Editor’s note: Accenture doubles-down on intelligent automation technologies to highlight tangible benefits and stay abreast of innovation. How? Technology Business Research Analyst Bozhidar Hristov explains for WTW Insiders.

HAMPTON, N.H. – Accenture is building a foundation for AI-based service delivery by expanding the relationship with IPSoft and launching myWizard​.

It is doubling down on intelligent automation technologies to highlight tangible benefits and stay abreast of innovation

According to TBR’s 4Q15 Global Delivery Benchmark, adoption of automation tools and IP are still in a nascent stage, and vendors have yet to scale up tangible benefits from their use. We attribute the trend mainly to buyers’ hesitancy toward taking on the additional risk associated with deployment of completely automated services. In its typical innovative mode, Accenture continued to invest aggressively in automation technologies covering the entire spectrum, from robotic process automation through intelligent automation and artificial intelligence (AI).

During CY2Q16 Accenture deepened its relationship with consolidating-process automation engine vendor IPSoft to launch the Accenture Amelia practice for co-development of intelligent and AI-based IP targeting clients in verticals such as financial services, insurance and travel.

Additionally, Accenture launched AI-based platform myWizard for application services, which TBR believes will help its consultants accelerate to promote the benefits of automation, including efficiency, standardization and improved profitability.

TBR believes “do-engines” such as IPSoft’s Amelia can help accelerate the transition from RPA to cognitive-based service delivery, with consumer behavior driving the shift. We believe Accenture’s established position among Global 2000 clients and increased collaboration with consumer-centric content providers can bring it closer to the end customer, influencing buyers’ adoption behavior around automation-based engines.

  • Accenture’s outcomes-led discussion and trusted relationships with Global 2000 clients helps win profitable revenue share

Accenture’s investments in process standardization and industry-wrapped delivery frameworks enable the company to capture demand for operational efficiency services around consulting on process change and infrastructure modernization. Trusted client relationships within Global 2000 accounts paired with brand eminence helps Accenture attract top-tiered talent. This subsequently enables Accenture to drive consulting-led discussions in digital-related services and core modernization tasks.

Accenture maintains robust account management, with a 45 days sales outstanding in CY2Q16, which allows it to convert bookings in cash at scale and helps it gain market share across all its businesses. In a platform-centric IT services market, Accenture’s portfolio of AI and cyber-driven IP offer higher-value, nonlinear services, expanding sale and profitability.

Broad-based demand for digitization, rationalization and consolidation services bolstered Accenture’s net revenue 8.6% year-to-year in USD (10% in local currency) to $8.43 billion in CY2Q16. Accenture’s portfolio and talent geared toward “as a Service” delivery helped it capture reportedly 30% growth in local currency in digital-related services, including interactive, mobility and analytics. Increased demand for supply-chain optimization within Accenture’s reported Products operating group resulted in 14.6% year-to-year growth in USD in CY2Q16.

Robust demand for business operations’ efficiency services paired with Accenture’s established footprint among U.S. public sector clients helped Health & Public Service to grow 11.3% year-to-year in CY2Q16. Double-digit growth in North America (10.2%) and Europe (11.1%) offset slowing growth in markets such as Brazil. With the success in revenue growth in CY2Q16, TBR expects Accenture to deliver 5.4% year-to-year growth in FY16 as it continues to integrate acquired and home-grown assets in areas such as cloud systems integration, cybersecurity, design and AI into its consulting value proposition ahead of market demand.

Robust C&SI sales (12.4%) helped lift operating margin 90 basis points year-to-year to 15.5% in CY2Q16, as a majority of the project work stemmed from higher-value strategy consulting discussions. As a result of Accenture’s increased focus toward consulting-led engagements, we expect the company to meet its FY16 operating margin guidance of 14.6% and expand in FY17.

  • Accenture leverages its CMT video capabilities to capture content-centric managed services opportunities within mobile and IoT domains

While digital-enabled technologies improve key performance indicators across the customer life cycle in B2B and B2C interactions, adoption within certain consumer-facing industries such as retail and communications, media and technology (CMT) are accelerating the transition. During CY2Q16 Accenture signed deals with TV Broadcaster Mediaset, TV channel Sky and RCS Media Group to support their digital transformation initiatives leveraging Accenture Digital Video Solution capabilities. The traction in the CMT vertical demonstrates Accenture’s ability to capitalize on demand for digitally enabled distribution services.

Working with front-end advertisers (especially in the CMT vertical) by linking digital marketing functions provides an entry point for revenue cycle opportunities that Accenture can capitalize on at scale, especially managing all connected platforms end customer use to consume content.

TBR believes the CMT-trained consultants provide the link between enterprises and end consumers by recommending and executing on domain-specific solutions, turning them into invaluable members of the broader digital transformation. Additionally, we see these consultants supporting Accenture’s efforts to build scale in mobile and Internet of Things (IoT) domains, closely working with their peers in Accenture Digital.

(Read more about Accenture’s AI strategy at:

https://www.accenture.com/us-en/insight-artificial-intelligence-software )