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Genpact Inks Deal to Snap Up Barkawi Management Consultants

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Genpact Limited (G - Free Report) announced yesterday that it has reached a deal to acquire leading supply chain management consultancy, Barkawi Management Consultants. Financial terms weren’t disclosed.

Barkawi Management Consultants is part of the Barkawi Group and operates in the United States and Europe. It offers strategic and operational supply chain management services covering areas like supply chain strategy design and execution, demand planning, supply planning, sales and ops planning, distribution strategy, and design.

Post the acquisition, current president of Barkawi North America, Mike Landry, will assume the role of global CEO of Barkawi Management Consultants, based in Atlanta. Andreas Baader, Wolfgang Schürholz and Oliver Bendig will continue to lead the Munich, Germany-based European business.

Boosting Supply Chain Management Capacities

The acquisition is part of Genpact’s ongoing efforts to expand global supply chain management transformation expertise. Its ultimate goal is digital transformation and development of digitally-enabled intelligent operations for clients.

The buyout will enable Genpact to leverage on Barkawi Management Consultants' consulting expertise and supply chain technology services for creating global, end-to-end supply chain services supported by digital, domain, and data science expertise.

Genpact Limited Revenue (TTM)

Moreover, the consultancy firm’s partnerships with leading supply chain technology providers and implementation expertise will strengthen Genpact’s planning and control tower solutions. 

Shantanu Ghosh, business leader, Enterprise Services, Genpact said, "With Barkawi Management Consultants, we will be adding market-leading supply chain strategy and technology consulting capabilities, as well as terrific talent to our existing domain expertise, digital investments, and managed services base. “

Pursuing growth opportunities in the supply chain sector may lift Genpact’s share price going forward. Shares have declined 4.8% year to date against the 11.5% rally of the industry it belongs to.

Zacks Rank & Key Picks

Currently, Genpact has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services sector include WEX (WEX - Free Report) , IQVIA Holdings (IQV - Free Report) and Paychex (PAYX - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share growth rate for WEX, IQVIA Holdings and Paychex is 15%, 11.8% and 8.2%, respectively.

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