Accenture wins Procurement Transformation Contract from City of London Corporation

LONDON; – The City of London Corporation today awarded Accenture (NYSE: ACN) a five-year contract to help it reduce its procurement costs by creating a new, world-class procurement shared service center.

Under this new, value-based arrangement, Accenture will have a proportion of its fees directly tied to the savings achieved to demonstrate its commitment and confidence in its ability to deliver savings. Accenture will initially focus on delivering strategic sourcing -- savings from across the City’s diverse base of suppliers -- and by transforming the way that the City manages its procurement operations.

A new central City of London Procurement Service will be created to undertake all procurement and procure- to-pay functions. This service will be delivered by a joint team from the City and Accenture for the duration of the contract.

“The City is seeking to achieve savings and drive efficiencies through the way in which it conducts its procurement and procure-to-pay functions,” said Chris Bilsland, the City of London Corporation’s financial director. “We selected Accenture because of its proven success in delivering procurement services to organizations across the world, although, of course, this new contract will complement our commitment to local procurement. The City of London Corporation will continue to enjoy the legacy of both the financial and non-financial benefits after the contract period.”

Change management will be central to this transformation program and Accenture will provide training for both the City staff that will be involved with the transformation as well as those who will take over the ongoing management of the centralized procurement service after Accenture.

“The aim is to save the City of London Corporation more than £30 million over five years,” said Mark Lyons, Accenture’s United Kingdom and Ireland managing director for Health and Public Service. “This innovative, value-based arrangement will ensure that both Accenture and the City of London Corporation are committed to delivering these savings. Accenture will bring its deep industry skills and insight across its global network to drive continuous improvement for the City.”

New technology will be deployed through the implementation of an eMarketplace and a buyer portal to assist departments in requisitioning and using the new service. This unified procurement function will help the City fully exploit the latest procurement techniques, such as category and demand management, and more effectively balance quality, price and operational costs.

About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with approximately 211,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.

About the City of London Corporation
The City of London Corporation is a uniquely diverse organization. It supports and promotes the City as a world leader in international finance and business services and provides local services and policing for those working in, living in and visiting the Square Mile. It also provides valued services to London and the nation. These include the Barbican Centre and the Guildhall School of Music & Drama; the Guildhall Library and Art Gallery and London Metropolitan Archive; a range of education provision (including three City Academies); five Thames bridges (including Tower Bridge and the Millennium Bridge); the Central Criminal Court at Old Bailey; over 10,000 acres of open spaces (including Hampstead Heath and Epping Forest), and three wholesale food markets. It is also London’s Port Health Authority and runs the Animal Reception Centre at Heathrow. It works in partnership with neighbouring boroughs on the regeneration of surrounding areas and the City Bridge Trust, which it oversees, donates more than £15m to charity annually.