Hitachi to Outsource Finance & Accounting Operations to Genpact

Genpact has landed an outsourcing contract to take over the finance and accounting (F&A) operations of Japanese manufacturing conglomerate Hitachi.

The deal will make Genpact “a virtual extension” of Hitachi, said the BPO provider headquartered in New York City.

As per the agreement, Genpact will absorb 170 employees of the Japanese firm in addition to taking over the management of the Hitachi Management Partner Corporation and the Finance Solution Business Division, Hitachi’s shared services unit.

Genpact says it will expand its footprint in Japan, adding 1,000 more employees to its current 2,500-strong workforce in the world’s third largest economy.

Genpact also provides F&A services to Japan’s General Electricals. Hitachi says it outsourced its F&A division as part of its “Smart Transformation” strategy designed to streamline operations.

“This long-term partnership is a testament to Genpact’s strategy to invest in Japan, as well as continuing to evolve F&A capabilities for the benefit of our most important clients,” said Tiger Tyagarajan, president and CEO of Genpact.

Deals of this kind, analysts say, will force Genpact to invest more money in re-engineering its consulting capabilities worldwide. In Japan, Genpact counts several top Japanese multinationals as its clients, including the automaker Nissan.