The finances of the big accounting and consulting firms have always been something of a mystery, and the fact that Andersen Consulting held a press conference to announce its 1992 results served to frustrate rather than enlighten. As usual, the crucial figure, its profits, were left out, as were the precise details on sources of revenue. Even so, the revenue figures appears to confirm the fact that the real growth in computing these days is in services and software. Worldwide net revenues were up 16% at $2,722m, with the biggest growth areas in its Telecom Industry and Utilities Group. Over half its revenues – 54% – came from outside the US. UK revenues were up 25% to UKP215m. Andersen indicated that its profits are at the high end of 10% to 12% range, which suggests a worldwide profit figure of some $300m. Andersen attributed its growth to its work in client-server computing and business re-engineering. $1,000m of its busienss comes from ‘client-server’ work, up from $370m in 1991. This could reach $1,900m in 1993. About 20% of revenues, $544m, is believed to come facilities management, an area where margins are becoming slimmer.
