Accenture Plc. (ACN) has helped many companies transform their business operations and this time will be helping the Brazilian communication service provider Oi by managing its billing and collections, finance and accounting, human resources and supply chain. Accenture will also manage certain back office functions of Oi, with which it has signed a seven-year agreement.
According to this agreement, Accenture is expected to develop a flexible model that will help Oi face its day to day business challenges, improve quality and control costs. Accenture’s vast knowledge in consulting and technology will come into play while transforming Oi’s operation and supporting future growth.
Accenture is also a preferred choice for government companies and is a dependable consultant to several government organizations. The company has recently been awarded a contract by the State Department of the Japan government to analyze the supply chain process and 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.
Accenture has been instrumental in providing technological services not only for companies in the field of telecommunication and supply-chain management, but also for companies coming from a completely different industry like drug manufacturing.
We are encouraged by the steady flow of new businesses and believe that the trend will continue. However, increasing competition from IBM Corp. (IBM) and a cautious spending environment may curb its growth prospects to some extent. This apart, low business growth in Europe is also acting as a dampener.
The company has a Zacks #3 Rank, implying a short-term Hold rating.
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