Accenture plc (ACN) recently entered into an agreement with CF Industries Holdings, a leading manufacturer and distributor of fertilizers. Accenture will provide comprehensive information technology (IT) support to CF Industries. Financial terms of the deal were not disclosed.
Under the terms of the agreement, Accenture will develop an IT platform for CF Industries. The advanced IT platform will ensure coordination between different facets of the company’s business. Leveraging Accenture’s IT support, CF Industries will be able to supervise supply chain activities, customer interaction and finance and inventory issues.
Apart from this, Accenture will offer necessary services to CF Industries’ enterprise resource planning platform. CF Industries is hopeful about streamlining its processes through a smooth flow of information across its IT eco system. This will facilitate decision-making as well as the realization of operational excellence.
Accenture’s rich industry experience gave CF Industries the confidence to select its services. If successful, Accenture could win more such deals from other fertilizer manufactures interested in making their businesses technologically more advanced.
Accenture has already tasted success in various sectors as well as geographical regions. Recently, the company announced that it will collaborate with Anheuser-Busch InBev (BUD) on a digital merchandising service intended to help the brewer’s point-of-sale activities.
It also won a five-year consulting and outsourcing services contract from CEVA Logistics and a two-year information technology services contract from Israel Electric Corporation. Moreover, Accenture’s core banking solution has been deployed by the U.S. arm of Banco Bilbao Vizcaya Argentaria S.A. (BBVA).
Apart from this, Accenture has also gained a strong foothold in the insurance vertical.
We are encouraged by the healthy growth that Accenture registered in its recently concluded third quarter of 2011. However, the economic turmoil in Europe and competitive pressure from IBM Corp. (IBM) could considerably rationalize the company’s growth prospects.
Accenture has a Zacks #3 Rank, implying a short-term Hold recommendation.
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