Deloitte Marks Its 10th Consecutive Year of Growth
All Deloitte Businesses, Regions, and Industries Experienced Continued Growth in Fiscal Year 2019
Deloitte reported aggregate member firm revenue of US$46.2 billion for the fiscal year ending 31 May 2019 (FY2019). This is a 9.4 percent revenue increase in local currency and a US$3 billion increase over last year.
“At the core of Deloitte’s culture and business model is the fundamental belief that we exist to make a positive impact for clients, our people, and the communities in which we live and work. Our performance in FY2019 is evidence that a purpose-led approach works,” says Punit Renjen, Deloitte Global CEO. “Disruption and transformation are shaping business and society today, imposing new and urgent responsibilities on business leaders. Deloitte is meeting the challenges by building an equitable and sustainable business for the long term and holding itself accountable for the triple-bottom line of people, profit, and planet.”
People – Diversity and inclusion power the workforce of the future
Deloitte believes that its workforce must reflect the world around it if it is to succeed in solving its clients’ toughest challenges.
This year, Deloitte launched an initiative to globally coordinate its diversity and inclusion efforts. This is part of Deloitte’s long-standing commitment to talent development and building a workforce with the skills to solve the business and societal challenges of the Fourth Industrial Revolution. The key focus of the initiative is an effort to attract, retain, and increase the representation of women and minorities at all levels within Deloitte.
“While we are proud of our progress, we know we have more work to do to enable the next generation of leaders to reach their full potential. We are making conscious efforts to take steps to increase the number of women and underrepresented minorities in our leadership ranks throughout the organization, while recognizing that diversity and inclusion efforts are most successful when supported by the right environment, culture, and policies,” says Michele Parmelee, Deloitte Global Chief People and Purpose Officer. “Our strategyincludes using data analytics to inform actions, modifying talent processes, setting global standards, and providing our people with more development, sponsorship, and leadership opportunities.”
In FY2019, Deloitte increased its workforce to approximately 312,000 professionals, a 9 percent increase. Growth occurred across all regions, with more than 90,000 professionals hired.
As Deloitte’s workforce continues to grow and as transformative technologies—such as digital, cloud, analytics, and artificial intelligence (AI)—become increasingly pervasive, Deloitte is focused on equipping its people with new capabilities that will enable them to be more tech savvy and future-ready. This, in turn, will allow Deloitte to help clients capitalize on these revolutionary innovations.
Deloitte combines common curricula, technology, and innovative learning facilities, such as Deloitte University (DU), to provide its people with consistent leadership, industry, and technical capabilities. Deloitte’s significant long-term investment in the Deloitte University system enables its people to advance their careers and participate in leadership-development programs in a world-class learning environment. In FY2019, nearly 133,000 Deloitte people around the world experienced DU. Additionally, a new personalized digital experience, powered by AI and machine learning, will provide Deloitte professionals with learning recommendations and access to the latest knowledge and skills-based learning they need, when and where they need it.
In addition to preparing its people and clients with the skills required for the jobs of the future, Deloitte is committed to helping millions of people around the world find meaningful work in the new economy. By 2030, Deloitte’s global societal impact initiative, WorldClass, aims to empower 50 million people by improving education outcomes, developing job skills, and providing access to opportunities. Since launching two years ago, WorldClass has reached 5.3 million people. This year, WorldClass continued to expand, reaching 3.8 million people and launching new programs in India, China, and South Africa.
In alignment with Deloitte’s global diversity and inclusion initiative, WorldClass includes a focus on identifying community opportunities and stakeholders who can raise the aspirations, confidence, and engagement of girls and young women, thereby preparing them for jobs, entrepreneurial endeavors, and the Fourth Industrial Revolution. For example, WorldClass in India is focused on accelerating high-impact solutions and promoting cross-sector collaboration with businesses, government, and nonprofits in order to help 10 million girls and women be better prepared for the future of work.
Profit – Record revenue marks 10th consecutive year of growth
Deloitte’s strategy and multidisciplinary business model continued to drive success globally in FY2019. All five business areas—Audit & Assurance, Consulting, Financial Advisory, Risk Advisory, and Tax & Legal—grew during this time.
All six industries also contributed to Deloitte’s growth in FY2019. Growth among the industries was led by Energy, Resources & Industrials, which grew at 20.4 percent, followed by Life Sciences & Health Care at 12.4 percent, Technology, Media & Telecommunications at 10.3 percent, Consumer at 8.5 percent, Financial Services at 5.9 percent, and Government & Public Services at 2.9 percent. Financial Services was the top contributor with US$12.4 billion in aggregate global revenue for FY2019.
Among the regions, revenue in Asia Pacific grew fastest with a local currency growth of 11.6 percent, followed by the Americas at 10.4 percent, and Europe, the Middle East, and Africa (EMEA) at 7.9 percent.
“Our FY2019 results are a validation of Deloitte’s strategy to deliver high-quality, globally consistent service to our clients while continuing to serve the public interest and working to restore trust in capital markets. We evolved and innovated our offerings to address current and emerging client needs, and we increased our investments in learning and development to build a workforce with deep knowledge, capabilities, and leading-edge insights,” says Renjen.
Key growth drivers for Deloitte’s businesses in FY2019 included:
- Audit & Assurance revenue experienced aggregate growth at 3.0 percent. Ongoing investments in audit quality, transformation, innovation, and technology demonstrates Deloitte’s commitment to restoring trust in the capital markets and serving the public interest, with audit quality being Deloitte’s top priority. Deloitte’s innovation and technology investments are anchored by its next-generation, cloud-based audit platform, Omnia. The platform enables the audit of the future, incorporating everything from data analytics to engagement project management and audit applications. Deloitte’s market-leading portfolio of audit innovation tools also includes Cortex, an analytics platform which was recognized as the “Audit Innovation of the Year” in October 2018. Deloitte’s Assurance services business continues to grow at a rapid pace, delivering confidence and additional value across a broad range of service offerings, with revenue totaling US$1 billion for FY2019 and strong continued growth expected.
- Consulting revenue grew the fastest globally, at 15.2 percent, by helping leading organizations imagine, deliver, and run the future of their businesses in an era of unprecedented change. Deloitte was ranked number one in worldwide consulting for its market share in April 2019, based on revenue from 2018. Growth and market share increased across the board in mature and emerging markets, with the highest growth occurring in Asia Pacific, as Deloitte helped clients execute their digitally enabled business transformations. This growth was fueled by sustained and successful orchestration of assets and ecosystems across digital, cloud, cognitive and AI, and internet of things (IoT) in collaboration with key alliance partners, such as Adobe, Alibaba Cloud,Amazon Web Services (AWS), Google Cloud, IBM, Informatica, Salesforce, SAP, ServiceNow, and Workday. Areas of hypergrowth included the Consumer industry and Energy, Resources & Industrials industry verticals, and solutions to signature issues clients face in areas like the future of work, smart cities, and the future of health.
- Tax & Legal saw the second-highest revenue growth globally among Deloitte businesses at 8.5 percent, driven by client demand for globally integrated, digitally enhanced services to provide them with confidence in a rapidly changing and complex environment. Radical and emerging global tax reforms (including the digitization of reporting, an evolving policy landscape, and increasing transparency expectations for multinational businesses) and demand for integrated legal services underpin this growth. In addition, the ongoing development of key strategic alliances, including with Berry Appleman & Leiden LLP in immigration law and Epstein Becker & Green, P.C. in employment law, are laying the foundation for global leadership in end-to-end global mobility and workforce-management services.
- Risk Advisory grew at an aggregate 8.4 percent with double-digit growth in its Cyber Risk and Financial Risk offerings. Gartner ranked Deloitte #1 in Security Consulting Services for its market share in July 2019, based on revenue from 2018.Deloitte is globally recognized as a leader in cyber strategy consulting and Fusion Managed Services (FMS). Risk Advisory delivered innovative, digitized, tech-enabled solutions, driving growth, efficiency, and modernization for clients. Strong results for Government & Public Services, Life Sciences & Health Care, and Energy, Resources & Industrials clients led the way from an industry perspective. Risk Advisory focused on helping clients transform the way they strategically approach risk in what is an ever-evolving and complex environment.
- Financial Advisory grew 8.1 percent globally, delivering impact for clients and society through Mergers, Acquisitions, Divestitures, and Forensic services. Growth was fueled by serving as a trusted advisor on many of the world’s most iconic M&A transactions for corporations, private equity, and sovereign wealth funds. Deloitte’s market-leading Forensic practices prevented and remediated complex disputes, investigations, and crises and addressed the global impact of financial crime through innovative technology and digital solutions.
“In today’s hyperconnected world, the best solutions to address client challenges are developed by ecosystems of problem solvers. Deloitte’s success is driven, in part, by our alliance relationships with many of the world’s most powerful and innovative companies that help our clients solve their most complex problems, shape new markets, and create sustainable value,” added Renjen.
Planet – Shaping our future through environmental sustainability
Deloitte believes business has a critical responsibility to help mitigate the impacts of climate change.
Deloitte has committed to the global reduction of carbon emissions as part of its ongoing and increasing efforts to preserve the planet and natural resources for future generations. Deloitte strives to lower its carbon emissions in line with the Paris Agreement and has set specific reduction goals for its buildings, fleet, and business travel by FY2025 from its FY2017 levels. The building and fleet goals were formulated in line with methodologies put forth by the Science-Based Targets Initiative aimed at limiting emissions in accordance with the Paris Climate Agreement.
Deloitte’s greenhouse gas emissions goals cover the entire global organization and address its major sources of emissions. The goals include a 36 percent per unit of area reduction in building emissions, 11 percent reduction in fleet emissions, and 10 percent per FTE reduction in travel emissions. And furthering Deloitte’s commitment to sustainability, emissions arising from Deloitte air travel during FY2019 are being offset through the purchase of carbon credits.