Accenture Ltd. has sat out the early rounds of bidding for $15 billion in technology services contracts that General Motors intends to award.
Accenture, which received a bid package from GM, won't say why.
But the company may feel the potential margins are so slim that the business is not worth pursuing, says Pat Burton, managing director of computer services and IT consulting at Smith Barney in New York.
"I would have been more concerned, frankly, if Accenture would have won the business," Burton said. "What ultimately would be the profit margins on that revenue? Although everybody's looking for growth, they probably have more attractive opportunities."
Accenture, of Hamilton, Bermuda, is one of the world's largest management consulting, technology services and outsourcing companies, with revenue of $13.67 billion in its 2004 fiscal year ended Aug. 31. The company has 100,000 employees in 48 countries.