The JV will operatein the $130 billion media outsourcing domain. It willprovide media services to global and regional media and entertainment companies in areas like editing, archiving, digitisation and closed captioning. In US, the cost of outsourcing such services to BPO vendor cost around $150 per hour. Genpact plans to bring down the cost by upto 50% by offshoring it from India.
Currently, 70% of all media work is digital and about 70% of this can be offshored. The JV wants to cash in on this huge potential.
Genpact has also abandoned its plans foran initial public offering (IPO). "We have no plan to go for an IPO. We don't need to go for it," Genpact CEO PramodBhasin said adding GE, which still holds 40% in the company, was not considering exiting genpact. Two private equity ventures General Atlantic Partners and Oak Hill Capital Partners had picked up GE's 60% stake for about $500 million in 2004.
It said itwillset up BPO centres in Poland and Philippines with a headcount of 1500 each.
Genpact's Poland BPO unit will cater to the German language market and operate in both voice and transaction based work. The Philippines unit will be purely voice based.
The company also revised its revenue target. "We expect our annual revenues cross $615 million in 2006, a jump of 26% as compared to 2005 revenues. The company also plans to set up a BPO centre in Kolkata where financial services, accounting and analytical works could be taken up," Genpact CEO Pramod Bhasin told reporters here.