Posts Tagged ‘Accenture’

Astellas Awards Accenture Contract to Standardize Global IT Operations

May 8th, 2013

Accenture has signed an eight-year application outsourcing agreement with Astellas Pharma Inc. As part of the contract, Accenture will deliver application development and maintenance services to the leading pharmaceutical company, which researches, develops and manufactures prescription drugs.Outsourcing1

Accenture will help modernize and standardize Astellas’ core business systems, such as accounting, production management, purchasing and supply chain management in its Japan, North America and European regions. Accenture will leverage its Global Delivery Network locations in India, China and Brazil to support the engagement.

Astellas’ objective for the engagement is to prepare a foundation for accelerated globalization of its business. The company plans to do so by working with Accenture to standardize its global information technology (IT) operations. This will help Astellas improve both the efficiency and effectiveness of its IT function and increase its focus on driving innovation into its global business model to improve competitive positioning.

“Astellas is a leader in driving globalization and serves as a model for many large Japanese multinational companies trying to globalize their operations in the marketplace,” said Todor Radmilovich, Accenture managing director based in Japan. “Accenture is proud to assist Astellas in its efforts by utilizing our deep industry knowledge and skills, globally industrialized IT processes and assets, and passion for driving change and improvements. We look forward to working with Astellas on an exciting transformation journey and helping the company achieve its globalization goals.”

Source:http://www.fortmilltimes.com/2013/05/08/2674559/astellas-awards-accenture-contract.html

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Accenture’s “cloud broker” bid

April 30th, 2013

At first, it seemed as though cloud computing might pose an existential threat to the IT outsourcing industry. If customers can rent IT capabilities over the Internet without setting up their own infrastructure, why would they need outsourced IT skills?

In truth, there is a lot of extra work associated with using cloud computing. In 2009, Gartner analyst Darryl Plummer spotted the need for a so- called “cloud broker”, a function – internal or external – that makes it easier for a business to adopt public cloud services by certifying approved cloud providers, taking care of integration, managing user identity across services, and more besides.accenture

This is a role that IT services providers are understandably keen to fill. Indian IT outsourcer Infosys was one of the first to market with its Cloud Ecosystem Hub service, which it claims can “enable organisations to rapidly adopt, manage and govern a hybrid cloud environment”.

In the last nine months, meanwhile, outsourcing and consultancy giant Accenture has been developing its own cloud brokerage platform, which it unveiled publicly in April 2013.

The Accenture Cloud Platform is made up of a mix of software and services. Front and centre is a procurement portal that can be deployed internally or hosted in the cloud itself.

This gives IT administrators, or perhaps even business users, a single screen through which they can buy services from Accenture’s ecosystem of approved cloud providers.

They can also procure pre-built integrations – for example, from Salesforce.com to NetSuite – that are hosted on Accenture’s infrastructure and paid for on a per-transaction basis.

And thirdly, they can buy pre- configured services from Accenture. For example, the “testing-as-a-service” offering allows customers to rent testing tools on a pay-per-use basis, and spin up cloud infrastructure as a testing environment, in one fell swoop.

All of is this is paid for with a single monthly bill.

“You can look at the platform as an app store, but some of the apps have been pre-integrated,” says Jack Sepple, global senior managing director for Accenture’s cloud practice.

It is a canny idea from Accenture. The platform, the company claims, makes it easier for businesses to govern cloud usage across their organisation. “In the client-server era, there was a big decentralisation of governance for a while, and the same thing is happening with cloud and for valid business reasons,” says Sepple. “Part of the reason for adopting this platform is to help customers pull governance back into one place.”

But it also parks a shop front for Accenture’s services right in front of their IT administrators. In future, Accenture aims to even sell human labour – software testers, for example – through the cloud portal on a pay-per-use basis.

Accenture has yet to announce which suppliers make up its cloud service provider ecosystem, but it has revealed one glaring omission: cloud market- creator Amazon Web Services.

AWS is “definitely on our roadmap”, Sepple says, but for the time being it does not meet the requirements of its enterprise customers. “As a Global 2000 customer, there are certain terms and conditions you expect, and certain service level agreements you need”.

Accenture recently announced that it would be investing a further $400 million in its cloud computing capabilities. The Accenture Cloud Platform will be a part of that, but the company also plans to grow its 6,700- strong cadre of cloud experts.

Cloud computing is already a $1 billion-a-year business for Accenture, Sepple says, which equates to around 3.5% of its 2012 revenues. IDC recently estimated that the global cloud computing market will grow 245% from $40 billion in 2012 to $98 billion in 2016. Accenture expects its cloud business to match or exceed that growth.

But legacy systems are not going away, and Sepple is also confident that Accenture will find work integrating those systems will cloud environments for many years to come. “We did a study looking at how fast our customers want to move to the cloud,” he says. “Even as far out as 2020, they think that are large proportion of the workload will still be based on internal systems.”

“We see a long path ahead of us.”

Source:http://www.information-age.com/it-management/outsourcing-and-supplier-management/123457010/accenture-s–cloud-broker–bid

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Accenture announces cloud platform launch

April 8th, 2013

Global IT outsourcing and consulting company Accenture today announced the launched of its public Cloud Platform. The Accenture Cloud Platform provides a secure, scalable, and enterprise-ready cloud integration system to support these critical changes. It provides management and control over cloud services that are being delivered to clients, whether by Accenture or from a third party provider such as Microsoft, SAP and others, the company said in a release.Outsourcing104

As part of the strategic initiative, the company will invest more than $400 million in cloud technologies, capabilities and training by 2015 to focus on delivering the right cloud services from its network of providers, as well as blending its own industry solutions and innovations with third party offerings.

“Already in use on more than 200 projects, the Accenture Cloud Platform features proven technologies and business processes to help our clients make the safe journey to cloud,” said Jack Sepple, global senior managing director – Cloud, Accenture.

According to industry analyst firm IDC, the total market size for cloud will grow from approximately $40 billion in 2012 to $98 billion in 2016. This includes projections for software as a service (SaaS) to reach $37 billion, infrastructure as a service (IaaS) to reach $30 billion, system infrastructure software as a service to reach $20 billion, and platform as a service (PaaS) to reach $10 billion by 2016.

As part of its overall investment, Accenture has created expanded services on the Accenture Cloud Platform, including public and virtual private cloud infrastructure, data decommissioning, software systems testing and big data analytics solutions in the cloud. According to the Accenture Technology Vision 2013 report, digital technology has become a strategic imperative and a tool of competitive intent for businesses today.

Accenture has already worked on more than 4,000 cloud projects for clients, including over half of the Fortune Global 100, and has more than 6,700 professionals trained in cloud. Accenture is consistently recognized for its industry leadership by leading independent analyst firms and software alliance partners, the company said.

Source:http://www.business-standard.com/article/companies/accenture-announces-cloud-platform-launch-113040500242_1.html

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Accenture, Oracle numbers dampen Indian IT spirits

April 2nd, 2013

It might take a little longer for demand to pick up in India’s IT outsourcing services industry. The recent financial numbers of global IT majors such as Accenture and Oracle have given enough indication that the demand environment continues to remain subdued.Outsourcing1

Global IT services and consulting company Accenture, which follows a September-August financial year, has said it is expecting its revenues to meet the lower end of its guidance, primarily due to the longer sales cycles. The company had earlier given a revenue growth guidance of 5-8 per cent.

On the other hand, enterprise software developer Oracle has also reported a much weaker growth in its new licence sales in the March quarter. The company, however, has attributed this to execution issues rather than weak macro spending.

“The sale of software licences is a leading indicator of the transformation projects that are happening globally. If software does not sell, it means that not many large implementations and change projects are happening. So given this, it is going to be a tough time for Indian companies, at least for the next 12-18 months,” said Samiron Ghoshal, partner and national leader, IT advisory, Ernst & Young

According to a recent research report by Morgan Stanley, in the absence of a clear recovery in the global market, company-specific deals win and execution of those deals as well as the ability to manage costs would play a key role for Indian IT services providers.

“We believe results of MNC peers lower the probability of any material beat in March 2013 revenue growth versus expectations for the India IT vendors solely due to macro spending trends. Company-specific deal wins, cost ramp-up and execution trends could be more important, in our view,” the report said.

While Accenture has lowered is revenue guidance, on the positive side, the company has shown strong growth in financial services at 9.6 in its second quarter ended February 28, 2013. Any uptick in the BFSI (banking, financial services and insurance) space is seen as a good sign for Indian IT services players, since they rely heavily on this sector for revenues.

“From the results announced by Oracle and Accenture, it is clear there are no positive takeaways on discretionary spending for Indian IT firms for CY13/FY14,” noted Harit Shah, senior research analyst at Nirmal Bang Institutional Equities in a recent report.

Nasscom, the apex body that represents the Indian IT industry, has given a slightly improved export revenue growth guidance for FY14 at 12-14 per cent. For FY13, Nasscom had initially given a growth guidance of 11-14 per cent, which it subsequently lowered to 11 per cent.

Source:http://www.business-standard.com/article/companies/accenture-oracle-numbers-dampen-indian-it-spirits-113040100530_1.html

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What do Accenture’s results mean for Indian IT companies?

December 24th, 2012

Accenture Plc has lost over 5% in market value after announcing weaker-than-expected results last week for the quarter ended November. What are the implications for large Indian information technology (IT) companies, which compete with the US-based technology services and outsourcing firm? Investors in Indian IT stocks have shrugged it off–National Stock Exchange’s CNX IT index has been flat during the period.accenture--621x414

It must be noted here that large Indian IT companies have met analysts lately and given an update of their businesses, thanks to which investors haven’t had to rely much on signals coming fromAccenture’s results. Infosys Ltd, for instance, told analysts that the demand environment continues to be weak, and led some of them to conclude that the company may lower its annual growth guidance to 3.5% compared with the current growth target of 5%.

Tata Consultancy Services Ltd, on the other hand, sounded much more positive, having told analysts that the impact of furloughs and fewer working days in the December quarter haven’t surprised negatively. Earlier in the month, Cognizant Technology Solutions Corp. said its board had set a revenue growth target of 16% for 2013, which will be used as a base to determine whether its top executives will earn 100% of their equity incentives for the year. Both TCS’s and Cognizant’s shares have done well since these statements.

In sum, the December quarter can be expected to play out in the same fashion it has in the past many quarters, which means some players do relatively better than others in a difficult demand environment. Both TCS and Cognizant have said growth is expected to be lower in the December quarter and in 2013, respectively. But, at least these companies are growing in double digits.

Accenture’s results, too, point to the fact that growth is slowing. Its consulting revenues were flat quarter-on-quarter and growth in the outsourcing business segment slowed to 13% compared with the preceding quarter (18%). Order bookings fell 4% year-on-year to $7.5 billion. The silver lining was the fact that the company maintained its annual revenue growth target of 5-8%.

But, as pointed earlier, in the midst of this difficult environment, some companies are gaining at the expense of others. This trend should continue in the near-term. In the medium term, things could get worse if reports about Infosys getting aggressive with pricing come true. Already margins of most top companies have been under pressure, and TCS told analysts that margins are expected to be volatile. Apart from trends in volume growth, investors will also be keenly looking at pricing and profitability.

Source:http://www.livemint.com/Money/NBsNqBgWVrSmc98KxzjrVN/What-do-Accentures-results-mean-for-Indian-IT-companies.html

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Accenture bets on outsourcing business

October 4th, 2012

Accenture forecast full-year earnings ahead of analyst estimates as it bolsters its outsourcing business to offset a slowdown in consulting, sending its shares up 5 per cent in after-market trading.

Outsourcing revenue rose 10 per cent to $3.1 billion while consulting revenue fell 4 per cent to $3.74 billion in the fourth quarter.

Accenture, which has about 257,000 employees worldwide, expects revenue growth in its outsourcing business to continue to outpace that of consulting, Chief Financial Officer Pamela Craig said on a conference call.

“They’re clearly gaining market share … Outsourcing would be a bigger part of the business going forward,” Barclays Capital analyst Darrin Peller said.

The company, which competes with Cognizant Technology Solutions and Infosys, expects earnings of $4.22 to $4.30 per share in fiscal 2013. Analysts on average were expecting $4.15 per share, according to Thomson Reuters I/B/E/S.

Accenture targets new bookings, a key indicator of future sales, in the range of $31 billion to $34 billion in fiscal 2013. New bookings in fiscal 2012 were $32.2 billion.

“The underlining trend in the industry are sort of average, when other companies report earnings, especially Infosys and Wipro, the results won’t look this good,” Peller said.

Accenture said its fourth-quarter profit fell due to higher tax rates. Accenture’s effective tax rate was 32.8 per cent for the quarter, compared with 27 per cent a year earlier.

Net income fell to $636 million, or 88 cents per share, from $683 million, or 91 cents per share.

Revenue rose 2 percent to $6.84 billion. Revenue from Europe, Middle East and Africa fell 4 per cent while that from Asia Pacific rose 11 per cent. Revenue from Americas rose 5 per cent.

Analysts had expected earnings of 88 cents per share on revenue of $6.76 billion.

Accenture shares rose to $68.34 in trading after the bell. The stock, which gained about 26 per cent in the last year, closed at $65.38 on the New York Stock Exchange on Thursday.

Source:http://articles.timesofindia.indiatimes.com/2012-09-28/outsourcing/34147398_1_accenture-market-share-infosys

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Accenture Positioned As A Leader In Business Analytics Business Process Outsourcing Services, According To International Data Corporation (IDC) MarketScape Report

June 21st, 2012

Accenture (NYSE: ACN) is positioned as a leader in business analytics business process outsourcing (BPO), according to the recently published “IDC MarketScape: Worldwide Business Analytics BPO Services 2012 Vendor Analysis.”

The IDC MarketScape report evaluated the offerings and capabilities of 10 business analytics BPO vendors and evaluated them based on potential key strategy measures for success in two primary categories: current capabilities and future strategy. Accenture is positioned as a leader based on IDC’s evaluation of vendors who possess the best strategic combination of capabilities to continue to be successful in today’s ecosystem and has the right set of strategic initiatives to maintain and grow their capabilities in the future.

“Accenture’s leadership position in the IDC MarketScape report is a reflection of our ability to apply our industry and domain expertise, our knowledge of our client’s business operations, and our proprietary BPO Navigator analytics dashboard to help our clients gain critical business insights,” said Mike Salvino, group chief executive of BPO at Accenture. “As an industry leader in defining and driving fourth generation BPO, we can help turn those insights into actions that help our clients improve their business performance and deliver better outcomes.”

Source:http://www.thestreet.com/story/11588777/1/accenture-positioned-as-a-leader-in-business-analytics-business-process-outsourcing-services-according-to-international-data-corporation-idc-marketscape-report.html

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