AT&T and Accenture Sign Second Transformation Agreement
Agreement to Deliver Innovative Capabilities and Tools to Support Growth Into New Markets, New Offers and Broader Customer Relationships
MORRISTOWN, N.J.; April 17, 2003 – AT&T (NYSE: T) and Accenture (NYSE: ACN) today announced a five-year, $500 million agreement to transform AT&T’s residential credit and accounts receivable management functions to support AT&T’s growth plans into the local services market and provide the company with new capabilities and efficiencies.
This agreement, which follows a multi-billion dollar agreement the two companies announced last year, is designed to help AT&T expand its service portfolio, increase marketing flexibility, improve uncollected receivables, enhance operational efficiency and significantly reduce costs.
“This groundbreaking agreement is an important opportunity to introduce new innovative capabilities and tools that support our plans for expansion into new markets, new offers and broader customer relationships, while delivering operational efficiencies,” said John Polumbo, president and CEO, AT&T Consumer. “It represents a key strategic step in transforming AT&T’s service delivery capabilities.”
To help AT&T realize the full benefits of the transformation program, Accenture will manage the integration of planning, initiative execution and collections treatment processes across multiple organizations within AT&T Consumer.
“By combining the best elements of our transformational offerings with the knowledge we’ve gained from our current work for AT&T Consumer, we are able to help AT&T increase revenues and profits, reduce costs and enhance the customer experience,” said Jon Harrington, a partner in Accenture’s Communications & High Tech operating group.
The agreement combines the experience and talents of AT&T’s credit and accounts receivable management employees with Accenture’s transformation capabilities in operations and consulting.
Approximately 45 AT&T management employees, whose work is within the scope of the agreement, will follow their work and transition to Accenture. In addition, approximately 250 other AT&T employees will be part of the “co-sourced” operation and remain on the AT&T payroll.
Co-sourcing combines the strengths of both companies, each of which will contribute to the management, staffing, technology and culture of the operation.
The agreement has been structured so that AT&T will retain control of business planning, credit policy and customer interaction. Accenture will lead the overall transformation program and be responsible for operating the credit risk management and collections functions. In addition, Accenture will build and deploy enhanced capabilities to enable AT&T to support its growth objectives while mitigating risk and reducing uncollectibles.
Accenture will implement technology and process improvements by bringing to bear its experience and expertise from different industries, particularly financial services.
AT&T (www.att.com) is among the premier voice, video and data communications companies in the world, serving businesses, consumers, and government. The company runs the largest, most sophisticated communications network in the U.S., backed by the research and development capabilities of AT&T Labs. A leading supplier of data, Internet and managed services for the public and private sectors, AT&T offers outsourcing and consulting to large businesses and government. The company is a market leader in local, long distance and Internet services, as well as transaction-based services like prepaid cards, collect calling and directory assistance. With approximately $37 billion of revenue, AT&T has relationships with about 50 million consumers and 4 million business customers, who depend on AT&T for high-quality communications. AT&T has garnered several awards for outstanding performance and customer service.
Accenture is the world’s leading management consulting and technology services company. Committed to delivering innovation, Accenture collaborates with its clients to help them realize their visions and create tangible value. With deep industry expertise, broad global resources and proven experience in consulting and outsourcing, Accenture can mobilize the right people, skills, alliances and technologies. With more than 75,000 people in 47 countries, the company generated net revenues of $11.6 billion for the fiscal year ended August 31, 2002. Its home page is www.accenture.com.
The foregoing are "forward-looking statements" which are based on management’s beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T’s control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.
This press release contains forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and other factors, including those discussed in the Accenture Annual Report on Form 10-K for the fiscal year ended August 31, 2001 filed with the Securities and Exchange Commission. Accenture undertakes no obligation to update or revise any forward-looking statements.
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