New York-listed outsourcing firm Genpact has begun looking at acquisition opportunities in the range of $150-200 million in India, US and Europe, even as its bid to acquire Citigroup’s BPO has hit the roadblock. Pramod Bhasin, the company’s president and chief executive officer, declined to comment on the Citigroup deal, but said “Captives are still an interesting buy for the company. However we would also look for buys in human resource, banking and financial services sectors to scale up at a much faster rate.”
Mr Bhasin, speaking on the sidelines of the Nasscom summit, also said that the company would be ramping up its China operations. “China has shown a 40% growth, which we would want to increase going forward,” he said. Despite the US continuing to be a major contributor to Genpact’s revenue, he expects larger portions of future revenues to come from Eastern Europe and Japan. Mr Bhasin further added that the company would also look to expand its scope of operations in Philippines for its customer services vertical. “We see Philippines as an offsite alternative for the company’s growing portfolio. We should have been there five years ago,” he said.
While attrition continues to be a big problem for the IT sector, Mr Bhasin said that Genpact would look at controlling the attrition rates by hiring more from tier 2 and 3 towns, especially in the north east. “We are looking at the domestic landscape, especially at regions like Meghalaya and Assam to acquire new talent,” he said. At present, nearly 10% of the company’s workforce is from the North East. Recently, other IT companies like TCS, 24/7 and Symantec had evinced interest in setting up their businesses here, apparently impressed by the region’s abundant supply of skilled workforce and low attrition rate.