Accenture Wins Telenor Contract

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Accenture Plc. (ACN) sored yet another win at the Telenor Group, a provider of tele, data and media communication services. As per the contract, Accenture is expected to speed up the implementation process of the global shared services vision acrossdifferent companies within the Telenor Groupacross the Finance & Accounting, HR, IT and transactional procurement/purchase functions.

The agreement allows Telenor Global Shared Servicesto access Accenture’s highly experienced management group. The $215 million five-year contract will help improve Telenor’s efficiency by streamlining its shared services platform.

Accenture is implementing various growth strategies to penetrate newer markets and win more clients. These include emerging markets like India, the Philippines, China andLatin America. The company is offering customized services and focusing on working with local clients.

These strategies will decrease the risk from the slow-performing the major economies, which currently provide around 80% of Accenture’s total revenue.

Moreover, Accenture is making small-scale acquisitions in underpenetrated regions to gain customized technology and knowledge to serve local clients. A couple of years ago, in Saudi Arabia, Accenture acquired a majority stake in Al Faisaliah Business & Technology Company. At the same time, competition in emerging markets is on the rise, which may moderategrowth prospects.

Although frequent deal wins have helped the company, competition from companies like IBM Corp. (IBM) continues to increase. Additionally, a strained spending environment as well as significant exposure to Europe may temper growth to some extent.

Currently, Accenture has a Zacks Rank #3 (Hold).

Investors may also consider other stocks in the sector such as Information Services Group (III), with a Zacks Rank #1 (Strong Buy) and Towers Watson (TW), with a Zacks Rank #2 (Buy).

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