India's largest BPO Genpact expects to finish the year ahead of its 25% sales guidance, buoyed by its close integration with Headstrong and cash flows from a dozen new deals it won in the last six months. At the current rate, Genpact aims to finish the year with about $1.6 billion in revenues.
Genpact's revenues for the quarter ended September 30 grew 34% over the year-ago period to $429.6 million. "It's an uncertain and volatile economic environment. The difference from 2008 is that the leadership in most companies continues to be stable.
We expect quick decision-making in 2012 around IT budgets, compared to 2008-2009 when decisions almost froze," Genpact CEO Tiger Tyagarajan told ET. The company's net profit grew to $48 million, up 19.7% from last year. Due to the Headstrong acquisition, IT business is contributing almost a quarter of the revenues, helping it surpass smaller rivals in growth. "We acquired three companies this year but have about $409 million left in cash.
We are looking at a range of new acquisition targets at present, " Mr Tyagarajan said. Genpact's largest customer GE contributed about 29% to its revenues while revenues from non-GE clients was about 71%. The non-GE business grew about 54% from last year while GE revenues rose by only 0.8% against the third quarter of 2010.