GE Healthcare, an operating unit of General Electric Company (GE - Analyst Report), recently extended its partnership with recurring revenue management firm ServiceSource International, Inc. (SREV - Snapshot Report) to expand its services in Japan. The strategic move marks the expansion of the partnership in 11 countries in the Asia Pacific region to optimize GE Healthcare business through renewals with existing customers and thereby increase recurring revenues.
The healthcare industry has experienced a healthy growth in Asia over the past couple of years and is poised for further growth in the coming quarters as well. To capitalize on this huge revenue generating potential, GE Healthcare formed a partnership with ServiceSource in early 2011. ServiceSource developed a specialized sales team to complement the professional sales force of GE to augment its revenue in a broad range of medical technologies, including monitoring devices, life support systems, ultrasound, X-ray and sophisticated CT equipment.
GE Healthcare tasted reasonable success in its endeavor to permeate the healthcare industry across several Asian countries through its tie-up with ServiceSource. The company presently intends to replicate this success story in the competitive market of Japan. Going forward, ServiceSource plans to form a specialized sales team of its own to achieve incremental renewals and warranties for the ultrasound equipment installations of GE Healthcare across Japan.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serves over 100 million customers worldwide.
Its segments include Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital, Healthcare Financial Services. GE Healthcare offers state-of-the-art medical technologies and services for patient care. Its expertise includes medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, and biopharmaceutical manufacturing technologies.
General Electric currently has a Zacks Rank #4 (Sell). Other companies in the industry worth mentioning are Jardine Strategic Holdings Ltd. and China Merchants Holdings (International) Company Limited (CMHHY), each carrying a Zacks Rank #1 (Strong Buy).