Deloitte is officially the largest
accountancy network in the world as its member
firms brought in $9 million more in revenue than PwC’s in
the past fiscal year. This is the first time Deloitte has been
crowned the highest earning network .

Today, Deloitte revealed its annual revenue was
$26.578 billion in the year to 31 May 2010, eclipsing the
$26.569 billion PwC generated in the year to 30 June 2010.
Deloitte’s workforce of about 170,000 people is larger than PwC’s
headcount of 161,118, which confirms Deloitte is now the
market leader in the most common metrics used to
determine network size.

A month ago, Deloitte said its aggregate member
firm revenue was $26.6 billion, which is identical to the
financial results PwC disclosed on Monday. This prompted
the International Accounting Bulletin to request
Deloitte reveal its revenue figures to the nearest
million.

A slender margin

Nine months ago, this publication predicted Deloitte
would become the largest group this year but nobody could have
foreseen such a slender margin. A difference of $9
million is remarkable when you consider that both networks
have independent member firms in most countries around the
world.

Over the past five years, Deloitte has been the
fastest-growing professional services network among the Big
Four. During 2005-2009, Deloitte outgrew its rivals by 2.7 to
3.3 percentage points annually. 

The key to Deloitte’s success has been the retention
of its market-leading consulting business, which in recent years
has flourished when core services such as audit and tax
struggled. PwC sold its consulting arm to IBM following
the Enron scandal but has been rebuilding it in recent
years.

Deloitte said its member firms have committed more than $1
billion in strategic investments over five years. Highlights
include:

  • More than $500 million in the following
    markets: Brazil, China, India, Japan, Middle East, Russia and
    Southeast Asia, as well as a number of European
    countries
  • Approximately $400
    million     toward developing the capabilities of
    Deloitte staff across the global network. This includes a $300
    million Deloitte US investment in Deloitte University, a learning
    and development facility scheduled to open near Dallas, Texas, in
    2011. Further, Deloitte plans to hire more than a quarter of a
    million people during the next five years.
  • More than $100 million
    into “As One”, Deloitte’s new organisation-wide business and
    operational strategy. The “As One” strategy is designed to respond
    to clients’ increasingly complex needs and to enhance the member
    firm network’s ability to seamlessly deliver world-class services
    across geographic and business borders.
  • More than $300 million
    committed to Deloitte Audit. Audit is a fundamental element of the
    member firm network’s portfolio and investment funds continue to be
    prioritised towards enhancing audit quality, technology and
    methodology in response to regulatory, economic and other factors
    influencing the profession.


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