Accenture (NYSE:ACN)'s Health Improves as it Drops NHS Contract

Today's news. Accenture (NYSE: ACN) walks away from its problem-plagued National Health Service Contract in the UK which it had secured in 2003. And it falls upon Computer Sciences Corporation (NYSE: CSC) to carry the ball for nine years. The agreement is worth close to $3.73 billion (GBP 1.97 billion). The work is to build a patient record IT system in the northeast and east of England, and is running behind schedule.


Accenture (NYSE: ACN) took a $450 million charge last quarter and indicated it would be moving away. Analysts who called it a one-time event without impact on the overall company were proved right today when Accenture (NYSE: ACN) stock jumped 6% on the news.


Nice timing for Accenture (NYSE: ACN) as they are scheduled to report Q3-2006 financial results after the closing bell today.


Separately, iSoft, said it would continue to work on the old Accenture (NYSE: ACN) contract as part of the Computer Sciences team (NYSE: CSC). iSoft shares jumped 16% at 52 pence.

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