Deloitte announces record revenue of US$43.2 billion
11.3 percent increase marks ninth consecutive year of growth
- All Deloitte services, industries, and regions experienced continued growth
- The number of Deloitte professionals grew 8.4 percent to more than 286,000—an agile workforce fit for the opportunities of the Fourth Industrial Revolution
SAIPAN, 18 September 2018—Deloitte today reported aggregate member firm revenue of US$43.2 billion for the fiscal year ended 31 May 2018 (FY2018). This is an 11.3 percent revenue increase of US$4.4 billion.
“FY2018 was exceptional for Deloitte as we continued to deliver a measurable impact for clients, our people, and society. These results reflect Deloitte’s unrelenting commitment to serving clients with quality and distinction while embracing important public-interest responsibilities,” says Punit Renjen, Deloitte Global CEO. “Over the past year, we have increased strategic investments in the capabilities and services most sought-after by clients in the fastest-growing markets in the world. We also have expanded our efforts and investments to drive audit quality and innovation while achieving strong financial results.”
Transition to Fourth Industrial Revolution (Industry 4.0) delivers growth across all businesses, industries and regions
Deloitte’s global strategy and multidisciplinary business model continued to deliver successes in FY2018. All five practice areas—Audit & Assurance, Consulting, Financial Advisory, Risk Advisory, and Tax & Legal—grew during this time.
Among the industries driving Deloitte’s growth in FY2018 were Technology, Media & Telecommunications, and Financial Services; each grew revenue more than 12 percent on a US-dollar basis. Consumer and Industrial Products was the top contributor with US$1.3 billion revenue gained from FY2017 to FY2018.
Overall, Europe, Middle East, and Africa (EMEA) grew fastest among the regions with a USD revenue growth rate of 15.9 percent, followed by Asia Pacific at 13.3 percent, and the Americas at 8.0 percent.
- Audit & Assurance experienced growth of 7.7 percent. Amid changing regulations and disruptive technologies, Audit & Assurance expanded services that provide greater value and insights while fulfilling its commitment to the public interest. Over the past five years Deloitte has advanced audit quality with more than US$1 billion in investments globally. Among many initiatives in audit innovation is Deloitte Omnia, a cloud-based, next-generation artificial intelligence platform that adds to a market-leading global solutions portfolio. Deloitte continues to be recognized globally for leadership in audit quality, and for insights based on analytics and artificial intelligence.
- Consulting revenue grew fastest at 15.7 percent, with double-digit growth in each core capability area: Technology, Strategy & Operations, and Human Capital. This extends more than 10 years of double-digit growth. Consulting focused on delivering digital-enabled business transformation by integrating strategy, people, and technology to help clients navigate the challenges and opportunities of Industry 4.0. Consulting developed cloud-based, agile, data-driven products and solutions through strategic alliances with leading technology companies.
- Financial Advisory achieved 8.0 percent revenue growth, providing services crucial to many iconic and transformative M&A deals, and deploying new offerings and client initiatives. End-to-end M&A services continued to support major global transactions, while Financial Advisory’s Forensic practice supported clients in some of the year’s biggest and most complex disputes and investigations by leveraging analytics, digital tools, and digital delivery mechanisms.
- Risk Advisory had the second-highest revenue growth at 12.0 percent, fueled largely by growth in Cyber, Financial, and Operational Risk. Risk Advisory completed six acquisitions in critical growth areas such as corporate social responsibility, cybersecurity, risk sensing and analytics, and regulatory compliance and strategy. Risk Advisory also launched new cross-industry offerings in GDPR, breach notification, and digital risk. It introduced offerings for life sciences clients in IDMP and Medtech. Risk Advisory has been at the forefront in supporting clients adapting to geopolitical changes—in particular the impacts of Brexit.
- Tax & Legal saw 8.7 percent revenue growth driven by the needs of clients who face an increasingly complex landscape of tax and legal requirements everywhere they operate. Tax & Legal leveraged its strength in delivering technology-enabled global solutions to assist clients who must comply with evolving tax, legal, and employee mobility and immigration policies as they pursue strategic opportunities throughout the world.
Building a diverse, inclusive, agile workforce to meet the needs of tomorrow
In FY2018, Deloitte increased its workforce to approximately 286,000 professionals, an 8.4 percent increase. Growth occurred across all regions and practice areas, with more than 77,000 professionals hired. Among the regions, growth was led by Asia Pacific at 11.6 percent, and for services it was led by Consulting at 14.7 percent.
Additionally, in FY2018 Deloitte elevated 676 professionals to partner, a 19 percent increase from FY2017. Globally, 174 of these partners are women. Geographically, Asia-Pacific saw the largest share, with 242 professionals elevated to partner, representing a nearly 30 percent increase over last year. The Americas elevated 238 new partners and the Europe, Middle East, and Africa region (EMEA) elevated 196.
Deloitte continues to build a diverse, inclusive, agile workforce that is deeply skilled and ready for Industry 4.0. How and where work is done is changing, and Deloitte is responding by providing its people with exceptional professional experiences, including new approaches to connectivity, learning and development, and advancement.
Deloitte’s dedication to attracting, retaining and developing the very best global leaders, at all levels across the organization, is illustrated by its investment in its network of Deloitte University (DU) centers around the world. Through DU, Deloitte professionals advance their careers and participate in leadership development programs in a world-class learning environment that inspires them to be their best.
In FY2018, Deloitte doubled down on its talent investment and increased its impact by delivering the DU experience to more than 90,000 professionals and opening Deloitte’s seventh DU location, in Mexico City.
New mindset for societal impact
Addressing the complex challenges society faces today has become an imperative for business, and one that requires a new mindset for action. Deloitte embraces this opportunity—through its client work and hands-on community activities, and by sharing insights.
Deloitte’s ambition is to create pathways for people to fulfill their aspirations and find meaningful work in the new economy. The WorldClass societal-impact initiative expands access to education and career-building opportunities for those affected by Industry 4.0. The goal is to impact 50 million futures by 2030.
In FY2018 alone, major initiatives included: award-winning work showcasing the social and economic value of the Great Barrier Reef in Australia; cooperating with the Refugee Studies Center at the University of Oxford on a cross-border initiative to realize the economic potential of refugees living in Europe; and serving as the lead innovation partner for UNLEASH 2018, a global initiative inspiring and supporting the next generation of leaders as they develop solutions to some of the most vexing problems facing the world today.
“At the core of Deloitte’s business model is the fundamental belief that working with a sense of purpose and serving with quality and distinction make a positive impact on our clients, our people, and our communities. It is through our work that we contribute to building a more equitable and sustainable world,” says Renjen.
Recognizing the impact Deloitte is making in preparing its people and its clients for the technological disruption of the Fourth Industrial Revolution, Fortune recently named Deloitte to its “Change the World” list. The annual ranking recognizes top companies who are making measurable progress addressing important societal problems.
To learn more about Deloitte’s societal impact, please read Deloitte’s 2018 Global Report.
Note: All growth rates in this press release are in USD unless otherwise specified.
About the Deloitte societal-impact commitment
Addressing the complex challenges society faces today has become a mandate for business, and one that requires a new mindset for action.
Deloitte is taking action through WorldClass, a societal-impact initiative to empower 50 million futures by 2030. Our ambition is to create pathways for people to fulfill their aspirations and find meaningful work in the new economy. The Deloitte network is also empowering women around the globe, promoting environmental sustainability, investing in new insights and methodologies, and serving clients to fulfill their purpose.
Deloitte is committed to responsible business practices, serving the public interest, and making an impact on society. Learn more about our commitments here.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 countries and territories serves four out of five Fortune Global 500® companies. Learn how Deloitte’s more than 286,000 people make an impact that matters at www.deloitte.com.
All services are provided through the individual country practices, their subsidiaries and affiliates, which are separate and independent legal entities.
Saipan, 14 September 2017—Deloitte Global today reported aggregate member firm revenue of US$38.8 billion for the fiscal year ended 31 May 2017 (FY2017), representing a 7.1 percent revenue increase in local currency terms or a US$2 billion revenue increase and 8.3 percent two-year CAGR.
“Deloitte’s revenue growth is attributable to two factors,” said Punit Renjen, Deloitte Global CEO. “First, our multi-disciplinary business model continues to be a source of competitive strength. Second, clients have choices and they are increasingly choosing Deloitte to help them navigate change and reinvent themselves in a constantly evolving global business environment.”
Growth across all businesses, industries and regions
With a continued focus on creating an impact for clients across all geographies and service areas, Deloitte achieved growth in each of its five business areas—Audit & Assurance, Consulting, Financial Advisory, Risk Advisory and Tax & Legal.
Among the industries driving Deloitte’s growth in FY2017 were Technology, Media & Telecommunications and Consumer & Industrial Products; each grew revenue over 9 percent on a local currency basis.
- Risk Advisory revenue grew the fastest at 12.9 percent, driven by increased recognition of risk as a strategic driver of performance, a focus on targeted acquisitions in high growth areas such as cyber, and innovative solutions in the areas of robotic process automation, risk sensing, and predictive analytics.
- Consulting revenue grew at 10.2 percent, powered by the urgency of clients to accelerate their business model transformation in disrupted markets, and by its growing momentum through strategic acquisitions, alliances and investments in areas such as artificial intelligence, robotics, cognitive, creative digital consulting, cloud computing, blockchain and Internet of Things (IoT). Deloitte continues to make pioneering moves to help clients transform their businesses through co-innovation initiatives with organizations such as Singularity University and the Singapore Economic Development Board.
- Tax & Legal revenue grew at 6.6 percent, fueled by client needs related to the global tax reset—resulting from the OECD’s Base Erosion and Profit Shifting effort (BEPS), the evolution of technology and automation, and mass globalization. Deloitte’s focus on helping clients manage and make confident decisions about their tax matters included introducing several enhanced global technology tools such as TP Digital DoX, Value Chain Analysis Tool (VCAT), and myInsight.
- Financial Advisory revenue grew 5.8 percent, driven by increasing demand for its broad and innovative multi-disciplinary M&A services. Growth was also driven by Deloitte’s Forensic service line, which has been recognized for leadership in eDiscovery, investigations, and dispute analysis and advisory. Regional growth in China, as well as the expansion of the Asia Pacific Financial Crime Network, contributed to Financial Advisory’s strong year.
- Audit & Assurance revenue grew by 1 percent as it continues to invest in driving quality and consistency across the network and transforming the audit business to deliver smarter and more insightful audits. Deloitte member firms led in overall Fortune Global 500 audit wins in FY2017 and have been recognized globally as leaders in audit innovation, analytics, and artificial intelligence.
- Asia Pacific revenue grew fastest among the regions at 9 percent, followed by Europe, Middle East, and Africa at 8.6 percent and the Americas at 5.6 percent in local currency.
Getting to the future faster
Increasing disruption, complexity, and the exponential speed of change has created unprecedented challenges and opportunities for clients. Deloitte’s ability to integrate deep industry insights and experience with a broad range of professional disciplines, has allowed it to help its clients get to the future faster.
Deloitte’s ability to orchestrate ecosystems and build alliances with leading digital innovators including Amazon Web Services, Facebook, HP, Oracle, and SAP enhance its ability to offer comprehensive solutions that address clients’ toughest business transformation and technology challenges. Through these ecosystems, Deloitte helps clients identify potential disruptors, develop strategies to address disruption and execute on business transformation activities such as new services, products, business models, and markets.
Renjen added, “Deloitte continually builds on our capacity to deliver the depth and breadth of expertise, insight and quality our clients demand and deserve. As a result, Deloitte is a recognized leader in helping clients adapt and thrive in an intensely competitive global economy.”
Investing in Transformation
Deloitte is making strategic investments in integrating transformational technologies and data analytics into its solutions and products across its businesses in order to drive greater value for clients. Examples of these investments in FY2017 include:
- Deploying world-class global solutions in Audit & Assurance, including Magnia, its audit delivery platform; Illumnia, its analytics platform; and Cognia, its portal equipping Audit & Assurance professionals with innovative tools and approaches which leverage cutting-edge advancements in cloud, AI, and machine-learning.
- Driving audit quality enhancement through an Audit Quality Monitoring and Measurement program and the Global Center of Excellence for Audit Quality. Delivery of an enhanced global learning curriculum to its 70,000+ Audit & Assurance professionals world-wide.
- Made investments in key markets to further strengthen Deloitte’s global network of offices and technology delivery centers to evolve how it serves its most important global and local Consulting clients.
- Adopting the ValueD, iDeal, D3 Discovery and Financial Crime Analytics platforms across the Financial Advisory business to support clients with new levels of insight and experience in order to help them solve complex business problems.
- Developing integrated cloud based solutions that, among other things, will leverage advanced machine learning techniques, natural language processing, and graph-based algorithms on big data to enable cognitive and predictive capabilities. This will inform better decision making and help address and mitigate clients’ risk issues in key areas like conduct, cyber, extended enterprise and product and quality.
- Developed a global network of Cyber Intelligence Centers (CICs) to offer solutions that help clients protect business assets and enhance their security posture, while proactively detecting, responding and recovering from security events to become secure, vigilant and resilient. The CICs operate around the clock, 365 days a year to provide fully customizable, industry-aligned, managed security solutions including advanced security event monitoring, threat analytics, cyber threat management, and incident response for businesses to meet the increasing market demand in cybersecurity services.
- Enhanced Tax & Legal client connectivity through the introduction of innovative technology-enabled solutions across all service areas through a new digital relationship platform.
- Expanded Tax & Legal’s ecosystem through six joint ventures with automation, cognitive, and blockchain companies. Business Process Solutions (BPS) has formed five strategic agreements with robotic process automation (RPA) vendors and created an RPA Center of Excellence. Deloitte has a collaboration with The Bakery Worldwide Ltd. to connect business and clients with thousands of entrepreneur tech start-ups.
Building tomorrow’s workforce, today
In FY2017, Deloitte increased its workforce in all geographic regions and businesses, with nearly 70,000 new professionals, an increase of 8 percent from FY2016 – the equivalent of 1 person hired every 8 minutes. Headcount growth was led by Asia Pacific among the regions at 10.4 percent, and by Consulting and Risk Advisory among the businesses, each with growth over 13 percent.
Also in FY2017, Deloitte advanced a number of initiatives designed to support the career development and personal well-being of its professionals, including:
- Opened the doors to its fifth and sixth Deloitte University (DU) locations - Deloitte University North (Toronto, Canada) and Deloitte University Asia Pacific (Singapore). In FY2017, 65,000 Deloitte professionals participated in leadership development programs at Deloitte University.
- Expanded family leave policies across the network to help its professionals balance their personal and professional lives, understanding the evolving dynamics of caregiving and diverse needs of families. Deloitte is dedicated to providing market-leading family leave policies across the world. Examples of this include Deloitte UK’s Shared Parental Leave, which gives eligible parents the option to share a period of their maternity or adoption leave with their partner. And, Deloitte US expanded its paid family leave policy and now offers up to 16 weeks of fully paid extended family leave to eligible male and female employees to support a range of life events impacting their families – from celebrating the arrival of a new child, to caring for a spouse, partner, sibling or aging parent.
- Launched a new strengths based performance management experience that focuses on further developing strengths (areas where team members feel creative, innovative and insightful) through on-going feedback and development that drives both individuals and teams.
- As Deloitte continues to grow, it places a strong focus on creating and supporting a culture of inclusion. An inclusive and diverse work environment not only reflects the world in which we live, it creates a culture that intentionally invites and engages unique perspectives and experiences, resulting in improved business outcomes and stronger services for diverse clients, better attraction and retention of top talent, and a positive societal impact.
“Deloitte professionals represent the workforce of the future: top talent with different life experiences, viewpoints and skill sets,” said Renjen. “In creating an inclusive, collaborative, purpose-led culture, we inspire our people to make an impact that matters for each other, our highly diverse and sophisticated client base, and society.”
In 2017, the Deloitte network continued to be recognized as a top employer globally through awards such as LinkedIn’s Top Employers, The Times Top 50 Employers for Women, and Universum’s ‘World’s Most Attractive Employer’ award among others.
A WorldClass solution for social impact
Deloitte recognizes that the greatest challenge to global economic growth, prosperity and social progress is lack of access to the fundamental building blocks of personal and professional success.
This year, to help address this challenge, Deloitte is intensifying its efforts to help expand access to career-building opportunities for communities and individuals left behind in the transformation to the Fourth Industrial Revolution.
“WorldClass” is a new global effort designed to apply Deloitte’s skills, experience, scale, and commitment to preparing and empowering people to take advantage of the new world economy through access to education and training.
“Millions of people are not sufficiently prepared for the requirements of the new world economy,” said Renjen. “There are already incredible efforts underway around the globe by Deloitte professionals to support education and skills development. WorldClass builds on their work helping create pathways for individuals to fulfill their personal and professional aspirations.”
WorldClass builds upon the success of One Million Futures in the U.K., UNLEASH in Denmark, an initiative to support the United Nations Sustainable Development Goals, and Impact Day, a volunteering day which takes place across the world, among other initiatives. In FY2017, Deloitte professionals spent more than 1.2 million hours on pro bono service and volunteering in their communities, with more than one third focusing on education and skills building. Deloitte’s overall contributions toward societal and community causes are estimated to be over US$200M.
- All growth rates presented in this press release are in local currency terms unless otherwise specified.