Genpact:  GE withdraws Processes
By Sati

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.

While Genpact is well known as India’s top BPO, it also does substantial computers systems and tech support for overseas clients.  In that sense, it is a tech company as well.

Genpact has faced a number of challenges recently including the exit of some of its senior staff from its IT Division.  More recently, there was talk of a takeover and/or merger.  Genpact big boss Pramod Bhasin was so irked by this takeover talk, that he sent an email at midnight denying it.  (Techgoss had exclusively reported this and the article is republished below).

Techgoss has reliably learnt and a number of GE Processes have been withdrawn from Genpact.  Blue chip GE operates in 100 countries and employs 300,000 people worldwide.

In Jan, Genpact and General Electric (GE) announced an extension of their Services Agreement.  The joint announcement on Jan 26, 2010, read: “Genpact Limited, a leader in managing business processes, today announced that General Electric has extended its master services agreement with Genpact by two years, through the end of 2016. GE’s minimum volume commitment is also extended through the term of the agreement. Genpact will continue to have the first opportunity to provide new business process management services to GE. “

A very reliable source at GE rang Techgoss to tell us that the GE Waters Process based at Genpact, Phase V and 22B, Gurgaon has been withdrawn.  About 500 Genpact employees supported this process.

GE Aviation, another huge process with a huge budget, has exited Genpact.
 
Gexpro was owned by GE but is now part of the Rexel group.  The Gexpro Process at Genpact, which occupied the entire ground floor at Genpact offices in Gurgaon, has left with 500 to 1000 people now jobless.
 
Does GE know something about a Genpact takeover that the public don’t?

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(Techgoss had published the following on Sept 17, 2010)

Genpact boss Bhasin’s midnight mail
By Sati

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.

While Genpact is well known as India’s top BPO, it also does substantial computers systems and tech support for overseas clients.  In that sense, it is a tech company as well. Genpact is now offering a referral bonus of Rs. 15,000 for its latest tech support process iYogi.

National Indian newspaper Indian Express published a report just after midnight on Sept 15, 2010 with the title ‘Cognizant looks to buy Genpact’.  According to Indian Express: ‘IT services firm Cognizant Technology Solutions is on the prowl and the country's largest BPO could be on its radar. According to industry sources, the company has been doing due diligence of BPO leader Genpact to acquire a controlling stake for close to a month. If Cognizant ends up acquiring Genpact, it would be one of the largest technology deals in India, redefining the pecking order in India’s IT industry. The Cognizant-Genpact combine could possibly knock off Infosys Technologies from its No.2 position in the industry, or come within striking distance’.

A Tipster contacted Techgoss to tell us about the strong reaction in Genpact after the Indian Express report. Exactly 20 minutes after the report in Indian Express about IT services firm Cognizant’s efforts to acquiring controlling stake in Genpact was uploaded on the newspaper’s website on Sept 15,  Genpact big boss Pramod Bhasin sent a mail to all employees at 12.54 am (IST) rubbishing “media speculations” about any possible acquisition. Pramod said in his mail that Genpact was doing well financially and the investors remain interested in the growth of the organization. He also assured the employees that there is no plan to sell the organization and that brand Genpact will continue to live and thrive.
 
It may be noted here that for the last month or so, Genpact employees have been living under the fear that the organization was up for sale with Capgemini and Cognizant being the frontrunners. The media report on the possible acquisition by Cognizant, added to the uncertainty even more.
 
Some Genpact alumni also confirmed the fact that after the reports in media, they have started getting calls from their former colleagues who are now desperately looking for suitable opportunities outside of Genpact.