Accenture, SAP AG Form Strategic Alliance

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Accenture plc (ACN), in association with a SAP AG (SAP) company, Ariba, has announced cloud-based services that would simplify procurement and finance and accounting (F&A) transactions of their clients.

Technology has changed the way people do business and consequently, there is scope for increasing efficiencies and lowering costs by automating and streamlining these routine functions. The alliance seeks to do just that by combining Accenture’s operations expertise with Ariba’s cloud platform and networking infrastructure.

Moreover, the collaboration will expedite joint solution development and increase time to value for clients across the globe. Also, the solution will improve the SAP application process and enhance collaboration between providers and suppliers.

The business process outsourcing (BPO) solutions will enable continuous process improvement and security, thereby helping clients to cut back fixed costs and reduce infrastructure risks. This would, in turn, help clients to better focus on their core business.

The association will also help both the companies to develop a structured "go-to-market" model to provide real time market information to clients. The success of the new enterprise mobility offerings will also strengthen the longstanding relationship between Accenture and SAP.

Furthermore, utilizing Ariba Network along with its cloud-based applications, Accenture will be in a better position to provide the next generation of BPO solutions to its clients, deliver enhanced performance and strengthen its position as a global leader in Software as a Service (SaaS) based applications.

Though we are unable to gauge the financial benefits, we remain encouraged by the close association that Accenture enjoys with this leading enterprise application software developer. This deal extension between the two tech giants will be mutually beneficial.

In spite of regular deal wins, competition continues to increase at a steady pace, especially from companies like International Business Machines (IBM). Additionally, a strained spending environment as well as significant exposure to Europe may temper growth to some extent.

Currently, Accenture has a Zacks #2 Rank (Buy). Juniper Networks, Inc. (JNPR) is a better-ranked stock in the technology sector with a Zacks Rank #1 (Strong Buy).
 

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