Genpact Volatility and Adaptation Index Shows a Widespread Increase in the Third Quarter Half of all companies across multiple industries were affected
NEW YORK, Dec. 10, 2013 /PRNewswire/ -- Genpact Limited (NYSE: G), a global leader in transforming and running business processes and operations, today announced the third quarter 2013 results of its Volatility and Adaptation Index (VAI), a first-of-its-kind framework that monitors approximately 600 large global companies' volatility events as well as related adaptation. The VAI total score was 39.0 in Q3 – more than doubling from Q2 – with half of all companies measured manifesting volatility and structural changes.
Genpact analyzed volatility and adaptation events such as profit warnings or the effect of adverse regulatory environments, as well as signals of adaptation, including restructuring plans, acquisitions, or geographic expansions.
"In the third quarter we saw a dramatic increase both in the total number of volatility events and the range of companies across industries impacted by them," said Gianni Giacomelli, senior vice president and Chief Marketing Officer. "With the easing of pressures in financial conditions, we also saw a rise both in turnover among senior leadership and corporate restructuring. This indicates that companies are focusing on adaptation, realizing that now is the right time to make changes. In our experience, they will likely transform their operating structure.
"Acquisitions and geographic expansions are also on the rise, suggesting that there continues to be a redefinition of the operating perimeter of many companies, as well as consolidation to benefit from scale, scope, and access to clients," Giacomelli added.
Results across industries included the following:
- Banking firms showed a marked rise – commercial banking, which had registered the lowest score in Q2, had the largest increase during Q3, while retail banking continues to be above all other industries for the third consecutive quarter.
- Healthcare companies continued their rising trend; life sciences remained at elevated levels.
- Consumer products companies displayed higher volatility and adaptation signs in Q3, primarily driven by mergers and acquisitions and restructuring activity.
The VAI's results are corroborated by Genpact's own operational measurements derived from the sample of processes and operations the company transforms or manages on behalf of clients as part of transformation and outsourcing agreements. For example, mortgage operations fluctuations in banks, and life sciences' and CPG's keen interest in operations transformation services highlight volatility in those sectors.
More information on the Volatility and Adaptation Index, including the full report, is available at http://www.genpact.com/home/volatility-adaptation-index.
About the Volatility and Adaptation Index (VAI)
The Volatility and Adaptation Index, created by Genpact, is a directional, quarterly measure of volatility and signs of adaptation. It was developed through an extensive analysis of nearly 600 large, global enterprises across a wide range of industries. These analyses were "trued up" based on the operational data derived from Genpact's business process transformation, management and outsourcing footprint across the same industries – from mortgage and procurement to finance and accounting (F&A) and credit card processing – driven by its proprietary, analytics-driven Smart Enterprise Processes (SEP(SM)) framework. The VAI will be updated each quarter.
Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients. Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEP(SM)) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability. We have global critical mass – 62,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally. Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years. For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn.
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SOURCE Genpact Limited