Accenture Donates $3.5 million to VSO as Charity

Accenture (ACN) has made a donation of $3.5 million to VSO, an independent international development organization, to help train 22,300 people in Nigeria, Cambodia, Tanzania and Malawi for developing job oriented skills.

Accenture has been working with VSO since 2003 in this program and has donated $9.2 million to date for its “Skills to Succeed” initiative. Accenture expects to develop a strong work force of 700,000 people by imparting necessary job skills and technical training in developing countries.

Working in tandem with VSO’s Improving Market Access for the Poor program, Accenture is expected to not only provide funds but also train the participants.

Accenture remains one of the world's leading management consulting and technology services organizations. The company delivers value to its clients by leveraging its industry knowledge, global delivery capability and technological expertise. Accenture has been steadily gaining traction in its outsourcing business. The success is primarily attributed to the increase in demand for technology that can improve operating efficiencies and save costs.

Accenture’s solid performance across insurance, banking and healthcare segments reflects strong demand for its services, boosting long-term growth prospects. Nonetheless, revenue decline in Accenture’s Consulting business remains a concern. Although the company’s consulting revenues recorded a modest increase in the last-reported quarter, we could get more constructive if this phenomenon continues in the forthcoming quarters as well.

Moreover, Accenture’s market share and revenues necessarily depend on client relationships and the number of contracts it secures. This, along with the limited scope for product differentiation, makes the renegotiation of large contracts extremely important. As a result, competition from major players like Genpact Limited (G), Cognizant Technology Solutions (CTSH) and Infosys (INFY) is a constant pressure.

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

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