New Delhi: India’s largest back-office firm Genpact on Wednesday announced the acquisition of US-based analytics and data management services provider Symphony Marketing Solutions (SMS), for an undisclosed amount.

Apart from expertise in data integration, modelling and consulting, the acquisition will see transfer of 1,200 SMS employees spread across centres in India and the US to Genpact’s payrolls. Currently, the Indian firm employs more than 37,000 people globally. Genpact shares rose 1.2% on Nasdaq, at 9.20 pm IST, post-announcement.

“SMS’ expertise across sectors will not only allow us to offer a broader range of services ranging from finance and accounting, procurement and supply chain to data management and advanced analytics solutions, but will also enhance smart enterprise processes in these verticals by leveraging strong insights,” Genpact chief executive Pramod Bhasin said.

SMS is a provider of analytics and data management services with domain expertise in the retail, pharmaceutical and consumer packaged industries. It is part of the India-based Software Technology Group of companies.

An industry expert close to the deal said that SMS will prove to be beneficial for Genpact as it comes with long term assured business from customers such as IRI.

US-based Information Resources Inc (IRI) has executed an eight-year contract, under which SMS will provide end-to-end data management and analytics services to the former. IRI is a provider of enterprise market information solutions and services and a strategic client of SMS.

In order to increase the proportion of long-term, predictable business, back office firms such as Genpact and EXL have been trying to acquire companies that bring assured revenues.

Genpact’s rival EXL had acquired a analytics firm, Inductis, last November. “However, the EXL deal did not prove to be too beneficial, as the business was mostly project based,” said an industry tracker familiar with these transactions. Both Genpact and EXL share Oak Hill as a common investor.

“We realised the need to have critical mass in terms of size, scale and client relationships to significantly accelerate growth and enable IRI and other clients to offer more value to their end-customers,” STG chairman Romesh Wadhwani said.

The combination of SMS’ domain expertise and capabilities in several verticals and Genpact’s scale and breadth of services and global delivery footprint creates a compelling value proposition, he added.

Recently Genpact was in news for having initiated talks with BPO firm Intelenet Global Services for a possible buyout. Genpact also acquired US’ largest drugstore Walgreen’s accounting back office in Danville as part of a 10-year outsourcing contract.

Source : The Economic Times

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