Vodafone Share Price Crept Higher on the Accenture Partnership

The Vodafone Group plc (LON: VOD) share price crept 1.9% higher after announcing a strategic partnership with Accenture aimed at capitalising on Vodafone's shared services operations to expedite growth, elevate customer service standards, and unlock substantial operational efficiencies for Vodafone's operating companies and partner markets.

Additionally, the collaboration seeks to create new career prospects for Vodafone's workforce. This strategic alliance represents a pivotal move for Vodafone as it builds upon its prominent shared services unit, Vodafone Intelligent Solutions (VOIS).

The objective is to establish a scaled, commercially-oriented, and highly efficient entity that offers top-notch services and significantly improves speed to market for Vodafone's diverse portfolio of offerings. Crucially, Vodafone will retain a majority interest, maintain control over management, and retain decision-making authority regarding sourcing.

This newly formed unit will harness the exceptional technological capabilities and transformation services offered by Accenture, including its cutting-edge digital solutions and platforms and its extensive artificial intelligence (AI) expertise.

Furthermore, the partnership will leverage Accenture's well-recognized proficiency in continuous learning and development to create new avenues for skill development and career progression for Vodafone's workforce.

Accenture has committed to invest approximately €150 million to acquire a minority stake in this transformative partnership, underlining the strategic significance and commitment both parties bring to the table.

Margherita Della Valle, Vodafone’s Group CEO, said: “Today's announcement is a significant development for Vodafone as we change and simplify the way we work to better serve our customers and drive growth. The partnership with Accenture opens up new opportunities for our company and our people. We're excited about the potential of our new commercial shared services organisation and the potential to serve not only Vodafone's own markets but our Telco partners across the industry.”

Julie Sweet, Chair and CEO of Accenture, said: “We are proud to have partnered with Vodafone for over 20 years across many strategic programs. We are excited to take our partnership to a new level with this ground-breaking joint venture that will help power Vodafone's reinvention and create significant value for their operating companies, partner markets and employees. This move speaks to their ambition to work in entirely new ways, reduce structural complexity, open avenues for growth, create better experiences for their customers and provide additional career paths for their people.”

Vodafone share price. 

The Vodafone share price crept 1.90% higher to trade at 77.855p from Friday’s closing price of 76.405p.