Genpact buys out Axis

Genpact, the country's largest business process outsourcing firm, today announced the acquisition of Axis Risk Consulting, a risk consulting firm, for an undisclosed sum.

This is Genpact's first acquisition in India. With this acquisition, it will add 80 clients based across India, North America, Europe and Asia.

The details of the agreement have not been disclosed. Earlier in March, the company acquired European SAP service provider ICE Enterprise Solutions for an undisclosed amount.

Axis will enable Genpact to expand its finance and accounting solutions portfolio. Axis will operate as an independent unit of Genpact within its governance practice.

Ameet Parikh, managing director and founding partner of Axis Risk Consulting, will continue to be the managing director of the company.

"The integrated risk and technology solutions we'll be offering to our US and European clients, as a result of the acquisition, would remove a lot of the time, pain and costs associated with governance and risk management," said Genpact President and CEO Pramod Bhasin.

The former GE captive unit was eyeing acquisitions wherever it was strategically viable. However, the US and the UK were always preferable, said Tajinder Vohra, senior vice-president and business leader, who oversees the information technology outsourcing (ITO) business at Genpact.

This is because both countries provide not only delivery models, but also a good client base. China is another target, which, according to Vohra, provides a huge potential along with Latin America for delivery capabilities.

The company plans to get bigger with its acquisition plans, not wanting to waste time in developing small companies.

Tajinder said, " We are witnessing a robust growth organically, we can build up a company of 2000 employees ourselves easily. Then why should we acquire them? We are looking at bigger companies to expand our business."

Genpact has over 30,000 employees and adds in excess of 800 new employees a month in India alone.

The company has filed for listing on the New York Stock Exchange in May, through which Genpact plans to raise $600 million (around Rs 2,500 crore).