UPDATE 2-Deloitte says 2010 global revenue rose 1.8 percent

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Mon Sep 13, 2010 5:51pm BST

* 2010 global rev up 1.8 pct to $26.6 bln in dollar terms

* Public sector revenue up 38 pct

* Says staff to grow to 225,000 in five years (Adds quotes from Deloitte CEO. dateline)

NEW YORK, Sept 13 (Reuters) Global accounting firm Deloitte Touche Tohmatsu reported on Monday a slight increase in revenue as a recent acquisition in the public sector offset effects of the recession, and said it plans to boost staff as it works to return to double-digit growth.

Deloitte [DLTE.UL], one of the "Big Four" accounting firms, said 2010 revenue at member firms grew 1.8 percent in U.S. dollar terms to $26.6 billion, helped by higher revenue from its consulting and strategy units.

Public sector revenues grew 38 percent, while financial services and manufacturing were essentially flat, rebounding from double-digit declines the previous year.

Driving public sector growth was Deloitte's acquisition of the North American public sector practice of consulting firm BearingPoint, Deloitte's Chief Executive Jim Quigley said in a telephone interview with Reuters.

"We see public sector spending as an increasing part of GDP so that will continue to be a strong part of our practice," Quigley said.

Revenue in the Americas grew 4 percent, while revenue in the Asia-Pacific region was up 9 percent, Deloitte said. The Europe, Middle East and Africa region posted a 3 percent revenue decline.

The Asia-Pacific region, the fastest-growing region for the past five years, will continue to lead in growth, Quigley said.

He said he expects just short of double-digit revenue growth this fiscal year as the economy recovers. The firm is also planning significant hiring, with staff expected to increase to 225,000 over the next five years from 170,000 now.

Deloitte is looking at acquisitions, including deals in the Asia-Pacific region, he said. "There are some opportunities in China, and it would be great if we could get some of those to the finish line," he said.

The adoption of International Financial Reporting Standards is also expected to drive more business for the firm, Quigley said.

"We certainly have seen that in Japan as they prepared to adopt IFRS," and that trend should continue as acceptance of IFRS broadens throughout the world, he said.

Deloitte's full-year revenue basically remained unchanged in fiscal 2010 in local currency terms, which do not account for changes in the value of the dollar, the firm said.

Aggregate business volume increased from the prior year, Deloitte said, while rates remained constrained by the challenging economic conditions.

Audit revenue declined 1 percent for the year. Consulting revenue grew 15 percent, while financial advisory revenue declined 2 percent. (Reporting by Dena Aubin and Emily Chasan; additional reporting by Sakthi Prasad in Bangalore; Editing by Louise Heavens and Leslie Gevirtz))

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