) was recently chosen as one of nine prime contractors for a $750
million Development, Modernization, and Enhancement (DME) contract
from The Department of State. The government body awarded the
contract to Accenture Federal Services, which will be responsible
for technical and consulting support to the Bureau of Consular
Affairs. This contract has a one-year base period with four
one-year renewal options.
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This order has been placed by the DME to modernize technologies and
also to enhance its visa processing facility and passports renewal
facility, at the same time managing the Office of Overseas Citizens
Services that helps citizens to find their lost passports.
Government deals have always been a strong point for Accenture. The
company has recently been awarded a contract by the State
Department of the Japan government to analyze the supply chain
process and to offer new solutions that will enhance its logistic
management system. Thus, the new and renewed government orders
continue to help the company and increase its business volume.
Previously, the company won a management consulting contract from
Japan's Ministry of Agriculture, Forestry and Fisheries, for an
Moreover, in July 2012, Accenture offered its Electronic Health
Record (EHR) system to Madrid Heath Service. Accenture has been
working with Madrid Heath Service since 2002, to develop a
comprehensive system for recording all possible data related to
patients, and thereby improving the regional healthcare system.
Apart from winning new deals in consulting, the company is
constantly witnessing improvement in demand for its BPO services,
especially in the Financial Services and healthcare segments.
Within the BPO vertical, the U.S. has registered maximum growth.
Weakness in Europe has also benefited Accenture, forcing the
companies in that region to consider outsourcing to reduce labor
costs. However, this might take some time to implement.
We are encouraged by the steady flow of new businesses and believe
that the trend will continue. However, increasing competition from
) and a strained spending environment may curb its growth prospects
to some extent.
Currently, Accenture has a short-term Buy recommendation, denoted
by the Zacks #2 Rank.
(We are reissuing this article to correct a mistake. The
original article, issued earlier today, should no longer be relied