Global management consulting firm Accenture (ACN) reached another milestone when it was selected by The University of Michigan to be associated with NextGen Michigan, a multi-year university-wide IT transformation effort.
The University of Michigan selected ACN for its support towards a comprehensive assessment of information technology at the unit and campus levels.
The assessment, which is part of the first phase of NextGen Michigan, will enable the institution to make effective information technology (IT) planning and sourcing, which will help to better meet the needs of faculty, researchers and students.
Though the company did not disclose the monetary value of the contract, we expect the deal to generate significant recurring revenue for the company for the next several years, as ACN will continue to provide its support to develop an IT rationalization program once the initial assessments are accomplished.
This apart, last week ACN won a contract from Media Prima Berhad (Media Prima), which is the leading integrated media group in Malaysia. Under the contract, ACN was to help Media Prima streamline and simplify its broadcast management processes to achieve better time to market, higher productivity as well as increase efficiencies in its core broadcast operations.
Moreover, prior to last week, SICREDI, one of Brazil’s leading credit unions, hired ACN to provide IT support and systems development services under a strategic outsourcing contract.
We note that ACN has been particularly successful at monetizing the revenue enhancement and operating efficiency focus of companies in the current environment.
During the second quarter of 2010, the company witnessed $6.5 billion in bookings with more than $3.0 billion each in consulting and outsourcing.
As forecasted by the technology research firms, tech spending by big companies will accelerate in 2010. Accenture is proving to be one of the key beneficiaries of the post-recession revival.
However, though ACN has seen many contract wins in recent times, it is a matter of concern that Barclays (BCS) will not renew its six-year, $650.0 million IT outsourcing contract with Accenture when it expires in June 2010, giving a jolt to the revenue estimates.
We currently have a short-term Hold recommendation on ACN.
Read the full analyst report on "ACN"
Read the full analyst report on "BCS"
Zacks Investment Research
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The assessment, which is part of the first phase of NextGen Michigan, will enable the institution to make effective information technology (IT) planning and sourcing, which will help to better meet the needs of faculty, researchers and students.
Though the company did not disclose the monetary value of the contract, we expect the deal to generate significant recurring revenue for the company for the next several years, as ACN will continue to provide its support to develop an IT rationalization program once the initial assessments are accomplished.
This apart, last week ACN won a contract from Media Prima Berhad (Media Prima), which is the leading integrated media group in Malaysia. Under the contract, ACN was to help Media Prima streamline and simplify its broadcast management processes to achieve better time to market, higher productivity as well as increase efficiencies in its core broadcast operations.
Moreover, prior to last week, SICREDI, one of Brazil’s leading credit unions, hired ACN to provide IT support and systems development services under a strategic outsourcing contract.
We note that ACN has been particularly successful at monetizing the revenue enhancement and operating efficiency focus of companies in the current environment.
During the second quarter of 2010, the company witnessed $6.5 billion in bookings with more than $3.0 billion each in consulting and outsourcing.
As forecasted by the technology research firms, tech spending by big companies will accelerate in 2010. Accenture is proving to be one of the key beneficiaries of the post-recession revival.
However, though ACN has seen many contract wins in recent times, it is a matter of concern that Barclays (BCS) will not renew its six-year, $650.0 million IT outsourcing contract with Accenture when it expires in June 2010, giving a jolt to the revenue estimates.
We currently have a short-term Hold recommendation on ACN.
Read the full analyst report on "ACN"
Read the full analyst report on "BCS"
Zacks Investment Research
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