Accenture opening 350-person office here

Web Posted: 06/28/2006 12:00 AM CDT
William Pack
Express-News Business Writer

A global management consulting and business services company that has made headlines over its contract to privatize Texas welfare reviews is moving into San Antonio with a service center that will employ about 350 people.

Accenture, whose U.S. operations are based in Chicago, announced the expansion Tuesday, saying it expects to have a temporary facility open at 5750 Northwest Parkway by early August and a permanent facility operating by mid-2007.

A spokesman said employee recruitment has begun for a range of workers — from entry-level to senior executives. No timetable had been set, however, for when the operation would be fully staffed.

Officials said the San Antonio center will provide clients with outsourced business-process services, including human resource management, procurement, finance and accounting, and training.

Kevin M. Campbell, Accenture's senior managing director for business process outsourcing, said the center will provide only commercial services and will play no role in the $899 million contract the company has with the state's Health and Human Services Commission to take over the screening of welfare applicants.


More coverage
• Web site: www.accenture.com
• Stock quote: Accenture l Technology

Accenture's handling of that contract has produced harsh criticism from a group of Texas legislators, as well as the threat of financial sanctions from the state commission, which has relieved the contractor of some of its duties.

Computer and employee-training problems have produced confusion and introduced flaws into the application process. Critics say the problems have kept welfare benefits from getting to people who are entitled to them.

Accenture said it is addressing the issues raised by the state.

San Antonio Economic Development Foundation President Mario Hernandez said the local Accenture office won't seek government contracts, but instead strive to expand its outsourcing activities, which have been growing steadily.

The company plans to make the San Antonio office a "showcase facility" and to do many of its own business processing functions here, the economic development chief said, adding, "It will give San Antonio exposure."

Hernandez said the office would consist primarily of highly professional people who would earn about $38,000 a year to start. Accenture was not prepared to discuss pay ranges Tuesday.

The company pointed to the diversity of San Antonio's business environment and the quality and size of its labor pool as the reasons it decided to add the city to its inventory of more than 40 delivery centers around the Americas, Asia and Europe.

The company generated net revenue of more than $15.5 billion for the fiscal year ended Aug. 31, 2005. In Texas, the company has more than 3,000 employees, with offices in Dallas, Austin and Houston.

Accenture's decision was the second business expansion announced in San Antonio in two days.

On Monday, Afni Inc., a customer service company based in Bloomington, Ill., said it would open a call center in San Antonio in September and employ as many as 400 people by August 2007.


--------------------------------------------------------------------------------
wpack@express-news.net
Express-News staff writer Nancy Martinez contributed