Manpower Inc. (MAN), one of the leading employment services provider, recently announced that it has acquired the remaining 26% stake in Web Development Company Limited (WDC), which is engaged in providing IT services and Staffing solutions.
Following the acquisition, the Kolkata, India-based company will now be the fully owned subsidiary of Manpower Group's Experis brand. In March last year, Manpower acquired 74% stake in the company.
Web Development Company offers services to a large number of clients across the Asia Pacific region and has five delivery locations in India, thus enabling Manpower to gain substantial market in this region.
The move is in line with Manpower’s approach of acquiring companies that boost its capability to bring pioneering workforce solutions to its customers throughout the world.
Manpower is the global leader in employment services industry and commands a well-established network. The company’s comprehensive range of services makes it a true global staffing firm providing services to the entire employment and business cycle, including permanent, temporary and contract recruitment, employee assessment and selection, training, outplacement, outsourcing and consulting.
Further, Manpower’s brand value and strong global network provides a competitive advantage to the company and reinforces its dominant position in the market.
However, economic readings have been dismal in the U.S., Europe, as well as in China, which is likely to affect the company’s profitability in the near term.
Moreover, Manpower faces stiff competition in both domestic and international markets from other established players, such as Randstad (RAND.AS) and Kelly Services Inc. (KELYA), which may limit the company’s market share gains.
Currently, Manpower holds a Zacks #4 Rank, which translates into a short-term ‘Sell’ rating.
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