Huge growth potential in domestic market: Genpact

In conversation with CNBC-TV18, NV Tiger Tyagarajan, President and CEO, Genpact formally GE Capital International Services explains how the company has undergone a transformation.
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Sep 24, 2012, 03.48 PM | Source: CNBC-TV18

Huge growth potential in domestic market: Genpact

In conversation with CNBC-TV18, NV Tiger Tyagarajan, President and CEO, Genpact formally GE Capital International Services explains how the company has undergone a transformation.

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Huge growth potential in domestic market: Genpact

In conversation with CNBC-TV18, NV Tiger Tyagarajan, President and CEO, Genpact formally GE Capital International Services explains how the company has undergone a transformation.

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One of the GE's fastest growing divisions, the Business Process Outsourcing wing was spun off as a separate company a couple of years ago. Today, it likes to call itself a business process management company. In conversation with CNBC-TV18, NV Tiger Tyagarajan, President and CEO, Genpact formally GE Capital International Services explains how the company has undergone a transformation.

“The first couple of years were all about outsourcing work. By the time we were in 2008-2009, things had already changed. We were doing things that were not just outsourcing. We were fixing things for our clients and we would parachute people in to redesign processes,” he said.

Explaining the kind of work the BPM does, Tyagarajan said, “we do a lot of very complex work. The second is, unfortunately, the layman thinks about business process management as a call center 15 per cent of our business is a call center, 85 percent of our business is other things.

The third is the fact that it is not just about taking work and running it for our clients, it is actually helping clients run their processes better and take better decisions. We think companies do two things. They run themselves and they take decision and our job is to participate in both.”

Tyagarajan believes there is huge potential in the domestic market. “We actually set up our business about 4-4.5 years back and we were sure this will be a big market in the future.

A lot of our global clients were actually growing their businesses in this part of the world, obviously, to help them grow their businesses here. But there is another benefit that we realized very quickly. This is a market that is more innovative. It’s a market where you can actually leapfrog to new technology. We have engagements over the last four years where some of the most cutting edge technology, some of the most cutting edge way of driving consolidation, standardization and change which companies in India and China tend to do in some cases. We learn from here and we have now started taking it to developed markets.”

Here is an edited transcript of his interview.

Q: Process outsourcing to process management - is that just a normal created chain because of the backlash against outsourcing that you see in the western world or is it a reflection of change in the way you are doing your work?

A: I will answer your question but before I answer that we didn’t make the change now. We have been talking about the fact that we are a business process management company and a technology services company for about five plus years now. We have been trying to educate everybody in the eco-system. The eco-system has stuck to the word ‘business process outsourcing’ so we are very thrilled. That eco-system, including Nasscom, has suddenly overnight flipped a switch and is now saying it is business process management.

Q: Have you transformed from BPO firm to a BPM firm or has the whole industry changed to BPM or do you still have a BPO and you have BPM?

A: I think it is a fine line dividing, it kind of merges together; we have been on a transformation journey from the time we became an independent company in 2005. I would say if you start the first couple of years, it is all about outsourcing work. By the time we were in 2008-2009, things had already changed. We were doing things that were not just outsourcing. We were fixing things for our clients and we would parachute people in to redesign processes. Now it is a big piece of the business.

Q: So it is not just the scale that differentiates you from a person sitting in Mumbai, I call up and he tele-checks me is it something else?

A: It is dramatically three or four things. One is the fact that we do a lot of very complex work. The second is, unfortunately, the layman thinks about business process management as a call center 15 per cent of our business is a call center, 85 percent of our business is other things.

The third is the fact that it is not just about taking work and running it for our clients, it is actually helping clients run their processes better and take better decisions. We think companies do two things. They run themselves and they take decision and our job is to participate in both.

Q: How are you different from Wipro and Infosys or an IBM or do you see yourself falling in the same category?

A: Broadly, we all tend to fall in the category of technology services and business process management, and then you can layer on top of that people who say that they end up doing strategy consulting. I would argue that is not strategy consulting and then it is a question of what is your heritage, what is your core DNA, what are you really good at and what do you spend all your intellectual capital on? That varies depending on who you are.

Q: Are you different?

A: We are absolutely different. Go back to our history. We grew up with an intention of a large corporation- no one else has the same history. We are big believers and I am a big believer that who you, as an individual, as an institution and as a country, depends a lot on where you come from.

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