Driving Competitive Advantage In Uncertain Times

Driving Competitive Advantage In Uncertain Times

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  1 Headline: Generating Impact Architecting the LeanDigitalSM enterprise Reimagine business processes by extending digital’s power all the way through to the middle and back office where it can generate growth, cost efficiency, and business agility.
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  2 THIS YEAR $593 BILLION WILLBE SPENT ON DIGITAL. $394 BILLION WILL BE WASTED* . The digital revolution is being slowed down by legacy process and technology.
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  1 In these volatiletimes, enterprises are being severely tested in multiple areas from management of cost structures, to growth and compliance with stringent regulations. Simultaneously, digital technology and analytics can revolutionize how businesses run, and the competitiveness of those who fail to embrace them is increasingly under pressure. Harnessing new technology is crucial to solving these challenges but has historically proven hard. This time is no exception. The magnitude of change requires significant reimagination of business processes and operations. When technology, global talent and contemporary process design practices are harnessed from front office into the middle and back office, the resulting modern operating models of multiple functions assume a more strategic role in the enterprise. They not only help them run more efficiently, but also enable smarter decisions to facilitate adaptation and innovation. They power Lean Digital enterprises. Driving competitive advantage in uncertain times 1 Fintech disruptors have 3X-10X better cost structure than incumbents - for instance mortgage costs can be cut by 70%.1 A US $208 million per year impact is expected from better use of technology on average across industries.2 67% of S&P 500 will churn within 10 years3 , many of them displaced by more technology savvy competitors. Only 33% of significant IT projects have been fully successful since 2000.4 Thirty years after these types of technologies were launched, 53% cost and 72% duration overruns in ERP deployment5 . Only 35% of operational executives see strong benefits from digital technologies implemented so far1 . Our research institute estimated a US $394 billion digital spend “wasted” in 2015. 1. Survey in collaboration with Shared Services Link - 100 executives responsible for business operations. 71% of companies participating have annual revenues of over US $1 billion. 2. Genpact/Linkedin research 2014; 900 operations executives North America and Europe 3. Source: Innosight/Foster/S&P 4. June 2015, BCG Perspectives 5. Panorama, 2014 ERP Report
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  2 We architect the LeanDigitalSM enterprise We reimagine your business by extending digital’s power all the way through middle and back office where it can generate growth, cost efficiency and business agility 2
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  3 We generate impact, byarchitecting the Lean DigitalSM enterprise We put digital technology and analytics to work. Our experience demonstrates that advanced business processes and operations can generate material impact. They help our clients control cost and capital intensity, strengthen market engagement, support organizational transformation, and manage risk and compliance. In doing so, they make our clients more competitive. It is this focus that has enabled us to transform the business process services space in only a few years. Impact for sophisticated, complex enterprises Genpact (NYSE: G) stands for “generating business impact.” We architect the Lean DigitalSM enterprise through a unique approach that reimagines our clients’ middle and back offices to generate growth, cost efficiency, and business agility. It combines advanced process-centric digital technology, design thinking, and lean principles. Importantly, it is designed to help large enterprises with complex, often dated pre-existing operations, embrace the art of the possible. Indeed, our hundreds of long-term clients include approximately one-fifth of the Fortune Global 500 – and of those, over 10 are in the top 25. Over the last 17 years, we’ve worked with 800 of the largest global enterprises—first as a division of GE, then as a 70,000+ -people- strong independent service provider. Since our inception, Genpact has generated close to $30 billion in business impact for our clients globally. 3
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  4 Unique Lean DigitalSM approachto business transformation Going where others don’t, we reimagine our clients’ middle and back offices, not just their front-end, to generate growth, cost efficiency, and business agility. BACK OFFICE Finance Risk and compliance Operations Continuous learning Full understanding of sources of value Aligned interventions, streamlined process, augmented by agile technology, actionable analytics, global delivery, continuous intelligent operations learning FRONT OFFICE MIDDLE OFFICE Additionaldata
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  5 Reimagining processes, building IntelligentOperationsSM Through functional and industry domain + technology + analytics expertise Our Smart Enterprise Processes (SEPSM ) proprietary framework helps companies combining effective Systems of EngagementTM , core IT, and Data-to-Action AnalyticsSM into Intelligent OperationsSM which are able to sense, act, and learn. The result: An advanced operating foundation across repeatable and scalable processes such as F&A, procurement, financial services account servicing, claims management, regulatory affairs and industrial asset optimization. Smart Processes Design, transformation and operations support generate real impact by aligning tightly to measurable business outcomes thanks to proprietary SEPSM framework Effective Technology Genpact Digital harnesses effective, agile technology including Genpact Systems of EngagementTM and effective Core IT services Data-to-Action AnalyticsSM Genpact Data-to-Action AnalyticsSM leverage Intelligent Process Insight EngineSM and advanced organizational delivery models Genpact Intelligent OperationsSM
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  Advanced operating models… The pace oftransformation in enterprise business processes and industry-specific core operations has accelerated in the last five years. New business practices, technology, and availability of global talent have contributed to this trend. Today, most large enterprises run processes, deploy operations and deliver services through a portfolio of shared services and outsourcing, often as part of a Global Business Services (GBS) vision. A combination of targeted human resources and organizational design practices, advanced metrics and analytics—as well as focused, process driven technology—enables unprecedentedly robust yet flexible execution of many enterprise processes. The resulting advanced, sometimes called “industrialized,” operating models and business process operations can: • harness economies of scale and flexible resources • access global pools of labor • optimize end-to-end processes including those retained in the individual businesses, in rigorous ways and at massive scale 6 …power a virtuous circle of business impact How does Genpact transform clients’ processes and operations? Through a “virtuous circle” that harnesses a combination of smart processes and digital technologies and analytics. We begin the journey by thinking about our client’s critical business outcomes, the performance metrics critical to their attainment, and the process practices required to improve those results. Our experience in running large-scale, complex operations provides us with the unique advantage of knowing what’s material, so we focus on what really matters. We then help transform and, whenever appropriate, run those processes. Our reputation of unparalleled operational excellence stems from our use of specialized metrics, analytics and practices to continuously improve global operations, making them more transparent and predictable as well as cost-effective and adaptable. Running operations and analyzing the results then helps us improve the technology, analytics and process practices we use to design and improve business processes for our clients worldwide. The result: Unbiased solutions, more targeted interventions, and increased future agility.
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  7 CORE INDUSTRY OPERATIONS Financeand Accounting Procurement and Supply Chain Enterprise Technology Analytics E NTERPRISE PROCESSE SOrigination KYC Compliance, integrity and Client payment servicing Multi-channel originationand servicing,KYC/AM L P&Cunderwriting andclaims m anagement onboarding Claimsand customerexp erience, Contractm ana gem ent Multi-cha nnel Regulatory affairs, Engineering support management, Industrial asset pr om otions Trade support Service Leadtoquote, RetailBanking Cons um er Goods HighTech Manufacturing Life Scienc es Healthcare Insurance Capital Markets Commercial Banking The following diagram provides examples of the scope of process operations we design, transform and run for our clients. From rule-based transactions to complex case management to data-to-insight analytics, business process operations can make enterprises more competitive by: • optimizing cost, cash and asset intensity • enhancing market engagement • enabling organizational transformation • managing risk and compliance SAMPLE/NON-EXHAUSTIVE
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  Generating industry impact We havegenerated billions of dollars of business impact while maintaining the highest level of client satisfaction in the industry.* That is what we have done for more than 800 global clients in 10 industries, as outlined in the snapshots on these pages. Banking and Financial Services US $1,500,000,000 Estimated yearly impact Clients: • 2 leading US retail banks • 2 leading Australian banks • 2 large UK financial institutions • A Fortune 500 financial holdings company Strengths: • SEPSM suite covering mortgage, unsecured retail lending and servicing, commercial lending, and risk • Lean Six Sigma practice generating 2-3X value beyond traditional arbitrage • Proprietary, transformative BPaaS/SaaS solutions for mortgage, commercial lending Resources: • 19,000 professionals across 18 global delivery centers • 1,500 risk management and analytics experts Impact on: • Over US $200 billion assets in commercial lending and US $130 billion in retail lending 8 * As measured by our frequent Net Promoter Score (NPS) surveys “I am a promoter of Genpact, and I would rate them 9 out of 10. I never give anyone 10. …They are thoughtful, they’re proactive, they’re dynamic and based on the operational reports I get, they are very good at what they do.” COO/GM, Finance Transformation, Australian financial services provider 8
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  “Strong analytical skillsfor model validation and data management capabilities - Very responsive to our feedback.” Operations and Lean Leader, financial services subsidiary of leading US conglomerate Insurance US $500,000,000 Estimated yearly impact Clients: • 6 Fortune 500 insurers • Leading global reinsurer • 5 leading US personal and commercial insurers • Leading broker • 5 leading global life insurers Strengths: • 8,500+ insurance professionals Impact on: • 13 million transactions processed annually for P&C insurance, 7 million for life insurance • 3 million new business applications, 10 million claims processed annually “A strong, reliable organization with depth of capability in providing partnering services and a customer-focused approach.” Executive General Manager, leading insurance provider Capital Markets US $700,000,000 Estimated yearly impact Clients: • 9 of top 10 investment banks • 3 of top 5 asset managers • 2 of top 3 derivatives exchanges Strengths: • 5,000+ consultants engaged on 600+ front-office, middle-office and back-office projects Impact on: • US $54 million annualized savings for top-10 investment bank by setting up a “virtual captive” global delivery model • US $35 million savings for an investment bank by optimizing OTC collateral pool by 5 bps • US $80 million impact for an investment bank by reengineering equity derivatives processing 9
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  “They are verycustomer focused, very open to what we are asking them to do. …They take real ownership.” VP, Shared Services, global pharma major “Strong shared services/ BPO knowledge and experience. Strong hands-on professionals. Flexible and customer oriented. Active in developing and extending knowledge base. Vibrant, inspirational leadership.” Program Director, large European life sciences company Life Sciences US $500,000,000 Estimated yearly impact Clients: • 8 of top 10 pharmaceutical companies • 10 of top 15 life sciences companies Strengths: • “Virtual captive” delivery model • Service over 80 client markets from 10 locations • Ranked Pharmaceutical Social Media Analytics Leader by IDC* Resources: • Over 4,000 FTEs with strong skill sets across pharmacists/nurses/statisticians/modelers/chartered accountants • Dedicated R&D and reengineering teams focused on driving innovation Healthcare US $200,000,000 Estimated yearly impact Clients: • Top 4 US national payers • Top 10 “Blues” • Top 3 PBMs and largest UK payer Strengths: • 8,000 healthcare professionals • 600 special skill sets in physicians, RN, certified coders, bio-statisticians • Knowledge of over 30 healthcare information systems • ISO 9001 and BS-7799 certified processes meeting HIPAA and OIG compliance guidelines Impact on: • Over 35 million claims transactions handled annually • Over 1 million claims adjudicated annually • Over a million transactions handled annually for member and provider services * 2014 10
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  “Their professionalism, ability todeliver best practice, and the quality of their staff have been impressive, enabling our finance transformation journey.” Financial Director, global CPG company “The highlights of our long- term relationship: cost savings, customer focused, ability to customize and innovate on new challenges and opportunities, broad set of technology capabilities to reduce cost and improve processes, Lean quality initiatives, high-end analytical capabilities.” CFO, diversified transportation services firm Infrastructure, Manufacturing and Services US $1,500,000,000 Estimated yearly impact Clients: • 170 manufacturing and services organizations • 3 of top 10 Forbes 2,000 conglomerates • 2 of top 3 logistics providers • 4 top auto OEMs and suppliers • 4 global telecommunications providers Strengths: • 17+ years in manufacturing and service industries • Recognized as top manufacturing/supply chain provider • Partnerships with leading engineering, procurement, contract management, M2M, and Big Data players Resources: • Over 5,000 manufacturing industry professionals with access to more than 6,000 resources • Highly experienced talent pool of 2,000 engineering, aftermarket and supply chain experts operating globally Impact on: • Over US $2 billion direct material spend • US $1.6 billion of inventory annually • Over 1,000 contracts with $500+ billion credit limits • Freight of over $1 billion across 200,000 assets Consumer Goods and Retail US $500,000,000 Estimated yearly impact Clients: • Largest US drug retailing chain • 4 of world’s largest beverage companies • World’s largest office supply chain store • One of world’s leading sport apparel/footwear companies Resources: • Close to 1,000 F&A professionals, 30+ clients, 25 languages • About 500 Big Data and analytics professionals, 100+ analytics professionals Strengths: • Enterprise-wide view of processes across F&A, SCM, trade promotion management, and marketing Impact on: • Over 6 billion data transactions processed, 500,000+ SKUs managed, over 12,000 reports processed monthly 11
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  “We have beenable to develop a strong, positive relationship with Genpact and this has shown itself in the excellent business results that we are seeing.” Outsourcing Leader, US- based multinational internet services and products company High Tech US $200,000,000 Estimated yearly impact Clients: 20+ leading high tech clients, including: • Leading security products company • World’s largest domain name registrar • Global imaging and photo equipment leader • 2 of largest Internet advertisers • Largest network equipment manufacturer • One of the largest e-commerce platforms Resources: • 2,000+ professionals • High tech industry related expertise—sales commission, customer service, quote-to-cash solutions, supply chain and reverse logistics Strengths: • Strategic sourcing, specialized category management and procurement expertise Impact on: • US $500 million direct spend under management • US $400 million of sales commission being processed • 400,000 product support transactions annually • US $500 million cash collections annually Media and Entertainment US $150,000,000 Estimated yearly impact Clients: • Leading television broadcaster • Global publishing leader • Leading legal publisher • Leading global advertising agency • Digital cable TV leader • Nonprofit scientific and educational organization Strengths: • Deep domain expertise in broadcasting, entertainment, advertising, printing and publishing • 1,000+ professionals 12
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  13 Robust global capabilities 800+ global clients 72,400+ employees1 70+ countries served 16delivery countries 70+ delivery centers 30languages 1 Asof Q4 2015 Guatemala Mexico USA Palo Alto Brazil Kenya South Africa Netherlands Bucharest New York Czech Republic Poland Slovakia London Romania UAE Philippines Hyderabad Gurgaon Japan China India Delivery centers Leadership locations and Reimagination centers
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  14 A unique genome • We generaterapid impact because our business domain expertise and unparalleled experience running large complex operations drive unbiased focus on what works, and facilitates digital technology enabled transformation • Unique history and culture: Behind our passion for technology, process and operational excellence is the heritage of a former General Electric division that has served GE businesses since 1997 A thriving internal and external ecosystem • Hundreds of long-term clients include approximately one-fifth of Fortune Global 500 • Over 72,400+ people in 25 countries. Key corporate office in New York City • A vibrant technology incubation and alliance program, managed from Silicon Valley • Growth doesn’t dilute our flexible and collaborative approach. Management team drives client partnerships personally 14
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  15 A sustainable company At Genpact,we focus on long-term business viability, embedding sustainability in our future-oriented strategy and daily decision making. Superior social, economic and environmental performance We are a pure meritocracy and an attentive employer, committed to making our diverse and global workforce successful, irrespective of location, sex, age, race, color, religion, national origin, ancestry, citizenship, marital status, sexual orientation, physical or mental disability, medical condition, veteran status, or any other characteristic protected from discrimination. We routinely adopt practices that reduce our environment and energy footprint by using our naturally “lean” approach to operations. Additionally, we approach relations with our stakeholders – be they employees, clients or suppliers—with the unrelenting integrity inherited from GE, which allows us to safely run sensitive operations. The A+ rating* of our sustainability report indicates the highest level of transparency and robust sustainability practices across people, economic and environmental dimensions. A healthy history Genpact began operations in 1997 as a captive business unit of GE to service its various global businesses, and was one of the first BPOs to use offshore delivery. By 2005, we became an independent entity and in 2007, a publicly traded company (NYSE: G). Our S&P ratings are currently BBB-**. In 2012, General Atlantic and Oak Hill sold the majority of their shares to affiliates of Bain Capital Investors, LLC. As of December 31, 2012, Bain Capital owned approximately 26% of our outstanding equity. Our origin as part of a client organization has profoundly shaped our culture - one that focuses on the most viable choices for the long term success of our clients before the short-term benefit of our own company. Our history of healthy growth demonstrates the value of this approach. * Following GRI standards assured by Ernst & Young ** As of April 15, 2014 15
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  Genpact’s financial strengthand stability are illustrated by our most recent full-year performance statistics and by steady growth in key metrics over time, as illustrated in the chart above. Total revenues have increased by 199% in a mere eight-year span, with the non-GE- related portion of revenues (approximately 81.3%) increasing nearly five-fold. Our global workforce has also been augmented manifold in that same time frame. Similarly, our free cash flow generation and our balance sheet are extremely robust. US$millions Total Revenues Revenues ex. GE Total employees (thousands) 823 1,041 1,120 1,259 1,600 1,902 2,132 2,279 340 551 669 780 1,117 1,405 1,650 1,813 2,461 2,001 2007 2008 2009 2010 2011 2012 2013 2014 2015 33 39 36 44 55 60 64 68 72.4 Revenue CAGR: 14.7% GC CAGR: 24.8% Proven stability and growth Genpact fast facts • Spun off from GE in 2005 • Listed on NYSE in 2007 (‘G’) • 72,400+ employees • Global management team • Stable margins and high free cash flow conversion • 800+ clients (one-fifth Global Fortune 500) • Strong Board of Directors • Largest shareholder: Bain Capital • S&P rating BBB- • A+ sustainability rating by GRI GRI = Global Reporting Initiative 16
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  © 2016 Genpact,Inc. All rights reserved. Let’s generate your impact. Let’s make yours a Lean DigitalSM enterprise. Contact us today. For additional information, visit www.genpact.com Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube. About Genpact Genpact (NYSE: G) stands for “generating business impact.” We are a global leader in digitally-powered business process management and services. Our Lean DigitalSM approach and patented Smart Enterprise ProcessesSM framework reimagine our clients’ end-to-end operations, including the middle and back offices – to deliver growth, efficiency, and business agility. First as a part of GE and later as an independent company, we have been passionately serving strategic client relationships including many Fortune Global 500, and have grown to over 70,000 people. The resulting domain expertise and experience running complex operations are unique and help us drive choices across technology, analytics, and organizational design. twitter.com/genpact_ltd facebook.com/ProudToBeGenpact linkedin.com/company/genpact youtube.com/user/GenpactLtd