Deal Wins Continue at Accenture
Accenture Plc (ACN) recently announced that it has won a deal from the department of Education and Communities (:DEC), spanning 18 months and worth $109.0 million.
According to the terms of the contract, Accenture will deploy its education and human services transformation, consulting solutions and technology solutions in order to accelerate the adoption of integrated finance, procurement and human resources system across the Department’s 90,000-strong employee network.
Furthermore, the IT major is expected to implement a new and improved student administration system for schools, as well as for the Technical and Further Education (:TAFE) Institutes.
This new software implementation will help in standardizing and streamlining the the education department’s business process. Teachers will have better access to resources to upgrade their technical skills, thus resulting in better administration and flexibility and insight into student information.
Accenture’s deal prospects look bright. Moreover, the company’s endeavor to expand in Asia is also encouraging. With the threat of a downturn looming large over Europe, most of the IT behemoths are turning their focus toward Asia. With the continuous emergence of hi-tech innovations there, Accenture could ink deals in technology services, as well as outsourcing and consulting services.
Some industry experts believe that the consulting/outsourcing/offshore combination continues to support the global enterprise demand for high-end but cost-effective service delivery. Given its global footprint and client base, Accenture remains well positioned to benefit from multiple technology drivers including cloud initiatives, SaaS, mobility, digital marketing, analytics and others.
However, increasing competition from IBM Corp. (IBM), a strained spending environment and significant European exposure may temper growth going forward.
Currently, Accenture has a short-term Buy rating, denoted by a Zacks #2 Rank.
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