TOKYO; Sept. 13, 2013 – Sony Global Solutions Inc. (SGS), a wholly owned Sony Corporation (NYSE: SNE) subsidiary, has signed an agreement to outsource to Accenture (NYSE: ACN) part of its information systems operations and maintenance services that it now provides to Sony Corporation and its subsidiaries in Japan. SGS and Accenture have also agreed to establish a joint venture in April 2014 for Accenture to provide these services.
Through the close collaboration with Accenture, Sony will endeavor to enhance the efficiency of its information system operations and maintenance for its group companies in Japan. Accenture will team up with SGS to provide these operations and maintenance services more efficiently and reliably.
Outline of the joint venture (tentative)
Company name: To be determined
To be established: April 2014 (subject to regulatory approval)
Number of employees: approximately 200
Equity share: Accenture Holdings B.V. 80%, SGS 20%
Accenture is a global management consulting, technology services and outsourcing company, with approximately 266,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: Accenture, Sony and SGS will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture, Sony or SGS; Accenture’s, Sony’s and SGS’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on Accenture’s, Sony’s and SGS’s clients’ businesses and levels of business activity; Accenture’s, Sony’s and SGS’s businesses depend on generating and maintaining ongoing, profitable client demand for Accenture’s, Sony’s and SGS’s services and solutions, and a significant reduction in such demand could materially affect Accenture’s, Sony’s or SGS’s results of operations; if Accenture, Sony or SGS is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, Accenture’s, Sony’s or SGS’s business, the utilization rate of Accenture’s, Sony’s or SGS’s professionals and Accenture’s, Sony’s or SGS’s results of operations may be materially adversely affected; the markets in which Accenture, Sony and SGS compete are highly competitive, and Accenture, Sony and SGS might not be able to compete effectively; Accenture, Sony or SGS could have liability or Accenture’s, Sony’s or SGS’s reputation could be damaged if Accenture, Sony or SGS fails to protect client and/or company data or information systems as obligated by law or contract or if Accenture’s, Sony’s or SGS’s information systems are breached; Accenture’s, Sony’s and SGS’s results of operations and ability to grow could be materially negatively affected if Accenture, Sony or SGS cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; as a result of Accenture’s geographically diverse operations and its growth strategy to continue geographic expansion, Accenture is more susceptible to certain risks; Accenture’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; Accenture’s, Sony’s and SGS’s results of operations could materially suffer if Accenture, Sony and SGS are not able to obtain sufficient pricing to enable it to meet their profitability expectations; if Accenture’s pricing estimates do not accurately anticipate the cost, risk and complexity of Accenture performing its work or third parties upon whom it relies do not meet their commitments, then Accenture’s contracts could have delivery inefficiencies and be unprofitable; Accenture’s work with government clients exposes Accenture to additional risks inherent in the government contracting environment; Accenture’s, Sony’s and SGS’s businesses could be materially adversely affected if Accenture, Sony or SGS incurs legal liability in connection with providing its services and solutions; Accenture’s, Sony’s and SGS’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; Accenture’s alliance relationships may not be successful or may change, which could adversely affect Accenture’s results of operations; outsourcing services and the continued expansion of Accenture’s other services and solutions into new areas subject Accenture to different operational risks than its consulting and systems integration services; Accenture’s, Sony’s or SGS’s services or solutions could infringe upon the intellectual property rights of others or Accenture, Sony or SGS might lose its ability to utilize the intellectual property of others; Accenture, Sony and SGS have only a limited ability to protect their intellectual property rights, which may be important to Accenture’s, Sony’s or SGS’s success; Accenture’s, Sony’s and SGS’s ability to attract and retain business and employees may depend on their reputations in the marketplace; Accenture, Sony and SGS might not be successful at identifying, acquiring or integrating businesses or entering into joint ventures; Accenture’s profitability could suffer if its cost-management strategies are unsuccessful, and Accenture may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of Accenture’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require Accenture to meet specific service levels, which could increase the variability of Accenture’s revenues and impact its margins; changes in Accenture’s, Sony’s or SGS’s level of taxes, and audits, investigations and tax proceedings, or changes in Accenture’s treatment as an Irish company, could have a material adverse effect on Accenture’s, Sony’s and SGS’s results of operations and financial condition; if Accenture is unable to manage the organizational challenges associated with its size, Accenture might be unable to achieve its business objectives; if Accenture, Sony or SGS is unable to collect its receivables or unbilled services, Accenture’s, Sony’s and SGS’s results of operations, financial condition and cash flows could be adversely affected; Accenture’s, Sony’s and SGS’s share price and results of operations could fluctuate and be difficult to predict; Accenture’s, Sony’s or SGS’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission by Accenture. Statements in this news release speak only as of the date they were made, and Accenture, Sony and SGS undertake no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s, Sony’s and SGS’s expectations.
Hiroyuki Takahashi, Marketing & Communications
+ 81 45 330 7157
+ 973 590 9920