This is not an easy time to be a public IT consulting firm. Based on a sampling of leading public firms, top lines are under pressure because projects are getting smaller and taking longer to sell. And their bottom lines are under fire because compensation is climbing, while average hourly rates are falling and utilization rates are stagnating. Below are highlights from three firms' most recent quarterly SEC filings:

• Accenture (for quarter ending Feb. 28)
"Since January 2009, the global economic downturn has led to lower current demand for new consulting services. Some clients are exercising caution, delaying new large consulting commitments, slowing the pace of on-going projects and/or not extending current commitments, particularly in systems integration and, to a lesser extent, in management consulting. In some cases, we are also seeing pricing pressures."

• CIBER (for quarter ending March 31)
"The significant declines in gross margins were primarily due to customers cutting back on the size and scope of projects, as well as pricing pressures from a number of existing customers. Europe also incurred an approximate 2.5 percent pay increase that went into effect at the beginning of 2009 that we have not yet been able to recover through increased billing rates. As customers have cancelled, reduced or delayed projects, it has been difficult to maintain our normal levels of consultant utilization, which has also contributed to the reduction in our gross margin."

• IBM (for quarter ending March 31)
"Shorter-term signings, which include Consulting and Systems Integration and Integrated Technology Services, were $5.5 billion, a decrease of 14 percent (5 percent adjusted for currency). The company signed 16 deals larger than $100 million in the quarter. The estimated Global Services backlog, at actual currency rates was $126 billion on March 31, 2009, a decrease of $4 billion (unchanged adjusted for currency) from the Dec. 31, 2008 level. Within the shorter-term category of Consulting and Systems Integration, signings decreased 13 percent (4 percent adjusted for currency) in the quarter, with declines in the smaller contracts that impact near-term revenue yield."

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