Genpact Limited (G - Free Report) and McKesson (MCK - Free Report) yesterday announced the extension of their existing relationship. McKesson has been receiving support for financial operations for several years through this relationship.
Through the renewed tie-up, Genpact will deploy digitally-enabled advanced technologies such as Artificial Intelligence (AI) and machine learning to simplify and standardize McKesson’s finance operations. Genpact’s technology contribution will be reflected in McKesson’s Order to Cash, Record to Report, Contract Management, Master Data Management, and Source to Pay processes.
The broader goal is to accelerate McKesson’s operating model and cost structure program redesign that are parts of the company’s multi-year strategic growth initiative. The companies will jointly implement the redesigns.
We observe that Genpact shares have declined 7.4% in the past three months compared with the 14.2% decline of the industry.
The relationship is based on a combination of Genpact’s deep operations optimization experience and McKesson’s operational excellence.
Genpact Limited Revenue (TTM)
It is a prime example of how Genpact is utilizing strong position in analytics and digital technologies and deep domain expertise to improve and expand offerings. Expansion of the relationship is likely to help expand Genpact’s offerings to the healthcare industry.
Zacks Rank & Other Stocks to Consider
Currently, Genpact carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Business Services sector are Republic Services (RSG - Free Report) and Waste Connections (WCN - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected EPS (three to five years) growth rate for Republic Services and Waste Connections is 10.7% and 11.7%, respectively.
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