(ACN) Accenture Clinches Twin Business Process Outsourcing Deals

Ace technical and management solutions provider Accenture plc (ACN) recently clinched a business process outsourcing (BPO) deal with insurance carrier BNP Paribas Cardif. Financial terms of the deal were kept confidential.

BNP Paribas Cardif, the life and property & casualty insurance subsidiary of BNP Paribas is one of the top 15 European insurers. Its life and non-life insurance units have received an AA- (stable outlook) rating from Standard & Poor’s. Under the 8-year deal, Accenture will manage the insurer’s group life insurance policies’ business in France. Apart from this, Cardif’s call centers and ancillary accounting operations will be under Accenture’s supervision.

Leveraging Accenture’s rich experience in the insurance vertical and popularity of the related software services, BNP Paribus Cardif will be able to streamline its business operations. This would, in turn, help the insurer to better focus on its core business.

In another development, Accenture announced a BPO deal extension with Enbridge Gas Distribution Inc., an affiliate of Enbridge Inc. (ENB). Under the 5-year extended deal, Accenture will continue to provide its outsourcing services related to billing, payment processing, back office, call centre and collections functions.

Accenture’s affluent industry experience has helped it win deals from various industrial sectors, geographical locations and governments. The steady demand for its cloud computing, virtualization, systems integration, enterprise resource planning and other application services has helped the company generate four straight quarters of double-digit sales and earnings growth.

We are encouraged by the company’s steady flow of new business and believe that the trend will continue. However, increasing competition from International Business Machines Corp. (IBM), a strained spending environment and Accenture’s broad European exposure keep us Neutral on the stock.

Currently, Accenture has a Zacks #3 Rank, which implies a short-term Hold rating.

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