Key Findings & Highlights:

Genpact's RDM BPO services are delivered out of its business process management unit. Genpact began delivering RDM BPO services in 2006 for Merrill Lynch (as well as other services). The engagement was entirely focused on securities reference data, with Genpact delivering:

• Securities set-up (equities and fixed income, corporate actions)
• Data cleansing
• Data enrichment.

Genpact has continued to add capabilities that complement its RDM capabilities; a notable addition is the acquisition of Headstrong Consulting in 2011, which was undertaken in part to pursue an up-sell with 67 capital markets clients for Headstrong's consulting services into various capital markets BPO, including RDM.

Genpact has steadily grown its RDM BPO revenues over the past five years. Growth began accelerating in 2011 due to increased regulatory reporting requirements.

Genpact RDM BPO delivers service from the following delivery centers:

• Bangalore
• Hyderabad
• Gurgaon.

Genpact' primary targets for RDM BPO are:

• Tier one multinational sell side financial institutions (retail banks)
• Large asset management firms in the U.S. and Europe
• Tier one Australian banks
• Large retail brokerage firms in the U.S.

Genpact targets U.S. and European headquartered global banks for RDM BPO services, but supports them around the globe. In future, Genpact will continue to target global institutions. To date, the focus in RDM has been on securities data, plus some entity data (which is growing in emphasis due to regulatory requirements).

Genpact has just completed a three year review of its business strategy (refer to Key Vendor Assessment for detailed review). A key strategic initiative adopted as a result of this exercise is narrowing business focus to a few key:

• Industries: banking is the largest single industry for Genpact, and is a high focus industry, in which Genpact will aggressively invest in developing proprietary IP and its sales presence. Investment levels in banking will increase by 3x to 6x, depending on geography and service line
• Geographies: Genpact will focus on key geographies. In banking it will focus on banks headquartered in mature economies; it will support these mature economy banks entering emerging markets, but will not pursue emerging market headquartered banks. New offerings and expansion of relationships will be focused on mature markets
• Processes: Genpact will be focused on a few key processes in banking, such as data management. It will invest in partnerships with product vendors and in developing proprietary IP in data management and data analytics. Investment in data management will rise by 3x to 10x over the next five years.

Genpact is looking to grow its RDM BPO business by:

• Scaling support for existing clients, by supporting compliance efforts via shared services utilities (of which the first is the KYC utility). Genpact is evaluating 20 potential RDM BPO utilities; it expects to narrow its focus to three or four potential utilities, which it will seek to commercialize in 2014
• Scaling its sales efforts to pursue new bank logos (across all RB and CM BPO services, with RDM BPO as a component of the pursuits). The banking sales force will be scaled up by three times its current size over the next twelve months
• Cross-selling into CM clients which currently buy other services.