Genpact eyes acquisition in U.S., U.K
By agencies   |   Thursday, 12 January 2006, 20:30 IST
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MUMBAI: Setting the pace for a hectic merger and acquisition activity in the BPO space for 2006, Genpact has said it is looking at buying out companies in the U.S. and the U.K. with revenues of $100-200 million, in a bid to acquire domain expertise in human resource (HR), finance and accounting and sourcing spaces, as well as new customers. Announcing the company’s plan, Genpact’s President and Chief Executive, Pramod Bhasin said, “In 2006, we see revenues touching $620 million through the organic route. During the year, we are also keen to acquire companies that have domain expertise in financial services, HR, sourcing and procurement segment, a strong customer base as well as off shore capabilities.” Genpact became an independent BPO company after GE sold 60 percent of its stake to General Atlantic Partners and OakHill Capital Partners. Last year, the company had announced acquisition of Creditek Corporation, a leader in Order-to-Cash Cycle and Enterprise Receivables Management, based in Parsippany, New Jersey. Bhasin said, “Funding the next acquisition would not be a constraint as we can raise debt or leverage on our stocks. We also have a strong cash flow.” The company closed the year 2005 with revenues of the tune of $490 million, a growth of 26 percent over $415 million notched in 2004. “The order book is looking great. We have contract value of $400-500 million executable over the next 5-6 years. Moreover the potential to expand from the same client is double that,” he said. The company’s expanding its headcount to 25,000 in 2006 against 20,000 during the last year and was looking at expanding its delivery base to countries such as the Philippines and Poland. “Domains such as finance and accounting require us to serve customers from locations including China and Mexico, and India amongst others. Poland allows us to reach out to German market, while the Philippines is strong in voice work,” Bhasin said. At present, Genpact derives 65-70 percent of its revenues from non-voice work, while the balance comes from voice operations. The company is also aggressively eyeing the Chinese market and plans to double its current 1,500 headcount by 2007.

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