Deloitte saw its annual revenue grow across the world for the fourth consecutive year, to $32.4 billion for the fiscal year ended May 31, 2013, up from $31.3 billion last year, driven largely by growth in consulting and advisory services.
Deloitte said its global network of firms experienced healthy growth across all businesses and regions. The strengthening of the U.S. dollar towards the end of Deloitte's fiscal year meant the network’s 3.5 percent growth was higher in local currency terms at 5.6 percent.
Deloitte made nearly 30 strategic acquisitions in fiscal 2013 around the world, including the consulting firm Monitor Group in January (see Deloitte Acquires Strategic Consulting Firm Monitor).
“Deloitte has made strategic investments in important markets, the right businesses and talented people,” said Deloitte Touche Tohmatsu Limited global CEO Barry Salzberg in a statement. “As a result, Deloitte is helping many more clients navigate the changing business environment. Despite major economic fluctuations in some regions, clients are seeking the full range of Deloitte’s services and advice as they invest in innovation and other catalysts of growth.”
The firm said that acquisitions will remain a priority in its business strategy in fiscal 2014. Deloitte said it is also making large investments in talent to provide clients with high-quality services as they navigate a challenging environment. In fiscal 2014, the firm plans to build on these strengths.
In fiscal 2013, Deloitte continued its focus on a number of priority markets, resulted in nearly 7 percent growth of these markets in local currency, outpacing the rest of the firm network. Priority markets accounted for nearly a fifth of network revenues and are expected to increase in share in the near future.
Regional. Practice and Industry Growth
The Americas led the way in regional growth at a rate of 6.3 percent in local currency terms, with the strongest growth experienced in Chile (18.1 percent) and LATCO (14.3 percent). The United States, where Deloitte LLP is the largest member firm in the network, produced particularly strong growth, contributing more than 80 percent of the network's total revenue increase. The majority of advisory and technology services grew in double digits.
The Europe, Middle East and Africa (EMEA) region grew 5.6 percent, with the U.K. member firm experiencing solid growth of 8 percent, despite a challenging economic climate. The Middle East and Turkey firms posted strong double-digit growth, largely driven by their tax and advisory businesses. Together, the Southern and East African member firms grew by a solid 8.3 percent.
The Asia Pacific region experienced growth of 3.1 percent in local currency terms, with India, Mauritius, Southeast Asia, Korea and Japan registering solid growth, each at or above 6.5 percent.
In terms of business growth by function, growth in Deloitte’s Consulting practice in fiscal 2013 was particularly strong across all regions, at 8.7 percent in local currency. Within the Consulting practice, the demand for human capital and strategy & operations services was strongest.
Deloitte’s Financial Advisory practice grew by a total of 6.7 percent. There was especially strong growth in forensic and restructuring services, while further investments in strategic acquisitions were made across all regions.
The Audit and Enterprise Risk Services practice grew by an aggregate 2.9 percent. Enterprise Risk Services experienced double digit growth in the Asia Pacific region and strong growth in EMEA and the Americas.
Deloitte’s Tax and Legal practices grew by a total of 5.6 percent, experiencing solid growth in each region and sub-function. A majority of Asia Pacific member firms were strong, led by Japan, India, Mauritius and Korea. In fiscal 2014, Deloitte plans to continue to drive growth in these areas by investing in technology-enabled services, globally integrated market offerings, and services that assist clients in addressing challenges stemming from rapid changes related to globalization, technology advances and regulatory developments.
In terms of business growth by industry specialization, life sciences and health care led the way, posting 12.9 percent growth, followed by the public sector, which grew by 7.7 percent and manufacturing, which grew by 5.5 percent. Energy and resources also posted strong growth at 5.1 percent.
Building on the success of the U.S. firm’s investment in Deloitte University, which opened in Westlake, Texas near Dallas in the fall of 2011, the network launched Deloitte University EMEA over the summer to offer programs tailored to the EMEA region’s needs. More than 50,000 Deloitte professionals from 70 countries have attended DU at the Texas location.
“Deloitte University EMEA is an investment in the professional development of our people, and providing an environment which creates a compelling learning environment is key to that growth," said Roger Dassen, global managing director of clients, services and talent at DTTL. “DU EMEA will be a place where firms can share their diverse perspectives and experiences, and create a consistent standard of excellence that will be reflected in the work we do every day.”
Deloitte also continued to focus on hiring, developing, and retaining top talent. In fiscal 2013, the network hired 51,400 professionals. The total workforce now exceeds 200,000 professionals, a significant milestone for the organization.
Community and Social Involvement
The firm also committed itself to tackling challenging social issues through two new initiatives. Deloitte invested more than $170 million in communities in fiscal 2013 through a combination of skills-based volunteering, pro bono work, donations and over 800,000 volunteer hours.
In April, Deloitte worked with The Social Progress Imperative, along with other organizations, to introduce The Social Progress Index, which aims to reflect a country’s progress and competitiveness beyond economic factors, including the social and environmental indicators that affect a country’s performance. Deloitte is collaborating with SPI in deploying the index worldwide by helping to establish networks of experts from government, civil society and businesses to contribute to the discussion and work together to solve societal issues.
In July, as part of an effort to strengthen the humanitarian sector and create innovative approaches to humanitarian preparedness and responsiveness, Deloitte launched the Humanitarian Innovation Program, a collaboration with local, national and international humanitarian leaders that leverages Deloitte’s own skills and expertise to deliver a globally coordinated approach to supporting crises around the world.
“Businesses increasingly recognize that their continued success is inextricably linked with social progress,” said Salzberg. “But many challenges facing society today are so complex and far-reaching that no organization can solve them alone. Governments, community organizations and business must collaborate to drive positive change. At Deloitte, we’re confident that our investments and contributions will continue to make a difference in 2014.”
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