Technology, outsourcing and consulting company Accenture Plc. (ACN) is currently witnessing surge in deal wins and is fast building up its order book position, which is expected to help the company generate sustainable revenue stream going forward.
The company recently won a three-year contract from the U.S. Department of the Navy worth $5.9 million. The government department has chosen Accenture Federal Services to support the Navy’s Financial Improvement Program (FIP). The company will work in sync with the Navy to assess and design standard financial business processes with all major commands. This will help the Navy’s Office of Financial Operations’ to plan, achieve and sustain audit readiness.
This program has been specially designed to improve the accuracy, timeliness and reliability of financial information to boost the Navy’s financial management capabilities. Moreover, the company is extending support for the development of Electronic Health Records (EHR) solutions. The company recently won a system development contract from the Department of Health and Ageing in Australia.
As per the terms of the contract, Accenture will develop and implement an extensive health care system namely Personally Controlled Electronic Health Record (PCEHR). The system will bring all the Australian health care providers under one platform. The initiative is in line with the Government’s earlier announced plan to invest $466.7 million to develop a PCEHR, to provide a better health care system.
Electronic Health Record (EHR) helps doctors and hospitals to organize medical records of patients. The system makes it easy for medical practitioners and patients to track clinical histories, without the hassle of storing hard copies. This segment offers good opportunity for growth and all major tech players including Accenture are trying to grab a share of this business.
Moreover, Accenture also won a 10-year technology service contract from the Internal Revenue Service (IRS) department. These contracts are the primary procurement vehicles for technology-related services within the Internal Revenue Service (IRS) and other Treasury bureaus. The IRS department short listed 33 companies including Accenture Federal Services as prime contractors for this multiple-award contract.
Accenture has already tasted success in various sectors as well as geographical regions. In the past few months, the company has served CF Industries Holdings (a leading manufacturer and distributor of fertilizers), Anheuser-Busch InBev(BUD) and Banco Bilbao Vizcaya Argentaria S.A. (BBVA). Apart from these, Accenture has also gained a strong foothold in the insurance vertical.
Moreover, we remain optimistic about Accenture’s deal wins from various industry verticals. We also believe Accenture’s recent acquisitions will enrich its product portfolio. However, increasing competition from International Business MachinesInc.(IBM) may temper growth prospects to some extent.
Currently, Accenture holds a Zacks #3 Rank, implying a short-term Hold rating.
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