Globally accredited management and technology consulting company Accenture plc (ACN) will now provide information technology (IT) support services to the French Directorate of Legal and Administrative Information (DILA). The French agency is responsible for managing citizens’ access to government information. Financial terms of the 3-year contract were kept confidential.
As per the terms of the agreement, Accenture will develop and install G-Cloud (customized could services for Governments) for the French agency, which is expected to be operational by March. The decision to create G-Cloud will enable the French government to standardize services for citizens and administration officers.
Accenture will work with DILA to build a more flexible IT infrastructure to increase access, availability and performance of nationwide public services offered to French citizens. All public information will be stored on the country’s first government cloud, giving citizens access to such information in no time. On the other hand, the government will be able to take advantage of all the benefits in terms of cost control, agility and reactivity to better meet new needs.
To give shape to this huge project, Accenture will be taking technical assistance from the giants Cisco Systems Inc. (CSCO), NetApp Inc. (NTAP) and VMware Inc. (VMW).
Apart from this, Accenture started the New Year with two big deals on its plate. Earlier this month, the company secured deals from the FBI (Federal Bureau of Investigation) and oil and gas trader Shell.
We expect the momentum to continue based on Accenture’s commentary that it would continue 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 IBM 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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