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					India & China: Capitalizing On The Next
Opportunities

Pramod Bhasin
President & CEO
GENPACT

ICCO Global Summit
New Delhi, India
October 5, 2006
                   Global Provider of Business Services & Technology
                   Solutions

India                 China             Europe                                                                United States
  19,700 employees  1,700 employees in  1,000 employees                                                        800 employees
  across 6 major           China                                         across Hungary,                      Mexico
  cities                                                                 Romania, Poland &                      2,300 employees
                                                                         the UK

                                       UK              Poland
                                                        Hungary
                                                         Romania                    China
                USA
                                                                    India
   Mexico
                                                                                                         Philippines


                                                                                                                   Genpact Centers
                                                                                                                   New/Additional Centres


  2,000+ MBAs, 100+ PhDs/MDs, 600+ CAs/CPAs, 75+ Actuarial Trained, 2,000+ Green
  Belts, 500+ Black Belts, 3,000 IT resources
  20+ languages, 30+ nationalities . . . Spread across nine countries
  Employer of Choice and first mover in many of our locations                                                                          2
                      Confidential. All trademarks appearing herein belong to their respective owners.
                      India & China: Leading the Outsourcing World


 $ 22 BN ITO/ BPO market                                                       $ 2-3 BN ITO/ BPO market
 Primary focus - US and UK markets                                             Primary focus - A-Pac countries
 High end outsourcing solutions like                                           Back office processes such as Call
  F&A, Analytics & Supply Chain                                                  Centre, F&A, Payables, R&D
 Tier II cities to tap talent pool and                                         Tier II cities to tap language
  lower cost advantage                                                           capabilities & cost advantage


             Delhi


           Jaipur
                                                                                                                               Changchun



                                                                                                                          Beijing
                                                                                                                                           Dalian
                                    Kolkata                                                                               Xi’an
 Mumbai                                                                                                                               Shanghai
          Pune
                     Hyderabad                                                                                             Wuhan               Hangzhou
                                                                                                                Chengdu

          Bangalore                                               Tier I Cities
                                                                  Tier II Cities
                          Chennai                                 Genpact
                                                                                                                                    Shenzhen

      China catching up fast with India on the outsourcing track                                                                                          3
                             Confidential. All trademarks appearing herein belong to their respective owners.
           Shared Problems, Common Opportunities



                                  Opportunities                                                       Problems



                Demographic and skills                                                     Wage inflation
Demographics
                 advantage                                                                  Increasing cost pressures
                Huge populations,                                                          Skilled global resources
                 increasingly strong education
                 outputs and low labor costs –
                 Developed Nations to face
                 rising costs & staffing crunch

                Taking initiatives to move to Tier  Challenges in attracting newer
Talent           2 cities                             talents
Development     Experimenting with profiles         Increasing turnover rates in
                 (senior profiles/undergraduates)     major cities




     Driving Change in Tapping Talent Pool & Hiring Practices
                                                                                                                         4
                 Confidential. All trademarks appearing herein belong to their respective owners.
            Services Industry in India & China:
            Building The Corporation of the FutureSM



     Past                                           Present                                            Future

Access restricted by                        Best-in-class services                                 Sharply focused,
boundaries                                  and products                                           disaggregated
                                                                                                   corporations
Bulk of goods and                           Define Core
services in-house                           operations and                                         Decide on Core
                                            processes
Falling barriers and                                                                               Partner with best-in-
improved connectivity                       Non-core processes                                     class suppliers
                                            to expert providers
Manufacturers                                                                                      Innovation at the
pioneered global                                                                                   speed of thought
sourcing
                                                                                                   Increase customer
                                                                                                   and shareholder
                                                                                                   value
Outsourcing Industry . . . Changing the Way Businesses Work
                                                                                                                           5
                Confidential. All trademarks appearing herein belong to their respective owners.
                The Natural Evolution of Outsourcing –
                As Big As Manufacturing?



Labor Arbitrage            Capacity                                      Productivity                  Competitiveness

  25-30% cost           Turn fixed costs                                  Best in class                  Change the game
  savings               into variable ones                                processes driven               for companies
                        to support                                        by continuous                  and their
  Fast payback on
                        expansion &                                       improvements                   positioning
  investment
                        growth                                            and efficiencies
                                                                                                         Deliver products
  Leverage global
                        Onshore capital                                   Benefit from Six               faster and
  talent pool
                        expenditure                                       Sigma and Lean                 cheaper to market
                        avoidance                                         expertise
                                                                                                         M&A Support and
                        24/7 work day                                     Margin expansion               integration



           Not a Question of “Will” or “If” . . . But “How Fast”
                                                                                                                       6
                    Confidential. All trademarks appearing herein belong to their respective owners.
             Indian & Chinese Players Driving Global Best-in-
             Class Solutions
                        • Investments in innovation
1   Innovation          • High-end R&D across industries
                        • Forefront in IT & process innovation


                        • Proven ability to handle complexity…F&A, analytics
2   Complexity
                        • Highly educated talent pools, with advanced degrees


                        • Developing complex offshored functions. . .Media, Engineering
    Domain
3   Expertise
                        • Documented training and learning paths
                        • Global acquisitions by offshore players

                        • Global reporting standards
4   Transparency        • Greater visibility into operations than in-house
                        • Measured and documented metrics


    Process             • Greater quality and control
5   Discipline
                        • Industrial strength process excellence
                        • Six Sigma and Lean implementation

                        • Attract top talent…Manage attrition of 30% - 100%
    HR
6   Practices
                        • Provide career opportunities
                        • Enrich and improve the lives of employees
                                                                                                      7
                   Confidential. All trademarks appearing herein belong to their respective owners.
                        Best in Class Finance and Accounting Coverage
                                                                                                                               Financial Plg.
                                                                                                                               & Analysis

                                                                                                                               Base Cost, P&L,
                                                                                                                  Closing &     Balance Sheet,
                                                                                                                  Reporting     and Cash Flow
                                                                                                                                Analysis
                                                                                                     G/L Closing              Budget Planning
                                                                                                     SEC and U.S.             Variance and
                                                                                  Treasury            GAAP Reporting            Issue Analysis
                                                                                                     Treasury                 Competitor
                                                                                                     Valuation                 Analysis
                                                                                   Bank Operations  Tax Filing
                                                   Accounting                      Cash             Mgt Reporting
                                                                                    Forecasting


                        Receivables          G/L Closing
                                             Consolidation
                        Management
                                             Fixed Assets
                                             Ledger
                         Remittance          Reconciliations
  Accounts                                   Accrual and
                          Exception
  Payable                 Tracking &          Reserve Account
                          Resolution (Cash)   Reconciliation
 Invoice Receipt and    Deduction Mgt
  Matching               Collections
 Dispute Resolution     Recoveries
 Vendor Payment
  Setup
                           Primarily Transactional                                     Primarily Decision-Support



                Highly Complex Tasks – proving end-to-end solutions
                                                                                                                                             8
                               Confidential. All trademarks appearing herein belong to their respective owners.
            Outsourcing Industry – Driving Broad Impact

Highest employment generator
   Direct employment doubling annually…Genpact hiring around 8,000
    annually…45% women
   Ancillary businesses creating huge employment
   Class of young employees with huge disposable income


Accumulation of human capital
   High-end and specialized projects such as analytics, engineering design, F&A,
    insurance, pharmaceutical clinical trials
   Exposure to cutting-edge technology and practices
   Increased productivity and professionalism


Professional practices in workplace
   World-class workplace standards compared to say, other sectors
   Very high importance given to HR practices in the workplace


Impact on cities
   IT/BPO professionals, returning migrants, foreign business travelers, increased
    travel abroad – all are influencing
       • Infrastructure improvements
       • Higher service from government and other public companies
          Driving Change across Cities and Populations                                               9
                  Confidential. All trademarks appearing herein belong to their respective owners.
Outsourcing of services is a new reality…driven by India and China
Some will view this defensively . . . Others will use this
offensively…Very few can ignore the level of savings & efficiency
being delivered
Opportunity to quickly enhance profitability and drive top-line growth
. . . As well as to change competitive dynamics in your industry
Ideal candidates for virtual companies are financial institutions,
insurance, research and service companies . . . Manufacturing
companies already employing model
Those who grab the opportunity and drive it as a strategic
advantage will win, changing the notion of what is core and non-
core for companies and making them much more focused

           The Globalization Train Is On Track                                                     10
                Confidential. All trademarks appearing herein belong to their respective owners.
Contact Information

Pramod Bhasin
President & CEO

pramod.bhasin@genpact.com
+91 (124) 235-6980

www.genpact.com

                                                                                               11
            Confidential. All trademarks appearing herein belong to their respective owners.

				
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