India's largest business process outsourcing company, Genpact, may go for more acquisitions in near future to expand its service delivery portfolio.
Genpact president and CEO N V 'Tiger' Tyagarajan told ET that the company is talks with several outsourcing firms to arrive at a 'viable' business proposition. "We are open for mergers and acquisitions. We have a cash reserve of more $400 million in our balance sheet. We are looking at acquiring companies which can match our culture and at the same time add on to our capabilities," he said.
The acquisition will mainly be in key domain areas. "We believe that insurance, pharmaceuticals, health care, life sciences and infrastructure are the high potential areas. We will grab opportunity if it's financially viable for us," he said. The company, this year, had acquired media and business research firm EmPower Research and US consulting and information technology (IT) services company Headstrong.
Genpact, which operates from 17 countries, will continue to focus heavily on India which contributes around 50% of the total revenue. It remains the outsourcing hub for financial and technology processes which needs complex data crunching, analysis, expertise based on commercial lending and leasing. India's three cities NCR (Gurgaon-Delhi), Kolkata and Jaipur - are among the company's top five potential cities list which also include Dalian and Foshan cities of China.
"Among other promising cities are Bucharest in Romania, Guatemala and Phillippines. We have over 54,000 employees world over out of which 34,000 are in India. We are likely top increase our footprints in India by opening new centres probably in Madhya Pradesh," Tiger said.
In India, the company operates from Gurgaon, Delhi, Hyderabad, Jaipur, Kolkata, Bangalore and Dehradun. Dismissing the claims of Phillippines being a competition to India in outsourcing business, Tiger said that India and Phillippines are not even comparable.
"Both play on different grounds. While Phillippines are winner hands down in consumer calls, India has no match in financial data processing and back office operations. For us Phillippines is a great opportunity for consumer call business which contributes around 15-20% of the total revenue," he said.
The NYSE listed company had posted revenue of $429.6 million in the third quarter this year, up 33.6% from $321.6 million in the third quarter of 2010. It has also shown a revenue growth of 23-25% in the first nine months.
Source: Economic Times