Accenture Plc. (ACN - Free Report) is using its technical know-how to its advantage, banking on which the company has been winning several major deals.
Recently, insurance company Crum & Forster selected Accenture’s Duck Creek Policy Administration software to facilitate Duck Creek’s rating and policy processing system for commercial lines, which will help them improve upon their workers’ compensation process.
This apart in a separate contract, the company also won a Biosurveillance contract Recently, the U.S. Department of Homeland Security (DHS) awarded a $3 million contract to Accenture to improve biosurveillance operations of Office of Health Affairs (OHA). This is expected to help data sharing and collaboration between Homeland Security, OHA and its partners.
To fuel growth, the company has adopted a three-tier strategy to grow the business in line with economic growth. The company has set new priorities and has started growing its core business, which includes management consulting, technology and business process outsourcing.
At the same time, Accenture is making significant investments in new business and technology that could generate growth in the future. We believe that the frequent deal wins are positive outcomes of these strategic moves. We are encouraged by the steady flow of new businesses and believe that the trend will continue.
Moreover, the company is also growing inorganically and gaining access to new technologies through meaningful acquisitions. However, increasing competition from IBM Corp. (IBM - Free Report) and a tepid spending environment coupled with Accenture’s broad European exposure (roughly 40.0%) may temper its growth prospects to some extent.
Currently, Accenture has a Zacks #2 Rank (short-term Buy rating), which has been driven by upward revisions to analyst estimates.