Consistent with its strategy to strengthen its Analytics
) completed the acquisition of change management company Change
Track Research Pty Ltd.
With this acquisition, Accenture will have access to Change
Track's key solutions such as ChangeTracking, which is an
analytics tool using 10 years of research and advanced math
algorithms to track data. We believe that this acquisition is
basically intended to strengthen Accenture's portfolio of
analytical tools and capabilities, which will ultimately help
clients to identify areas requiring change, monitor the process
of change, understand the effects of change in advance and
implement them smoothly.
The portfolio diversification strategy has helped Accenture
strengthen its offerings and counter the sluggish growth in
underperforming regions. Moreover, Change Track being an
Australian company will help Accenture build a position in the
We believe that Accenture's acquisition strategy has served
the company well in the high-growth emerging markets of India,
the Philippines, China and Latin America.
This apart, Europe's weak economic condition is perceived to
be an opportunity for some meaningful acquisitions. The company
is also eyeing acquisitions in the euro zone at competitive
prices, which can reap long-term benefits.
Apart from using acquisitions to expand geographically, the
company is also focusing on acquisitions based on utility,
wherein the acquiring company obtains access to the technology of
the acquired company. This has led to the acquisition of the
digital production services vendor avVenta Worldwide. Accenture
closed the acquisition without disclosing the terms of the
Although the acquisition provides much-needed support to the
company, the Consulting business would need special attention as
its performance could weigh on the overall results, as new
consulting projects slowly come over.
Moreover, Accenture is faced with tough competition from
companies such as
Cognizant Technology Solutions Corp.
International Business Machines Corp.
), a strained spending environment and Accenture's broad European
exposure (roughly 40.0%) may hurt its growth prospects to some
Accenture currently has a Zacks Rank #4 (Sell) primarily due
to downward estimate revisions by analysts. However, stocks like
CRA International Inc.
Information Services Group Inc.
), both of which have a Zacks Rank #1 (Strong Buy), are worth
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