Accenture Plc. (ACN) will provide the technology assistance to Shanghai International Port Group Ltd. (SIPG) to improve its operations, thereby strengthening its market position and supporting its expansion across geogrpahies and services. Accenture will design and build an information management platform, with the use of analytics, which would in turn help SIPG improve the analysis of operations and support its decision-making processes.
With the necessary help from Accenture, SIPG would be able to shape up the future technology as well as business growth across segments. The new information management platform will be based on a set of key performance indicators selected by the companies.
Accenture is planning to move into various business segments and explore newer geographies. These include emerging markets like India, the Philippines, China and Latin America. The company is offering customized services and focusing on working with local clients.
These strategies will decrease the risks posed by the slow-performing major economies, which currently provide around 80% of Accenture’s total revenue.
We believe that constant deal wins are a great positive for Accenture. Also, a survey by the outsourcing and consulting services provider reveals that demand for its services from other sectors, like healthcare companies, are increasing.
Apart from this, Accenture is also winning deals from the data center segment, asdesigning data centers along with its business model of data centre management and technology has always been its strong point.Accenture started focusing on the data center business to secure bigger deals.
Although frequent deal wins have helped the company, competition from companies like IBM Corp. (IBM) continues to increase. Additionally, a strained spending environment as well as significant exposure to Europe’s weak economy may temper growth to some extent.
Currently, Accenture has a Zacks Rank #3 (Hold).
Investors may also consider other stocks in the sector such as Information Services Group (III) and Franklin Covey Co. (FC). Both the companies carry a Zacks Rank #2 (Buy).
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