Deloitte member firms (Deloitte) reported record aggregate revenues of US $34.2 billion (€27.0 billion) for the fiscal year ending 31 May 2014. In its fifth consecutive year of growth, Deloitte saw accelerated demand for its range of services in all regions of the world. The organisation’s aggregate revenues represent growth of 6.5 percent in local currency, or 5.7 percent in U.S. dollars.
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Growth was led by Consulting, which experienced double-digit growth (10.3 percent in local currency), followed by Tax & Legal (7.7 percent). Financial Advisory and Enterprise Risk Services also experienced strong growth with 6.8 percent and 4.2 percent, respectively. Audit experienced growth of 2.5 percent, reflecting growth even after accounting for the network’s significant investment in quality around its audit service.
Deloitte’s growth reflects its commitment to providing clients with high quality services through a multi-disciplinary model, delivering innovative solutions from strategy to implementation. Increasing client needs stemming from globalisation and changes in business models, technology, and regulations are expected to drive further opportunities in the year ahead. The network is also steadfastly committed to the growth and development of its people, with more than 63,000 professionals receiving training via its Deloitte University curricula in the past fiscal year.
“By repeatedly forging new ground, Deloitte continues to stay ahead of the considerable disruption facing clients, our people, and the society in which we operate,” said Barry Salzberg, Deloitte Touche Tohmatsu Limited CEO. “Member firms remain sharply focused on their unique ability to address the specific needs of their clients through distinctive breadth of skills, deep industry knowledge and strategic investments, while bolstering trust in the marketplace, hiring and developing the best talent, and delivering value to society.”
CIOs not viewed as 'natural choice' to drive technological innovation
At the same time Deloitte release 2014 Global CIO survey. The Deloitte CIO Survey report presents the findings from the firm’s 2014 global survey, this year with responses from over 900 CIOs, from all major industry groups in 49 countries around the world.
This year’s survey focuses on the CIO (Chief Information Officers) as a business leader and a driver of growth through technology innovation. Organisations across the globe are setting their sights on stronger growth and, for many, technology investment is clearly a strategic priority. Digital, analytics and big data are taking precedence as technology is changing the way businesses operate and companies are adapting their operating models to reflect the emerging digital economy
However, while more than half of CIOs (52%) consider innovation an important priority, they receive little funding for this within their IT function. Almost half have less than 10% of their budgets aligned to innovation-related activities.
Deloitte’s second global CIO Survey reveals a disparity between the excitement over, and proposed investment in, technology – and the role the CIO is playing in this transformation. The CIOs who participated in Deloitte’s survey provided insight into the perceptions, priorities, opportunities and challenges of CIOs around the world.
Kevin Walsh, head of Deloitte’s technology consulting practice, says: “This year’s survey points to a real shift in board members’ attitudes towards IT investment and the importance of new and digital technologies for business development. However, the ongoing lack of innovation budget is very surprising given positive current market conditions and a general acknowledgement that technology is essential for organisations to deliver stronger customer engagement. Either there is still limited budget for innovation – or, and perhaps more likely, it has been given to someone else in the organisation.”
Business leaders’ attitudes to risk are an even bigger constraint than inadequate budgets in making riskier IT investments for innovation and growth, according to CIOs. While the survey results suggest CIOs are willing to take intelligent risks with IT investments (71% class themselves as risk tolerant, not risk averse), this appetite for investment does not seem to be reflected in their current portfolios of projects.
“CIOs are still most often associated with maintaining core IT systems and ‘keeping the lights on’,” says Walsh. “However, a key question in this year’s survey is whether CIOs should take more responsibility for technology innovation to help their organisations grow. The challenge will be to convince company leadership they are capable of delivering these new technologies.”
Despite some challenges, there have been significant improvements in business relationships as our findings reveal CIOs are becoming more effective business partners (10% increase on last year, with half rating themselves ‘strong and effective’).
