Technology, consulting and outsourcing company
) has actively pursued acquisitions to drive growth.
This strategy has served it well in the high-growth emerging
markets of India, the Philippines, China and Latin America. Also,
the company is making its presence felt when it comes to local
clients in the emerging economies. Additionally, acquisitions
have helped Accenture diversify its portfolio and spread the risk
of exposure to underperforming regions.
Europe's weak economic condition is perceived to be an
opportunity for some meaningful acquisitions. There are options
for potential acquisitions in the euro zone at competitive
prices, which can reap long-term benefits.
Accenture conducted a survey of 450 executives globally, 96.0%
of which are from companies with revenues of $1 billion or more.
The study also found that 58.0% of the German respondents are
planning acquisitions at this time. Additionally, 57.0% of
Spanish firms and 36.0% of the French companies have similar
plans. Therefore, the company intends to tap this
Accenture is also focusing on acquisitions based on utility.
This led it to acquire the digital production services vendor
avVenta Worldwide. Accenture closed the acquisition without
disclosing the terms of the agreement.
The digital production services offered by Accenture to the
chief marketing officers (CMOs) with the help of Accenture
Interactive will be augmented with the integration of avVenta's
digital production solutions. Accenture will be using avVenta's
delivery center in San Jose to provide cost effective solutions
We are encouraged by Accenture's strategy to expand through
acquisitions. However, increasing competition from
Tata Consultancy Services
and a strained spending environment may affect its growth
Moreover, economic slowdown, increasing regulation as far as
government contracts are concerned and ever increasing problems
with subcontractors continue to bother Accenture.
Currently, Accenture has a Zacks #3 Rank (short-term Hold
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