“Our total addressable market has increased,” Tiger Tyagarajan, president and CEO of Genpact, told ET in an interview, adding that “11 of our new client logo wins in 2020 were all virtual and companies that had not outsourced before. And these are enterprises that we started the relationship with $5 million plus revenue, but potentially some of them can become $50 million. And, in comparison, typically every year two or three enterprises we sign who are first-time outsourcers”.
The company said the demand has increased for new and old clients during the pandemic.
Genpact recently said it expects the total revenue for the full year 2021 to be in the range of $3.93 to $3.99 billion, 5-6.5% growth in constant currency terms.
Tyagarajan said organisations are increasingly looking for partners to work on demand planning for supply chain; underwriting, anti-money laundering for financial services. “There are companies now saying I need a partner because I need to do it fast. So, that’s making companies who never ever had partners to do these things come to the table as first-time outsourcers for these types of services,” added the Genpact chief executive.
BPM services providers such as Genpact and others witnessed a slowdown in demand in some of key business segments such as travel and hospitality, and banking due to the pandemic. These companies have started seeing revival of demand during the last three months of 2020; while uncertainties in the travel sector continue to impact growth, said analysts.
“Everything in our business is a long cycle. So, as we finished the year, bookings came back, decisions cycle times came back to normal. So, we had the best booking quarter in global clients in our history (October-December). And we saw our pipeline has been at an all-time high actually for two consecutive quarters,” said Tyagarajan.
“I don’t think travel is coming back in a hurry,” he added.
Genpact said one of its banking clients restructured its business, resulting in a 200 to 300 basis points impact on the full year’s performance in 2021. “One of our banking clients in the asset management business, basically restructured their business. No surprise because asset values changed, there was a disruption, and they actually changed their business as to who they focus on. So, we partnered with them to change our focus to change the work we do for them, and reduce the total scope and size of the work,” said Tyagarajan.