A Strategic Approach to Cost Reduction in BankingAchieving High Performance in Uncertain Times

Rethink Traditional Cost Strategies 2

Strike the Right Balance 3

Avoid Arbitrary Cuts 4

Transform Cost Reduction 5

Industrialize Operations 8

Getting Started 9

Collaborating with Accenture 10

Looking Ahead 12

Contents

1

Senior banking executives face a vexing dilemma. Inthis difficult economic environment, there is greaturgency to reduce costs and improve efficiency. Butcutting indiscriminately or too deeply may severelyhamper the ability to grow revenues when the economicoutlook improves.

In Accenture's view, arbitrary cost reduction—based onrationales of "sharing the pain equally across the organi-zation"—is no longer sufficient, and risks cutting muscleas well as fat. Instead, financial institutions need to takea more strategic approach by viewing cost-cutting aspart of a broader efficiency effort. Balancing short-termtactical cost reductions with longer-term strategic costinitiatives will leave banks much better positioned forfuture high performance.

This approach can yield cost reductions up to 20 percent,help variabilize a high fixed-cost base, and enable banksto weather the credit storm. Just as important, thisstrategy aligns with banks' efforts to simplify processesand systems, standardize products and facilitate marketdifferentiation. Those attributes are what we considerthe blueprint for a high-performance bank.

This brochure examines how banks can solve thedilemma by taking out costs in a judicious way thatalso supports future growth.

2

Rethink Traditional CostStrategies For the first half of this decade, banks largelyoperated in an extraordinarily benign envi-ronment of low interest rates, rising homeprices, expanding loan volumes and robusteconomies—all of which created opportuni-ties to generate substantial organic growthand shareholder value. Most banks were ableto steadily improve their cost-to-incomeratio during that period.

But today, high energy prices, sluggisheconomies and the continuing fallout from thecredit crunch have put a damper on the bankingindustry globally. Many financial institutionshave posted huge write-downs, particularly inNorth America and Europe. Japan's major bankshave reported weak earnings results, due in part to the subprime mortgage meltdown in the United States. The International MonetaryFund estimates that losses related to the creditcrisis could approach $1 trillion.

The short-term outlook isn't hopeful. ManyNorth American and Western European finan-cial institutions, for example, are under severeliquidity pressures due to loan losses, slowingor even negative revenue growth due to theweak housing market, tighter credit standardsand sluggish economies. Fortunately, manybanks in the Asia-Pacific region, as well asthose in central and eastern Europe have beenlargely shielded from the turmoil. But fewbanks, regardless of location, have escaped themajor impact of the current economic down-turn: the far higher cost of capital and signifi-cant increase in funding costs.

Efforts to stem the tide by raising capital and additional dividend cuts haven't entirelysucceeded. Increasingly, banks are turning tointernal costs savings including headcountreductions. Tens of thousands of bank staffhave lost their jobs in the past year, and furtherlayoffs have been announced.

But traditional cost reduction strategies thatworked in previous banking slowdowns, suchas in the early 2000s, won't suffice this timebecause banks face:

• Uncertainty as to when the bottom of thisdownturn will be reached.

• Unprecedented levels of operational risk. • Highly complex operating models which

make it difficult to reduce costs quickly and sustainably.

It is clear that the recent cycle of easy creditand growth in lending and revenues hasmasked serious underlying problems. Thewidespread focus on growth, combined withlack of discipline around operating models,product streamlining, margin control andorganizational structures, has led many banksto build up highly disparate and complexoperating models. This, in turn, has resultedin high cost bases as well as inflexible andduplicative operations.

On a more positive note, the current envi-ronment continues to offer global banksattractive growth opportunities, particularlyin emerging markets such as Brazil, Russia,India and China. Therefore, global banks witha presence in emerging markets must bejudicious in their cost reduction initiatives,so that their growth agendas do not suffer.Deep cuts in the number of IT personnel, for example, need to be properly examinedsince expansion into emerging markets typically requires significant investment in IT capabilities and support.

3

Strike the Right BalanceThe cost-cutting and efficiency agenda willvary among regions and from bank to bank.For institutions most affected by the crisis,particularly those in North America and theUnited Kingdom, tactical cost reductions arethe immediate priority. On the other hand,many banks in the Asia-Pacific region arepursuing a broader efficiency agenda focusedboth on decreasing costs and building capa-bilities to support growth. Some Europeanbanks, such as those in Italy and Spain, arealso emphasizing efficiency and growth.

To achieve high performance, banks needthe right balance between short-term tactical cost decreases such as headcountreductions, and longer-term strategic costinitiatives such as streamlining processes or outsourcing certain noncore functionssuch as learning, human resources orfinance and accounting. Banks that pursueonly traditional cost reduction programswill achieve cost benefits quickly. But in the long run, that approach will leave themunable to sustain those cost reductions,resulting in a competitive disadvantage.

Suppose Bank A consolidates multiple mort-gage processing centers in an effort toquickly extract costs. Bank B, its competitor,also consolidates its processing centers andin addition, reengineers its lending processesand migrates them to a standard platform,and enters into a business process outsourc-ing arrangement for post-closing functions,which enables a variable cost base. When astronger market returns, Bank B's costs willremain in check, but Bank A's are likely torise again. By balancing short- and long-termobjectives, Bank B has achieved competitiveadvantage over its rival and is on the path to high performance.

The key is for banks to evaluate their busi-ness model now against scenarios rangingfrom best case to worst case, and to actbefore the full impact of the credit crunchplays itself out. Many banks continue tohave relatively strong short-term earningsmomentum, but the outlook remains highlyuncertain. This leaves a small window ofopportunity to tackle the size and flexibilityof the cost base.

Precisely how banks do this will depend ontheir operating model and strategic priorities.But whatever route they choose, the long-termwinners will be those that begin stabilizing andbuilding for the future by adopting flexibleoperating models to accommodate threatsand opportunities as they emerge.

Leading banks realize the importance of taking out costs and investing the savings instrategic programs that will help them bringproducts to market more quickly, interactwith customers more effectively and gaincompetitive advantage.

As part of its Basel II compliance effort, aEuropean bank spent substantial amounts inthe past two years building a new technologyplatform to track, measure and manage itscredit risk exposure. The bank completed theproject well within its allotted program budg-et. But instead of terminating the commit-ment at that point, it used the remainingbudget plus an additional investment to devel-op better insight into managing credit risklimits for its customers. As a result, the bank isaiming to reduce the amount of risk capital onits balance sheet (thereby decreasing its costof capital) and also hoping to price its cus-tomers far more effectively. For a relativelysmall investment, and by leveraging capabili-ties built for a compliance program, the bankis seeking to cut its cost of capital and poten-tially improve revenues on its balance sheet.

It may be necessary to take a counterintu-itive approach to cost cutting. Rolling outnew products, for example, intrinsicallywould appear to be a sound business strat-egy. But, particularly in a weak economy,investing in new products may just addunwanted complexity to the product port-folio without generating profits. For somebanks, it may make sense to shrink theirproduct portfolio and channel the savingsinto more strategic, longer-term programssuch as credit risk management.

Process automation is another undertakingwith which few would argue. But instead of automating processes on a piecemealbasis, banks may find that, upon analyzingtheir processes from end-to-end across the enterprise, several processes can beeliminated altogether.

Sometimes, across-the-board cutbacksdon't go far enough. A uniform 10 percentreduction across expense budgets makes little sense when a bank's lending functioncould withstand deeper cuts due to sharplydepressed loan demand.

4

Avoid Arbitrary CutsWith the onset of an economic slowdown,the temptation is to reassure investors bycutting indiscriminately—10 percent acrossall departments, for example (Figure 1).However, banks emerging most successfully

from previous downturns were not neces-sarily those making the deepest cost cuts.Instead, the winners focused on optimizingtheir cost base.

Traditional Tactics Differentiating Tactics

Cut costs

Conserve cash, and eliminate / delaydiscretionary spending

Forecast more often

Reduce headcount

Take advantage of the downturnto justify unpopular moves

Communicate lower earningsexpectations

Cut the right costs

Direct discretionary spending to only those programs that add value

Continue an accurate and meaningful forecasting process

Target headcount reductions at specific sub-organizations and / orlow performersConsider adding specific headcount at lower rates than wouldotherwise be required

Continue value-driven moves justified by their impact onshareholder return

Expand the quality of communications to more fully describe value-drivers and the expected impact of differentiating tactics

Figure 1: In a downturn, most banks pursue traditional, instead of differentiating tactics

5

When implementing tactical measures—suchas headcount reductions—to deliver a quickpayback, banks should reinvest the resultingsavings in strategic initiatives that providelonger-term benefits (Figure 2).

This is an approach which Lloyds TSB hasbeen using successfully for several years.Lloyds recently announced that "The Group'sprogramme of productivity initiatives hascontinued to deliver significant benefits,improving underlying cost efficiency and creating greater headroom for investment in the business," with net cost reductions in 2007 of £145 million (US$290 million)and a further £103 million (US$206 million)reinvested in further productivity programinitiatives1.

As Figure 2 shows, a tactical cost-cuttingapproach will quickly yield substantial savingswhich rapidly level off after the first year. A bank taking a more strategic, transforma-tional path won't receive a similar quickbenefit in year one because it plows thesavings into optimizing its operating model,consolidating systems and employing sourcingwhere appropriate to variabilize its cost base.By funding these longer-term initiatives,however, the bank enjoys a far greater upliftin benefits in the following years, comparedto the tactical approach.

Transform Cost Reduction

1. Lloyds TSB Group Annual Report and Accounts 2007.

Year 1 Year 2 Year 3

• Investment portfolio review• Contractor / supplier rationalization• Expenses clampdown

+ $500mto $1b

- $50m to$100m

Net

Bene

fit

(Ben

efit

-Co

st)

• Strategic organizational design• Offshoring costs• Outsourcing of non-core functions

• Strategic operating model• Platform replacement / consolidation

Reinvesting tacticalbenefits intotransformationalinitiatives

Transformational

Tactical

=

Figure 2: Traditional vs. transformational cost reduction(Illustrative: Mid-size bank investment / return profile)

6

The path to high performance starts by under-standing your bank's cost anatomy. Banks' coststructures are not spread evenly across opera-tions. Figure 3 is an example of the cost distri-bution of a typical universal bank, based uponAccenture's research and experience withEuropean financial services companies.

Figure 3 demonstrates that, contrary to con-ventional wisdom, the back office-with only14 percent—is not the primary source ofbanks' cost base. Automating and making theback office more efficient will undoubtedlyhelp, but not fully solve, banks' cost chal-lenges. Senior executives looking to removesignificant costs must also focus on distribu-tion operations (with nearly two-thirds ofthe cost base) and enterprise-wide functions

(21 percent of costs). While in most cases,banks would be well advised to aggressivelycut costs in enterprise services and informa-tion technology, they should proceed morecautiously in attacking front office costs.

Of course, banks' cost distribution varies widely from region to region, and even withinregions. But the point is clear: high-perform-ance banks will take a broad and intelligentview when cutting costs to be competitiveboth now and in the future. Banks in Italy,Spain and other European countries that havemade substantial progress in streamlining theirback offices and IT operations are focusing on making distribution more efficient. NorthAmerican banks, on the other hand, are stilltargeting inefficiencies in the back office.

Segment Management

Brand Management

Channel Integration and Management

Marketing, Sales and Servicing

Customermanagement

Customerpricing

Productaggregation

Productpricing

Third partymanagement

Serviceintegration

Deposit / cashmanagement

Lending Investment Insurance

Payments Productdevelopment

Productaccounting

Documentmanagement

Knowledgemanagement

Finance Human Resources Purchasing Legal and compliance

IT application IT infrastructure

Risk

Distribution

Marketing Hub

Products

Cross Product

Enterprise

Source: Accenture analysis of major European bank data, 2007

~65%

~14%

~21%

Figure 3:Costs distribution across universal bank’s functions

Take a Broad View of Costs

7

There is a clear imperative to address the costbase without impacting revenue generation. A winning strategy, for instance, might beto streamline back-office and IT operations,and redeploy the savings in front-officeefficiency initiatives to enable more consis-tent customer service across channels, pro-vide tools and support for customer-facingstaff, and enhance self-service channels.

Based upon our experience working with theworld's leading banks, we have identified sixkey ways that high-performance banksdemonstrate efficiency:

• Lean operational model:Minimal management layers, clearly definedroles and extensive use of shared services to eliminate duplication of activities.

• Rationalized product portfolio:Significant reduction of product portfolio,rationalized product portfolio with standard components and reusable productfeatures, coupled with a clear understandingof product profitability.

• Optimized sourcing and procurement:Utilization of offshoring and outsourcingto variabilize costs while reducing fixedcost base, and tight control of externalexpenditures.

• Streamlined processes: Broader use of image and workflow technology to automate manual, paper-based processes; minimization of process duplication, strong culture of end-to-end process ownership andcontinuous improvement.

• Effective customer experience: High levels of customer self-service forsimple sales and service transactions;sales and marketing activities focused on most profitable customers, and differ-entiated service based on customer profitability and future value.

• Simplified technical infrastructure:Simplified IT architecture and supportingapplications to reduce total cost of ownership and boost responsiveness and flexibility, and aligning IT spendingclosely to business strategy.

By examining a bank’s cost anatomy againstthese attributes, the opportunities and scalefor cost reduction initiatives can be mappedacross the entire organization. Accenture’sapproach to efficiency contains a portfolioof tools and assets—the Accenture HighPerformance Bank Framework—that can help a bank achieve high performance. Webelieve there are significant opportunities to reduce costs in a transformational wayacross banks’ operations, realizing as muchas a 20 percent reduction in operating costsover two years.

For example, up to 10 percent of a bank's distribution cost base can be eliminated-with a 5 percentage point reduction in cost-to-income ratio—through greater relianceon self-service channels, rationalization of contact centers and other initiatives.Procurement is another area where significantsavings can be generated. With the appropriatecombination of automation and self-service,consolidation of suppliers and selective out-sourcing and offshoring, a universal bank canreduce its purchase spend by between 6 and8 percent (the rough equivalent of 1.2 to 1.6percent of revenues).

8

A major European retail bank embarkedupon a bold strategy to reignite future market share growth, with equal focus onrevenue generation and cost reduction. Targetsfor cost reduction were set by analyzingrequirements for market competitivenessand the level of savings achievable in theback office.

In light of market pressures, rationalizationof operational activities—a main source ofsavings—had to be realized in a quick andsustainable manner without disruptingongoing business.

Accenture was engaged to help drive thereorganization and cost reduction initiativeas part of a two-year plan. The plan focusedon consolidating shared activities and remov-ing duplicated or unnecessary processes.

Accenture supported the bank in realizingits goals by helping to:

• Establish a detailed financial baseline.• Analyze the financial baseline to identify

consolidation and cost savings opportunitiesand develop a common roadmap to helpsecure delivery.

• Define and establish a target operatingmodel for optimized back-office operations.

• Re-engineer key banking processes to deliver the target model.

• Mobilize and deliver key cost savings initiatives.

With its newly consolidated back office, thebank quickly achieved its cost reduction targetsby eliminating duplicate activities, rationalizingmanagement layers, sourcing and implement-ing more efficient processes. Further savingsare likely through ongoing optimization. Acarefully managed transformation road maphelped ensure that these changes were deliv-ered without compromising operational stabili-ty or customer service, and positioned the bankto meet aggressive growth targets.

Positioning for Growth through Smart Cutting

Industrialize OperationsTaking a balanced approach to cost cuttingrequires banks to develop an operatingmodel that is not only cost efficient, butcan respond quickly to unforeseen marketchanges such as further deterioration or anupward trend. As a result, banks will have no choice but to industrialize their operationsto combine low costs with high flexibility.

To maintain competitiveness over the longterm, banks need to move progressivelyfrom a substantially fixed-cost base to amore variable-cost base. This provides theorganization with the flexibility to “dial up”or “dial down” both cost and capacity in

line with market conditions and strategicgoals. Many banks are already embracingthis strategy through the selective use ofalliances and outsourcing.

Accenture recently worked with a leadinginternational bank to consolidate, standardizeand ultimately transition parts of its valuechain to lower-cost, off-shore locations. Thenew model generated operating cost savingsof up to 60 percent and provided the bankwith the ability to scale up volumes rapidlyat a low unit processing cost.

9

Figure 4: Cost reduction projects: challenges and keys to success

• Breaking down silos betweenbusiness units

• Management culture andattitudes (we’ve tried it beforeand it didn’t work)

• Executing at speed while notdisrupting business-as-usual activity

• Freeing up sufficient investmentcapital to tackle structural costreduction initiatives that havea longer payback

• Absolute executive buy-in ofclear financial objectives andoperating model

• An incontestable fact base andcost baseline

• Ongoing transparency and reportingof cost and benefits linked tofinancial plans

• Clear alignment with existinginvestment portfolio

• Robust program structure anddesign authority

Execution Challenges Prerequisites for Success

Getting StartedIn today’s uncertain and fast-changing environment, a strategic cost-transformationproject must proceed quickly. Using pre-builtdiagnostic tools and assets can shorten the start-up phase, thereby enabling rapididentification of cost reduction opportuni-ties and quantification of the potential benefits to be gained.

While the journey will be different at eachbank, the initiative should be carefully

planned and encompass the entire organiza-tion. Execution may well be challenging, inlight of the scale of change required and thescrutiny by investors, regulators and the media.

Working with a wide range of bank clients onthese programs, Accenture has observed fourcommon challenges (Figure 4, left side) and fivekeys to successful implementation (Figure 4,right side).

10

Diagnostic Solution Road Map

Validate and identifyfurther opportunityareas (workshops withkey operating modelstakeholders acrossfunctions)

Map cost reductionopportunities to current-state operating model

Define initiativesequencing

Detail and prioritize listof initiatives based onhigh-performance modelsand client input

Quantify high-level cost / benefit outcome and approachfor each initiative

Define program structure,governance and funding

Met

hodo

logy

proc

ess

Manage stakeholders and build decision-maker buy-in

Step

s

Figure 5:Accenture’s cost reduction analysis approach

Accenture has breadth of vision, deep bankindustry experience and a wide range of toolsto help clients drive their cost transformationinitiatives. We can:

1. Rapidly identify major cost reduction opportunities.

Collaborating closely with a bank's seniormanagement to ensure executive buy-in,Accenture can typically complete an initialdiagnosis of potential opportunities within sixto eight weeks. By analyzing products, staff,customers, process, technology and sourcing,our diagnostics enable us to take a holisticview of cost reduction for optimal identifica-tion and removal of cost.

For example:• Can the number of product families be

reduced? Can the efficiency of the productdevelopment pipeline be improved throughSix Sigma?

• Are employee roles aligned to businessneeds? Are performance and compen-sation aligned? Is labor sourced fromlow-cost locations?

• Can low-value customers be redirected to cheaper service channels? Can productpromotions be more effective?

• Can processes be automated, reengineered,centralized, simplified and/or outsourced?

• Can IT enhancement and maintenanceexpenses be decreased and service levels reduced?

• Is the procurement strategy aligned to the overall business strategy? Are supplier relationships optimized?

This initial phase is brief because we have a proven methodology for creating a trans-parent cost baseline, a standard hypothesisbased upon our experience and insight, andbenchmark-driven diagnostic tools.

As Figure 5 indicates, the methodology consists of three steps. The first is a diagnosticthat validates and identifies areas of opportu-nity, and maps them to the current operatingmodel. The result of this diagnostic is a "heatmap" and initial hypotheses for addressingcosts. Next is the solution stage, where thehigh-level cost/benefits outcome and approachfor each initiative are quantified, enabling thecreation of a prioritized list of cost-reductionoptions complete with business cases. Thethird step is creation of the road map. Thecost/benefit outcome and approach for eachinitiative are finalized and sequenced into animplementation road map with a balancedportfolio of short- medium- and long-termcost-reduction opportunities to sustain thecost transformation journey.

Collaborating with Accenture

11

2. Accelerate benefits delivery. We have the experience to shape a holisticprogram of change that delivers quick savingsto a bank's bottom line, while at the sametime, ensures that the savings are appropriate-ly invested in longer-term structural costreduction. Accenture has a range of assets andcapabilities that can be used to acceleratebenefits delivery, including:

• Global Delivery Network:With more than 60,000 professionals,Accenture’s global delivery network is the world's largest for outsourcing of ITapplication development and mainte-nance, and IT infrastructure.

• Customer Contact Services:Accenture's virtual global network of 23 centers manages more than 14,000customer contact agents and services 20 million customers—helping deliversavings up to 35 percent.

• Credit Services:Transforms credit operations to improveprocessing of consumer loans, leasing,loan origination, servicing, securitizationand collections—targeting a reduction inexcess of 30 percent in overall operatingcosts within the credit lending process.

• Human Resources Services:Approximately 3,000 professionals provide HR services to more than 50clients and their roughly 1.5 millionemployees—achieving cost reductions of20-40 percent and staff effectivenessimprovements.

Procurement is a particularly ripe area toachieve quick savings that can, in turn,become the funding mechanism for longer-term transformation efforts. Purchase spendis typically 20 percent of revenues for thebanking industry. Although many bankshave undertaken procurement initiatives,few have been able to create sustainablecost differentiation. In 2006-07, banks typically saved 4 percent in purchase spendthrough their procurement initiatives, compared to global best practice examplesof 15 to 20 percent in other industries.

Accenture has worked successfully withleading global banking clients to deliver significant cost reduction in procurement.Typically, we have helped them achieveupwards of 15 to 20 percent in savingsthrough a combination of strategic sourcing,improved procurement practices, andeffective demand management. Accenture'sprocurement practice, unparalleled in itsdepth and breadth, is engaged in more than1,000 procurement projects in 48 countries.We also work with more than 350 clients on transformational sourcing programs; our 7,000 professionals source over $19 billion annually.

3. Assure certainty of outcome. We stand behind our work by structuringrisk-reward sharing arrangements and takingresponsibility for outcomes where appropri-ate. Our global assets and capabilities alsoallow banks to “switch on” multi-client utili-ties to accelerate the benefits realized fromtheir initiatives.

12

Looking AheadBanks are at a crossroads. They must continueto decrease costs and grow revenues in high-ly uncertain economic times. The actionsthey take now to optimize their cost baseand enhance their capacity to respondquickly and effectively to market change willshape their ability to achieve high perform-ance in the future.

Shaving costs through tactical efficienciesmay be a winning short-term strategy, butbeating the competition long term requiresstructural change. A good example is thetendency for banks to be satisfied withphysical consolidation of operations—atemporary palliative which is rarely suffi-cient to address structural fixed costs.Historically, costs start to rise once volumesrecover because the underlying unit costdrivers have not gone away. Similarly, witha short-term focus on purchase spend, the

savings typically evaporate when growthreturns and procurement discipline onceagain becomes lax.

In Accenture's view, banking industry winnerswill be simplified organizations, with variedsourcing models, increased automation andcustomer service targeted to profitability. As they become more efficient, these bankswill increase market share, leading in turn toimproved shareholder returns.

However, even the winners will not be ableto relax. Achieving high performance as alow-cost, agile bank will require ongoing vigilance, not just a single change effort.Going forward, banks must continually revisitcost governance and instill a culture focusedon cost management, underpinned by clearlydefined metrics to measure progress.

A leading global investment bank identified procurement as a key area for simplification,standardization and improvement. Withapproximately 4 million procurement trans-actions spread across nearly 200 differentbusiness areas each year, the bank wanted to gain greater control over its annualspend, streamline and leverage its vendorsmore effectively, generate more useablemanagement information to drive betterdecision-making and establish an end-to-end purchasing management process supported by leading-edge technologies.

The bank worked with Accenture in a transformational procurement outsourcinginitiative, covering source-to-pay businessprocesses, people, a new technology platformand supporting infrastructure. Accenture wasselected by the bank because it demonstrateda commitment to building a significant

outsourcing business in procurement, collaborative approach to working withclients and proven record of combiningbusiness and IT expertise, strategy and execution to achieve high performance.Accenture helped the bank develop andimplement a comprehensive procurementsolution, leveraging Accenture's globaldelivery center network in Slovakia, Indiaand China, as well as its relationship with SAP.

Accenture provided high-quality service by using a standardized, scalable and low-cost utility procurement platform, enabledby state-of-the-art systems, tools andprocesses. The bank and Accenture haveexceeded business case targets for a seven-year deal within just four years and delivered15 percent savings in 2007 on vendorspend of $6 billion.

Case Study: Improve Procurement Operations while Reducing Cost

Copyright © 2008 AccentureAll rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

About AccentureAccenture is a global managementconsulting, technology services andoutsourcing company. Combiningunparalleled experience, comprehensivecapabilities across all industries andbusiness functions, and extensiveresearch on the world's most successfulcompanies, Accenture collaborateswith clients to help them become high-performance businesses and govern-ments. With more than 180,000 peoplein 49 countries, the company generatednet revenues of US$19.70 billion forthe fiscal year ended Aug. 31, 2007. Its home page is www.accenture.com.