Accenture Boosts Video Capabilities

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Management technology outsourcing and consulting service provider, Accenture plc (ACN) recently took over certain Internet Protocol television (IPTV) assets of Nokia Siemens Networks for an undisclosed amount. Nokia Siemens Networks is a 50-50 joint venture between Nokia Corporation (NOK) and Siemens AG (SI). The assets of its IPTV business include software and intellectual properties.

The IPTV assets were expected to solidify Accenture’s Video Solution, which is a software platform facilitating seamless and cost-effective distribution of web-based video services.

Accenture expects to easily integrate the IPTV software business into its existing video services suite. The combined technology is then expected to deliver enhanced video and TV services through the IP network. The services can be accessed from any network connection and viewed using various devices such as smartphones, tablets, PCs and TVs. Users can also pause and record a program.

All things considered, the solution should be of immense value for the telecom, video content and online entertainment services providers that can enhance the web-based content viewing experience for their respective customers.

Accenture has years of experience in delivering video solutions. We believe that with a revamped portfolio, Accenture will be able to acquire newer customers while proving its excellence in the arena going forward.

Accenture seems to be on an acquisition spree. In August, the company acquired Singapore-based distributor management and mobility software company NewsPage Pte Ltd. and Octagon Research Solutions Inc., a reputed software solutions provider for the life sciences sector.

We are encouraged by Accenture’s strategy of growing through acquisitions. However, increasing competition from IBM Corp. (IBM), a strained spending environment and 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.

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