Genpact loses major client Advanta
By Joe

Genpact was India’s first BPO and still continues its market leadership position in India.  Genpact has 41,000 employees and earned revenue of $1.1 Billion in 2009. Genpact started life as a Business Unit of GE, but by January 2005 it became an independent company.  Two years later, it was listed on the NYSE. In 2009,  NASSCOM ranked Genpact as the No. 1 BPO company in India.

US based Advanta Bank had a 57 year old successful track record in business before the last global recession brought it to its knees. Advanta Bank had outsourced a substantial part of its operations to Genpact

On Nov 8, 2009, its parent body Advanta Corp filed for relief under Chapter 11 of the US Bankruptcy laws. Even though Advanta stopped offering any new accounts to its customer from May 30, 2009, it was only in March, 2010, that the US Government finally shut down Advanta Bank. At one point in time, Advanta Bank Corp was one of the biggest players in the small business credit market in USA.  In 2007,  it had 1.3 million small business accounts and $14 Billion in annual payments.  When the recession struck, American businesses struggled even as credit card interest rates sky rocketed.  It was an accident waiting to happen.

Genpact Hyderabad first started handling Advanta outsourcing operations in 2007.  By 2008,  Genpact Gurgaon had started a pilot process.  Overall,  Genpact BPO had 400-500 staff working on this critical process.

On May 10, 2009, the hard working Genpact Agents and Managers celebrated the first anniversary of the Advanta Process at a grand party at Taj.

Advanta was one of the best paymasters in Genpact and introduced a number of incentive schemes for their Agents.  One example of its generous incentives was when the VP of Advanta Bank Mr. Keith Brender visited India, they announced Rs 500 for each C-SAT score and quality above 90% for customer Svc

As the bank ran into rough economic weather in USA, its outsourced processes downstream in India suffered as well.  Indian Processes began ramping down from July 2009 starting from Genpact Hyderabad, and are going to completely close in August 2010