Globally accredited management and technology consulting company Accenture plc (ACN) will now provide information technology (IT) support services to the U.S. Federal Bureau of Investigation (FBI). Financial terms of the deal were kept confidential. The IT support services contract includes one base year with four option periods.
As per the agreement terms, Accenture will install, test and supervise an enterprise resource planning (ERP) system to support the FBI’s Human Resources Information System (HRIS). The new system installation will help FBI to modernize its HRIS unit and make its operations more effective and streamlined.
In addition, Accenture will complete a fit/gap analysis to determine possible future costs to replace the FBI’s current HRIS systems. The Fit/gap study is crucial to the Project life cycle. It evaluates the suitability of the system to the requirements and records the gaps identified in a prescribed form.
Accenture shares a long-term relation with the FBI, the investigative arm of the U.S. Department of Justice. The FBI aims to protect and defend the United States against terrorism and foreign intelligence threats as well as provide criminal justice. As and when the FBI needed to upgrade its information technology, it chose Accenture, which reflects the agency’s undisputed reliance on its services.
Apart from the FBI, renowned oil and gas trader Shell reportedly outsourced its HR and payroll application management services from Accenture.
Accenture started the New Year with two big deals in its pocket. We expect the momentum to continue based on its commentary to invest in priority industries (such as Communications) and emerging markets, where it will focus on building its brand value. We believe that the company’s confidence in adopting such a strategy in the backdrop of lingering global concerns is powered by its five consecutive quarters of outperformance.
However, increasing competition from International Business Machines Corp. (IBM), a strained spending environment and Accenture’s broad European exposure may temper growth prospects to some extent.
Currently, Accenture has a short-term Hold recommendation, denoted by the Zacks #3 Rank.
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