Walgreens inks deal with Genpact for accounting services
DEERFIELD, Ill. One of the nation's largest drug store chains has reached an agreement with Genpact, a leader in managing business processes for companies around the world, to provide the chain with accounting services.
The agreement is part of Walgreens Rewiring for Growth initiative that is finding ways the company can be more effective and efficient in support of its growth strategy. Financial terms of the agreement were not disclosed.
Under the 10-year agreement, Genpact will assume several accounting processes currently managed by Walgreens, as the retailer implements a new structure for its accounting division. The agreement will impact accounting staff at its offices in Deerfield, Ill and surrounding areas, including Danville, Ill. and nine smaller accounting locations across the United States.
Genpact has agreed to acquire the Danville facility and maintain or potentially grow employment levels over the duration of the agreement. Approximately 500 Walgreens accounting employees in Danville will become Genpact employees within the next four months, while the remainder will stay with Walgreens. Over the next six to 18 months, another 300 jobs at various sites may be impacted as part of the transition of accounting work.
With this strategic decision, Danville will become the largest of three delivery centers for Genpact in the United States and positions the company to provide greater onshore access to its clients. Genpact will continue to make investments in building domain expertise and enhancing the skills of employees in Danville.
“Genpact’s proven ability to bring efficiency to finance and accounting processes and its commitment to our Danville employees were key factors in our decision to forge this agreement,” said Walgreens EVP and CFO Wade Miquelon. “This move will help us improve cost productivity and facilitate our growth strategies, while maintaining an agile and service-focused organization.”