Accenture plc.(ACN - Analyst Report) is seeing a steady flow of deals. “Accenture Federal Services” has secured a blanket order from the U.S. Securities Exchange Commission (SEC). The $64.0 million deal has a one-year base period and four one-year renewal options.
The deal, which ensures indefinite delivery as well as quantity, will help the U.S. SEC to include Oracle development services in its IT operations. This is an extremely customer-friendly system that would help reduce costs while improving performance. It will help clients and customers to file registrations, meet compliance norms, examination requirements and also enable them to share data efficiently.
Moreover, the Scotland Police Department has selected Accenture to maintain and develop the new i6, an operational policing system, for Police Scotland. This advanced system will standardize the national policing process and will also help to improve the efficiency of the day-to-day policing operations and investigations. The 10-year contract, with a two-year extension period, is expected to help and support the policing system of the Scotland Police Department.
The “Accenture Police Services” will provide the technology and implementation services to Police Scotland to drive operational and process efficiencies and facilitate smooth information sharing.
The increase in deal wins and order renewals is evident from Accenture’s third-quarter bookings growth. Improved bookings growth coupled with good performances in insurance, banking and healthcare sectors reflect a strong demand for Accenture’s services, which in turn are boosting its long-term growth prospects.
On the other hand, stiff competition from Cognizant Technology Solutions Corp and IBM Corp. (IBM - Analyst Report), a strained spending environment and Accenture’s broad European exposure (roughly 40.0%) may temper its growth prospects to some extent.
Currently, Accenture has a Zacks Rank #3 (Hold). Investors can also look at other well-performing technology stocks such as Huron Consulting Group Inc. (HURN - Snapshot Report) and Towers Watson (TW - Snapshot Report). Both the companies carry a Zacks Rank #2 (Buy) and are worth buying.