Genpact Inc. – Business Process Outsourcing to India Harvard Case Solution & Analysis

Problem statement

General Electric Capital International Service (GECIS) was a part of general electric (GE) and operated as an offshore unit. In 2004, Pramod Bhasin, CEO of GENCIS, decided to operate independently and move forward as a business process outsourcing (BPO) firm. The problem which the company faced with that decision was starting its operation as a non-GE firm; it will bedifficult to attract clients towards the company. The company is having a very strong presence in the market as a part of GE business, however,working independently as a BPO firm would take much time to convince clients towards a BPO system of work. Building the trust factor with the potential clients is another big issue for the company,as completely outsourcing the business needs much trust on Genpact Inc. and its capabilities.

Overview of the company

 As cited on the second page of the case,GE came into being in 1892 in the United States as a result of the merger of two electrical device companies. In 1989, when the CEO Jack Welch visited India he saw lots of opportunities there for the business to grow. In India the legal system is very good, the people over there are full of technical skills and market has a very strong potential to grow.

That was a point when the company chose India to expand its operations.Bhasin was president of GE capital India, which is located in New Delhi. He has been with GE since 1984 and operated as a Radio Corporation of America. When he returned to India he saw a great opportunity of an offshore unit of GE, which helped GEICS to come into being.

As citedin the fourth page of the case,the company achieved a great success after seven years of its establishment in India and expanded its services by adding accounting, finance, customer fulfillment, insurance, enterprise applications and IT infrastructures. GECIS had become the largest BPO Company in the country by the end of seven years of its operations in India.

In 2004, GECIS decided to operate as an independent firm with a name GenpactInc. and gaveits services as BPO. They have a unique culture at Genpact; they build their business by meeting the demands of the leaders of GE. The main focus of Genpact is to provide best outsourcing services with a strong emphasis on customers’ preferences and creative human resources practices within the organization.

Analysis

PESTEL

Political factor

Political factor describes the policies made by government in order to allow the goods and services to enter into the country; political factor also consists of outsourcing. It also describes the government’s support towards the business that is operating in the country.

At a stablerate the Indian government is average. Its political system is analyzed by different factors that involve government policies, politicians’ interest and the rules implied on business structure of that country. In India, politicalinfluences in privatization are reduced due to which they are producing better results.

Indian government allows free business and flexible international trade that motivate companies to do business in India. Hence, the less political instability in India makes it a better place for the companies to do business and make the country more developed.

Genpact Inc. – Business Process Outsourcing to India Case Solution

Economic factor:

The economic factor in India is considerably stable, whichmakesthe country more attractive in a professional way. India allows a liberalization of foreign capital and does various agreements on foreign technological advancement that help the country to improve its economic conditions.

India decreased prices on various goods that allowed companies to make profit by selling more goods as the taxes implied; and the prices set by the government are moderate. Pricing strategy set by the government in India helps the company achieve its target of attracting more customers and made it easy for the foreign companies to set their business in India and enjoy a good economic environment of the country.

Social factor:

India put great interest in social responsibility; it took the initiative in setting the pension cost for its employees working in the companies. The Indian government is now changing the trend by recruiting older employees in the organization that help companies to achieve better results by taking advantage of the experience which older employees have..........................

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