Genpact corrects wrong news report
By Bala Shah

Till 2010, Indian origin Rajat Gupta was one of the biggest success stories on the international business stage.  IIT educated Rajat Gupta went on to do an MBA from Harvard and the rest is history.  He made tens of millions of dollars as Managing Director of McKinsey for 3 terms.  The now discredited Rajat used to be one of the key players of the powerful Indian lobby in USA.

He co-founded the Indian School of Business and VC firm Silk Route.  He advised the UN and rubbed shoulders with Prime Ministers and Presidents. But Rajat was living a double life driven by the need for power, money and probably a perverse satisfaction of ‘outsmarting’ others.  He was using inside information to tip off billionaire Hedge Fund owner Rajaratnam who has been convicted and jailed.  My reading is that it is just a question of time before Rajat Gupta is either fined or jailed.

On May 25, 2011, based on a Washington Post article, I had reported on how Rajat was ‘independently’ advising Genpact even as he was working for McKinsey. (Article republished below).  If you read the Washington Post report, it is easy to misunderstand that this was a behind the scenes arrangement.

New research and a Genpact clarification to Techgoss clears the air.  Genpact was above board in all its dealings with Rajat Gupta.  Genpact had kept the US Government‘s SEC in the loop about all their dealings with Rajat. This information was available to the public as well. Genpact has issued the following statement to Techgoss

“
Rajat Gupta was a non-voting advisory director for Genpact from 2005-2007 and a voting director and chairman of our board from March 2007 to March 2011.  Contrary to what is stated in the recent articles, Mr. Gupta was not at any time engaged by Genpact to provide consulting services in his individual capacity.  Mr. Gupta's association with Genpact has always been public information and all compensation paid to Mr. Gupta by Genpact for his services as a director has been fully disclosed as required by the rules of the US Securities and Exchange Commission.
”

(Techgoss had published the following on May 25, 2011)

Genpact link to discredited Rajat
By Bala Shah

Till 2010, Indian origin Rajat Gupta was one of the biggest success stories on the international business stage.  IIT educated Rajat Gupta went on to do an MBA from Harvard and the rest is history.  He made tens of millions of dollars as Managing Director of McKinsey for 3 terms.  The now discredited Rajat used to be one of the key players of the powerful Indian lobby in USA.

He co-founded the Indian School of Business and VC firm Silk Route.  He advised the UN and rubbed shoulders with Prime Ministers and Presidents. But Rajat was living a double life driven by the need for power, money and probably a perverse satisfaction of ‘outsmarting’ others.  He was using inside information to tip off Billionaire hedge fund owner Rajaratnam who has been convicted and jailed.  My reading is that it is just a question of time before Rajat Gupta is either fined or jailed.

Now, it has emerged that Rajat Gupta was advising India’s leading BPO Genpact as well.  Washington Post which broke the story says

“
Rajat Gupta and Anil Kumar, a former McKinsey partner who last year pleaded guilty to passing confidential information to Rajaratnam, set up their own firm. Gupta also independently advised Genpact, a Gurgaon, India-based firm that manages business processes for other companies. That work, too, broke McKinsey’s rules.

“It has always been a clear violation of our values and professional standards for any firm member to provide consulting or advisory services outside of McKinsey for personal monetary gain,” says Michael Stewart, a McKinsey partner and director of communications.
“

Hopefully, the US Government investigation will bring to light who in Genpact hired Rajat Gupta.  Did this Genpact manager know that Rajat was bypassing McKinsey rules to advise them?  After all, Genpact is India’s No. 1 BPO and should have known how an international giant like McKinsey operates. How much was Rajat Gupta paid? Above all,  what kind of ‘consultancy’  could anyone provide what is arguably one of the world’s best BPO?  Did Rajat provide introductions to the Indian BPO sector as part of such ‘consultancy’?

Anyone knows more on what kind of consultancy Rajat provided? Sent us a detailed Tip.  Your anonymity is guaranteed.

 
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