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In business process outsourcing and technology management Genpact is a global leader. With the 43300+ employees is devoted in civilizing client processes and driving business impact. Genpact is balanced at deep process knowledge, insights and best practices with focused IT capabilities, targeted analytics and practical reengineering to deliver a comprehensive solution. Services are flawlessly delivered from a global network of centers in 13 countries to meet a client's business objectives, cultural and language needs, and cost reduction strategy. Genpact's culture is uniquely embedded in Lean Six Sigma. Its mindset is 100 percent customer-centric, established daily through our comfort with destroying our own revenue to deliver greater efficiency.
Genpact has a unique heritage, which has contributed to deep understanding of process. It began in 1997 as a business unit within GE, building the Company from the ground up. Its charter was to provide business process services to GE's businesses, with the goal of enabling outstanding efficiencies. During the eight years that followed, it earned the opportunity to manage a wide range of processes from the simple to complex, operating across GE's financial-services and manufacturing businesses. In January 2005, it became an independent company bringing process expertise and unique DNA in Lean Six Sigma to clients outside the GE family. Its new name, Genpact, conveys the business impact we generate for our clients. In August 2007, Genpact was listed on the NYSE under the symbol 'G'. Since then they have grown quickly, growing our range of services and diversifying our client base.
In this assignment I have discussed about the Genpact's culture, its corporate governance, Genpact's strategy and covered the subtopics which I have studied in my course and related to Genpact.
Comparative Environmental Frameworks
What is culture?
It is a unique characteristic of any organization. It is a learned norm based on values, attitudes and beliefs. It is important to ensure that we are clear and precise as to what we mean when we talk about culture. It can evolve with new experiences.
I worked in Genpact India for three years from 2007-2010. Genpact has created a culture that emphasizes customer centricity, teamwork and continuous process improvement. The culture is expressed in the values that represent its core ideology and define who they are. Their values are based on the foundation of unyielding integrity and act as a compass to guide our thoughts and actions, serving as the pillars that uphold us as an organization.
A Client-centric Culture
Process effectiveness is their strong operating culture that aims at delivering real business results and strategic value to their clients. They see their relationship with clients as strategic, long term and enduring. Genpact offers right skills and services. Their increasing list of service offerings allows the employees to assist their clients with a wide range of solutions. They end up developing the relationship and encompass others as they start work with a client in one domain. This proven customer engagement model, where they start small, deliver value, expand business scope, and gradually penetrate other areas, provides them with growth and long-term revenue visibility. They believe that their relationship enriches by the honest and periodic client feedback. Their feedback sessions are on-on-one or revolve around client forums.
After studying about organization culture, it is useful to conceive of the culture of an organization as consisting of four layers:
Values- Values may be easy to identify in an organization, and are often written down as statements about the organization's mission, objectives or strategies.
Beliefs are more specific, but again they are issues which people in the organization can surface and talk about. They might include a belief that the company should not trade with particular countries, or that professional staff should not have their professional actions appraised by managers.
Behaviors are the day-to-day way in which an organization operates and can be seen by people both inside and outside the organization. This includes the work routines, how the organization is structured and controlled and 'softer' issues around the symbolic behaviors.
Taken-for-granted assumptions are the core of an organization's culture. They are the aspects of organizational life which people find difficult to identify and explain. Here they are referred to as the organizational paradigm. The paradigm is the set of assumptions held in common and taken for granted in an organization. For an organization to operate effectively there has to be such a generally accepted set of assumptions. As mentioned above, these assumptions represent collective experience without which people would have to 'reinvent their world' for different circumstances that they face.
At Genpact, they believe that honor, compliance and controllership are non-negotiable. This culture is driven across the organization, and is reinforced repeatedly with our employees. Genpact adhere to the highest levels of ethical business practices as articulated by their Code of Conduct.
The Genpact Board
Genpact's corporate governance practices begin with our independent Board of Directors. All its directors possess rich multi-industry experience and are recognized for their giving in their chosen professions. They bring to their Board varied perspectives and insights. Their Board has established an Audit Committee, a Compensation Committee and a Nominating and Governance Committee to help in fulfilling its duties and responsibilities.
Risk Management Framework
In their governance framework they have the process to identify measure and manage risks responsibly. At the level of the entity, business segment and business process, leading to effective statutory, policy and process compliances they conduct risk assessments. Risk levels are monitored by the Board of Directors, while the management team oversees the completion of mitigation initiatives.
Code of Conduct
Code of Ethical Business Conduct has been adopted that applies to all employees. Every employee is responsible for his or her own actions, and proper business conduct and ethical behavior are fundamental conditions of employment. With the appropriate individuals employees are argued to talk about any concerns regarding improper conduct. Genpact believes that its measures should always be guided by our core values of honesty, trustworthiness, integrity, dependability, respect, and citizenship. I suggest that their thorough internal controls, business values and focus on controllership help us create enduring client trust.
Corporate Social Responsibility
CSR is defined broadly as 'The continuing commitment for business to behave ethically and to contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large'. It is important to distinguish between 'CSR' and 'business ethics'. Business ethics comprises principles and standards that govern behavior in the world of business. Actions can be judged to be right or wrong, ethical or unethical. CSR, however, refers to a firm's obligation to maximize its positive impact upon stakeholders whilst minimizing the negative effects. As such, ethics is just one dimension of social responsibility.
Genpact has the separate segment for Corporate Social Responsibility called [email protected] Genpact cares for community. Genpact has institutionalized a culture of giving among its employees through a number of global platforms, like payroll giving and volunteerism. To volunteer for community service events, including those related to the elderly, the differently-abled and children.
Environmental Conservation and Green Initiatives
By keeping the employees interest on mind Genpact is committed to attain excellence in safe and environmentally-friendly work practices. Environmental, Health and Safety (EHS) policy is displayed across every location, a global consolidated signed by CEO Pramod Bhasin. Now it's renamed as Safe Work Environment (SWE) policy to remain in position with legal policy.
Some of the key highlights of this program are:
In countries sites like Mexico, China, Philippines, Hungary including India, Genpact has attained ISO 14001.
We ensure 100 percent compliance to all established regulatory standards for air pollution, noise pollution, effluent quality, among others
When I worked in Genpact I used to go to the areas where the plants are not planted and I and my team used to plant trees. This was our part of Corporate Social Responsibility. I can relate that the company is going through time and applying the best theories for its reputation. Then we were appreciated and the company's reputation was counted. I learnt that CSR is very important term for the reputation of the business. I learnt that the advantage of ISO certified is that it gives company legitimacy and provides a certain level of assurance to potential business partners that a company has acceptable quality systems in place.
Globalization means the expansion of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets. To increase its outsourcing Genpact has signed an agreement to acquire consulting and IT services firm Headstrong Corporation - headed by former HCL co-founder Arjun Malhotra - for a cash of $550 million (around Rs 2,475 crore). The deal is being funded by a blend of existing cash and acquisition financing, and is expected to close by May 31, 2011, subject to customary regulatory and other conditions.
It is expected in 2011 that the transaction is to be accretive to earnings per share on a GAAP basis. Headstrong has approximately 3,700 employees in seven countries - including offshore centres in India and Manila - and generates a major amount of revenue from employees who are onsite with clients in the US, the UK and Japan. It generated revenues of approximately $217 million in 2010 and Genpact expects Headstrong's long-term growth rate to be in excess of 20 per cent per year.
The deal will give Genpact better global access through Headstrong's onsite presence in the US. Genpact is improving global business service centers, operating centers, and shared services. SEP framework, provide guidance on organizational best practices, reengineer processes, and provide IT tools, but not necessarily directly run all processes if the client did not require it. Smart Enterprise Processes (SEP) is a groundbreaking, severely scientific methodology for managing business processes. SEP can deliver significantly improved financial performance by breaking down organizational structure and making business processes efficient and measurable.
From above things I can relate that through mergers and acquisitions and establishing innovative ideas Genpact is gaining a competitive advantage and also gaining globalization.
With the largest headcount in the country and being a global outsourcing leader means having a rock solid people management strategy in place. On every moment is what Genpact is working. Following are the company's people strategy and talent management:
Genpact is a global sourcing player with a long-term focus. due to its values of innovation, flawless execution, speed, stretch, imagination and winning through partnerships it builds deep and sustaining relationships with customers. Genpact not work with the customer on one set of values and with employees on another. Both the customer and employee gain value from a mutual relationship.
At Genpact a strong corporation between HR and operations ensures that individual line managers and not just HR managers possess people priorities. As operations managers are best positioned to recognize outstanding performers, this enables Genpact to optimally reward and train people.
Genpact has three approaches of people management at strategic level:
Genpact had re-engineered its hiring and retention strategy well in advance. Genpact has taken three unique steps of, changing the hiring channel mix, expanding the hiring pool and differentiating hiring brand to onboard the right talent. Through increased referral-based hiring and reduction in consultant and advertisement-based hiring, Genpact has changed the hiring channel mix. Existing employees feel a sense of belonging to Genpact in the increase in internal referrals. Genpact never loses focus on the quality of people hired. Genpact's Six Sigma standards put potential candidates through a rigorous screening process, ensuring that only the best are hired. In my team there were best employees who can work effectively and efficiently. I also got a chance to learn few things from my vintages. Changes are required here, according to my observation and personal experiences the employees are required with effective communication and skills. Employees should be paid handsome wages so that while employees comes to work they should do work properly.
Knowledge is a continuous learning and is critical in a company like Genpact. For training new hires "training right" is strategy is preferred and also readying existing employees for higher value and more complex processes. After understanding what is training I believe that training generally refers and aims to develop leadership skills, domain knowledge and job enrichment. I was trained trained before I stepped into the process. Training was very helpful for me to understand how the process works and what the basic aim of running the process is? Employees were given foreign job training. For this I observed that it was good for the employees for personal development. I also observed that growth rate is faster in Genpact.
There is a high demand for knowledge workers. To overcome this, Genpact has over 900 learning paths resulting in sharper learning curves. Training not only develops talent that benefits Genpact but also transforms associates into professionals in their own right. Genpact commitment to learning has developed over 2000 Six Sigma-certified professionals, 140 MBAs, PhDs and actuaries, as well as college graduates.
Rewarding right is vital to knowledge retention. It motivates employees to stay in Genpact and also enriches people. Genpact identifies and grooms talent early across all levels of the organization through various programs. Programs such as Session C identify talent for future growth. Also Genpact's variable compensation programs reward outstanding performance, which on average works out to 30 percent of the total compensation. Empowerment is a key reward at Genpact. I was rewarded with 2 bronze awards in 2 yrs and this motivated me to work effectively for my process. I was ready to work over time in the office as Genpact respect the hard work of the employee and reward them according to their performance.
Strategy in general terms means is the direction and scope of an organization over the long term: which achieves benefit for the organization through its arrangement of resources within a tough environment, to meet the needs of markets and to fulfill stakeholder expectations.
I observed that environmental factors effect selection of employees. Most prominent among them are supply and demand of specific skills in the labor market, unemployment rate, labor-market conditions, legal and political considerations, company's image, company's policy, HRP and cost of hiring.
Porter 5 Forces
Genpact Providers India
Medium and large mature financial service companies in developed countries
Many, difficult to achieve quality and culture match
Cost efficiency and process harmonization are key deliverables
Captives: Global Banks and Insurance companies
Providers and consultants: (Indian) software houses, global consultancies
IT enabled processes and internet applications that cut out the manual work piece
Threat of new entrants (captives, external providers) medium
BPO in large corporate business
I have concluded from the assignment that cost reduction & competitive advantage are the main rational for outsourcing. I observed that the following levels should not be outsourced in order of priority:
1st Level Sales Force (i.e except telemarketing & tied agency) and customer service as core competences (i.e underwriting and claims except most of outbound calls)
2nd Level: Product
3rd Level: Human Resources and Finance
Partnership selection for outsourcer and outsourcee plays an important role in outsourcing. One should see all its measures procedures rules and regulations before outsourcing their business. By seeing good corporate governance, its quality, services can be the part of searching a good partner for outsource. Five forces model can be applied to know the threats for the company and strategize accordingly. Now a day's with fast growing and changing environment of the world everyone needs change, everyone need to experience new things, everyone wants to get change and runs with the same pace of changing world. If the BPO industries need to do business properly they have to listen their customer and continuously should bring change in the services and should bring new services too to keep attracting the customer.
From the cost-focused point of view Genpact should make the business faster, cheaper, less error-prone and less of a drain on valuable or scarce resources. As companies emerge from the global recession and begin to lay the groundwork for growth again, processes more often are examined with an eye to increasing their electiveness - producing better business outcomes. Genpact by and large, is recognizing the bene¬ts for company performance of streamlining processes, improving connections between di¬€erent processes, and improving communication between di¬€erent groups.