Banking & Finance

Accenture follows these rules in the search for new business in China

PUBLISHED : Sunday, 22 October, 2017, 10:21pm
UPDATED : Monday, 23 October, 2017, 6:06pm

In the search for growth opportunities in the mainland economy, it is best to tap the potential of private enterprises and the role of technology in shaping the era ahead, according to Accenture.

Chuan Neo Chong, chairwoman of Accenture Greater China, says her firm has taken the advice to heart as it looks to China as a “top focus” market when it comes to new business in Asia.

Chong says that financial major Ping An and logistics firm Deppon rank as two of the firm’s fastest growing clients from the private sector.

Ten years ago, state-owned enterprises were the dominant contributors in a relatively balanced three-prong structure, with multinational and private companies rounding out the top three spots, Chong said during an interview in Shanghai.

“Being New York-listed, it’s very natural for us to partner with Microsoft, Amazon and Apple,” she said. “But over the last five years, we have started partnering with Chinese private owned enterprises because we want to be relevant and integrated in China’s innovation ecosystem.

She said Accenture has supported small, innovative private companies and start-ups to help identify those that can be “Alibaba in the next 10 years”.

In China, the private sector contributes to more than 60 per cent of economic growth, half of the nation’s tax receipts, and generates more than 80 per cent of jobs. The rise of technology majors, are also reshaping the Chinese economic landscape.

She said multinational companies should strive to set up a stronger local presence, as this will help to tap opportunities from state businesses considering their dominance in resources and upstream sectors.

“We are trying to be local in the Chinese market as much as we can,” she said, citing the recent launch of Accenture’s local-branded unit Shunzhe in the Shanghai free trade zone as an example.

“We can never overlook the demands of SOEs,” she said. “Hopefully with the local company, we are able to create a business model that is more local than Accenture.”

The new company with a registered capital of 70 million yuan (US$10.6 million) was created to cater to public sector clients.

In the financial year ending August 31, Accenture reported net revenue jumped 12 per cent on year to US$6.6 billion in growth markets including China. No country specific data was made available.

Alibaba owns the South China Morning Post.