Genpact, a global professional and digital transformation professional services firm announced the signing of a definitive agreement to acquire Barkawi Management Consultants, a supply chain planning and technology consultancy in the U.S. and Europe.
The terms of this deal were not disclosed.
Genpact began in 1997 as a business unit within General Electric. In 2005, the consultancy became an independent publicly-traded company to provide process expertise and unique expertise in lean management methods to clients beyond GE. Genpact became a company. Since then, the company has expanded to annual revenues of $2.57 billion as of December 2016.
This acquisition provides Genpact with expanded specialist consulting in supply chain planning technology and digital transformation areas, particular in industry verticals of consumer-packaged goods, industrials, and high-tech industries.
Readers of the Supply Chain Matters blog may be familiar with Barkawi Management Consultants for its consulting and technology implementation services in areas such as sales and operations planning, broad elements of supply chain planning and in supporting variations of supply chain control tower capabilities. Barkawi is considered a supply chain management niche specialist consulting firm, servicing both large and small enterprises. Listed customers include names such as Applied Materials, BASF, Ford Motor, General Motors, ON Semiconductor, Micron Technology, among others.
Supply chain technology vendors such as Kinaxis, and others, call on or refer Barkawi to assist customers in process or program specific process and technology implementations where deep supply chain process knowledge is required. Barkawi’s Director of North American operations Mike Landry has over 25 years of experience in implementing supply chain management focused software and was previously the founder of supply chain aftermarket service management tech provider Servigistics. The announcement indicates that Landry will subsequently lead an integrated Genpact global supply chain business umbrella.
As noted in the announcement, the acquisition broadens Genpact’s services expertise in supply chain management business process areas, often strategic to its existing global wide clients. Both consultancies had previously partnered on certain projects.
As with many acquisitions of this type, namely a 78,000 employee wide, global consulting firm acquiring a smaller, niche expertise firm, the challenge will be in various aspects of the assimilation of business and consulting practices as well as overall decision-making related to clients. That would include fee structures.
Further there is the challenge of assimilation ongoing strategic relationships with either large enterprise vendors as well as specialty supply chain management best-of-breed technology providers.
This supply chain management technology analyst will eventually be reaching-out to various market constituencies to assess such integration.
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