GE sells 60% in BPO arm

As part of a multi-year arrangement, GECIS will continue serving GE group companies, but will now also pick up new clients from outside the GE fold, though GE will remain its biggest customer ‘‘for a long time’’.

‘‘We have the best-in-class expertise of GE that global firms will benefit from. This deal gives us financial strength to grow organically and through acquisitions,’’ said Pramod Bhasin, President and CEO, GECIS. Bhasin said he expects GECIS’ revenue from GE business to grow at 10-15 per cent a year.

GECIS started India operations in 1997, lured by the immense cost-saving opportunity and a huge educated workforce. These led to massive export revenues a 12,000-strong headcount — and profits — in less than a decade in India.

‘‘GE’s revenues and orders in India are around $1 bn (Rs 4,500 crore). Over $1 bn of exports from India support GE’s global business operations around the world. Employment around the world, including GECIC, exceeds 22,000,’’ said Scott Bayman, President and CEO, GE India.

GECIS also runs smaller centres in China, Hungary and Mexico, but expects the Gurgaon operations to continue leading the pack, despite new centres planned for Romania, Tunisia and other Indian cities.

The decision to sell-off majority stake in GECIS, said Bayman, was because back-office management was not its core business. But there are no plans to divest more than 40 per cent, and no plans for a public listing either, he said.

GECIS insists its growth trajectory and net manpower additions will not narrow down after the divestment. ‘‘Instead,’’ said Bhasin, ‘‘we can easily add 6,000-8,000 people a year as in the past.’’ GE has often said GECIS can double its headcount and revenues in two to three years.

Of its total headcount of 17,000, GECIS has around 12,000 people in India, of which 1,000 will remain with the parent company. It also has 500 people in Hungary, another 1,400 in China and the rest are based in Mexico.

‘‘We are profitable in India and estimate its revenues at $513 mn in 2005,’’ said Bhasin, who will continue as GECIS CEO and president after a new management team is set up with the strategic partners.

General Atlantic Partners Pvt. Ltd. (GAPP), an equal equity shareholder with Oak Hill in the new GECIS, was also bullish over the India possibilities. Abhay Havaldar, senior partner at GAPP rubbished claims that a significant portion of GECIS’ business was lower-end work including claims processing. ‘‘We are extremely bullish and saw nothing of the sort (low-end work) in GE…’’ he said.

GE engages in finance, accounting, insurance, analytics, customer training and IT services at its India centres.