Accenture plc (ACN) recently announced that it has been awarded a seven-month contract by The Japan Tourism Agency (JTA) for providing management consulting services to increase the number of tourists in Japan. However, the financial terms of the deal have not been disclosed.
The JTA’s move is part of its strategy to bring 20 million tourists into the country by 2020 and it is banking on the Olympic and Paralympic Games to be held in the country in 2020 to meet the target. Last year, Japan achieved its target of bringing 10 million visitors every year.
As per the contract, Accenture will conduct a survey at airports and other travel locations to better understand the challenges of visitors travelling to Japan such as communication infrastructure, multi-lingual support options and purchase and payment systems. The company will share its studies and provide recommendations.
This is not the first time that Accenture is working with the Japanese government. The company won contracts from The Tokyo metropolitan Government in 2013 and again in 2014 for bringing foreign companies to open their regional headquarters or R&D facilities in Tokyo’s Special Zone for Asian Headquarters.
The company has also been awarded a contract by the U.S. Department of Navy in October this year to support the Navy’s electronic Technical Work Documents (eTWD) system solutions and improve the overall enterprise performance. The contract was worth up to $16.3 million.
Prior to that, Accenture and the U.S. Army signed a deal worth $53.1 million to support General Fund Enterprise Business System’s (GFEBS) maintenance and daily operations. The continuous deal wins for the company ensure incremental cash flow.
However, we remain slightly cautious about the stock due to its tepid first-quarter fiscal 2015 outlook. Increasing competition from Cognizant Technology Solutions Corp. (CTSH) and FTI Consulting, Inc. (FCN) and a sluggish economic recovery may impact its growth.
Currently, Accenture carries a Zacks Rank #4 (Sell). A better-ranked stock worth considering in the Consulting industry is CoreLogic, Inc. (CLGX) sporting a Zacks Rank #1 (Strong Buy).
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