that gives Sharp's customers a single point of contact and Sharp's value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. a means to conduct business with Sharp across several geographic locations. For BP Amoco, Andersen Consulting helped create an Internet-enabled electronic procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. system across the entire business. The program, including extensive change management, is expected to save BP Amoco $200 million annually. The firm is applying its technology and eCommerce skills in an expanded alliance with Microsoft that includes unprecedented global collaboration Working together on a project. See collaborative software. and a joint venture named Avanade, which will deliver Internet-specific and other services based on the Windows 2000 platform. (The creation of Avanade is subject to regulatory approval.) To deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. the firm's skills, Andersen Consulting will continue a global training of 15,000 persons around eCommerce. The capability retooling applies to all the firm's core areas of expertise, such as Customer Relationship Management and Technology. "The key to our success and our clients' future success will be how well we retain and deploy our global capability, which combines thought leadership with our deep skills and research and development," Forehand said. The firm invested more than $1.3 billion in training and R&D in 1999. To reward its top performers, the firm created an annual incentive program and announced that it has made the position of partner more accessible to individuals who demonstrate innovation and an entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. spirit. "By winning the war for talent we are giving our clients the entrepreneurial panache of a start-up Start-up The earliest stage of a new business venture. with the deep skills that only our 65,000-strong work force can deliver," Forehand said. Andersen Consulting is a $8.9 billion global management and technology consulting organization whose mission is to help its clients create their future. The firm works with clients from a wide range of industries to bring about far-reaching change by aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. their people, processes and technology with their strategy. Andersen Consulting has more than 65,000 people in 48 countries. Its home page address is http://www.ac.com.
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Andersen Consulting Worldwide Net Revenues by Global Industry Segment
For the Years Ended December 31, 1998-1999
($U.S. Millions)
Note: Andersen Consulting groups its industries under five
"global market units" called Communications & High Tech,
Financial Services, Government, Products, and Resources
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Industry 1999 1998 % Change
----------------------------------------------------------------------
Communications & High Tech 2,408 1,975 22
Communications 1,553 1,205 29
Electronics & High Tech 700 621 13
Media & Entertainment 155 149 4
Financial Services 2,550 2,540 0
Banking 1,613 1,630 (1)
Health Services 230 282 (18)
Insurance 707 628 13
Government 746 552 35
Products 1,615 1,536 5
Automotive, Industrial
& Transportation 603 634 (5)
Consumer & Pharmaceutical Products 583 501 16
Retail 429 401 7
Resources 1,622 1,648 (2)
Chemicals 341 335 2
Energy & Natural Resources 709 790 (10)
Utilities 572 523 9
WORLDWIDE TOTAL 8,941 8,251 8
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Andersen Consulting Worldwide Net Revenues by Global Geographic Area
For the Years Ended December 31, 1998-1999
($U.S. Millions)
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Area 1999 1998 U.S. Dollar Local Currency
Growth Rate %Change
----------------------------------------------------------------------
Americas 4,793 4,658 3 4
Asia Pacific 599 554 8 1
Europe/Middle East/
Africa/India 3,549 3,039 17 21
WORLDWIDE TOTAL 8,941 8,251 8 10
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Andersen Consulting Worldwide
Net Revenue Growth
For the Years Ended
December 31, 1989-1999
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Year Revenue U.S. Dollar
%Change
-----------------------------------
1999 8,941 8
1998 8,251 24
1997 6,647 25
1996 5,302 26
1995 4,224 22
1994 3,452 20
1993 2,876 6
1992 2,723 16
1991 2,341 14
1990 2,057 32
1989 1,561
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Andersen Consulting Worldwide
Personnel Total
For the Years Ended
December 31, 1989-1999
-----------------------------------
Year Personnel %Change
Total
-----------------------------------
1999 65,496 1
1998 65,134 22
1997 53,426 19
1996 44,801 18
1995 38,027 16
1994 32,711 12
1993 29,296 10
1992 26,730 6
1991 25,290 3
1990 24,548 15
1989 21,355
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