Business process and technology management firm Genpact recorded healthy growth in the fourth quarter

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ended March 31 with $330.6 million revenues. The company expects to maintain the growth momentum in the coming months, especially after the recent acquisition of Headstrong for $550 million. With a strong mix of onsite and offsite expertise, Genpact would use Headstrong’s capital market domain to further strengthen its business. Genpact chief operating officer NV Tyagarajan, fondly addressed as Tiger in the IT circle, shared his plans for the new financial year in an exclusive interview with S Ronendra Singh. Excerpts:

n How do you see the business process outsourcing (BPO) sector in the near future? What should be focus for Indian BPO companies?

BPO would be stronger and bigger in future like the IT sector has grown. Many BPO companies in India are looking at transformation in global processes technologies. Another interesting part of Indian companies is that they want to innovate quickly and reinvent themselves. Deals in domestic market are growing larger, especially in telecom, banking, financial and insurance services (BFSI),

infrastructure and energy, with the deal size going up to Rs 200 crore each. These deals are growing at 30-40 percent.

n Your global client GE International Services continues to be a major contributor to Genpact. Would you see any change in future?

GE will continue to be a major contributor to our revenues. It accounts for 36-37 percent of our total

businesses. It is a very important business for us and it would grow because GE stable base is high. Also, now with the Headstrong acquisition, we expect it to give 28 percent of our revenues from its domain expertise in capital markets apart from other businesses.

n Your Q1 results (January – March 2011) this year have been lower than that of Q4 last year. Why is it so?

Our first quarter results have been

always lower than fourth quarter

performance in the last six years

because of holiday season in the US. Outcome of businesses and our game share in the financial services gets hit because of this. But, we try and get more clients during this time for

better results in future.

n Genpact attrition rate for Q1 was 29 percent as compared to 23 percent for the same period in 2010. Will it stabilise in future?

It is already down and stabilised now. We expect it to run at the same level of 26-27 percent that we had in 2007 and we are aggressive in managing the employees’ focus and attention on GE’s platform. From time to time we check on our employees’ needs to understand what is required for their growth and what they can do for the company’s growth.

n Could you share some hiring plans?

It depends on what type of work we do in each location. It also depends on what revenue we want to get from these locations. For example, if there is a requirement in Guatemala,

China, Philippines or South Africa, we would hire depending on the

operations and revenue expectations from there.

n Do you think countries like Philippines pose a serious threat as they are on the rise in BPO services?

We never see it as a threat. We have centres in Philippines for various

operations and the industry is

also growing there. We invested in

Philippines when the time was right. We are now planning for a centre in Brazil. Where there is a right place and right price available for a centre, we would invest there for such development rather than saying that it is

only in India. We have around $ 270 million in cash and equivalent, and would utilise the funds as per our needs.

n Any focus for businesses in newer sectors or verticals?

There are sectors such as BFSI and telecom that are already growing. Verticals such as capital markets, packaging, pharmaceuticals and retail, auto spares and inventories are also growing. Healthcare is another sector that we are looking at, again because of Headstrong.