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Zacks #1 Stocks on the Move 05/21/2013
| Company Name | Symbol | %Change |
|---|---|---|
| SCIENTIFIC L | SCIL | 8.00% |
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Accenture plc ( ACN - Snapshot Report ) recently announced that its Human Services Suite has been deployed by the State of Iowa to improve the quality of services it is offering to the citizens. The contract period is 10 years, including a 6-year base period and four 1-year extensions. Financial terms of the deal were not disclosed.
Accenture’s Human Services Suite includes products/solutions namely, Accenture Public Service Platform, Accenture Benefits Management System, Accenture Public Health Platform and Accenture Citizen Self-Service Portal. The products help government and public service agencies to provide improved performance by lowering expenses and at the same time ensuring a prompt response in the face of evolving needs, waning budgets and growing service demand. Keeping in view the increasing IT demand from federal and public service agencies, Accenture recently introduced an advanced iteration (version 4.0) of the product suite.
Per the contract terms, Accenture provided its Accenture Public Service Platform, Accenture Benefits Management System and Accenture Citizen Self-Service Portal to the state of Iowa. The suite replaced the state’s 35-year old legacy system. Leveraging Accenture’s services, the state will be prudent to find out eligible citizens to be served under the federal health programs and human services. With Accenture, the state can also enhance its customer services and achieve IT cost optimization.
There is a continuous surge in demand for better IT services from the federal agencies as they have to manage IT tasks within a stringent budget. Hence, services that offer improved performance at a lower cost are always preferred.
Accenture’s comprehensive service offerings have made it one of the key IT service providers. A large product and service base has also lent the company a leading edge in the competitive market. Accenture has regularly won deals from all industrial sectors, as well as the federal vertical.
Though Accenture’s prospects look bright, its large number of government deals (which carry lower margins), stiff competition from IBM Corp. ( IBM - Analyst Report ) , and significant European exposure may temper its growth going forward.
Currently, Accenture has a Zacks #3 Rank, (Hold).
Read the full Snapshot Report on ACN
Read the full Analyst Report on IBM