Accenture (NYSE:ACN) seems to be on a deal making spree. It closed multiple deals in the last week in its services division with focus on IT Services and Management Consulting, which account for more that half its value, according to Trefis estimates. These deals would add to its order pipeline which should lead to stronger performance by the company in upcoming quarters. Here we highlight three major deals with Nordea, the Indian Government and the Japanese Pension service, and their impact on our price estimate for Accenture.
Accenture Nordea Deal
Nordea, the largest financial services group based out of the Nordic and Baltic Sea region, has signed a five-year application development and maintenance agreement with Accenture to support its operations. Accenture will develop new applications in the areas of risk management and HR as well as maintain existing applications, including Nordea’s Basel II compliance reporting. This development and maintenance agreement will be serviced out of the delivery centers in India with local service management in Sweden. 
India Department of Electronics & Information Technology Deal
The Government of India’s Department of Electronics & Information Technology (DeitY) is looking to attract investments between $7 billion and $ 10 billion in the semiconductor fabrication units (FABS) business and has selected Accenture to review proposals from global technology providers and investors interested in setting up semiconductor wafer fabrication units.
Japan Pension Service Deal
Accenture has renewed its contract with the Japan Pension Service and will continue to provide management support to improve its pension record system. The project will involve reconciling ~1.2 billion paper records and 300 million computer records currently managed by the Japan Pension Service. The project will be spread over 29 centers and will include 18,000 employees throughout the country.
The company has already been providing support for the project since March 2010 and will continue till March 31, 2013 to help the government fulfill its pledge to complete this task. Accenture will be involved in designing efficient processes, methods to monitor progress & quality control, and adjusting project management guidelines. 
We estimate that Management Consulting constitutes ~30% of out current Trefis price estimate for Accenture of $62, which is slightly above the current market price. If these engagements increase consultant headcount from its current projected level of ~26K to ~30K by the end of our forecast period, we expect ~5% upside to our current Trefis Price Estimate.
- Accenture Expands Relationship with Nordea through Five-YearApplication Development and Maintenance Services Agreement, newsroom.accenture.com, June 4, 2012 [↩]
- India Department of Electronics & Information Technology Selects Accenture To Review Semiconductor Fabrication Proposals, newsroom.accenture.com, June 5, 2012 [↩]
- Accenture Renews Project Management Contract with Japan Pension Service, newsroom.accenture.com, June 6, 2012 [↩]