Genpact is a multinational business service company based in the United States. It offers digital transformation services such as digital core, digital analytics, and artificial intelligence. It was registered in Bermuda and has its headquarters in New York City, New York. Pramod Bhasin is the company’s founder and former CEO, while NV Tyagarajan is the company’s current CEO. It has grown its operations into over 30 nations. In 2023, Genpact anticipates total sales in the $4.64 billion to $4.71 billion range.
Establishment and Early Development
Genpact was established in 1997 as a division of General Electric. In New Delhi, the firm was created as GE Capital International Services (GECIS). It began with 20 workers and a mandate to deliver business process outsourcing solutions to GE’s companies, led by CEO Pramod Bhasin. GECIS first established processes for GE Capital to outsource back-office services such as auto loan processing and credit card transactions. It was a unique idea at the time, and it marked the beginning of the Business-Process-Outsourcing (BPO) industry.
GECIS employed around 800 employees and earned sales of $4 million one year after its inception. By 2001, GECIS had expanded to 12,000 personnel and was managing a wide range of activities across GE’s financial services and manufacturing companies. According to Jack Welsh, GE’s CEO at the time, GECIS was a primary engine of GE’s development between 1998 and 2001 and was responsible for a $1 billion reduction in operational expenses.
GE cut its share in GECIS to 40% in 2003 and sold the rest to two American private equity companies. GECIS employed around 13,000 employees in India and 4,000 workers in the United States, China, Hungary, and Mexico at the time of the transaction, offering a variety of solutions in areas such as finance and accounting, insurance claim processing, IT administration, and technical support.
By 2004, GECIS had overseen the migration of 700 GE business operations from the United States to India, producing $426 million in revenue.
Independence and Worldwide Expansion
In January 2005, the firm became self-sustaining and began serving clients outside of GE. As part of this move, the company’s name was changed to Genpact, which stands for “generating business impact.” In addition, the business launched new offices in India in 2005, and by the end of the year, it had earned US$493 million in sales, with 15% coming from new worldwide clients and the rest 85% from GE. In 2006, Genpact expanded further into India, the Philippines, Mexico, and China.
Genpact was listed on the NYSE under its symbol ‘G’ in August 2007. The firm expanded further that year, building offices in six more countries and forming a joint venture with the Indian corporation NDTV to provide outsourcing services to the media sector. In 2008, the company’s sales surpassed $1 billion, with 53% coming from clients other than GE.
Since 2010, the corporation has concentrated its activities and presence in Europe and the United States. As part of its westward expansion, the firm relocated its headquarters to New York, and Bhasin stepped down as CEO in 2011 to become non-executive vice chairman of the corporation.On June 17, 2011, he was succeeded as CEO of Genpact by NV “Tiger” Tyagarajan, who was appointed to the Board of Directors. Tyagarajan previously served as CEO of Genpact from 1999 to 2002, during which time the company was a GE subsidiary. From 2005 through 2009, he returned to Genpact as executive vice president of sales and business development after leaving GE Capital U.S. Following that, he became the firm’s chief operating officer until being named CEO in 2011.
In October 2012, Bain Capital became the firm’s largest stakeholder.
Recent advancements
The UK Medicines and Healthcare Products Regulatory Agency engaged Genpact in September 2020 to deliver an artificial intelligence software application to process the predicted large amount of COVID-19 vaccination Adverse drug reactions, ensuring that no details from the ADRs reaction texts are overlooked. In January 2022, the MHRA and Genpact announced an extension of their collaboration. In August 2021, Genpact entered into a multi-year digital transformation agreement with Coca-Cola Beverages in Africa.
During the COVID-19 outbreak, Genpact made its internal learning and reskilling platform “Genome” public.
The firm extended its operations in Germany the same year and was included in the S&P 400 Mid-Cap Index. In addition, the business announced a deal with Mumbai’s National Institute of Industrial Engineering to build a Digital production and Supply Chain centre, which would aid in the transition from traditional to digital production.
Genpact was added to the Bloomberg Gender Equality Index in 2022.
Prominent Personalities that drove Genpact to Success
Pramod Bhasin, Genpact’s founder
Pramod Bhasin, the former CEO of Genpact, is a fantastic entrepreneur. He founded Genpact and guided it to its current status. He holds a bachelor’s degree in commerce from Shri Ram College of Commerce and is a chartered accountant with Mclinktock & Co in London. He was the head of GE Capital in Asia for 25 years and dedicated his life to the expansion of GE and Genpact. Under his leadership, Genpact was named Global Shared Service Leader of the Year. He was also recognised and honoured for his contributions. People also referred to him as a finance guru who pioneered the BPO sector.
CEO NV Tyagarajan
He is Genpact’s President and current Chief Executive Officer (CEO). He is nicknamed as the Tiger Tyagarajan because of his outstanding achievements in Generic Electrics. Tiger began his career with the Unilever Group in India before moving to Citibank’s Consumer Financial Services division. He joined GE Capital in 1994 as the head of risk in India and rose through the ranks to become CEO of GE Capital’s Global Consumer Finance and Auto Financial Services division in India. He was the worldwide operations leader in the United States at GE Capital. Tiger works with the C-suite executives of big global companies, assisting them in driving change in their organisations in order to increase their competitiveness.
He specialised in finance and marketing and graduated from the Indian Institute of Management (Ahmedabad) with a Master’s degree in Business Administration. He also holds a Mechanical Engineering degree from the Indian Institute of Technology (Mumbai). He guided Genpact through a critical period. He is also an essential business strategist. He also volunteers for a non-profit organisation.
These well-known people, such as Pramod Bhasin and Tiger Tyagarajan, and the many hardworking employees that worked for them, helped Genpact become the top service provider business it is today.
The business model of Genpact
Customer Segments:
Genpact caters to a specialized customer segment, primarily targeting industries such as banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high tech. Its impressive client base includes over 800 clients in more than 70 countries, encompassing major Fortune 500 companies like AstraZeneca, Boeing, Citigroup, GE, Heineken, Honeywell, Merck, Mondelez, Nissan, Walgreens, and Wells Fargo.
Value Proposition:
Genpact offers a two-fold value proposition to its clients: performance-driven solutions and a strong brand/status.
Through its performance-driven solutions, Genpact consistently delivers exceptional results and tangible outcomes for its clients. The company has a proven track record of achieving remarkable improvements, including substantial cost savings, streamlined processes, automation enhancements, and revenue growth. Notable examples include helping MGM Resorts implement Lean Six Sigma principles resulting in significant invoice payment discounts, enabling a global surgical products provider to achieve $80 million in savings within 12 months through a transformation program, and facilitating a leading financial services firm in standardising and improving process delivery for a $400 billion portfolio. These success stories highlight Genpact’s ability to drive measurable value and business impact for its clients.
Genpact’s strong brand and status further contribute to its value proposition. With a presence in 25 countries and a workforce of 75,000 employees, the company has established itself as a trusted partner in the industry.Its substantial client base involves a fifth of the Fortune 500, and it has received highly regarded acknowledgment, such as being named one of the top 20 global financial services firms in IDC’s FinTech Forward 100 and being named a “Leader” in Gartner’s Magic Quadrant for Global Finance and Accounting BPO on multiple occasions. The brand reputation of Genpact demonstrates its dedication to providing high-quality services and its ability to generate transformation for its clients.
Channels:
Clients are primarily engaged by Genpact’s specialised business development team. Through social media channels, involvement in industry forums and conferences, and a strong web presence, the company efficiently advertises its goods.
Customer Relationships:
Customer connections at Genpact are distinguished largely by devoted personal service. Clients are helped by a variety of services, including business process outsourcing, consultancy, enterprise risk consulting, and transformation services. It provides continuing help and prompt resolution of queries via general phone and email assistance. Furthermore, Genpact offers self-help materials via their website’s “Insights” section, which includes a multitude of articles, research papers, case studies, and videos.
Key Partners:
Genpact actively looks for collaborations with companies who have complementary competencies in order to improve or develop new products. These collaborations might be transactional, part of enterprise-wide reforms, or focused towards collaborative competencies in specific service lines. In addition, the organisation has an incubation programme that fosters relationships with emerging and established enterprises specialising in innovative digital technologies. Genpact hopes to bring new solutions to market through these agreements while also giving finance and experience to its partners. Furthermore, Genpact collaborates on cooperative research projects with academic institutions such as the MIT Centre for Collective Intelligence to develop its services.
Key Resources:
Smart Enterprise Processes (SEP), Genpact’s proprietary framework, is its core resource. This proprietary methodology provides successful business process management by maximising process effectiveness through advanced diagnostics, cross-functional benchmarking, and detailed data analysis. The company’s expert outsourcing and consulting personnel designs and delivers services for clients, providing high-quality service delivery. Genpact has a worldwide network of over 70 delivery centres spread across several countries, allowing for efficient and smooth operations.
Cost Structure:
Genpact adheres to a value-driven pricing structure, with the goal of providing a premium offering through personalised services and constant service advancements. The company’s key cost drivers are the cost of revenues, which is mostly the cost of services, as well as sales and marketing expenses and administrative costs.
Revenue Streams:
Genpact generates revenue by entering into contractual agreements for the services it provides. These agreements are frequently in the form of master service agreements (MSAs) supplemented with statements of work (SOWs). Pricing models differ depending on the demands and engagements of the consumer.
In a nutshell, Genpact is a market leader in outsourcing and professional services, with an emphasis on niche industries. By concentrating on performance-driven solutions, a strong brand reputation, and a commitment to client success, Genpact continues to generate value and sustain a global presence.
Conclusion
Genpact has evolved from a division of General Electric into a multinational business services corporation with a significant emphasis on digital transformation. Pramod Bhasin oversaw a wide variety of activities throughout GE’s financial services and industrial sectors and guided the company to considerable development. In 2005, the company went independent and was rebranded Genpact, marking the beginning of its worldwide expansion outside of GE.
Today, the corporation caters to a certain customer base, including banking and finance, insurance, capital markets, and others. The company offers outcome-driven solutions in areas such as digital core, digital analytics, and artificial intelligence. Because of its track record of delivering exceptional results and actual outcomes, Genpact has become a trusted partner for large Fortune 500 companies. Its strong brand awareness, global reach, and commitment to customer success all contribute to its value proposition. Through specialized business development teams and strategic alliances, Genpact works to foster innovation and offer high-quality services to meet the evolving expectations of its clients.
