Technology and outsourcing company,
) has recently won a seven-year business process outsourcing
agreement from a Swedish Steel manufacturer, SSAB. Accenture
would provide finance & accounting, customer care and
procurement services to SSAB.
As per the agreement, Accenture would provide the much needed
support to SSAB across selected operations in Europe and help the
company to improve its operational flexibility so that it can
readily adapt to the changing market demands. Moreover,
Accenture's cost-effective service delivery model will help SSAB
Although this is a somewhat new area of business for
Accenture, so the company is in the process of gathering a set of
skilled people, who can cater to the manufacturing industry
clients such as steel and other heavy industries, that too across
geographies. In order to serve its clients in a better way,
Accenture formed the client advisory board. Therefore, it can be
easily conferred that Accenture is making all possible moves to
diversify and widen its presence.
This approach will provide Accenture more insight into the
current requirements to deal with critical IT operations in steel
manufacturing companies. It will also help the company win more
deals, going ahead.
The deal wins at regular intervals provide the much needed
support to the company's revenue base. However, the possibility
of winning new consulting projects in the near future demands
special attention for the consulting business.
On the other hand, companies like
) are providing good services to the clients at competitive
rates. This coupled with a not so encouraging spending
environment and Accenture's broad European exposure (roughly
40.0%) may rationalize growth prospects to some extent.
Accenture currently has a Zacks Rank #3 (Hold). However,
Information Services Group Inc.
), with a Zacks Rank #1 (Strong Buy), are worth considering.
ACCENTURE PLC (ACN): Free Stock Analysis
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