NEW YORK (Reuters) ? Accenture Ltd., one of the world?s largest consulting and technology services firms, posted a higher-than-expected quarterly profit yesterday, driven by its main consulting business which posted its largest year-over-year increase in at least three years.

The Bermuda-registered company also anticipates the recent spate of software mergers to bring new demand for its services.

But the growth of its outsourcing business has slowed as new customers are leaning toward smaller contracts to reduce the risk involved in allowing other companies to manage their operations.

For its fiscal first quarter ended Nov. 30, net income was $196.3 million, or 32 cents a share, exceeding analysts? estimate of 31 cents a share, according to Reuters Estimates.

Last year Accenture posted a net of $174.3 million, or 33 cents a share, which included a 6 cents per share benefit associated with its transition to a public company.

?The results are a nice surprise from the income statement point of view,? said David Garrity, an analyst with Caris & Co. ?But its bookings are essentially flat to down year over year.?

Accenture?s stock rose 2 percent to $25.95 in after-market trade, after closing at $25.42 on the New York Stock Exchange.

Net revenue, before client reimbursement for certain expenses, rose 14 percent to $3.73 billion.

Consulting revenue rose 14 percent and outsourcing increased by 15 percent.

Bookings, an indicator for future revenue, fell to $4.03 billion from $5.05 billion in the year-ago period as outsourcing contracts become smaller.

?While outsourcing will continue to deliver solid growth to our business this year it is likely to grow at a lower overall rate than it did in 2004,? chief executive Bill Green told investors.

?It?s a tough place to fight it out in the marketplace.?

Gross margins, or gross profit as a percentage of net revenue, fell to 33.0 percent from 34.1 percent last year, due to higher compensation and short-term labor shortage. But the company said it does not expect the trend to continue.

Accenture plans to hire 15 percent to 20 percent more people this year on top of about 103,000. Accenture, which closely watches merger activities, said the recent wave of software mergers are expected to bring new business.

?Any time you have change, that creates an opportunity for someone to help you,? said Green.

Accenture affirmed its earlier view of 2005 net revenue growth of 9 percent to 12 percent in local currency but said in US dollars, the increase is expected to be 13 percent to 16 percent, assuming the dollar continues at the current level.

Accenture also increased its view for 2005 net earnings to a range of $1.41 to $1.46 a share from its prior forecast of $1.34 to $1.39 a share. The new forecast includes a one-time benefit of 4 cents a share.

?Results are driven principally by currency gains,? said Brandt Sakakeeny, an analyst with Deutsche Bank. ?I didn?t expect them to change guidance, but that?s mainly because of the impact of currency.?

For its fiscal second quarter, Accenture expects a net profit of 33 cents to 35 cents a share on revenue of $3.60 billion to $3.75 billion, including a one-time gain of 3 cents a share.

Analysts on average expected 33 cents a share on revenue of $3.67 billion.