Technology and consulting company Accenture plc (ACN) recently won a contract from a non-profit organization Out & Equal. The tech major is poised to work in sync with Out & Equal and the other stakeholders to help them invest in new technologies for establishing an IT system within the organization.
Accenture is expected to streamline the organizational structure of Out & Equal as well as help them to reach out to people across the globe. The new digital platform will create a significant impact on the IT infrastructure of the company, while also promote the idea of workplace equality irrespective of gender.
Apart from winning new contracts, Accenture recently witnessed a top management churn. The company appointed Christopher L. Smith as the U.S. federal chief technology and innovation officer. We believe that Accenture will benefit from his rich federal government experience as he had earlier served in several senior positions with the General Services Administration and the Internal Revenue Service and was associated with the Air National Guard for nearly 25 years.
Some industry experts believe that the consulting/outsourcing/offshore combination continues to support global enterprise’s demand for high-end but cost effective service delivery. Given its global footprint and client base, Accenture remains well positioned to benefit from multiple technology drivers including cloud initiatives, SaaS, mobility, digital marketing, analytics and others.
Moreover, the new deal wins are also encouraging for the company. The company’s endeavor to expand in Asia is also noteworthy. Given the current economic turmoil in Europe, Asia has seemingly emerged as a potential target for most of the tech majors. However, increasing competition from IBM Corp. (IBM), strained spending environment and significant European exposure may temper growth going forward.
Currently, Accenture has a short-term Buy rating, denoted by a Zacks #2 Rank.
To read this article on Zacks.com click here.
Zacks Investment Research
