Global management consulting and business process outsourcing company, Accenture plc’s (ACN) contract winning spree continues. The company has recently been awarded a contract by the Internal Revenue Service (IRS).
As per the terms of the agreement, the consulting major has received a five-year contract to design, implement and operate the Return Preparer Registration (RPR) program. The contract, which extends over a period of five years, has a one-year base period with four one-year renewal extensions available with it.
As per the details provided by the company, Accenture will join with the IRS to maintain a new secure system for online registration, renewal and collection of Unique Identification numbers for all tax preparers. The company did not provide the pecuniary details of the contract, but is expected to create a new line of business for it.
This follows the contract win at the University of Michigan, which selected Accenture for its support towards a comprehensive assessment of information technology at the unit and campus levels. Though the company did not disclose the monetary value of the contract, we expect it to generate significant recurring revenue for the next several years, as Accenture will continue to provide its support to develop an IT rationalization program once the initial assessments are accomplished.
Besides, the company also won a contract from Malaysia’s Media Prima Berhad (Media Prima). ACN will help Media Prima streamline and simplify its broadcast management processes to achieve better time to market, higher productivity, as well as increased efficiencies in its core broadcast operations. So deal flow continues, ensuring stronger growth in the upcoming quarters.
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 and also reported strong second quarter revenue of $5.18 billion. This apart, the company has projected an encouraging third quarter revenue range of $5.5-$5.7 billion and expects the consulting division to perform better in the upcoming quarter.
We believe that with tech spending making an upward move in 2010 and the company winning big business deals at regular intervals, we expect it to deliver in-line numbers when it reports next on June 24th.
Read the full analyst report on "ACN"
Zacks Investment Research
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As per the details provided by the company, Accenture will join with the IRS to maintain a new secure system for online registration, renewal and collection of Unique Identification numbers for all tax preparers. The company did not provide the pecuniary details of the contract, but is expected to create a new line of business for it.
This follows the contract win at the University of Michigan, which selected Accenture for its support towards a comprehensive assessment of information technology at the unit and campus levels. Though the company did not disclose the monetary value of the contract, we expect it to generate significant recurring revenue for the next several years, as Accenture will continue to provide its support to develop an IT rationalization program once the initial assessments are accomplished.
Besides, the company also won a contract from Malaysia’s Media Prima Berhad (Media Prima). ACN will help Media Prima streamline and simplify its broadcast management processes to achieve better time to market, higher productivity, as well as increased efficiencies in its core broadcast operations. So deal flow continues, ensuring stronger growth in the upcoming quarters.
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 and also reported strong second quarter revenue of $5.18 billion. This apart, the company has projected an encouraging third quarter revenue range of $5.5-$5.7 billion and expects the consulting division to perform better in the upcoming quarter.
We believe that with tech spending making an upward move in 2010 and the company winning big business deals at regular intervals, we expect it to deliver in-line numbers when it reports next on June 24th.
Read the full analyst report on "ACN"
Zacks Investment Research
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