Everything including deal wins, technical collaborations and
an expanding project pipeline seem to be going in favor of
). All three business segments namely Consulting, Technology and
Outsourcing are performing well. The company is also coming up
with innovative strategies to combat the increasing
Over the years, Accenture has pulled together a team of expert
professionals with well diversified competencies. Some of these
professionals are also home-grown, as Accenture has spent
substantial economic and intellectual resources to develop the
team. Accenture is also committed to the long-term development of
the employees, which ultimately reflects in the company's
An efficient management team helps to woo new customers with
new innovative solutions.
The company has been a forerunner in providing quality and
innovative solutions to its clients and is particularly focused
on its services business.
The company has been instrumental in providing solutions
related to cloud computing, system integration, and defense and
supply chain management. It also helps government departments to
Accenture's comprehensive service offerings have made it a key
IT service provider. Its large product and service base has also
led the company to climb to the top spot in the technology
The Cascading Effect
The overall competence in every segment has helped the company
win numerous deals over the years one of the recent and most
notable ones being the contract from the insurance company Crum
& Forster. This apart, the company also won a Biosurveillance
contract. The U.S. Department of Homeland Security (DHS) awarded
a $3 million contract to Accenture to improve the biosurveillance
operations of the Office of Health Affairs (OHA).
Moreover, Germany's largest transmission system operator,
Amprion Ltd. has selected Accenture to optimize its material
procurement function. Accenture will help the latter to enjoy a
competitive advantage in a rapidly changing market. This will add
to the company's revenue stream over the next 5 years.
We believe that continued technical innovation will ensure
continued deal wins in the near future.
Although Accenture is well positioned for growth, we feel that
competition is expected to grow rapidly as the consulting,
outsourcing and technology fields are being constantly invaded by
new as well as established brands.
Cognizant Technology Solutions Corporation
Tata Consultancy Services
) pose considerable challenges for the company. Moreover,
) is direct competition for the company when it comes to system
integration. Although the company is making considerable effort
to woo new customers and keep existing customer loyalty intact,
counter strategies from these large cap technology companies may
result in loss of market share.
Accenture has a unique combination of a customer friendly
approach and traditional work ethics. This organization culture
has helped the company attract many clients across the
world. Moreover, Accenture is a one-stop shop for clients
across multiple industries. Accenture has the skill and expertise
to cater to projects such as Customer Relationship Management,
Change Management, Human Resources Management, Financial
Management, Service Management, Marketing Sciences and Supply
On the flipside, the company is challenged by large players.
Moreover, the protracted economic slowdown, especially in the
European region, 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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