Retail News Breaks Archives
Walgreens taps management specialist for accounting services
January 6th, 2010
DEERFIELD, Ill. – Walgreen Co. has entered a long-term accounting services agreement with Genpact, a specialist in business process management.
The drug store chain said Wednesday the deal is part of its Rewiring for Growth initiative, through which the Walgreens is working to sharpen efficiency and bolster productivity companywide to help drive its growth.
Financial terms of the agreement weren't disclosed. Under the 10-year pact, Genpact will take on some accounting processes currently managed by the drug chain as it deploys a new structure for its accounting division.
Walgreens said the agreement will impact accounting staff at its offices in Deerfield, Ill., and adjacent areas, including Danville, Ill., and nine smaller accounting sites nationwide.
Plans call for Genpact, which has its headquarters in India, to acquire the Danville facility and maintain or possibly increase employment levels over the course of the agreement, according to Walgreens.
The chain said about 500 of its accounting staff in Danville will become Genpact employees in the next four months, and the rest will remain with Walgreens. Over the next six to 18 months, another 300 jobs at various sites may be impacted during the transition of accounting work, the retailer added.
"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," Walgreens executive vice president and chief financial officer Wade Miquelon said in a statement. "This move will help us improve cost productivity and facilitate our growth strategies while maintaining an agile and service-focused organization."
Genpact president and chief executive officer Pramod Bhasin commented that his company's expertise in finance, accounting, health care, back-office processes, re-engineering and analytics "uniquely positions us to support Walgreens' growth initiatives."