Genpact to hire 10,000 this year
SOURCE: SIFY
DATE: June 15th, 2008
Mohit Soapbox:
Genpact seems to be promising consistent growth in the market which is great. Is it there strategy around focussing on existing clients as anchored tenants to go deeper and selling their process improvement services. They seem to have made limited progress in penetrating newer clients and GE still remains their biggest customers. I recall an analyst asking Genpact in their earning calls on the effect of GE removing the mandate from their businesses to offshore to genpact. I guess the growth continues. The question though is that will genpact continue to use a FTE growth model and will it move into the so called platform space to create non -linear growth independent of # of FTE. Hopefully their stock will reflect the positive sentiment what the management seems to re iterate.
ARTICLE
Global slowdown notwithstanding, Genpact Ltd, a business process outsourcing (BPO) firm, plans to hire as many as it did last year in a bid to maintain its “30% to 35%” growth rate.
Puneet Singh, vice-president (recruitments) at Genpact, told DNA Money, “We have not seen any slowdown in hiring. In fact, it has been increasing… in June-July, we are hiring more than the first part of the year.”
The back office player, which follows a January-December financial year, hired around 10,000 in 2007.
Some analysts believe IT services hirings have picked up in recent months given the relatively stable market conditions.
“After a dull quarter in March 2008, hiring has picked up steam in April and May, indicating increased confidence on the demand scenario,” JM Financial analyst Diviya Nagarajan said in a note to clients.
“Players such as Aegis, Genpact, Accenture and Infosys have been actively recruiting over the last two months,” said Nagarajan.
Singh also played down slowdown worries saying if there was any negative impact on one customer, others would compensate with larger orders.
It also has a low bench strength, at about 5% of the work force. “We keep a very minimal bench… we do not create a huge bench for future growth… we don’t do that,” said Singh.
An analyst, though, hinted that the low bench strength may be on account of the slowdown. Just last month, US-based business and technology services consultant Sapient fired its 160 Indian employees citing lack of experience, he pointed out.
Singh said Genpact’s attrition level was around 25-30%, slightly lower than last year. “Around 30%-40% of all hiring comes from internal referrals. That helps us curb attrition,” he said.
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