) has been awarded a two-year contract. As per the terms of the
agreement, the company will deliver consulting services targeted
at enhancing the existing healthcare IT systems from the Madrid
Health Authority. As per this new contract, Accenture will help
Madrid's public healthcare network that serves the city's 6.5
Accenture will support Madrid Health Authority to expand the
integration and functionality of its healthcare technology
systems to over 36 hospitals, which include 29 specialized
treatment centers along with 400 primary care facilities. As per
the contract, Accenture will take on an advisory role and be
involved in full time project management, and thus support Madrid
Health Authority's technology systems.
This latest project will capitalize on the previous work between
Accenture and Madrid Health Authority. It will also help the
healthcare company achieve its business goals and help citizens
with a cost effective healthcare solution.
Over the past decade, Accenture has scored a number of wins in
the government segment. However, the company is now focused on
deals with better margins. A series of contract wins, at the
beginning of 2013 is certainly a good start for Accenture. Apart
Hewlett Packard Company
) have also started aggressive marketing to grab a major chunk of
the healthcare market.
The healthcare industry is growing rapidly and offering different
employment and business opportunities. A recently-published
report from the Bureau of Labor Statistics suggests that December
was a huge hiring month for healthcare, with the addition of
45,000 healthcare jobs.
This apart, about 30.0%, or one-third of the nation's total
December job growth (to a total of 155,000 jobs) was in the
healthcare industry. The growth in the industry is a
positive for a leading technology provider such as Accenture,
which may be expected to capitalize on the opportunity.
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On the other hand, we remain concerned about the federal budget
cut. IT research firms,
) and IDC anticipate government spending on IT to decline in
2013. This could reduce the amount of deals and eventually put
pressure on Accenture.
However, we are optimistic about Accenture's broad industry
exposure as this could mitigate weakness in government spending.
Currently, Accenture has a Zacks Rank #3 (Hold).