Concerns about off-shoring cannibalizing other business and eating away margins have weighed on IT services firms such as Accenture. But Accenture and some analysts argue that outsourcing work to India extends the company's business in areas that it would not have sought otherwise.
Accenture ended the quarter with 16,500 employees in India, up from about 16,000 at the end of the previous quarter and out of a total workforce of 126,500.
Accenture reported a 12.3% first-quarter GAAP operating margin, up from 11.4% on an options-adjusted basis a year ago. The company's gross margin was 31.7%, compared with 32.6% a year ago on a GAAP basis and 31.8% on an options-adjusted basis.Shares of Accenture recently climbed 87 cents, or 2.9%, to $30.55 in after-hours trading after closing up 22 cents, or 0.8%, at $29.68.