Accenture plc ( ACN ) recently won two
three-year contracts from the U.S. Department of Navy at an
aggregate value of $30.0 million. The government department has
chosen Accenture Federal Services to support the Navy's Financial
Improvement Program. The company will work in sync with the Navy to
assess and design standard financial business processes with all
major commands. This will help the Navy's Office of Financial
Operations to plan, achieve and sustain audit readiness.ACCENTURE PLC (ACN): Free Stock Analysis ReportCOMP SCIENCE (CSC): Free Stock Analysis ReportINTL BUS MACH (IBM): Free Stock Analysis ReportGARTNER INC -A (IT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
Under the first contract, Accenture would review the business
processes and internal controls at Naval Air Systems Command, Naval
Sea Systems Command, the Navy's Assistant for Administration, Field
Support Activity, Office of Naval Research, Naval Research
Laboratory and the Marine Corps. The review will help the naval
agency to accelerate audit functions, which will ultimately lead to
improved operations across the department.
Per the second contract, Accenture will support the department in
the smooth running of its Navy Enterprise Resource Planning (ERP)
system. For this, Accenture will monitor the computer systems and
automated business processes required for the ERP system to be
A government contract at the beginning of 2013 is certainly a good
start for Accenture. The company has won a series of government
deals in the past. However, the lower margin of the government
contracts is something to worry about.
The federal budget is also a cause of concern. IT research firms,
Gartner Inc. ( IT ) and IDC anticipate
government spending on IT to decline in 2013. This could reduce the
amount of deals and eventually put pressure on Accenture.
However, we are positive on Accenture's wide industry exposure as
this could mitigate weakness from the fed sector.
Currently, Accenture has a Zacks Rank #3 (Hold). Its competitors
Computer Sciences Corp. ( CSC ) has a Zacks Rank
#3 (Hold) while IBM Corp. ( IBM ) has a Zacks Rank