New York: Deloitte Touche Tohmatsu Limited (DTTL) saw aggregate member firm revenues of US$31.3 billion for the fiscal year ending 31 May 2012, the network's highest revenue ever.
- Global revenues up 8.6%
- 51,000 staff hired in the year
- Consulting revenue up 13.5%
- Deloitte India grew by 19%
- UK revenue up 11%
Aggregate revenues grew 8.6 percent in U.S. dollars and 8.3 percent in local currency--the strongest revenue increase since 2008. Deloitte member firms experienced growth across all three major geographic regions, led by exceptional results generated in Asia Pacific, the Americas, and a number of developing markets, as well as across all business lines and industry sectors.
"Complexity, disruption, and speed of change are the new reality for our member firm clients, and for Deloitte's own business," said DTTL Global CEO Barry Salzberg.
"Deloitte's success this past year is the result of adapting business strategies to anticipate client needs and address the changing requirements of a dynamic market."
Leadership development — A catalyst for growth
Deloitte said it continued to focus on hiring, developing, and retaining top talent as a key driver of the expansion of business activity. In FY2012, the Network hired 51,400 professionals; its total workforce now exceeds 193,000 professionals worldwide and the organization is well on its way to achieving its growth goal of 250,000 professionals by FY2015.
Deloitte highlighted its continued investment in leadership development globally too; it points to Deloitte University, a US$300 million learning and development facility located nearDallas, Texas, where Deloitte professionals come together to connect, share ideas, and identify and capitalize on new and innovative solutions to the most critical and complex issues facing global business today. Over 40,000 professionals from 70 countries attended Deloitte University over the last year.
"Deloitte has always been highly effective at attracting and retaining the world's best talent," commented Roger Dassen, Global Managing Director, Clients, Services and Talent, DTTL.
"Given continued market uncertainty, increased regulation, and a competitive job market, it is of utmost importance that Deloitte stay ahead of the curve and develop its professionals so they are well equipped to serve clients."
Creating impact through Olympic and Paralympic relationships
Deloitte UK was integral in delivering the momentous London 2012 Olympic and Paralympic Games. Eight hundred Deloitte UK professionals contributed 750,000 hours of expertise to help stage the Games, ranging from establishing a procurement function that oversaw the purchase of more than £700 million (approximately US$1.1 billion) in goods and services, to creating the program to test operational readiness of the world's largest-ever peacetime event.
Deloitte said its London 2012 client story is a "true showcase" for the combined talents and experience that Deloitte delivers to any business challenge.
Growth across business and industry
In the past year, Deloitte served more than 75 percent of the Global Fortune 500, working with them to address some of their most complex business issues.
In FY2012, Deloitte saw growth across all business lines and industries, with financial advisory and consulting experiencing 15 percent and 13.5 percent revenue growth, respectively.
Breakdown of business line and industry growth (aggregate across member firms, in USD):
- Financial Advisory led the portfolio in terms of growth, at 15 percent. This was propelled by several significant cross-border, cross-functional client engagements, and through acquisitions that broadened capabilities in priority markets.
- Consulting revenue grew by 13.5 percent. This growth was fuelled by helping clients with their most complex challenges Deloitte says, including responding to changes in the market, industry, and regulatory landscape, as well as supporting expansion into new and emerging markets. Demand for services in Business Intelligence, Enterprise Applications, Finance Transformation, M&A, and HR Transformation were dominant growth drivers.
- Audit and Enterprise Risk Services (ERS) revenue grew by 6 percent. Audit grew most rapidly in the priority markets, especially in the Asia Pacific region, where Deloitte is well positioned to serve the fastest-growing sectors. ERS drove growth--double-digit growth in every region and industry--fuelled by factors including heightened regulatory pressure, positive analyst ratings, and increased awareness of the importance of optimized risk management practices.
- Tax and Legal revenue grew by 4 percent. Growth was driven by the continued implementation of enhanced service delivery models in both Compliance & Reporting and Advisory services, as well as by the introduction of new service offerings, especially in priority markets, to help clients manage the complex, fast-changing economic and tax environment. An uptick in cross-border consultative services and strong growth in the Asia Pacific region also propelled growth.
- Industry: The fastest growing industry was Energy & Resources, with revenue growth of 24 percent. Life Sciences & Health Care grew by 13 percent, Consumer Business and Transportation by 11 percent, and Financial Services by 10 percent. Financial Services generated more than one-fourth of the total industry revenue.
The growth across industry and business lines was achieved despite challenging market conditions around the world, particularly in Europe. Growth was largely driven by Deloitte's ability to provide a consistent suite of tools across member firms, a cornerstone of its global strategy.
Geographic performance (aggregate across member firms, in USD):
- Asia Pacific revenues grew 16.3 percent, making it the fastest-growing region for the eighth consecutive year. Deloitte India grew by 19 percent in local currency. Half of the member firms in the region, including Deloitte China, experienced double-digit growth.
- Americas revenues grew 7.9 percent. The LATCO member firm grew by 16.3 percent. Deloitte United States grew by 9.1 percent.
- Europe, Middle East, and Africa revenues increased by 6.4 percent. Member firms in Africa, Norway, Greece, and Luxembourg all experienced double-digit growth in local currency. Deloitte UK grew by 11 percent in local currency.
"In a challenging economic environment, US$1.4 billion of Deloitte's US$2.5 billion aggregate growth in the past year came from member firms in the three largest economies in the world," said Salzberg.
"I believe that is a testament to Deloitte's ability to not only gain strength in high-growth strategic markets, but also continue to build momentum in established markets globally."
Strategic investments for growth
Strategic Markets program: As part of the global approach to enhance member firms' ability to seamlessly deliver world-class services across borders, the Network has committed US$750 million in investments in strategic markets over the next three years. The investment program aims to expand client service and industry capabilities, bolster the hiring and deployment of top talent, and cultivate innovative new services and multidisciplinary offerings.
Acquisitions: Deloitte completed 30 strategic acquisitions during the past year in key markets and growth areas, including Digital, Analytics, Financial Advisory, and Consulting, augmenting member firms' capabilities to address the evolving needs of clients.
Deloitte Audit: Deloitte Audit is a US$300 million, multi-year global transformation that enhances audit service quality by focusing more effectively and efficiently on clients' significant risks. It is being deployed in the 18 largest Deloitte member firms. Its evolved audit approach and enhanced technology and tools will cover approximately one-quarter of total member firm audit revenues by the end of FY2013.
"To create value and growth, Deloitte combines a great foundational strength together with client insight and customization," said Salzberg. "Innovation and opportunity will define the year ahead, for both Deloitte and member firm clients."