Businessmodel of Genpact

Customer Segments

Genpact has a niche market business model, with a specialized customer segment. The company targets its offerings at the following industry verticals: banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare and high tech. Its top twenty clients accounted for 48% of its total revenues in 2015.

Value Proposition

Genpact offers two primary value propositions: performance and brand/status.

The company has demonstrated strong performance through tangible results. High-profile examples of positive outcomes for its clients include the following:

• MGM Resorts used Genpact’s services to implement Lean Six Sigma principles and improve processes, resulting in 90% of all invoices with net terms of 30 days being paid at discounts
• A global surgical products provider used Genpact’s services to carry out a transformation program across 15 procurement categories, resulting in $80 million in savings within 12 months
• A global consumer goods company used Genpact’s services to redesign its internal control function, resulting in a 50% drop in resource costs and a 25% improvement in control automation
• A web hosting firm used Genpact’s services to transform its customer contact operations, resulting in a 2x increase in net promoter score and a 200% increase in outbound per-day sales
• A leading financial services firm used Genpact’s services to create a unified center of excellence, resulting in standardization and improvement of process delivery for a $400 billion portfolio The company has established a strong brand due to its performance. It has 75,000 employees operating in 25 countries. It serves over 800 clients in more than 70 countries through over 70 delivery centers. These firms include one-fifth of the Fortune 500; specific customers include

AstraZeneca, Boeing, Citigroup, GE, Heineken, Honeywell, Merck, Mondelez, Nissan, Walgreens, and Wells Fargo. Lastly, it has won many honors, including a ranking as one of the top  20 global financial technology firms in IDC‘s FinTech Forward 100 (2015) and recognition as a “Leader“ five years in a row in Gartner’s Magic Quadrant for Global Finance and Accounting BPO.

Channels

Genpact’s main channel is its business development team. The company promotes its offering through its social media pages and participation in forums and conferences.

Customer Relationships

Genpact’s customer relationship is primarily of a dedicated personal service nature. It assists clients through business process outsourcing as well as business consulting, enterprise risk consulting, and transformation services. It also provides general phone and e-mail support.

That said, there is a self-service component. The company’s website features an “Insights” section that includes self-help resources such as articles, research reports, white papers, case studies, infographics, and videos.

Key Activities

Genpact’s business model entails designing and developing its services for customers.

Key Partners

Genpact regularly forms partnerships with firms that have complementary capabilities with the purpose of providing enhanced solutions for its customers or developing new solutions in response to market needs. These alliances may be deal- or transaction-specific, may occur as a part of enterprise-wide transformation, or may be formed to develop joint capabilities in a given service line. As an example of the last option, Genpact maintains a joint venture with Markit Limited through which it operates a streamlined service to manage “Know-Your-Customer” information for customers in its capital markets vertical.

Genpact operates an incubation program designed to nurture partnerships with emerging and established firms specializing in disruptive digital technologies. These partners have access to its funding and expertise, and have the mutual goal of bringing the solutions to market.

Lastly, Genpact conducts joint research with academic institutions such as the MIT Center for Collective Intelligence in order to further promote its mission.

Key Resources

Genpact’s main resource is Smart Enterprise Processes (SEP), its patented, proprietary framework for managing business processes. The SEP methodology utilizes sophisticated diagnostics, cross-functional benchmarks, and granular data analysis to maximize process effectiveness. The company depends on human resources in the form of its outsourcing and consulting staff to design and deliver services for its customers.

They operate out of a global network of over 70 delivery centers in Brazil, China, the Czech Republic, Guatemala, India, Japan, Kenya, Mexico, the Netherlands, the Philippines, Poland, Romania, Slovakia, South Africa, the United Arab Emirates, the United Kingdom, and the U.S.

Cost Structure

Genpact has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements.

Its biggest cost driver is cost of revenues, a variable expense that is largely comprised of cost of services. Other major drivers are in the areas of sales/marketing and administration, both fixed expenses.

Revenue Streams

Genpact has one revenue stream: revenues it generates from contracts for the services it provides. The contracts typically take the form of a master service agreement (MSA), which is later supplement by statements of work (SOWs).

MSAs generally cover terms lasting from three to seven years, though they may last for less than three years or for an indefinite length. Pricing varies by individual client.