Genpact reports high profit figures for Q2 2011

The firm that ranks as one of the topmost BPO companies in India, Genpact has reported a rise in its operational profits as compared to last fiscal. Estimates by the company reveal that the profits have risen to an extent of over 40 % in the last 3 months. And an interesting thing to note here is that it was 3 months ago that Genpact had acquired an IT Services firm christened Headstrong. The acquisition happened in April of 2011 and the deal was worth USD 550 Million.

The figures revealed by the company showed that the profits made were to the tune of USD 39 million in the 1st quarter i.e. June. Profits of the company at the same time last year were just USD 28 million and hence there is an increase of over USD 10 million. The revenue earned in total for this year was peaking at USD 396 million which is almost 30 % greater than the USD 307.6 million last year. The company reported standalone revenues had grown around 15% as compared to last year and this figure was obtained without including the contributions of the erstwhile acquired Headstrong.

CEO’s statement

According to Mr. NV Tiger Tyagarajan President and CEO of Genpact, the company has successfully integrated Headstrong into its business portfolio and now it works as a support arm for Genpact. He also stated that there was a rise in number of clients that were contributing to the revenues of Genpact in the scale of USD 1 to 5 million. The number had risen from 52 to 103 which is almost double the number the last year.

New Clients

Of the new clients 25 of them were clients of Headstrong. The company also accounted for 10 clients to the above USD 5 million revenue generating club of Genpact. In addition they also gave 2 clients to the above USD 25 million club and thus have embarked a significant change in Genpact’s revenue structure.

On a future prospect basis Genpact has targeted a growth rate of around 23 to 25 % despite the downfalls experienced in the Global Economy and Mr. Tiger believes the company can rise above the competition. The acquisition of Headstrong has helped to spread Genpact’s area of operations from that of normal BPO ventures and concentrate more on ITES.


What stated off as a humble back office support wing of US giant MNC General Electric, Genpact has grown into one of the biggest BPO firms in the world employing more than 50000 people worldwide. The growth of the company was a significant contribution of the BPO sector in India as well.

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