Accenture Goes After Cyber Security
Accenture (NYSE:ACN) is a major player in technology consulting where it competes with the likes of IBM (NYSE:IBM), HP (NYSE:HPQ) and Deloitte Consulting. Through a large number of skilled technology consultants, Accenture helps its clients to develop and implement customized IT strategies to gain maximum benefits from their IT investments.
With recession slowing down the rate of new IT consulting contracts in last two years, firms like Accenture and Deloitte have been looking for new areas to drive their consulting revenues. One of the fast growing fields in the US is cyber security, which is about protecting information and information systems from unauthorized access.
Federal government cyber security spending to reach $11.7 billion by 2014
The Obama administration is looking to curb cyber crimes and better protect sensitive data stored on government information systems. Input, a market research firm focused on government business, estimates the US government alone will create a cyber security market opportunity of $11.7 billion by 2014.
Accenture building competency to target the growing cyber security market
Accenture has opened a dedicated threat analysis center in San Antonio to show case its competency in cyber security which soon will be followed by one in Reston. These centers will provide forensic analysis of cyber attacks and assist the Federal government in improving its security infrastructure.
Cyber security consultants can grow Accenture’s consulting headcount
Although we currently expect Accenture’s technology consultant headcount to continue declining in 2010 as a result of weak demand for consulting services, the large opportunity in cyber security could mitigate or offset these declines. You can modify our forecast for Accenture’s technology headcount below to see how higher demand for consultants in cyber security can drive Accenture consulting revenues and impact Accenture’s stock.