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Genpact
Limited
Free
Writing Prospectus
July
19, 2007
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Filed
Pursuant to Rule 433
Registration
Statement No.
333-142875
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The
article set forth below was published online by FinanceAsia on July 17,
2007.
FinanceAsia
is in the business of reporting and publishing asian finance and business
news
both in magazines and online. It is wholly unaffiliated with Genpact
Limited, and Genpact Limited made no payment and gave no consideration
to
FinanceAsia in connection with the publication of the article below or
any other
article published by FinanceAsia concerning Genpact
Limited.
For
purposes of clarification it should be noted as follows:
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1.
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Concerning
the reference in the first paragraph to the 30,000 employees, Genpact
Limited (the “Company”) notes that this is an approximation and that it
had 26,731 employees as of March 31, 2007.
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2.
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Concerning
the reference in the eleventh paragraph, under the question “In your
opinion, will the cost advantage India enjoys as an outsourcing
destination be eroded over time?” to demographics in Europe and the United
States suggesting costs are going up faster in those markets, the
Company
notes that Mr. Bhasin was talking in absolute terms with respect
to costs
in Europe and the United States starting at a higher base level
than those
in India. The Company further notes that wage levels for
comparably skilled employees in most of the countries in which
it operates
have increased and further increases are expected at a faster rate
than in
the United States and Western Europe because of, among other reasons,
faster economic growth, increased competition for skilled employees
and
increased demand for business process services.
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3.
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Concerning
the reference in the fifteenth paragraph, under the question “Looking
ahead what is your biggest challenge?” to the Company’s attrition rate of
28%, the Company notes that this is a current estimate and that
its
attrition rate for all employees who have been employed by it for
one day
or more was 32% in 2006.
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4.
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Concerning
the reference in the sixteenth paragraph, under the question “Looking
ahead what is your biggest challenge?” to the Company having 20 branches
that hire employees, the Company notes that Mr. Bhasin was referring
to
the fact that the Company has 17 storefront premises that it
uses for recruiting.
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Genpact
CEO reflects on life after GE
By
Sameera Anand | 16 July 2007
Read
this
article online at:
http://financeasia.com/article.aspx?CIID=86166
On
the
eve of Genpact's $600 million IPO on the NYSE, the company's CEO talks about
his
strategy to grow the $613 million business that employs 30,000
people.
In
the
latest in our BPO series, we talk to Pramod Bhasin, the president and CEO
of
Genpact, the former GE subsidiary which was India’s first outsourcing company
and is currently the country's largest based on both revenue and
headcount.
How
do you define your business?
We
provide end to end solutions to clients. As an example we could start with
a
simple process like accounts payable than move into general accounting, US
GAAP
accounting and financial planning.
How
did you benefit from being a GE subsidiary?
GE
taught
us what our competitors have to teach themselves. GE had a strategic objective
in seeing us succeed as we do so much mission critical work for them. We
fight
hard to preserve processes GE has given us. For example, organisational
development is a GE strength which we hope to retain.
How
has life changed with 60% of the company owned by private equity investors,
General Atlantic and Oak Hill Capital Partners?
The
operating discipline of a company like GE is enormous thus in my opinion
moving
to a private equity owned structure requires less discipline! One of the
myths
I’ve always heard is that private equity is very tough. My answer would be
come
to GE – presenting a deal to Immelt or Jack Wendt or Jack Welch makes anything
else look like a walk in the park.
More
than 70% of your business is still GE, though this is changing. How did you
have
to change?
We
needed
to learn how to sell and move away from a captive mindset. In earlier times
it
was easy for me to pick up a phone and leverage my 25 years spent in the
GE
world. We have become more customer facing than internal GE facing. However,
our
commitment, rigour and knowledge of the industry in which we operate is better
than most stand-alone companies.
What
parts of your business are knowledge intensive?
I
don’t
look at it that way as I believe we provide an end to end process. Companies
don’t want different service providers for different elements. Our clients are
typically Fortune 500 companies and don’t want small, discrete pieces – they
want the gamut of services.
We
have
an analytics business but every process we do has elements of process and
knowledge training. Within call centres there is a wide range of complexity
for
example we do commercial collections for our customers from small businesses
–
our employees negotiate remotely to restructure the terms of the loan, within
defined parameters.
Do
you use M&A as a tool to grow?
Our
growth strategy is based on serving our key customers well. We currently
work
with around 35 strategic customers with whom we believe we can grow, as we
have
done with GE. Acquisitions form an intrinsic part of our future growth and
we
scout for them globally. We seek to acquire companies that can enhance the
services and capabilities we offer to our global customers, in order to grow,
broaden and deepen our relationships with them.
To
illustrate, we acquired ICE Consulting, an SAP company in Europe, because
many
of our customers are on SAP and needed us to have the relevant expertise.
We are
running their processes in multiple areas that cut across the organization,
and
manage the configuration and upgrade plans for their systems. We also view
captives as potential acquisitions, since we have demonstrated a successful
transition from being a captive to an independent company, while ensuring
best-in-class delivery.
What
is your geographical diversification strategy?
In
Eastern Europe we will continue to expand our delivery centre as we have
realised that due to constraints of population size and language, one town
can
only meet so much demand. We have a base in China from which we currently
serve
primarily Japan and Korea, though we do serve China in technology and shared
services. I expect China to be a large growth area. Winning customers in
Japan
and western Europe is a defined priority.
In
your opinion, will the cost advantage India enjoys as an outsourcing destination
be eroded over time?
The
management time and attention required to move a process offshore is high
thus
cost arbitrage is a significant reason people come to locations like India.
Costs are rising but demographics in Europe and the US suggest costs are
going
up faster in those markets. The shifting demographic equation suggests India
will be in the game for a long time.
What
is the sustainable competitive advantage, other than cost, India has to continue
to grow as an outsourcing base?
Indians
learn and adapt very fast. I would expand this to say a great joy of working
in
emerging markets in the world is people are hungry. The work ethic in Romania,
Hungary, India, China, Mexico, the Philippines – all the places we operate
centres in - is astonishing. People work their guts out and are hungry for
knowledge.
The
biggest difference I see in India today is huge confidence among the workforce
–
these kids are getting early exposure to the rest of the world and gaining
tremendously in confidence as a result.
You
grew profit from $17.1 million in 2005-2006 to $39.8 million in 2006-2007,
a
133% increase.
We
were
reaping the benefits of investments in management strength, increased capacity
and order book building. We sank in the money required to get the lift. We
were
anticipating growth and created capacity for it.
Looking
ahead what is your biggest challenge?
One
thing
which has the potential to stop us is attrition. Our attrition is lowest
in the
industry but still 28%. This is becoming a disease in emerging economies.
The
realisation has to set into employees that to build a career you need to
build a
knowledge base, a reference base, be in a place for a while.
Like
banks have branches that accept deposits, we have 20 branches that hire i.e.
all
they do is take resumes. We are moving to new locations like Jaipur and
Bhubaneshwar to tap into the talent pools there. We run ourselves like a
manufacturing plant operation. We do data mining and analysis on who stays
and
who goes and why. We have a ton of programs focused on retention. When we
realised a lot of people are leaving to pursue higher studies, we developed
options to allow them to study while they work.
Copyright
FinanceAsia.com Ltd., a subsidiary of Haymarket Media Ltd
Cautionary
Note Regarding Forward Looking Statements
Investors
should note that the CEO’s statements contain forward-looking statements that
are based on current expectations, estimates, forecasts and projections about
the industry in which we operate and our leadership team’s beliefs and
assumptions. Such statements include, in particular, statements about
our plans, strategies and prospects including statements such as “expect,”
“anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “could,” “may,”
“shall,” “will,” “would” and variations of such words and similar expressions,
or the negative of such words or similar expressions, are intended to identify
such forward-looking statements. These statements are not guarantees
of future performance and involve risks, uncertainties and assumptions that
are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such forward-looking
statements.
Genpact
Limited has filed a registration statement (including a prospectus) with
the SEC
for the offering to which this communication relates. Before you
invest, you should read the prospectus in that registration statement and
other
documents the issuer has filed with the SEC for more complete information
about
Genpact Limited and its offering. You may get these documents for
free by visiting EDGAR on the SEC website at www.sec.gov or at the link
below. Alternatively, Genpact Limited, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if
you
request it by calling Morgan Stanley toll-free at 1-866-718-1649, Citi toll-free
at 1-800-831-9146 or JPMorgan toll-free at 1-866-430-0686.
To
review
a filed copy of our current registration statement, click on the following
link: