Accenture Clinches Twin BPO Deals

Ace technical and management solutions provider Accenture plc recently clinched a business process outsourcing 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- rating from Standard & Poor's. Pursuant to this agreement 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 in accordance with Accenture's supervision.

The insurance vertical

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.

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 revenues growth.

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