Back in the summer of 2016, BPO provider Genpact bought Process Application Platform specialist PNMsoft. You might ask – what’s a BPO player doing buying a business software platform company? This is an unusual thing: other BPO firms have occasionally acquired specialist software capabilities, but most often these have been industry-specific and bought in as part of acquisitions of services companies.
The answer here is that Genpact has for some time been forging a path that takes it beyond the original home ground of a BPO company. It is evolving to become a digital transformation service provider, building on its domain expertise in particular industries (e.g. Financial Services) and horizontal functions (e.g. Finance & Accounting).
Genpact – which currently has around 800 clients (including around 20% of the Fortune 500), and currently employs over 75,000 people across 25 countries – began life as a division of GE in 1997; it was spun out of its parent company in 2005 (going public on the NYSE in 2007). Around three years ago Genpact’s executives realised that digital technologies posed a potentially existential threat to the company’s core business; it created a new Digital group to create new digital assets (repeatable digital solutions with Genpact IP) to help transform its own BPO business. And while Genpact’s IT services business has started to shrink, its Digital group has helped enable its BPO and Consulting businesses to grow faster than the market rate.
Genpact’s Digital group now has over 800 employees and is responsible for over 20% of the company’s overall $2.7bn+ revenues. This Digital group is the new home of PNMsoft.
Genpact Digital’s group is responsible for creating new digital assets and IP which aim to transform the services which the company provides to its Enterprise clients. Its focus is principally to help clients in its targeted industries use digital technologies in new ways to create new, agile ‘Systems of Engagement’ – and Genpact has a growing portfolio of solutions in this space. Examples include Finance & Accounting; Enterprise Performance Analytics; AR Management and Supplier Management Suites; Claims Processing; Customer Interaction Services; and Robotic Automation.
PNMsoft is a key enabler for Genpact Digital, as well as continuing as a separate brand and product business with an independent sales and marketing operation. For Genpact Digital, PNMsoft’s Sequence is being leveraged to provide the foundation for a new generation of Dynamic Workflow solutions; new digital assets are being planned to work on top of this platform. However PNMsoft is only one part of Genpact Digital’s technology story: it’s also running a growing ‘Incubation Program’ that aims to bring an ecosystem of specialist technology partners together in front of clients to help them address high-priority challenges.
Key partners in Genpact Digital’s Incubation Program include Arria NLG (natural language generation); Mendix (low-code application development); Rage Frameworks (intelligent automation for document and data processing); Automation Anywhere (Robotic Process Automation); OmPrompt (data format transformation for commercial documents); and Rosslyn Analytics (cloud-based self-service analytics).
Genpact Digital brings this group of partners together for its clients as part of Lean DigitalSM Innovation Programs that it runs for them. These programs are hosted at the company’s Silicon Valley-based Innovation Center and other centres around workshops to help clients reframe their business problems using design thinking and lean practices, as well as using rapid development exercises to create new solution prototypes in days.
Genpact Digital has a clear mandate to open up new opportunities to deliver digitally-powered transformation services to largely Fortune 1000 clients; and if that means disrupting its existing business, so be it. The key to the value it provides, as you would hope for an organisation embracing digital transformation, is that Genpact Digital learns from its successes and failures and uses these insights to both propel transformation and power growth across the larger business.