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Accenture loses $543m contract

NEW YORK (Bloomberg) — Accenture Ltd., the world’s second- biggest consultant, and partners are losing a $543 million contract with Texas to provide computer services for the state’s health and social services programmes.The decision to end the contract early was mutual, the Texas Health and Human Services Commission said on its website yesterday. Accenture expects no “material” impact on its financial performance, Jim McAvoy, a spokesman for Bermuda-based Accenture, said in an interview.

Accenture won the five-year contract in June, 2005 to provide technology and services to make it easier for Texans to apply for social services such as Medicaid and food stamps through the Internet, over the phone and by fax or mail. The contract was originally valued at $899 million and was amended in December, McAvoy said.

Texas and Accenture “have agreed to begin discussions tomorrow to unwind the project,” McAvoy said. The parties were unable to agree on the changes required to implement the “rebalanced” contract from December, he said.

Accenture will continue to provide some services until November, he said.

Maximus Inc., one of Accenture’s partners, will continue providing some services related to the Texas Medicaid and children’s health insurance programs, the Reston, Virginia-based company said.