IT Staffing Report: Jan. 16, 2014

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Accenture taking over ACA website from CGI

Accenture (NYSE: CAN) won a one-year contract to continue technical improvements on the U.S. federal Health Insurance Marketplace website Healthcare.gov, the company announced on Jan. 11. Accenture takes over from the current contractor, CGI Group Inc. (NBYSE: GIB).

Healthcare.gov allows U.S. residents in several states to shop online and enroll in health insurance plans. The site was launched on Oct. 1, but ran into technical snafus while under the original contractor, CGI Group Inc. (NYSE: GIB). CGI’s contract is set to expire on Feb. 28.

Accenture receive a $45 million contract for the initial phase of the project, which includes a transition plan to define the work required. It will help define the final value of the one-year contract.

Separately, on Dec. 19, Accenture plc reported revenue rose 2 percent to $7.36 billion in its fiscal first quarter ended Nov. 30. Growth at the management consulting, technology services and outsourcing firm came from its outsourcing business line where revenue rose 5 percent for a total of $3.42 billion. Revenue fell 1 percent in the company’s consulting business to $3.94 billion.

By geography, revenue rose 3 percent in the Americas to $3.43 billion and also rose by 3 percent in Europe, the Middle East and Africa to $2.92 billion. On the other hand, revenue fell by 6 percent in the Asia Pacific region to $1.00 billion. Asia Pacific revenue, however, rose by 5 percent when measured in local currency.

Net income rose to $811.6 million, up 6 percent from $766.0 million in the first quarter of the previous year.

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