NEW YORK - Genpact (NYSE: G), a global professional services firm with annual revenue of $4.66 billion and a market capitalization of $8.07 billion, has announced a multi-year Strategic Collaboration Agreement (SCA) with Amazon (NASDAQ:AMZN) Web Services (AWS) to promote the adoption of artificial intelligence (AI) across various business functions. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.27, positioning it strongly in the Professional Services sector. This partnership aims to integrate AI technology into diverse business lines, offering industry-specific solutions and fostering innovation.
Murat Aksu, Global Leader for Partnerships at Genpact, stated that the collaboration would bring AI innovations to the forefront of decision-making across all business areas, not just within IT functions. The initiative is designed to democratize AI capabilities, providing tailored solutions that meet the distinct needs of different business sectors and enabling them to tackle complex challenges with agility and efficiency.
Genpact, as an AWS Premier Tier Services Partner, boasts nearly 1,000 certified AWS professionals. The firm leverages its deep expertise in AI, data, and analytics to help clients maximize the use of AWS services, such as Amazon Connect and Amazon OpenSearch, to modernize operations and expand AI solutions. This strategic focus has contributed to the company's impressive 44.31% stock price appreciation over the past six months, with shares currently trading near their 52-week high of $47.98. Genpact's offerings in the AWS Marketplace include an AI-powered customer experience solution, a property contents claim solution utilizing generative AI, and riskCanvas Discovery (NASDAQ:WBD), which aids financial institutions in process improvement and compliance.
One of Genpact's clients, Revol One Financial, has benefited from the collaboration, becoming a fully cloud-native fixed-annuity provider. Bob Guilmette, Chief Information Officer at Revol One Financial, credited the partnership with streamlining operations, accelerating product launches, and enhancing digital customer experiences, which he believes gives them a sustainable growth path and a competitive advantage over traditional insurers.
Rima Olinger, Managing Director, North America Partners at AWS, emphasized the value of expanding the collaboration with Genpact to drive AI transformation across different industries. She highlighted Genpact's industry expertise and advanced technology capabilities as instrumental in helping organizations effectively harness AI to achieve strategic goals.
The partnership between Genpact and AWS underscores their commitment to providing flexibility and unlocking greater business value for customers across various industries. With a competitive P/E ratio of 12.4 and gross profit margins of 35.41%, Genpact appears undervalued according to InvestingPro Fair Value analysis. For detailed insights and access to 14 additional ProTips about Genpact's investment potential, including dividend history and earnings forecasts, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Genpact Ltd (NYSE:G). reported robust third-quarter results, with revenues reaching $1.21 billion, a 7% increase from the previous year. This growth was driven by a 9% rise in Data-Tech-AI and a 5% increase in Digital Operations. In light of these developments, Genpact has raised its full-year revenue and EPS guidance. The new revenue forecast stands at approximately $4.740 billion to $4.751 billion, while the adjusted EPS has been increased to $3.24.
TD Cowen maintained a Hold rating on Genpact shares amid internal changes being implemented by the company's new CEO. The firm's analysis suggests these changes could drive results that exceed expectations. However, TD Cowen noted that clarity on the underlying drivers that could support this and whether these changes will lead to improved competitive positioning remains uncertain.
Furthermore, Genpact announced the appointment of Jinsook Han as its new Chief Strategy and Corporate Development Officer. Han, a seasoned executive with a rich experience in data, analytics, AI, and M&A, will be taking charge of the company's strategic planning and growth initiatives. Lastly, Mizuho (NYSE:MFG) increased its stock price target for Genpact to $45.00, up from $40.00, while maintaining a neutral stance, reflecting a more optimistic view of Genpact's financial performance.
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