Genpact, the number one business process outsourcing (BPO) company, has managed to stave off competition from its nearest competitor
Tata Consultancy Services (TCS) by retaining its revenue lead, though the gap now stands at $4.5 million. At the end of the December quarter, the BPO revenue of Genpact stood at $420.55 million compared with $415.99 million of TCS. The revenue difference between the two leading players has considerably narrowed down.
The sequential revenue growth of the two companies was almost equal with Genpact recording 4.8% and TCS 4.7%. In the three month period ended September 2013, the revenue difference between the two players was $4 million with Genpact recording a topline growth of $401 million and TCS $397 million.
Genpact had generated 75.3% of its revenue from BPO services while the rest came from IT services in the December quarter. Though the company had started as a BPO services provider, it had added IT capability over a period of time through a mix of organic and inorganic strategy.
The largest acquisition by Genpact was of Headstrong, an IT services and consulting company, in April 2011 for $550 million. Besides, it had made several smaller acquisitions in the IT services space.
The top slot among the BPO companies in India has always been held by Genpact. According to data from IT-BPO trade body Nasscom, Genpact has maintained its number position for the last five fiscals, while TCS which ranked fifth in 2007-08 has steadily moved up to the second spot in the last few years. Other BPO firms in the FY13 top 10 list are Serco Global Services, Aegis, Wipro BPO, Infosys BPO, Firstsource, WNS, Aditya Birla Minacs and EXL.
Nasscom says, the $18-billion Indian BPO sector is expected to grow at 13% compound annual growth rate to touch $50 billion by 2020.