Yesterday, Accenture plc (ACN) won a 5-year consulting and outsourcing services contract from CEVA Logistics.
Netherlands-based CEVA Logistics provides freight management, contract logistics, distribution and transportation management solutions across the world.
Financial details were not disclosed.
As per the terms of the contract, Accenture will provide CEVA with its finance and accounting (F&A) business process outsourcing (BPO) and management consulting services. Under its F&A BPO services, Accenture will perform necessary accounting functions such as accounts payable, accounts receivable, balance sheet reconciliations and financial reporting. With the help of its consulting services, Accenture will also ease out CEVA’s managerial activities by streamlining operations.
In a nutshell, Accenture’s services will allow CEVA to focus more on cost control, maximizing revenue growth, client retention and formulation of better business policies.
Accenture has shared business ties with CEVA for more than three years. We believe that both companies will try to further this association. Also, Accenture’s ability to increase penetration within existing customers is indicative of the quality of its services.
Accenture has seen successes across various industrial sectors as well as geographical regions. Recently, the company won a 2-year information technology services contract from Israel Electric Corporation. Accenture also received a 5-year Procurement Transformation contract from the City of London Corporation to develop required shared service centers to reduce procurement costs.
Moreover, Consip, a public company owned by the Italian Ministry of Economy and Finance awarded Accenture a four-year, $6 million contract to set up an eProcurement system to increase efficiencies and ensure value for money across suppliers.
We are positive about Accenture’s improving business trends, as evident from the healthy growth in revenue and bookings in its fiscal third quarter. However, the recent economic turmoil in Europe and competitive pressure from International Business Machines Inc. (IBM) could considerably rationalize Accenture’s growth prospects.
Accenture has a Zacks #2 Rank, implying a short-term Buy recommendation.
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