Julie Sweet
Chair & Chief Executive Officer at Accenture
Thank you, KC. We succeed by being close to our clients, understanding and anticipating their needs, helping them from strategy to execution with the best solutions for their businesses, whether for growth, cost optimization or both and resilience. And it all starts with technology. With the breadth and depth of our existing capabilities, combined with our incredible learning organization, we are able to pivot as necessary, positioning us to serve our clients' changing needs and capture new market opportunities, all while being laser-focused on our own operational excellence.
I will give some color on the demand we are seeing. First of all, against the backdrop of the current macroeconomic environment, we delivered $18.4 billion in new bookings in Q4, a year-over-year increase of 31% in local currency. While industries and markets are being affected differently, there are two common themes. All strategies lead to technology, particularly cloud, data, AI and security, which are fundamental to a strong digital core. Our cloud business is now $26 billion and grew 48%, with Cloud First being the biggest driver of the growth.
Companies are also seeking to execute compressed transformation, the second theme. These mean bold programs on accelerated time frames often spanning multiple parts of the enterprise at the same time. Managed services have become increasingly strategic as companies seek to move faster and leverage our digital platform and talent, and they are turning to Accenture because of our excellence across the enterprise. We are unmatched in terms of breadth and depth of capabilities and industry coverage.
We continue to see a growing number of companies embrace the need to harness the five key forces of change that we have identified for the next decade: Total enterprise reinvention, talent, sustainability, the Metaverse continuum and the ongoing tech revolution, which in turn will fuel our growth. Let me bring this demand to life.
First, total enterprise reinvention. We are helping our clients transform every part of their business with technology, from building a digital core to optimizing operations, to achieve agility, efficiency and resilience, to accelerating their growth agendas. While it is still early stages, there are leading companies that have begun systematically transforming multiple parts of their enterprise, from moving to the cloud and adopting new ways of working to digitizing manufacturing, to reimagining shared services, to creating entirely new business models.
Unilever, one of the world's largest consumer goods companies, is an example of a company that is leading in total enterprise reinvention. Together, we are setting a new industry standard by reinventing technology delivery with cutting-edge automation, delivering cloud migration at scale, the largest ERP migration to the cloud in the industry and shifting to technology solutions that support their growth strategy. They have changed their business model from a matrix structure to being organized around five distinct business groups. Each business group is fully responsible and accountable for their strategy, growth and profit delivery globally.
Now we are helping them build a B2B marketplace that will help millions of small retailers in emerging markets grow their business and create what the company calls shared prosperity. We helped launch in seven markets in just 12 months, implemented a cloud-native, scalable commerce platform powered by data and advanced analytics. And we are managing front-end, back-office operations and campaigns delivered in partnership with the Accenture Song team.
Because across our industries, we are as relevant to the boardroom, to the CFO to the business unit leader, to the GM of the factory, and we understand the connections across the enterprise, we are uniquely positioned to help our clients as they seek to often simultaneously drive growth, efficiency, cost reduction and increased resilience.
For example, we are helping Lupin Limited, a global pharmaceutical company, become an intelligent enterprise by enabling its data-driven transformation journey. A new digital platform will unlock enterprise data to increase efficiencies, and decision-makers will now have real-time visibility into integrated data across 100 countries and 15 manufacturing and research facilities. This consolidated view of global business operations and performance will help the company navigate supply chain disruptions and accelerate product innovation and speed to market while supporting the company's mission to provide affordable healthcare to people around the world.
We see continued demand for our Industry X capabilities, which are all about digitizing engineering and manufacturing. This is the next digital frontier. Industry X revenues grew 38% in FY '22 to total $7 billion. We are helping EDF, a French multinational utility company, digitize the construction of a nuclear power station that will provide low-carbon energy for more than 6 million U.K. homes. As part of a total enterprise reinvention, our Industry X team transformed EDF's digital construction processes by creating a global digital factory model on a secure cloud infrastructure, driving cost efficiency.
Construction methods that used to be paper and blueprint-based will be digitized, and AI will consolidate parts information from millions of pages of supplier guides. Digital dashboards will provide real-time data visibility across all systems, and digital twins will help identify areas for automation across power plants, all of which drive safety, efficiency and quality. We are leveraging our expertise of nuclear construction on our cutting-edge cloud, digital and AI capabilities to help EDF deliver on one of the largest capital projects in Europe and accelerate its mission, helping Britain achieve net zero.
And our operation services, now a $9 billion business with 19% growth in FY '22, are fundamental to total enterprise reinvention for our clients because they help our clients digitize faster, access digital talent and reduce cost. For example, we are collaborating with one of the world's largest commercial vehicle manufacturers to develop an independent finance operation, leveraging our deep functional expertise in finance and accounting. With our managed services, we will implement a new platform underpinned by SynOps. Automation, data and analytics will drive and provide real-time decisions while digitizing processes to improve efficiency and user experience, all leading to significant cost reductions, better decision-making and savings.
And as our clients build their digital core, security continues to be more important than ever. With over $6 billion in revenue and 45% growth, our integrated security capabilities, from identity, to threat intelligence, to manage security services, to incident response, are critical as our clients respond to increasing risk as the security landscape widens.
We are working with an Asian multinational conglomerate to deliver a comprehensive managed security services, security operations center, a holistic security solution to detect, monitor and respond to global security threats 24/7. We will also manage tools to continuously monitor end-user devices to detect and respond to cyber threats, like ransomware and malware, and will perform regular threat-hunting activities to detect new cyber hacking techniques. This will provide its business units with timely detection and defense against cyber attacks, deliver threat intel for proactive defense, reduce false alarms by 90% and minimize emergency incidents to less than 1% of total incidents.
Moving from total enterprise reinvention to the other five forces. Next, talent. Our clients look to us to help them access, create and unlock the potential of talent.
We collaborated with Sky, one of Europe's leading media and entertainment companies, to modernize its employee experience and human resources operations in the era of hybrid working. By migrating to a Software-as-a-Service multi-platform human capital management solution, all in the cloud, employees will be empowered with anytime, anywhere self-service solutions and access to real-time data and dashboards across all markets in one place.
The solution supports all people management functions, from recruiting and onboarding, to performance management and learning, as well as compensation, benefits and payroll integration. Employees have the full picture of their work experience at their fingertips, helping them to build their careers and perform at even higher levels.
Now sustainability. With $1 billion in revenues in FY '22, we continue to believe clients will increasingly need our sustainability services in the decade to come. We collaborated with Swisscom, Switzerland's number one firm for communications, IT and entertainment, on a climate strategy to reduce the company's emissions and help its customers reduce their emissions by 1 million tons of carbon by 2025, equal to 2% of Switzerland's total carbon emissions, by leveraging technology such as cloud, data, AI, 5G and IoT. These technologies will address faster and higher capacity data transmission with remote management and control of connected devices.
We are also helping the company explore strategies to incorporate technologies within the emerging Scope 4 classification that can help further reduce carbon emissions from customers, allowing Swisscom to positively impact the planet and provide their customers with a larger number of green products and services to choose from.
Moving to the Metaverse and the ongoing tech revolutions. We continue to invest ahead of our clients' needs and have more than a decade of experience and leadership in Metaverse-related capabilities. In fact, we expect to onboard over 150,000 new joiners using Accenture's Nth Floor. And we use our experience and expertise to help our clients as we believe the Metaverse continuum provides greater possibilities in the wave of digital transformation, and it is still early days. For example, we are helping Tokyu Land Corporation, a Japanese leading leasing, construction and retail real estate company, leverage the Metaverse to transform the customer experience through digital twin technology, leveraging computer-generated imagery to recreate walk-throughs of its condominiums online to greatly improve its in-person model room tour.
Customers will be able to visualize a property online, including different home equipment options, and the company will attract more buyers and increase sales while reducing marketing costs and the environmental impact of the construction, operation and removal of the model room. Into the future, we will help create continuous touch points with customers throughout the real estate life cycle and develop new collaborative digital businesses, such as purchasing furniture and home appliances and ordering renovation services. And with our continued focus on innovation on the ongoing tech revolution, we continue to invest in our business for the future. For example, in Q4, we invested in Pixxel, a leader in cutting-edge earth imaging space technology.
Back to you, KC.
