Accenture to Serve California FTB - Analyst Blog
December 09 2011 - 11:47AM
Zacks
Globally accredited management and technology consulting company
Accenture plc (ACN) will now provide technology
architecture and Enterprise Data Warehouse support to the
California Franchise Tax Board (FTB). For successful
implementation, Accenture will work jointly with CGI Group
Inc. (GIB). Financial terms of the deal were kept
confidential.
The FTB is responsible for managing two of California's major
tax programs, namely Personal Income Tax and Corporation Tax. The
responsibilities include processing of personal and business tax
returns, answering inquiries and collecting more than 65% of the
state’s general fund revenues.
The huge workflow requires prompt data availability, spontaneous
data analysis and an effective tax assessment system, which are all
subject to challenges. Hence, it becomes difficult to maintain
throughput.
To help fight these challenges, Accenture will provide its
service-oriented architecture (SOA) and workflow architecture
components to provide FTB greater system flexibility and improved
operational efficiencies. Moreover, it will develop an Enterprise
Data Warehouse to facilitate centralized data processing and
integration of disparate data, currently stored in multiple
systems. Leveraging Accenture’s services, FTB will be able to
deliver a prompt taxation system and help the state in generating
revenues within time.
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 IBM 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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