Second Quarter Revenues of $307.6 million, up 13% and up 7% sequentially

Adjusted Income from Operations of $46.6 million, down 4% and up 6% sequentially

Genpact Limited (NYSE: G), a global leader in business process and technology management, today announced financial results for the second quarter ended June 30, 2010.

Key Financial Results – Second Quarter 2010

• Revenues were $307.6 million, up 12.7% from $272.9 million in the second quarter of 2009 and up 6.7% from the first quarter of 2010, driven by business process management growth of 21.1% for Global Clients and 8.7% for GE.
• Net income attributable to Genpact Limited shareholders was $27.8 million, down 6.2% from $29.7 million in the second quarter of 2009.
• Net income margin for the second quarter of 2010 was 9.1%, compared to 10.9% in the second quarter of 2009.
• Diluted earnings per common share were $0.12, compared to $0.14 in the second quarter of 2009.
• Adjusted income from operations was $46.6 million, compared to $48.4 million in the second quarter of 2009 and $44.0 million in the first quarter of 2010.
• Adjusted income from operations margin was 15.1%, compared to 17.7% in the second quarter of 2009.
• Adjusted diluted earnings per share were $0.15, compared to $0.18 in the second quarter of 2009.

Pramod Bhasin, Genpact''s President and CEO said, "We had strong revenue growth this quarter as momentum continues to build. Business process management work for Global Clients is the primary driver of this growth. GE revenues also increased across all major service lines. Our investments for growth, such as for business development, Smart Enterprise Processes (SEP^sm) and our India business, as well as the ramping up of new engagements and some foreign exchange volatility, are reflected in our margins. The costs we are bearing now are a positive reflection of our future growth."

Bhasin continued, "We expect margins to improve in the second half of the year as more transition revenues get converted to production. Our pipeline remains healthy."

Revenues from clients other than GE, which Genpact refers to as Global Client revenues, grew 16.9% over the second quarter of 2009. Revenues from Global Clients now represent approximately 61.7% of Genpact''s total revenues, with the remaining 38.3% of revenues coming from GE. GE revenues increased 7.3% from the second quarter of 2009, adjusted for dispositions by GE.

Approximately 86.0% of Genpact''s revenues for the quarter came from business process services, up from 83.3% for the second quarter of 2009, while revenues from IT services were approximately 14.0% of total revenues for the second quarter of 2010 as compared to 16.7% for the second quarter of 2009.

In the second quarter of 2010, 40 client relationships each accounted for $5 million or more of Genpact''s revenues in the last twelve months, up from 35 such relationships at the end of 2009. Of those, 4 client relationships each accounted for $25 million or more of Genpact''s revenues in the last twelve months.

Genpact generated $30.0 million of cash from operations in the second quarter of 2010, down from $49.0 million of cash from operations in the second quarter of 2009. The decline was primarily due to incremental working capital requirements resulting from an increase in accounts receivable.

Year-to-Date Results

• Revenues were $595.8 million, up 10.6% from $538.7 million for the first half of 2009.
• Net income attributable to Genpact Limited shareholders was $56.0 million, down 6.1% from $59.6 million in the first half of 2009.
• Net income margin for the first half of 2010 was 9.4%, compared to 11.1% in the first half of 2009.
• Diluted earnings per common share were $0.25, compared to $0.27 per share in the first half of 2009.
• Adjusted income from operations was $90.5 million, consistent with the first half of 2009.
• Adjusted income from operations margin was 15.2%, compared to 16.8% in the first half of 2009.
• Adjusted diluted earnings per share were $0.31, compared to $0.35 in the first half of 2009.

As of June 30, 2010, Genpact had approximately 42,500 employees worldwide, an increase from approximately 37,400 as of June 30, 2009. Genpact''s employee attrition rate for the six months ended June 30, 2010, measured from day one of employment was 26%, up from 22% for the same period in 2009. Genpact''s attrition rate would be 21% if measured after six months of employment, as many of Genpact''s competitors do. Annualized revenue per employee was $30,300 for the six months ended June 30, 2010, compared to $30,600 for the six months ended June 30, 2009 primarily due to an increase in the number of employees hired for future growth.

Genpact generated $10.0 million of cash from operations in the first half of 2010, down from $67.8 million of cash from operations in the first half of 2009. The decline was primarily due to incremental working capital requirements related to the acquisition of Symphony Marketing Solutions Inc., deposits for infrastructure investments, an increase in accounts receivable and reduction in current liabilities. Genpact has a strong balance sheet, with approximately $351.8 million in cash and cash equivalents and short term investments.

2010 Outlook

Bhasin continued, "Our outlook remains positive. We continue to expect revenue growth in 2010 of 14% to 17% and adjusted income from operations margin of 17% to 18%."

Conference Call

Genpact management will host a conference call beginning at 8:00 a.m. EDT on July 29, 2010 to discuss the company''s performance for the period ended June 30, 2010. To participate, callers can dial 1 (866) 272-9941 from within the U.S. or 1 (617) 213-8895 from any other country. Thereafter, callers will be prompted to enter the participant passcode, 90512330.

For those who cannot participate in the call, a replay and podcast will be available on Genpact''s website, www.genpact.com, after the end of the call. A transcript of the call will also be made available on Genpact''s website.

About Genpact

Genpact is a global leader in business process and technology management, offering a broad portfolio of enterprise and industry-specific services. The company manages over 3000 processes for more than 400 clients worldwide. Putting process in the forefront, Genpact couples its deep process knowledge and insights with focused IT capabilities, targeted analytics and pragmatic reengineering to deliver comprehensive solutions for clients. Lean and Six Sigma are an integral part of Genpact''s culture and Genpact views the management of business processes as a science. Genpact has developed Smart Enterprise Processes (SEP^SM), a groundbreaking, rigorously scientific methodology for managing business processes, which focuses on optimizing process effectiveness in addition to efficiency to deliver superior business outcomes. Services are seamlessly delivered from a global network of centers to meet a client''s business objectives, cultural and language needs and cost reduction goals. Learn more at www.genpact.com.

Safe Harbor

This press release contains certain statements concerning our future growth prospects and forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include but are not limited to a slowdown in the economies and sectors in which our clients operate, a slowdown in the business process management and information technology services sectors, the risks and uncertainties arising from our past and future acquisitions, our ability to manage growth, factors which may impact our cost advantage, wage increases, our ability to attract and retain skilled professionals, risks and uncertainties regarding fluctuations in our earnings, general economic conditions affecting our industry as well as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission, including Genpact''s Annual Report on Form 10-K. These filings are available at www.sec.gov. Genpact may from time to time make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. Although Genpact believes that these forward-looking statements are based on reasonable assumptions, you are cautioned not to put undue reliance on these forward-looking statements, which reflect management''s current analysis of future events. Genpact does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of Genpact.

Reconciliation of Adjusted Non-GAAP Financial Measures to GAAP Measures

To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: non-GAAP adjusted income from operations, adjusted net income attributable to shareholders of Genpact Limited, or adjusted net income, and diluted adjusted earnings per share attributable to shareholders of Genpact Limited, or diluted adjusted earnings per share. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures, the financial statements prepared in accordance with GAAP and the reconciliations of Genpact''s GAAP financial statements to such non-GAAP measures should be carefully evaluated.

For its internal management reporting and budgeting purposes, Genpact''s management uses financial statements that do not include share-based compensation expense (including fringe benefit tax, or FBT thereon for Indian employees, abolished on August 18, 2009 with effect from April 1, 2009), amortization of acquired intangibles at formation in 2004 and expenses associated with the Company''s March 2010 secondary offering for financial and operational decision-making, to evaluate period-to-period comparisons or for making comparisons of Genpact''s operating results to that of its competitors. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting ASC 718 "Compensation-Stock Compensation", Genpact''s management believes that providing financial statements that do not include share-based compensation allows investors to make additional comparisons between Genpact''s operating results to those of other companies. In addition, Genpact''s management believes that providing non-GAAP financial measures that exclude amortization of acquired intangibles and the expenses of the secondary offering allows investors to make additional comparisons between Genpact''s operating results to those of other companies. The Company also believes that it is unreasonably difficult to provide its financial outlook in accordance with GAAP for a number of reasons including, without limitation, the Company''s inability to predict its future share-based compensation expense under ASC 718, the amortization of intangibles associated with further acquisitions and the expenses of the secondary offering, if any. Accordingly, Genpact believes that the presentation of non-GAAP adjusted income from operations and adjusted net income, when read in conjunction with the Company''s reported results, can provide useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

A limitation of using non-GAAP adjusted income from operations and adjusted net income versus income from operations and net income attributable to shareholders of Genpact Limited calculated in accordance with GAAP is that non-GAAP adjusted income from operations and adjusted net income excludes costs, namely, share-based compensation, that are recurring. Share-based compensation has been and will continue to be a significant recurring expense in Genpact''s business for the foreseeable future. Management compensates for this limitation by providing specific information regarding the GAAP amounts excluded from non-GAAP adjusted income from operations and adjusted net income and evaluating such non-GAAP financial measures with financial measures calculated in accordance with GAAP.

The following tables show the reconciliation of these adjusted financial measures from GAAP for the three and six months ended June 30, 2009 and 2010:

Contacts:

Genpact
Investors
Shishir Verma
+1 646 624 5912
shishir.verma@genpact.com
or
Media
Gail Marold
+1 919 345 3899
gail.marold@genpact.com