Accenture (ACN) has renewed its joint business group with longstanding partner Amazon Web Services, Inc. (AWS). The collaboration aims to make incremental investments over the next five years to help clients achieve smoother and faster cloud integration and transformation.
Following the news, shares of the global professional services company gained 3.5% on November 29 to close at $365.82 (See Accenture stock charts on TipRanks)
Accenture and AWS launched the Accenture AWS Business Group in 2015. The collaboration synchronizes Accenture and AWS resources and technical capabilities to enable organizations to innovate and grow through cloud adoption and transformation.
Under the renewed collaboration using the Cloud Continuum and Accenture AWS Business Group (AABG), clients will benefit from the accelerated business value at scale.
The AABG joint portfolio comprises 175 assets and 20,000 cloud specialists who hold 24,000 AWS certifications, making Accenture among the top systems integrators in the world with vast AWS resources.
According to the agreement, Accenture will develop a range of new accelerators to achieve faster cloud migrations. This will enable 50% faster adoption of AWS innovations.
Furthermore, Accenture will also invest in data-driven solutions for talent development and organizational change to drive cloud value.
Management Weighs In
Global Head of Accenture Cloud First, Karthik Narain, commented, “On the Cloud Continuum, breakthrough innovations will continue at a rapid pace. Harnessing those innovations for competitive advantage will require a commitment to permanent reinvention,”
He added, “Together, we’re investing with AWS to help companies prioritize and invest in people transformation as much as tech transformation, which yields an average of 60% higher cloud return on investment.”
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average Accenture price target of $384.93 implies an upside potential of 5.2% from current levels.
Accenture scores a “Perfect 10” on the TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.