Accenture Fair Value $62: Gets Big Accolades From IDC On Industry Leadership
Accenture (NYSE:ACN) has been declared as a leader in business analytics IT consulting and systems integration services by IDC and simultaneously placed in the “Leaders” quadrant of Gartner’s “Magic Quadrant” for comprehensive finance and accounting BPO.
Accenture has shown impressive growth in the IT outsourcing, management consulting and analytics space. It recently closed deals with Nordea, the Indian Government and the Japan Pension Service in the IT services and management consulting space. The IDC “MarketScape” report evaluated the offerings and capabilities of 10 information technology consulting providers and declared Accenture the leader in this space while the Gartners “Magic Quadrant” analyzed 18 providers of comprehensive finance and accounting BPO services.
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The MarketScape report, by IDC studied the analytics services offerings of Accenture along with 10 other IT consulting and systems integration providers. The evaluation was based on a set of conditions that analyzed providers relative to each other as well as factors projected by IDC which it believes would lead to the highest possibility of success over short term and long term scenarios.
Some of the factors assessed by the study included quality of manpower, infrastructure, alliances, capital knowledge, capability to shift to a SaaS platform when required, end-to-end capability and the delivery network. [1]
Gartners Magic Quadrant report claims that outsourcing of finance and accounting processes are on the rise and it analyzed 18 providers of in this space. All were assessed on two primary factors; “Completeness Of Vision” and the “Ability to Execute”.
The first criteria evaluates the knowledge and business understand of the providers on how the market can be exploited for opportunities helping the provider and its clients while the latter studied its ability and track record on executing its vision. The report also stated that Accenture’s abilities and experience in analytics would lead to better business insights. It also stated that the cloud computing capabilities, social media analytics would drive value in the future. [2]
We currently have a $62 Trefis Price Estimate for Accenture which is nearly 10% above the market estimate.
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Notes:- Accenture Positioned as a Leader in Business Analytics IT Consulting and Systems Integration Services, According to the International Data Corporation (IDC) MarketScape Report, www.marketwatch.com, June 21, 2012 [↩]
- Accenture Positioned in the “Leaders” Quadrant of Leading Industry Analyst Firm’s Magic Quadrant for Comprehensive Finance and Accounting BPO, www.marketwatch.com, June 21, 2012 [↩]