DQ Top 20 Rank 19 - Genpact Transformation Happening Here? 

Genpact, the slices of tech AI and digital operations are pulling the weight of a difficult business year pretty well. 

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We are living in an age, and in a business year, where not the whole pie but the slices of the pie define a strong company. The sizes of these slices decide who is a long-runner in the ever-toughening race of IT deals and margins. Thankfully, for Genpact, the slices of tech AI and digital operations are pulling the weight of a difficult business year pretty well. 


In its financial results for the fourth quarter and full year ended December 31, 2022, we can see that the Total revenue of Genpact was US$4.37 billion, up nine percent year-over-year (11 percent on a constant currency basis). Net income was US$353 million, which was down four percent year-over-year, with a corresponding margin of eight percent. What’s worth zooming in on are new bookings. This is an operating measure and represents the total contract value of new contracts and certain renewals, extensions, and changes to existing contracts. So, new bookings were approximately US$3.9 billion, up six percent year-over-year. 

As per financial results for the first quarter that ended March 31, 2023, the company claimed it hit a record level of first-quarter bookings and near record pipeline. Total revenue was US$1.09 billion, up two percent year-over-year (four percent constant currency). As per its CEO, it views generative AI as an opportunity to expand its services to clients and increase the total addressable market. It also provides an opportunity for internal efficiency and margin enhancement. 

As per its Full Year 2023 Outlook, the company expects total revenue in the range of US$4.64 billion to US$4.71 billion, up six percent to 7.5 percent, or 6.5 percent to eight percent year-over-year on a constant currency basis.


Tiger Tyagarajan, Genpact’s President and CEO. 

“Transformation is a pervasive theme across most enterprises with many of them calling out 2023 as a year of efficiency. We are therefore seeing a robust pipeline, a continuous flow of Data-Tech-AI, and large transformational deals.” 

 But what’s really interesting is that (in the full year 2022 results) the revenue from Data-Tech-AI services was US$1.96 billion, up 16 percent year-over-year, and represented 45 percent of total revenue. Also, revenue from Digital Operations services was US$2.41 billion, up three percent year-over-year dominating 55 percent of total revenue. In the fourth quarter of 2022, revenue from Data-Tech-AI services was US$495 million, up two percent year-over-year (representing 45 percent of total revenue). Its revenue from Digital Operations services was also robust: US$608 million, up three percent year-over-year – again, representing 55 percent of total revenue. ‘Plus 40 percent slices here, if you note! 


The pattern is getting stronger now. In results for the first quarter, of 2023, revenue from Data-Tech-AI services was US$485 million, up four percent year-over-year making up 45 percent of total revenue. Revenue from Digital Operations services was US$604 million, up 0.4 percent year-over-year (three percent constant currency) – penciling in 55 percent of total revenue. 

This shows that the company has placed its bets well on the strong muscles that will not only survive a knock-out year but also get it to fight the next round on strong feet. 

Key wins and expansions 


At the onset of the year 2022, Genpact announced the expansion of its experience business, Rightpoint, with the acquisition of Hoodoo Digital, a digital experience consultancy with expertise in Adobe solutions. This acquisition, as explained by Genpact, furthers its strategy to fuse experience and process innovation to help clients drive end-to-end digital transformation and win in the growing experience economy. This adds another entity in the series of investments Genpact has made over the last five years – like the acquisition of Rightpoint in 2019. 

It also inked a strategic alliance with HighRadius, the Artificial Intelligence-powered ‘Order to Cash’, Treasury Management, and ‘Record to Report’ software provider. This duo will marry the Autonomous Software platform with Genpact’s global accounts receivables and digital process and delivery expertise to drive more impactful and measurable business outcomes. Together, the partners will develop long-term opportunities for innovation, digital transformation, and enhanced client deliverables. 

As spelt out in the announcement, the closer alignment will position HighRadius to focus on its next generation of Autonomous Software, while Genpact increasingly leads client project delivery of the end-to-end business process. As Tyagarajan, CEO at Genpact explained here – ‘bringing our two companies together in even deeper partnership will allow a new level of predictive intelligence that can derive meaningful insights and lead to impactful action for our clients.’ 


Among other things, Genpact also began to invest in East Hyderabad via a co-development agreement with Ramki Estates. Notably, it has recently set up a technology center in Warangal and was among the first companies to set up a campus in Hyderabad’s Uppal area. 

If Data-tech, AI, Digital Operations, and new footprints can hold it well in its tracks, Genpact can keep going ahead on its own transformation pivot. With a pie that’s not in the sky. But right here.  

By Pratima H