Globally accredited management and technology consulting
) Federal Services unit will now provide information technology
(IT) services to the Internal Revenue Service (IRS) for improving
its customer services. Financial terms of the 5-year contract,
awarded by the U.S. Department of the Treasury, were kept
Per the deal, Accenture Federal Services will help to automate
work processes within IRS' Account Management Services (AMS)
system. For this, Accenture will analyze the business
requirements; design, develop and test the new automation process
and provide post-implementation support.
The IRS, a U.S. federal agency, operates under the Department of
the Treasury and is responsible for collecting taxes and
interpretation and enforcement of the Internal Revenue Code. IRS
manages its taxpayers' accounts (account opening, periodic
updates, posting of payments, reconciliation of deposits, account
adjustments, and settlements) through the AMS system.
With the automation of the AMS system, it will be easier for the
tax agency to provide tax payers immediate access to integrated
account data, enable real-time transaction processing and settle
The IRS has always been prudent in modernizing its business
processes and hence has selected Accenture as its IT
infrastructure partner for its rich experience. Last year, in
February, Accenture signed a 10-year contract with IRS in order
to bring three of IRS' web portals under one umbrella. Accenture
will combine the consumer-facing website, IRS.gov (designed by
Accenture and one of the most popular website for the tax
payers), the registered-user portal for tax preparers and the
agency's employee intranet.
The new IT infrastructure will help IRS streamline its
operations, while making the whole system easier for tax payers.
Accenture shares a longstanding relationship (more than 20 years)
with the IRS. In the past, Accenture served as a trusted partner
of the IRS, helping the agency implement a number of new systems,
processes and capabilities.
Accenture has been winning federal deals frequently. In an effort
to better serve government clients, Accenture formed the U.S.
Federal Advisory Board in 2012. The company has also invited
experts with years of experience in Fed activities to join the
board. This will provide Accenture more insight into the current
requirements to deal with critical IT operations.
Therefore, the expertise should strengthen Accenture's position,
helping to secure a larger number of government contracts,
thereby boosting its revenue streams.
While Accenture's prospects look bright, increasing competition
), a strained spending environment, and broad European exposure
may temper growth to some extent.
Currently, Accenture has a Zacks Rank #4 (Sell) primarily due to
downward estimate revisions by analysts. But not all stocks in
the sector are performing as badly as Accenture.
CRA International Inc.
Information Services Group Inc.
) , with a Zacks Rank #1 (Strong Buy) are worth buying.
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