Posts Tagged ‘Accenture’

Slow recovery for hourly rates of accenture consultants

August 27th, 2010

Accenture (NYSE:ACN) bills its clients for the hourly time of Accenture consultants, but billing rates have dipped in recent years. Accenture’s income and profits are significantly impacted by the rates that it can charge for its consultants, and a recovery of these rates can have a meaningful impact on the $52 Trefis price estimate for Accenture’s stock (40% above the current market price of $37).

Accenture competes with HP (NYSE:HPQ), IBM (NYSE:IBM), Infosys (NASDAQ:INFY), Wipro (NYSE:WIT), and Cognizant (NASDAQ:CTSH) in key areas like software application outsourcing and business process outsourcing. A broad economic recovery as well as increases in the bill rates charged by competitors can have an important impact on how Accenture’s rates will trend.

Sourcehttps://www.trefis.com/company?article=22047#

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Accenture Wins Outsourcing Deal

August 27th, 2010

Technology services and outsourcing company Accenture Inc. (ACN – Snapshot Report) announced that it has been awarded with a 3-year contract by Norwegian aluminum producer Norsk Hydro ASA. Financial details were not disclosed.

As per the terms of the contract, Accenture will provide technical support and maintenance services globally to two of Norsk Hydro’s SAP systems. With these outsourced services, Norsk Hydro expects to maximize the efficiency and cost-effectiveness of its SAP systems, which will help the company serve its customers with innovative ways.

The service will be provided to Norsk’s customers worldwide with the help of Accenture’s Global Delivery Network, through its operating centers in Germany and India. The above-mentioned services will be offered by October 2010.

Accenture shares a long-standing relationship with Norsk Hydro. It has been providing consulting and technology services to the latter since 1980. We believe that further expansion of the relationship is possible, going forward. Also, Accenture’s ability to increase penetration at existing customers is indicative of the quality of its services.

Accenture has had success across various industrial sectors. Recently, Accenture received a contract from the University of North Texas System (UNTS) to set a five-year information technology plan for implementing shared services within the campus.

Earlier this month, Accenture won a healthcare deal from the Singapore Ministry of Health. Under the terms of the contract, Accenture will implement the National Electronic Health Record (NEHR) system across Singapore, to help the local government achieve an integrated healthcare structure and establish it as one of the first countries worldwide to use the NEHR system.

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, we prefer to remain cautious until the revenue growth rate accelerates. Moreover, we believe that the recent economic turmoil in Europe will considerably rationalize Accenture’s growth prospects

Source:-http://www.zacks.com/stock/news/39348/Accenture+Wins+Outsourcing+Deal

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Accenture expands even as it outsourcing market outlook remains uncertain

August 9th, 2010

Even as industry leaders point to an uncertain outlook for IT Outsourcing for the rest of 2010, Accenture moved quite rapidly in July 2010 to grow its market share for the current year and beyond. Within the month of July, the company has announced the acquisition of a French business processing company, the expansion of its operations in the Philippine Islands and the securing of a major outsourcing deal in Bangalore, India.
Viewed separately, the actions appear to be somewhat random; however, when viewed as parts of the whole it is clear that Accenture is planning for future growth beyond 2010.
The company’s acquisition of the privately held French based company, Acceria, will hasten its push into the automotive market utilizing a unique product mix and pricing structure to reach new clients with new solutions. Accenture believes that an intensive focus on ‘after-sales revenues’, which was a specialty for Acceria, will provide the company the ability to present innovative solutions to both automotive and industrial companies with flat lining revenue streams.
Accenture also announced that it was looking to expand its operations in Cebu, a city in Philippine Islands; a sign that Accenture continues to grow it operations having originally established its presence only two years ago in 2007.
At that time the company established a call center operation along with a Global Network for Technology. As it is the second largest center of activity within Accenture’s outsourcing operations, the Philippines is important due to its capacity for highly skilled, yet cost effective manpower. The 14,000 employee force allows Accenture to seamlessly provide Business Process and IT services as clients opt in to increasing their existing mix of services. The critical nature of this location to the long term growth of the company was underscored in late June as Accenture pledged to invest 1.26 million in Cebu’s education system to assist underprivileged young men and women attain marketable IT skills.
In its outsourcing conquest, Accenture was able to secure a contract with a Bangalore company called United Spirits or USL. Because USL, which is the world’s second largest maker of spirits (alcoholic beverages) , wanted to increase their access to business intelligence through information technology; the firm wanted to give that role to an expert.
Accenture was in prime position to influence the choice as it has been associated with USL for most of the new millennium. The firm (Accenture) had an even more direct inside track as it served as an advisor for USL’s recent merger activity with Shaw Wallace. Accenture will use its IT knowledge capability to integrate USL’s product distribution and assessments about customer demand. The company was able to use its size, brand and existing relationships to make itself more attractive than its rivals, as even in a more uncertain environment; price cutting has been ineffective for firms within the IT outsourcing space.

Source:-http://www.big4.com/?page=news_detail&url=accenture-expands-even-as-it-outsourcing-market-outlook-remains-uncertain-1482

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Accenture Wins 5-Year BPO Deal

July 7th, 2010

Recently, Accenture plc  announced that it had been awarded a 5-year business process outsourcing (BPO) contract by Norwegian energy company Statoil ASA to provide the latter with financial management services.

As per the terms of the agreement, Accenture will reengineer Statoil’s Accounts Payable processes with its Global Delivery Network. Accenture expects the delivery of its outsourcing services to begin in September 2010.

We believe that the successful completion of the project will help Accenture to win more deals from the energy sector, which is a relatively new market for the company. However, we remain unclear about the financial impact of the deal on Accenture’s revenue stream as economic details were not disclosed.

In the current economic environment, businesses need to be able to respond to changing market conditions, which require prompt actions with limited resources. Hence, organizations look for third party service providers who can carry out routine functions on their behalf, leaving the organizations free to focus on their core responsibilities. This has resulted in rapid growth of outsourcing across the world.

We feel that with the continuous delivery of skills, experience and efficiencies through its outsourcing services over the past few years, Accenture is well positioned to win large outsourcing deals.

Additionally, Accenture has had some success across different industrial sectors. Last month, Accenture won a seven-year application outsourcing agreement with Aviva’s property claims repair service department, Asprea. As per the terms of this agreement, Accenture will provide application and infrastructure outsourcing services for Aviva’s buildings claims division in the U.K.

Last year, Accenture won a 7-year outsourcing contract from Scandinavian Airlines for providing financial management services. We look forward to seeing Accenture playing a key role in the aviation sector with the help of its subsidiary Navitaire, which provides technological support to more than 75 airlines worldwide.

Accenture operates in over 120 countries with about 181,000 employees globally. The company delivers a wide range of consulting, technology, and outsourcing services to its clients in industries such as communications, high tech, financial services, public service, products and resources.

Accenture reported an unexciting second quarter, with EPS of 60 cents missing the Zacks Consensus Estimate of 61 cents and revenue declining by 2.1% compared to the year-ago quarter.

Despite improving trends noticed in Accenture’s businesses, we prefer to remain cautious until the revenue growth rate accelerates. Moreover, we believe that the recent economic turmoil in Europe could considerably rationalize Accenture’s growth prospects.

Source:http://www.zacks.com/stock/news/36515/Accenture+Wins+5-Year+BPO+Deal

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Accenture Wins Outsourcing Contract

June 17th, 2010

It seems a frequent affair for the global management consulting firm, Accenture plc (ACN – Snapshot Report) to win outsourcing contracts. Yesterday, Accenture announced that it had been awarded a 6-year outsourcing contract to provide application management services to Germany-based Henkel’s North American operations.

As per the terms of the contract, which is in addition to an existing contract signed last year, Accenture will provide management services to Henkel that are expected to reduce costs and streamline its activities.

Though we remain unclear about the financial impact of the deal on Accenture’s revenue stream, we continue to believe that the company’s solutions will attract a series of contracts and customer wins across various industries spanning over several years.

Last year for instance, Accenture won a 7-year outsourcing contract from Scandinavian Airlines for providing financial management services. We believe this is a good growth opportunity for Accenture in the aviation segment, where it operates through its subsidiary, Navitaire. The latter provides technological support to more than 75 airlines worldwide.

Furthermore, Accenture enhanced its Mobility services with the strategic acquisition of Nokia Corp.’s (NOK – Analyst Report) Symbian service unit. The Symbian operating system is the world’s most widely used platform for smartphones. The acquisition helped Accenture to develop innovative solutions for mobile devices, which in our view, will attract major handset manufacturers.

According to the U.S. research firm Gartner Inc., global spending for IT services will witness a boost in 2010 with an anticipated 4.5% increase from 2009. With a major part of revenue coming from the consulting business, we expect Accenture to be a major beneficiary.

With about 181,000 employees around the world, the company delivers a wide range of consulting, technology, and outsourcing services to its clients in diverse industries. Accenture has extensive relationships with the world’s leading companies and governments, and operates in over 120 countries.

Accenture reported an unexciting second quarter, with EPS of 60 cents missing the Zacks Consensus Estimate of 61 cents and revenue declining by 2.1% compared with the year-ago quarter. However, the company reported strong bookings of $6.52 billion with equal contribution from consulting and outsourcing businesses.

Despite improving trends noticed in Accenture’s businesses, we would remain cautious until revenue growth shows more sustained momentum.

Source:http://www.zacks.com/stock/news/35644/Accenture+Wins+Outsourcing+Contract

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Henkel’s 6 yr app outsourcing deal to Accenture

June 16th, 2010

BANGALORE, INDIA: Accenture will deliver application management services to the North American operations of Henkel under a six-year application outsourcing contract. Financial terms of the contract were not disclosed.

Under the terms of the agreement Accenture will provide management services for the local applications and related project services of Henkel’s North American business. The technologies covered by the program will include Oracle, Lotus Notes, Electronic Data Interchange, IBM AS 400 and Web applications.

The new contract will complement an existing, seven-year global application maintenance and support agreement announced by the two companies in August 2009, adds a press release.

Accenture’s work on the global applications program has already demonstrated to us the skills, industry experience and efficiencies that they can offer,” said Dr. Peter Wroblowski, chief information officer of Henkel. “This new collaboration will benefit Henkel and employees in North America thanks to the synergies and economies of scale resulting from Accenture’s work on our global applications.

Mathias Metzger, senior executive in Accenture’s Consumer Goods & Services practice, commented, Our work on the global applications program has given us a thorough understanding of Henkel’s application management needs and where we can deliver value for the client. This experience will enable us to deliver a cost-efficient, seamless and enhanced service to Henkel’s North American operations, allowing it to focus on delivering quality and innovation to its customers and achieving high performance.

Accenture will deliver the services from both North America and one of its Global Delivery Network centers in Bangalore, India.

Source:- http://www.ciol.com/Enterprise/Enterprise/News-Reports/Henkels-6-yr-app-outsourcing-deal-to-Accenture/137662/0/

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Accenture is awarded Henkel application outsourcing contract in north America

June 14th, 2010

Accenture (ACN 37.85, +0.21, +0.56%) will deliver application management services to the North American operations of Henkel, a Fortune Global 500 company that markets well-known brands such as Dial(R) soap, Purex(R) laundry detergent, Loctite(R) adhesives and got2b(R) styling products under a six-year application outsourcing contract. Financial terms of the contract were not disclosed.Under the terms of the agreement Accenture will provide management services for the local applications and related project services of Henkel’s North American business.

The technologies covered by the program will include Oracle, Lotus Notes, Electronic Data Interchange, IBM AS 400 and Web applications. The agreement will enable Henkel to benefit from:The new contract will complement an existing, seven-year global application maintenance and support agreement announced by the two companies in August 2009.

Accenture’s work on the global applications program has already demonstrated to us the skills, industry experience and efficiencies that they can offer,” said Dr. Peter Wroblowski, chief information officer of Henkel. “This new collaboration will benefit Henkel and employees in North America thanks to the synergies and economies of scale resulting from Accenture’s work on our global applications.”

Mathias Metzger, senior executive in Accenture’s Consumer Goods & Services practice, commented, “Our work on the global applications program has given us a thorough understanding of Henkel’s application management needs and where we can deliver value for the client. This experience will enable us to deliver a cost-efficient, seamless and enhanced service to Henkel’s North American operations, allowing it to focus on delivering quality and innovation to its customers and achieving high performance.

Accenture will deliver the services from both North America and one of its Global Delivery Network centers in Bangalore, India.Learn more about Accenture’s application development services and the Accenture Consumer Goods & Services Center of Excellence in India.

Accenture is a global management consulting, technology services and outsourcing company, with more than 181,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.58 billion for the fiscal year ended Aug. 31, 2009.

Source:- http://www.marketwatch.com/story/accenture-is-awarded-henkel-application-outsourcing-contract-in-north-america-2010-06-14?reflink=MW_news_stmp

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