Deloitte announces record revenue of $38.8bn
Marking the eighth consecutive year of solid growth
Key highlights:
• All Deloitte businesses, industries and regions grew fuelled by organic growth, strategic alliances and acquisitions • Over the last two years, revenue growth has averaged 8.3% in local currency terms • Nearly 70,000 new hires; the equivalent of one person hired every 8 minutes
Deloitte Global has reported aggregate member firm revenue of $38.8bn for the fiscal year ended 31 May, representing a 7.1% revenue increase in local currency terms or a $2bn revenue increase and 8.3% two-year CAGR.
“Deloitte’s revenue growth is attributable to two factors,” said Punit Renjen, Deloitte Global CEO. “First, our multi-disciplinary business model continues to be a source of competitive strength. Second, clients have choices and they are increasingly choosing Deloitte to help them navigate change and reinvent themselves in a constantly evolving global business environment.”
Malcolm Booker, Deloitte Malta CEO, added: “We are immensely proud to form part of the world’s largest professional services organisation and of the Malta firm’s small contribution in making this happen. We are also thankful to our people and clients for being with us on this incredible journey.”
Growth across all businesses, industries and regions
With a continued focus on creating an impact for clients across all geographies and service areas, Deloitte achieved growth in each of its five business areas – Audit & Assurance, Consulting, Financial Advisory, Risk Advisory and Tax & Legal.
Among the industries driving Deloitte’s growth in FY2017 were Technology, Media & Telecommunications and Consumer & Industrial Products – each grew revenue over 9% on a local currency basis. • Risk Advisory revenue grew the fastest at 12.9%, driven by increased recognition of risk as a strategic driver of performance, a focus on targeted acquisitions in high growth areas such as cyber and innovative solutions in the areas of robotic process automation, risk sensing and predictive analytics. • Consulting revenue grew at 10.2%, powered by the urgency of clients to accelerate their business model transformation in disrupted markets, and by its growing momentum through strategic acquisitions, alliances and investments in areas such as artificial intelligence, robotics, cognitive, creative digital consulting, cloud computing, blockchain and Internet of Things (IoT). Deloitte continues to make pioneering moves to help clients transform their businesses through co-innovation initiatives with organisations such as Singularity University and the Singapore Economic Development Board. • Tax & Legal revenue grew at 6.6%, fuelled by client needs related to the global tax reset, resulting from the OECD’s Base Erosion and Profit Shifting effort (BEPS), the evolution of technology and automation and mass globalisation. Deloitte’s focus on helping clients manage and make confident decisions about their tax matters included introducing several enhanced global technology tools such as TP Digital DoX, Value Chain Analysis Tool (VCAT) and myInsight. • Financial Advisory revenue grew 5.8%, driven by increasing demand for its broad and innovative multi-disciplinary M&A services. Growth was also driven by Deloitte’s Forensic service line, which has been recognised for leadership in eDiscovery, investigations and dispute analysis and advisory. Regional growth in China, as well as the expansion of the Asia Pacific Financial Crime Network, contributed to Financial Advisory’s strong year. • Audit & Assurance revenue grew by 1% as it continues to invest in driving quality and consistency across the network and transforming the audit business to deliver smarter and more insightful audits. Deloitte member firms led in overall Fortune Global 500 audit wins in FY2017 and have been recognised globally as leaders in audit innovation, analytics and artificial intelligence. • Asia Pacific revenue grew fastest among the regions at 9%, followed by Europe, Middle East and Africa at 8.6% and the Americas at 5.6% in local currency.
Getting to the future faster
Increasing disruption, complexity and the exponential speed of change has created unprecedented challenges and opportunities for clients. Deloitte’s ability to integrate deep industry insights and experience with a broad range of professional disciplines, has allowed it to help its clients get to the future faster.
Deloitte’s ability to orchestrate ecosystems and build alliances with leading digital innovators including Amazon Web Services, Facebook, HP, Oracle and SAP enhances its ability to offer comprehensive solutions that address clients’ toughest business transformation and technology challenges. Through these ecosystems, Deloitte helps clients identify potential disruptors, develop strategies to address disruption and execute on business transformation activities such as new services, products, business models and markets.
Renjen added: “Deloitte continually builds on our capacity to deliver the depth and breadth of expertise, insight and quality our clients demand and deserve. As a result, Deloitte is a recognised leader in helping clients adapt and thrive in an intensely competitive global economy.”
Investing in transformation
Deloitte is making strategic investments in integrating transformational technologies and data analytics into its solutions and products across its businesses in order to drive greater value for clients. Examples of these investments in FY2017 include: • Deploying world-class global solutions in Audit & Assurance, including Magnia, its audit delivery platform; Illumnia, its analytics platform and Cognia, its portal equipping Audit & Assurance professionals with innovative tools and approaches which leverage cutting-edge advancements in cloud, AI and machine-learning. • Driving audit quality enhancement through an Audit Quality Monitoring and Measurement programme and the Global Centre of Excellence for Audit Quality. Delivery of an enhanced global learning curriculum to its 70,000+ Audit & Assurance professionals worldwide. • Made investments in key markets to further strengthen Deloitte’s global network of offices and technology delivery centres to evolve how it serves its most important global and local consulting clients. • Adopting the ValueD, iDeal, D3 Discovery and Financial Crime Analytics platforms across the Financial Advisory business to support clients with new levels of insight and experience in order to help them solve complex business problems. • Developing integrated cloudbased solutions that, among other things, will leverage advanced machine learning techniques, natural language processing and graph-based algorithms on big data to enable cognitive and predictive capabilities. This will inform better decision-making and help address and mitigate clients’ risk issues in key areas like conduct, cyber, extended enterprise and product and quality. • Developed a global network of Cyber Intelligence Centres (CICs) to offer solutions that help clients protect business assets and enhance their security posture, while proactively detecting, responding and recovering from security events to become secure, vigilant and resilient. The CICs operate around the clock, 365 days a year to provide fully customisable, industry-aligned, managed security solutions including advanced security event monitoring, threat analytics, cyber threat management and incident response for businesses to meet the increasing market demand in cybersecurity services. • Enhanced Tax & Legal client connectivity through the introduction of innovative technology-enabled solutions across all service areas through a new digital relationship platform. • Expanded Tax & Legal’s ecosystem through six joint ventures with automation, cognitive and blockchain companies. Business Process Solutions (BPS) has formed five strategic agreements with robotic process automation (RPA) vendors and created an RPA Centre of Excellence. Deloitte has a collaboration with The Bakery Worldwide Ltd to connect business and clients with thousands of entrepreneur tech startups.
Building tomorrow’s workforce today
In FY2017, Deloitte increased its workforce in all geographic regions and businesses, with nearly 70,000 new professionals, an increase of 8% from FY2016 – the equivalent of one person hired every 8 minutes. Headcount growth was led by Asia Pacific among the regions at 10.4% and by Consulting and Risk Advisory among the businesses, each with growth over 13%.
Also in FY2017, Deloitte advanced a number of initiatives designed to support the career development and personal well-being of its professionals, including: • Opened the doors to its fifth and sixth Deloitte University (DU) locations – Deloitte University North (Toronto, Canada) and Deloitte University Asia Pacific (Singapore). In FY2017, 65,000 Deloitte professionals participated in leadership development programmes at Deloitte University. • Expanded family leave policies across the network to help its professionals balance their personal and professional lives, understanding the evolving dynamics of caregiving and diverse needs of families. Deloitte is dedicated to providing market-leading family leave policies across the world. Examples of this include Deloitte UK’s Shared Parental Leave, which gives eligible parents the option to share a period of their maternity or adoption leave with their partner. And, Deloitte US expanded its paid family leave policy and now offers up to 16 weeks of fully paid extended family leave to eligible male and female employees to support a range of life events impacting their families – from celebrating the arrival of a new child, to caring for a spouse, partner, sibling or aging parent. • Launched a new strengths based performance management experience that focuses on further developing strengths (areas where team members feel creative, innovative and insightful) through on-going feedback and development that drives both individuals and teams. • As Deloitte continues to grow, it places a strong focus on creating and supporting a culture of inclusion. An inclusive and diverse work environment not only reflects the world in which we live, it creates a culture that intentionally invites and engages unique perspectives and experiences, resulting in improved business outcomes and stronger services for diverse clients, better attraction and retention of top talent and a positive societal impact. “Deloitte professionals represent the workforce of the future: top talent with different life experiences, viewpoints and skill sets. In creating an inclusive, collaborative, purposeled culture, we inspire our people to make an impact that matters for each other, our highly diverse and sophisticated client base and society.”
In 2017, the Deloitte network continued to be recognised as a top employer globally through awards such as LinkedIn’s Top Employers, The Times Top 50 Employers for Women and Universum’s World’s Most Attractive Employer award, among others.
A Worldclass social impact solution for
Deloitte recognises that the greatest challenge to global economic growth, prosperity and social progress is lack of access to the fundamental building blocks of personal and professional success.
This year, to help address this challenge, Deloitte is intensifying its efforts to help expand access to career-building opportunities for communities and individuals left behind in the transformation to the Fourth Industrial Revolution.
“WorldClass” is a new global effort designed to apply Deloitte’s skills, experience, scale and commitment to preparing and empowering people to take advantage of the new world economy through access to education and training.
“Millions of people are not sufficiently prepared for the requirements of the new world economy,” said Renjen. “There are already incredible efforts underway around the globe by Deloitte professionals to support education and skills development. WorldClass builds on their work helping create pathways for individuals to fulfil their personal and professional aspirations.”
WorldClass builds upon the success of One Million Futures in the UK, Unleash in Denmark, an initiative to support the United Nations Sustainable Development Goals and Impact Day, a volunteering day which takes place across the world, among other initiatives. In FY2017, Deloitte professionals spent more than 1.2 million hours on pro bono service and volunteering in their communities, with more than one third focusing on education and skills building. Deloitte’s overall contributions toward societal and community causes are estimated to be over US$200m.