Accenture Wins Electrolux Deal

After entering into a technical collaboration with Korean conglomerate Hanwha S&C, technology and management consulting company Accenture Plc (ACN: 42.83 -0.32 -0.74%) recently entered into a global multi-year outsourcing agreement with Electrolux IT Solutions AB.

The tech giant will be shouldering the responsibility of developing and managing a designated portion of Electrolux’s enterprise applications, which consist of JD Edwards, Congos and Lotus Notes. The whole service will be delivered through a global delivery model, and the company expects this to catalyze the information technology restructuring process, resulting in a reduction of cost and enhancing efficiency.

This is the continuation of a series of contract wins that the company has witnessed in recent times. A few days back, Accenture won a five-year application outsourcing contract from Nordea, a leading banking and financial services group. The company did not disclose the monetary value of the contract, which is expected to generate recurring revenue for the company for the next several years.

This apart, in March, Accenture was awarded a $200 million contract byStarwood Hotels & Resorts Worldwide Inc. (HOT: 47.79 -0.50 -1.04%). Under the contract, which will span over a number of years, Accenture will provide a range of IT services, including application outsourcing and infrastructure outsourcing. We expect the revival in business activity to help the company improve numbers in the upcoming quarters.

This idea is reinforced by the optimistic IT spending forecast made by Gartner Inc. (IT: 23.11 -0.09 -0.39%). The technology research firm recently revealed it’s IT spending forecast for 2010. Gartner is bullish on the revival in sentiment across the globe and expects spending on technology products and services to reach $3.4 trillion, registering a growth rate of 5.3% compared to the year-ago quarter.

After the year-long recession, most of the tech companies are witnessing a revival in business volumes and investor sentiment, and Accenture is no exception. So 2010 is expected to be a sunrise year for this sector, but it will definitely take some time for performance to reach 2008 levels.

Source: Daily Markets