) announced a deal win from UniCredit Bank last week. Per the
deal, Accenture will manage UniCredit's invoice management
operations. UniCredit, one of Europe's leading commercial banks,
has 9,360 branches across 22 countries. Financial terms of the
contract were kept confidential.
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Accenture will deliver its information technology service through
a separate unit, which was formed in association with UniCredit.
Apart from Accenture's financial, accounting, management,
consulting and IT capabilities, the new unit consists of
UniCredit's personnel and processes from the invoice-management
department. The unit, Accenture Back Office and Administration
Services, will be supervised by Accenture.
The Accenture Back Office and Administration Services unit will
take up the job of efficiently managing invoice processes
including accounts-receivable, accounts-payable, asset-management
and expense-payments task. The idea of setting up the unit was
mainly to help UniCredit in meeting highest industry standards
for serving customers and business partners better. Accenture's
services will also bring down operating costs, which will help
the bank to boost profitability.
Accenture's association with UniCredit seems beneficial since it
is expected to be a long-term business tie for its Accenture Back
Office and Administration Services unit. We believe that the new
unit's success will help clinch similar deals going forward.
It is, however, not new for Accenture to set up a new unit to
provide some specialized services. 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. It will also help the company to win more
federal deals, going ahead.
Last week, the U.S. Department of the Treasury selected
Accenture's Federal Services unit to provide IT services to the
Internal Revenue Service (IRS) for improving its customer
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 #3 (Hold). 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.