More government projects are coming in the way of
). This time it is a project from the state government of India.
The company has secured a 12-month contract for technology and
management-consulting services for the Aadhaar biometric
identification program including the re-engineering and
implementation of beneficiary programs in the state of Punjab in
This particular model will ensure accurate information of the
recipients and reduce the cost of service delivery by using
Therefore, the win suggests that ACN is slowly gaining a
stronger foothold in the Indian consultancy market. As per the
latest finding of an Indian English daily "Livemint", Accenture
) are ahead of TCS on revenue productivity. Accenture's higher
productivity may be traced to its high-end consulting services,
while IBM's success stems from its bundling strategy (hardware
and software solutions).
Therefore, ACN is on the right track to widen its geographical
presence. It is, however, not new for Accenture to set up a new
unit to provide some specialized services to companies in
different geographies. To serve its government clients in a
better way, Accenture formed the U.S. Federal Advisory Board in
The company has also invited experts with years of experience
in Fed activities to join the board so that they can facilitate
its dealings with government organizations. This will provide
Accenture more insight into the current requirements to deal with
critical IT operations in government departments. It will also
help the company win more federal as well as government deals,
Although deal wins from government and non-government bodies
are helping the company grow, the consulting business needs
special attention. This is because new consulting projects take
time to come, which could affect the overall results of the
Other companies such as Cognizant Technology Solutions Corp.
and International Business Machines Corp. are making similar
strategic moves, which could be a matter of concern for the
company. Moreover, a strained spending environment and
Accenture's broad European exposure (roughly 40.0%) may hurt its
growth prospects to some extent.
Accenture currently has a Zacks Rank #3 (Hold) 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
ACCENTURE PLC (ACN): Free Stock Analysis
CRA INTL INC (CRAI): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis
INFORMATION SVC (III): Free Stock Analysis
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