(Bloomberg) ? Bermuda-based Accenture Ltd., the world's second- largest consultant, said first-quarter profit rose 9.5 percent as outsourcing sales surged.

Net income rose to $214.9 million, or 36 cents a share, from $196.3 million, or 32 cents, a year earlier. Sales increased 12 percent to $4.17 billion from $3.73 billion, the Hamilton company said yesterday in a statement. Profit beat the 34-cent estimate of Moors & Cabot Inc. analyst Cindy Shaw.

Demand rose for outsourcing work in which Accenture manages customers' computer networks and human resources under long-term contracts. Such contracts become more profitable in later years when they require less investment. Outsourcing sales rose 18 percent in the quarter ended November 30, while consulting revenue increased 8 percent.

"They've made a huge gain in their efficiency over the past several years by moving more work to low-cost locations," Shaw, who is based in San Francisco, said before results were announced. She rates Accenture "buy" and doesn't own the stock.

Shares of Accenture rose 22 cents to $29.68 at 4 p.m. in New York Stock Exchange composite trading. They rose 6.9 percent last year.

Accenture is part of a group including International Business Machines Corp. that won a $2.22 billion five-year contract from ABN Amro Holdings NV in September.

Other customers include AT&T Inc. and the US Homeland Security Department. The company has unsuccessfully lobbied US lawmakers to ensure for an exemption from tax penalties on companies that incorporate in havens such as Bermuda.

IBM, based in Armonk, New York, is the world's biggest consultant.