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Genpact Acquires Rightpoint to Strengthen 'Experience' Capability

 

Enterprise operations transformation requires three critically important capabilities:

  • Domain process expertise and the ability to identify new “digital” target operating models
  • Transformational technology capability, leveraging technologies such as cloud platforms and intelligent automation to elevate straight-through processing and self-service principles ahead of agent-based processing
  • Experience design and implementation, now highly important to optimize the experience across entire customer, employee, and partner populations.

Genpact has strong domain process expertise and, in recent years, has developed strong transformational technology capability but, despite its acquisition of TandemSeven, has historically possessed lower levels of capability in “experience” design and development.

However, TandemSeven’s experience capability was becoming highly important to Genpact even in core activities such as order management and collections, and Genpact recognized that “experience” was potentially a key differentiating factor for the company. Accordingly, having seen the benefits of integrating TandemSeven, Genpact increasingly looked to go up the value chain in experience capability by both enhancing and scaling its existing capabilities.

Rightpoint Judged to be Highly Complementary to TandemSeven

Rightpoint was then identified as a possible acquisition target by the Genpact M&A team, with Genpact judging that Rightpoint’s assets and capabilities were highly complementary to those of TandemSeven.

Rightpoint currently employs ~450 personnel and positions as a full-service digital agency offering multidisciplinary teams across strategy, design, content, engineering, and insights. The company was formed with the thesis that employee experience is paramount, with the company initially focusing on employee experience, a key area for Genpact, and subsequently developing an increasing emphasis on consumer experience in recent years.

Genpact perceives that Rightpoint can make a significant contribution to helping organizations “define the creative, define the interactive, and hence define a higher experience.” The company’s clients include Aon, Sanofi, M Health, Grant Thornton, Flywheel, and Walgreens. For example, Rightpoint has defined and designed the entire employee experience for Grant Thornton, where the company developed an employee information sharing and knowledge management platform. In addition, Rightpoint has assisted a large pharmaceutical company in creating a patient engagement application to encourage patients to monitor their insulin and sugar levels.

In addition to a complementary skillset, Rightpoint is also complementary to TandemSeven in industry presence. TandemSeven has a strong focus on financial services, with Rightpoint having a significant presence in healthcare and clients in consumer goods, auto, and insurance.

Maximizing the Synergies Between Genpact & Rightpoint

Genpact expects to grow both Rightpoint’s and its own revenues by exploiting the synergies between the two organizations.

One initial synergy being targeted by Genpact is providing end-to-end and “closed loop” services to its clients. Rightpoint employs both creative and technology personnel, with its creative personnel typically having a blend of technology capability allowing them to go from MVP to first product to roll-out. Rightpoint is a Microsoft Customer Engagement Alliance National Solution Provider, a Sitecore Platinum Partner, a certified Google Developer Agency, and also has partnerships with Episerver and Salesforce.

However, the company lacks the process and domain expertise that Genpact can bring to improve process target models and process controls & management. For example, for the medical company example above, Rightpoint could develop the app, while Genpact could run the app and provide the analytics to improve patient engagement, with Rightpoint then modifying the app accordingly.

Secondly, Genpact will support Rightpoint’s growth by bringing financial muscle to Rightpoint, facilitating:

  • An ability to invest in new technology capability in platforms such as Shopify and Adobe
  • The financial means to be able to spend a significant amount of time doing discovery work with clients and prospects, and hence targeting larger-scale assignments.

However, Genpact is being careful not to overstretch Rightpoint. The company intends to be highly disciplined in introducing Rightpoint to its accounts, initially targeting just those champion accounts where Rightpoint will enable Genpact to create a significant level of differentiation.

Genpact also perceives that it can learn from Rightpoint delivery methodologies. Rightpoint has a strong methodology in driving agile delivery and makes extensive use of gig workers (with ~10-15% of its workforce being gig workers) and these are both areas where Genpact perceives it can apply Rightpoint practice to its wider business.

Rightpoint Will Retain its Identity, Culture & Management

Rightpoint and TandemSeven are planned to be integrated with a porting of expertise and resources between both companies, and with Ross Freedman heading an expanded Rightpoint capability and reporting into Genpact’s transformation services lead.

In terms of the current organization, RightPoint has an experience practice and a digital operations practice. This includes an offshore delivery center in Jaipur and technology practice groups. However, while the practices are national, most of Rightpoint’s client delivery work is carried out in regional centers to give strong client proximity. The company’s HQ is in Chicago, with regional centers in Atlanta, Boston, Dallas, Denver, Detroit, Los Angeles, New York, and Oakland.

In due course, Genpact will likely further restructure some of the delivery, with a greater proportion of non-client-facing activity being moved into offshore CoEs.

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