Accenture vs TCS: Which Is The Better IT Company?

Accenture vs TCS

The IT landscape, that has been constantly evolving and witnessing many major and prominent players in its space. Two such names that shine bright in this landscape and are giving a rough tough competition to each other are Accenture vs TCS. 

Accenture vs TCS

Since their establishment in the market, both the players offer their unique strengths, strategies, characteristics, not only in the IT sector, but also in other domains like business consultancy, marketing, supply chain management, and more like that. 

Which one is the better among the two Accenture vs TCS in the IT sector, has been the debate topic since they have a pretty good competition among them. 

Accenture PLC.

A professional Irish-American company that is based in Dublin, Ireland. The company specializes in providing IT and consulting services. Founded in 1989.

Accenture started operating in India by the name Accenture Private Limited on April 25th, 1991. It is a private unlisted company. The PLC in the name signifies that the company has limited liability incorporated.

Accenture company

Services provided by Accenture India are Application services, Automation, Artificial Intelligence, Supply chain management, Finance consulting, Marketing, and more of it. 

Accenture ranks at the 3rd position in top IT companies in the world. It generated a total revenue of FY23 of $64.11 billion, a 4% increase in U.S. dollars and 8% increase in local currency. 

Note: Visit the article TCS Company Profile for more details. 

Accenture vs TCS

TCS ranks at 6th position of the top IT companies in the world according to latest list, while Accenture resides at 3rd position in the list. 

Accenture vs TCS

Market Capitalization 

Besides having many other big players in the line, these two names have an impressive number for their market capitalization so far. 

Accenture currently in January 2024, has a market capitalization of INR 18,761 lakh crores (225.23 billion USD), a higher impressive number for market capitalization. Whereas, TCS has a market capitalization of INR 13.22 lakh crores (13.22 trillion), while for the year 2023, TCS recorded a market cap of INR 127 lakh Cr. 

TCS recorded a lower number than Accenture, however there are some other factors too that forms the basis of differentiation between the two. 

Revenue Generation of Accenture vs TCS

TCS has a catch up scenario with this US based firm. As of the latest reports of 2023, TCS and Accenture have a net profit difference of just $30 million. 

Revenue Accenture TCS 
For the August Quarter, Q4
of FY23
$15.9 billion $7.21 billion
For the June Quarter, Q3
of FY23
$16.5 billion $7.2 billion 
Revenue Earnings of Accenture & TCS

As per the latest financial year, Accenture posted a higher revenue for different quarters for FY23, however TCS posted a lower number than that of Accenture’s.

Apart from that they also posted a huge difference in their net profits for the third quarter, i.e. Q3 of FY23. The difference observed between their net profits was $600 million. 

However, for the latest quarter, i.e. Q4 of FY23, Accenture and TCS recorded a net profit difference below $100 million.

A much narrowed gap as compared to their earlier net profit difference and with that TCS has closed a profit gap and has come aligned with Accenture with their current revenue and net profit. 

Revenue earnings of Accenture and TCS

According to analysis, TCS in the coming time can become the most profitable company in the IT service sector majorly on three factors, i.e. geographical services offered, delivery services, and mix of other services.  

TCS operates most of the business from offshore, i.e. 80% and the remaining 20% from onshore. While Accenture follows a 60:40 ratio for its business operations.

Profitability of Accenture vs TCS

The profitability of Accenture and TCS has observed a significant increase over the time. Accenture recorded a gross annual profit of $20.732 billion as of latest 2023, and has observed 5.23% increase as compared to their profits in 2022, which was $19.702 billion.

While TCS recorded gross net profit of $421.47 billion for the year 2023, higher as compared to its annual profit of $27.18 billion in 2022. 

Operating Margin % YearAccenture TCS 
2023 11.74%25.24%
Operating Margin Percentage of Accenture and TCS

As per the latest reports of 2024, Accenture has an operating margin of 14.89%, higher than its last year’s 2023 operating margin.

While in the case of TCS, operating margin for the year 2024 is declared as 25.79%, a slight change from its 2023 operating margin. However TCS company for FY24 is also working on the idea of lowering the subcontractor expenses. 

Brand Value of Accenture vs TCS 

Brand value encompasses various factors like the worth of the brand, operating process, brand image, market value of the brand and brand identity to sell products or services. It is value that would be paid when either some other business or entity is buying your brand or you’re selling it.

Accenture and TCS brand value

Accenture as per the latest reports of 2023, has a brand value of $39.9 billion, retaining its position as the most valuable IT service brand globally. On the other hand, TCS has a brand value of $43 billion, a little higher than Accenture’s.

However TCS brand value encompasses not only its IT services but also other services of the company. While in the list of top IT service companies globally in the world, Accenture ranks at the 3rd position, while TCS follows the list and ranks at the 6th position. 

Other Factors 

By other factors like overall rating, working, employers reviews, diversity score, perks & benefits, Accenture has a higher rating than TCS. The company has an overall rating of 4 out of 5, and along with that it offers more compensation and benefits, better management, and work culture.

While TCS is not left behind in the ratings, the overall company rating may be less than that of Accenture, but it has better job security &  advancement, work and life balance, and you can work on multiple projects without waiting. 

Factors of differentiation of Accenture and TCS

TCS has a wider reach and large exposure to the growing markets that provide lower margins, and has a larger percentage of employees in India than Accenture.

While Accenture also has a wider reach with their consulting business and services mix. 

Note: Visit our article Wipro vs Infosys, to know more about other IT giants!

Summing Up

As per market capitalization stats, Accenture has a higher market cap of INR 18,761 lakh crores while TCS has a market cap of INR 13.22 lakh crores. 

Accenture not only has recorded a higher market cap than TCS, but has also recorded a higher revenue growth than TCS.

However, TCS has recorded its net profit close to Accenture’s net profit. They have a difference of just $30 million. 

Accenture and TCS

The brand value of Accenture is slightly less than the TCS brand value. There are some other factors that determine Accenture as the better IT company, while some factors determine TCS as the better one. 

If we consider the market capitalization value and market share, Accenture has a market share of 0.22% while TCS has 0.40% of market share. 

The working, plans, operations, and strategies and operations of both these big giants may change or develop over time that can contribute to their leadership in the IT sector! 

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Published By: Aashita Singh
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