Sustainability@Genpact Process Outsourcing Service Provider of the Year, Asia Pacific Frost and Sullivan Certified Partner and Provider of Global Application

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Genpact Sustainability Report 2011

Sustainability@GenpactSustainability Report 2012 Performance Highlights

GENERATING INTELLIGENT IMPACT

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For internal use only

“The focus now is not on ‘IF’ a company

should be sustainable, but on ‘How’ a

company goes about being sustainable. If

done right, Sustainability can be a competitive

advantage”

NV “Tiger” Tyagarajan

President & CEO Genpact

3


About this report

As a responsible corporate citizen, we at Genpact consider the

sustainable development agenda to be a key component of our business

strategy. It is our endeavour to present to our stakeholders as to how we

have performed on key facets of sustainability. Accordingly, the company

has been releasing annual sustainability communications since 2008.

While the earlier communications were based on the ten principles of the

United Nations Global Compact (UNGC), we started reporting on

sustainability performance using the more comprehensive Global

Reporting Initiative (GRI 3.1) framework since 2011. This is the second

report prepared using the GRI framework and covers the period from 1st

January 2012 to 31st December 2012. The report covers our entire

global operations. The data points in the report cover major highlights

and summary of economic, environmental and social performance

indicators as per the GRI G3.1 Guidelines.

We have used the principle of materiality throughout the report to provide

information on sustainability parameters that are most relevant to

stakeholders.

Data Metrics: Methodologies, Protocols & Systems

Our employee data is taken from the ERP system we have in place.

Financial data is based on our 10K report. However some of our sites are

more mature when it comes to data collection. For example, Our India

sites have systems in place to collect environmental data but for some of

our sites in other regions, such data may not be available as of now.

Other constraints include whether a particular site is owned or leased.

For some leased sites we have an annual maintenance contract that

precludes us from collecting data about energy and water usage since

our costs are dependent on the contract and not on actual usage. That

being said, our India sites account for about two thirds of our employees

and hence the reported data represents majority of our operations.

Wherever possible, we have reported data based on actual usage. The

data and figures in the report are actual numbers based on the

methodology and standard management systems followed by our

Environment, Health and Safety and other departments, in line with

industry practices. Our performance is reported on a year-on-year basis

(YoY), comparing the current year’s performance against the previous

year

“Sustainable development requires concrete and urgent

action...and can only be achieved with a broad alliance of

people, governments, civil society and the private sector,

all working together to secure the future we want for

present.”

From the proceedings of the United Nations Conference of

Sustainable Development, Rio de Janeiro (June 2012)

4


Table of Contents About this report 3

Summary of our performance 5

Awards and Recognition for 2012 6

Sustainability@Genpact 7

Economic performance 9

People performance 12

Environmental performance 20

Ethics and Governance 28

Corporate Citizenship 31

GRI Index (sample) 34

Annexure 1: Economic Value Added 50

Annexure 2: Human resource data 55

Draft for discussion 5

Summary of our performance

19% Increase in net revenues in 2012 over 2011

25% Increase in gross profits in 2012 over 2011

64% NPS score in 2012

3.2

Million

hours Of training

delivered in 2012

19% Increase in global workforce in 2012 over 2011

16% Employees promoted in 2012

38% Of global headcount represented by women

>200 INR Million Of

benefits from resource conservation initiatives

18%

Reduction in water

consumption in 2012 over 2011

>10%

Reduction in paper consumption in

2012 over 2011

10%

Reduction in per employee

GHG emissions in 2012

69%

Reduction in domestic travel footprint in

2012 over 2008


Awards and Recognition for 2012 Some of the key awards bestowed on Genpact for the year 2012 are presented below:

Business Process

Outsourcing

Service Provider

of the Year, Asia

Pacific

Frost and Sullivan

Certified Partner

and Provider of

Global

Application

Management

Services (AMS)

SAP

Ranked 22nd

amongst top 25

Global Financial

Technology firms

Fin Tech 100

rankings

Excellence award

for Security

global BPO

Category

DSCI

Genpact-AZ -

Excellence in

People &

Communications,

Europe, 2012

SSON Excellence

awards

Best

F&A/Procurement

2012

Outsourcing Center

Service Provider

Excellence Awards

Outsourcing End-

User of the Year

with Merck, 2012

European

Outsourcing

Association

Awards

Ranked as ‘Leader’ in the global Banking

BPO market, ‘Star Performer’ in global

MPHRO market, ‘Leader’ and ‘Star

Performer’ in global FAO market, ‘late

stage major contender’ in Procurement

Outsourcing Market Study.

PEAK Matrix Awards by Everest Research

Rated amongst

Global top 20

outsourcing

providers

International

Association of

Outsourcing

Professionals

(IAOP)

Ranked as a ‘Leader’ in the Magic Quadrant

on Global Finance & Accounting BPO and

‘Challenger’ in IT helpdesk market for North

America

Magic Quadrant

Ranked as a ‘Leader’ in the worldwide

Business Analytics Services and

Pharmaceutical Social Media Analytics

market

IDC’s 2012 Market Scape Report

Awarded #1

Corporate in

India-wide

Corporate India

Giving Challenge

Give India

Awarded in the category of ‘Flexible Work

Practices – 2012’

AON Hewitt


Sustainability@Genpact Our Approach Genpact strives to provide a safe and healthy workplace for all our

employees and stakeholders, which benefits communities we live in and

work with globally. By integrating economic and social progress with

environmental conservation and sustainability, we aim to improve the

quality of life of all our employees and stakeholders. Our management is

committed and provides considerable resources to meet our

Environment, Health, Safety & Sustainability (EHS&S) goals which are

to:

Meet and whenever possible exceed applicable environmental,

health and safety (EHS) legal requirements

Adopt best practices that support conservation, sustenance and

rejuvenation of the environment and natural resources

Minimize our carbon footprint and become carbon neutral in our

operations

Drive active participation of all our stakeholders to promote

environmental, occupational health and safety procedures

through training and behavioural compliance

Provide a safe and healthy work environment by proactively

assessing and reducing risk

Continuously monitor our company’s involvement in Corporate

Social Responsibility projects

Standards and Management systems

Environment Management System

Our major operating sites in India, China, Philippines, Europe, and

Mexico have been certified for ISO 14001

Occupational Health and Safety Management System

Our major operating units are also certified for OHSAS 18001

Information Security System

All of Genpact’s sites in India, China, Philippines, and Europe are ISO

27001 certified. Our North American Sites and Mexico will be certified in

2012.

Our stakeholders Genpact recognises the impact its operations can have on its

stakeholders and at the same time how its stakeholders can impact

operations as well. We try to manage stakeholder specific issues by

continuously engaging with all our stakeholders. Our key stakeholders

and respective engagement mechanisms are described below:

Employees

Employee Satisfaction Surveys (Annual)

Performance Appraisal Discussions (Biannual)

Listening Post (Monthly at different locations)

You, Environment, and Sustainability (YES) (Ongoing)

Caring@Genpact (Ongoing)

Alert Tool(allows all levels of employees to raise operational issues across

EMS : Employee performance evaluation process which provides opportunity to share performance as well as the career-patching and key concerns with the team


•Governance, compliance, and ethics

•Customer privacy and data security•Quality of service delivery•Financial sustainability and returns•Business continuity•Getting business and customers

•Cessation of Tax breaks in countries like India and the resulting impact on cost

•Recruiting people/ Enabling the creation of a

pool of talent•Safety and health•Cost efficiency (cost of services, asset utilisation, facility management, employee cost)

•Organic growth•Employee training•Employee satisfaction and engagement

•Diversity•Human rights

•Community engagement

•Environmental stewardship (climate change, GHG reduction, resource efficiency)•Innovation

•Public policy and lobbying

•Adverse political conditions like protests against outsourcing

•Community engagement

•Environmental stewardship (climate change, GHG reduction, resource efficiency)•Innovation

Low Medium High

Lo

wM

ed

ium

Hig

h

Relevance to Genpact

Sta

keh

old

er

Inte

rest

Materiality Genpact’s materiality determination framework is driven by the issues considered relevant and important by its stakeholders. The relative prioritization of

the 20 identified issues is presented in the matrix below:

Customers

Ongoing governance meetings at account level between different levels of the organization

Net Promoter Score based on Process Owner Questionnaire (Semi-Annual)

CXO Questionnaire (Annual)

Investors/Shareholders

Annual Report or 10K Report (Annual)

Annual General Meeting

Online Contact Us form

Online Information Request Form

Interested people can also sign up for email alerts for SEC-related information, Reports, Webcasts and Presentations, Scheduled events, and company news (Ongoing)

Ongoing quarterly calls with investors and shareholders

Community

Caring@Genpact (Ongoing)

Environment

Environmental Initiatives (Ongoing)

Government

Lobbying through industry associations like NASSCOM, CII, etc. No direct lobbying

Active members of industry bodies on all geographies we operate in- e.g., NASSCOM, Business Processing Association of the Philippines (BPAP), Association of the Business Services Leaders (Poland and Romania), etc

Vendors/Suppliers

Vendor Prequalification Process (Before a Vendor is brought on board)

Ongoing vendor analysis and rating process

Working with key parts of vendor employee base such as drivers and guards and their families to promote health awareness, safety and grooming


Economic performance For the year ended 31st December 2012, our net revenues stood at USD

1902 million, representing an increase of USD 301.5 million or 18.8%

over corresponding figures for the previous year ( 2011 revenues USD

1600 million). Approximately USD 214.6 million, or 71.2%, of the growth

in our 2012 net revenues came from client relationships that began prior

to 2012, standing testimony to our unrelenting commitment to deliver

value to our clients. Business Process Management revenues as a

percentage of total net revenues decreased marginally to 76.6% in 2012

from 78.8% in 2011.IT revenues increased to 23.4% in 2012 from 21.2%

in 2011, driven by acquisitions of Headstrong and Accounting Plaza and

growth in Information technology services for Global clients and GE.

At USD 1157.8 million, our cost of revenue as a percentage of net

revenues decreased marginally from 62.8% in 2011 to 60.9% in 2012.

On absolute terms, this represents a year-on-year increase of USD 152.9

million. The increase was primarily due to higher personnel (USD 62.8.4

million or 41.1% of the increase) and operational expenses on account of

increased headcount and infrastructure cost.

To sum up, our gross profits grew by USD 148.7 million to USD 744.2

million representing a 25% increase. Likewise, our gross margin

increased from 37.2% in 2011 to 39.1% in 2012.

Comprehensive economic and financial results are given in annexure 1.

Acquisitions

20 42 160

342 551

669 780

1117

1405

0

500

1000

1500

2000

2500

2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenue (USD mn) from global clients ex. GE

CAGR: 33%

19% Increase in net revenues in 2012 over 2011

25% Increase in gross profits in 2012 over 2011

71% Of the growth in revenues came from existing

clients

429 492 613

823 1041 1120

1259

1600

1902

0

500

1000

1500

2000

2500

2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenue (USD mn) Growth CAGR: 18%


From time to time we may make acquisitions or engage in other strategic

transactions to fill capability gaps and drive growth. We continue to look

for focused, well-run businesses that add to our capabilities.

In April 2012, we acquired Accounting Plaza BV(Accounting

Plaza),a provider of finance and accounting, human resources

and People Soft ERP services

In August 2012, we acquired Triumph Engineering, Corp and

Triumph On-Demand, US based providers of engineering

services to the aviation, energy and oil and gas industries

In September 2012, we acquired Atyati Technologies Private

Limited (‘’Atyati”),a cloud –hosted technology platform provider for

the rural banking sector

Client Focus Our clients include some of the world’s best known companies, many of

them leaders in their respective sectors. GE, our largest client, accounted

for approximately 26.1% of our revenues in fiscal 2012. Some of our

leading Global clients include - AstraZeneca, Aon, BUPA, Cadbury

Schweppes, Genworth Financial, Dollar General, GlaxoSmithKline,

Hertz, Hyatt, Information Resources Inc., Kimberly-Clark, MassMutual

Financial Group, National Australia Bank, Nissan, Symantec, SABMiller,

United Biscuits, Walgreens and Wells Fargo.

It is extremely important for us to understand how we are viewed by our

customers, with some of whom we have a relationship that spans over 15

years. For this purpose, we have developed the NPS (Net Promoter

Score) program. NPS is a tool for gauging performance, establishing

accountability and prioritizing focus areas. The theory behind this is that

‘willingness to recommend’ is a strong indicator of loyalty (and client

revenue growth potential). If clients are willing to recommend us to

others, they are putting their own reputation at stake, which shows

intense loyalty. Genpact achieved an NPS of 64% in 2012. More than

half the respondents were promoters or delighted clients. The conversion

of 80%+

reflects high

client

engagement, despite the difficult economic conditions that affected

many. In addition, it reflects our continued rigorous focus on client

satisfaction and outcomes. NPS is the one common metric across 600

leaders with a high percentage of their variable compensation linked to it.

It is central to business strategy because our target is 80% growth from

existing clients. This focus on NPS is supported by our operating

mechanisms like ‘Alerts’, customer feedback forums and roundtables,

governance meetings and a high degree of transparency.

Several initiatives have been put into place for increasing client

satisfaction levels like Xcelerate, First Time Right, Service Delivery

Framework (SDF) and Common Minimum Practices (CMPs) etc.

Indirect Economic Impact - Taxation

47%

57% 55% 58%

64%

2008 2009 2010 2011 2012


USD 78,419,000 Income tax expense for 2012

Our profitable global operations result in payment of the applicable

corporate taxes in multiple countries, helping fund the governments there

and thereby improving the quality of civic services in those jurisdictions.

In 2012, the reported income tax expense (benefit) was $78,419,000.

Financial Assistance – Benefit to Genpact

A portion of the profits of Genpact’s operations is exempt from income

tax in India. The tax holiday under the STPI Scheme was available for a

period of ten consecutive years beginning in the year in which the

respective Indian undertaking commenced operations and expired

completely as at March 31, 2012. One of Genpact’s Indian subsidiaries

has four units eligible for tax holiday as a Special Economic Zone unit in

respect of 100% of the export profits for a period of 5 years, 50% of such

profits for next 5 years and 50% of the profits for further period of 5

years, subject to the satisfaction of certain capital investments

requirements. One of these units commenced operations in 2007, two in

2008 and one in 2009.

In addition to the tax holidays described above, various benefits are also

available to us under certain Indian state laws. These benefits include

rebates and waivers in relation to payments for the transfer or registration

of property (including for the purchase or lease of premises), waivers of

conversion fees for land, exemption from state pollution control

requirements, entry tax exemptions, labour law exemptions and

commercial usage of electricity.

During 2009, one of our subsidiaries in China obtained a ruling from the

Government of China certifying it to be a Technologically Advanced

Service Enterprise. That subsidiary is, as a result, subject to a lower

corporate income tax rate of 15% for a 3-year period starting in 2009,

extendable with necessary approvals. We also enjoy corporate tax

holidays or concessional tax rates in certain other jurisdictions, including

the Philippines, Guatemala and Morocco. These tax concessions will

expire over the next few years, increasing our overall tax rate. Our tax

expense will increase as a result of the expiry of our tax holidays and our

after-tax profitability will be materially reduced, unless we can obtain

comparable benefits under new legislation or otherwise reduce our tax

liability. For more details, please read our 10K report1.

1 http://investors.genpact.com/phoenix.zhtml?c=209334&p=irol-reportsother

http://investors.genpact.com/phoenix.zhtml?c=209334&p=irol-reportsother


People performance

There are two prime focus areas of our people practices:

Genpact is an equal opportunity employer promoting diversity across

geographies. Genpact is focused on HR best practices which are an

industry benchmark. Standardization of HR policies has been the focus

area and the policies are uniform across locations to the extent possible.

Through our collaborative programs we ensure the availability of a steady

stream of people for recruiting. Our focus on diversity and fair

employment helps us recruit and retain a diverse bunch of people

spanning many nationalities, physical capabilities, and gender balance.

Performance Management, growth in terms of learning, role

enhancement, up-skilling through elaborate trainings modules and

platforms such as Education@Work are the cornerstones on which the

people practice edifice is built. YES and Caring@Genpact, both act as

employee engagement initiatives, helping our employees work for a

higher purpose. Our GOLD programme serves as a platform for

developing crucial leadership skills.

Our workforce As of December 31, 2012, we have 60,109 employees worldwide. Since

we primarily deal with outsourcing, having a well-qualified employee base

is essential to our competitiveness.

Category Name

Band Job titles 2010 2011 2012

Associates 5 Entry Level, Associate

30,661 35637

39147

Middle Management

4 Managers 11862

13689

19128

Senior Management

3, 2 Associate Vice-Presidents and

Vice Presidents

1173

1250

1576

Top Management

1 Senior Vice-Presidents &

Chief Executive Officer

137 154 258

Total 43,833 50,730 60,109

Being a recruiter of choice

The ability to attract enough talented people to join Genpact. Achieved through collaborations with third parties and innovative recruitment programs like shop fronts.

Being an employer of choice

Providing adequate training so that our employees can meet the demands of their job while also being able to grow career-wise at Genpact

"We would like to be a company where people can build

their dream career"

Amit Aggrawal, Head of Training


As on 31st December 2012, 44,130 employees were based out India

while 7,196, 4,959, and 3,824 employees were based out of Asia (other

than India), Americas and EMEA (Europe, Middle East & Africa)

respectively. With a substantial population in the age bracket – less than

30 years, we are a relatively ‘young’ organization. Currently about

73.41% of our employees are based out of India. The rest are distributed

across the world, mainly out of China, Philippines, USA, Romania, and

Mexico. We believe in hiring capable, qualified, and meritorious

candidates locally for all our delivery centres.

Recruitment To overcome the war for talent, we have developed a number of

innovative methods to recruit sufficiently skilled employees. Social media

is being tapped into and direct sourcing is at the forefront of efforts to

attract talent. In India, we formed a joint venture with NIIT in 2008 to

create a training organization designed to address the increasing

demand for skilled workers in the business process & technology

services industry. During 2012, more than 23,000 employees received

training from the joint venture. We have also opened Delivery Centres in

cities that are considered less developed. We work directly with

universities as well in our Indian geographic locations to build an

appropriate curriculum to enable graduates in those cities to have the

skills they need to be effective employees. We are working closely with

the Central University of Rajasthan, IIM Udaipur and IMT Ghaziabad to

up-skill graduate and post-graduate students to take up complex Record-

to-Report jobs like Asset Based lending, Closing & Reporting, Financial

Planning & Analysis, Finance and Actuarial Analysis and Reconciliations

and Advanced Analytics like Predictive Modelling. Around 20 students

have already been absorbed between 2012-H1’13. We have also

partnered with 5-6 Source & Train Partners to hire ~100 ‘fresh’ graduates

in H1’13 alone

We have 4 storefront premises in India that we use for recruiting. In

2012, approximately 7% of our new hires were recruited through these

storefront locations. We also actively encourage our existing employees

to refer new candidates to us, and we provide existing employees with

monetary bonuses when such referrals result in new hires. In 2012,

approximately 32% of our new hires in India were referrals.

38% Of our total workforce is

female (2012)

>73% Of our workforce

is in India (2012)

64% Of our workforce

is aged <30 (2012)

37% 2011

72.9% 2011

68% 2011

Total no. of people

recruited

% female candidates recruited

% male candidates

recruited

18566 2012

41% 2012

59% 2012

21378 2011

35% 2011

65% 2011

18700 2010

36% 2010

64% 2010


Building a sustainable talent eco-system - a case study

Our geographical footprint while providing access to global talent, also

requires us to constantly innovate and solve different kinds of

challenges locally to meet manpower requirements

This led to the launch of a global transformation project “Program

Gateway & Build” in 2011. The project is positioned to help Genpact

remain ahead in the “War for Talent” by building a self-sustaining

Talent ecosystem so that it bridges the gap between employability and

the increasing talent deficit.

As a part of the project, we have launched skill-building programs

across domains to feed into the talent pipeline in strong collaboration

with the Government, Universities and Private Training Institutions. We

leveraged this to train candidates for skills where the business foresees

growth and shortage of ready-made talent, thus creating a symbiotic

eco-system for a sustainable talent supply.

The Project created value in the following ways:

For the Community: To create employability through skill-

building where there is an opportunity .

For the Organization & Customer: To build a ready supply

chain and widen talent pool for growth.

Project Success Metrics

This program enabled us to increase our talent base by 8% in 2011

with 1000+ deployments ($2MM P&L impact) and 20% in 2012

($6.2MM P&L Impact) by up-skilling ~3000 + people for higher jobs.

We expect to sustain a predictable supply pipeline for critical talent

through this program in 2013 (~25% Supply & $5MM P&L impact) and

by 2014 we expect to sustain 40% growth and replacements through

this program. These employees attrite at less than half the current rate

and helps improve Customer NPS.

Comprehensive data on our workforce is provided in annexure 2.

In China, the Training Team in China partnered with the local Govt. to

train unskilled graduates from campus in skills like F&A, PSCS, CS,

HRO, ITO etc. & break the bottleneck for BPO industry development. 400

students were trained and hired in 2012 from Huaqiao as part of the

Govt. sponsored initiative. In 2013, over 450 students are being trained in

Huaqiao, Foshan, Qingdao and Dalian as part of the Genpact-Govt.

partnership to make the local talent employable.

In Philippines, Genpact partnered with the Govt. in the training for work

program which was launched nationally in 2012 in line with the

government’s objective of increasing global competitiveness of the

Filipino workforce and increase employment. As part of the Near-Hire

program, 400 students were trained for the BPO/ BPM Industry and 90+

were hired since 2012.

Training and Development

We conduct training programs for employees on an on-going basis with

the objective of imparting them with new skills that will enable them move

on to higher responsibility or higher-value jobs. We seek to ensure that

the right types of training programs are available to our people based on

their job demands. Some of our training programs include - New Hire

Orientation, Process oriented training, soft skills, leadership

development, tie ups with universities, mentoring, and so on. Largely

they can be divided into three categories – Development training,

Leadership training & Education@work (university collaborations).


We have the infrastructure to train approximately 3,900 people at any

one time with over 230 trainers and we have more than 12,500

employees enrolled in part-time professional degree, e-learning and

other non-degree programs provided by universities and other third

parties.

Training Data for 2012

Category/Level/Grade of Employees

Total No. of Employees

No. of Hours of Training per

Category*

Average hours of training per

year per employee

Associates 39147 2,481,548 65.0

Middle Management 19128 738,561

39

Senior Management 1576 42,136

35

Top Management 258 7,595

13

Total 60,109 3,269,840 54.39

Education@work programme

Education@ Work is Genpact’s Continuing Education initiative. This

initiative was started in 2000-01 with the Flagship Program being a Post

Graduate Diploma in Business Management from IMT, Ghaziabad with

52 students. The current portfolio has over 250 national and international

recognized programs ranging from Management from top B Schools to

domain specific programs in the areas of Supply Chain, F&A, IT,

Collections, Analytics, BFSI, Healthcare, LSS etc. In 2012, based on

research results, we introduced more domain programs and retired

programs with low completion rates. We now partner with Centers of

Excellence to provide Career Progression to E@W graduates on niche

skill sets. Enrollment in the program has a measurable impact on attrition

rates. The attrition rates for employees who currently participate in the

program is 11% compared to 25% for Genpact as a whole. In 2012, we

hope to reduce this further to 8%.

Employee retention

Our attrition rate for all employees who have been employed by us for

one day or more was 30% in 2012. A number of our competitors

calculate employee attrition rates for their Indian employees who have

been employed for six months or more. On this basis our Indian

3.2 Million

hours Of training delivered

in 2012

54.4 Hours

Of training hours per employee per year on an average in 2012


employee attrition rate for 2012 would be approximately 25%, which we

believe is relatively low for our industry based on statistics published by

industry associations such as NASSCOM. We attribute this low attrition

rate to a number of factors including our effective recruiting measures,

extensive training and a strong culture of providing opportunities for

growth and learning. Approximately 16% of our employees were

promoted in 2012 and we filled a majority of new positions internally.

Performance appraisal

For our employees, the performance management process is an integral

part of their career development. It provides an avenue to get feedback

on individual performance and to identify training needs and development

plans. Based on the results of the appraisal process, employees are

rewarded based on both their performance as well as their potential to

improve. Coverage for 2012 is presented below:

Performance Reviews for Bands 1 to 4 for 2012 (Global)

Male Female Total

Total Number of Employees

14359

6398

20757

Total Number of Employees receiving regular 11922 5430 17352

performance appraisals

Percentage 83.03%

84.87%

83.60%

Performance Reviews for Bands 1 to 4 for 2012 (Global)

Male Female Total

Total Number of Employees 22838

15848

38686

Total Number of Employees receiving regular performance appraisals

20108

13860

33968

Percentage 88.05%

87.46%

87.80%

Other employee benefits

In addition to a competitive pay structure that commensurate with

industry standards, we also offer our employees other benefits (statutory

and otherwise). Depending on the geographies these may include - life

insurance, health care, disability/ invalidity coverage, parental leave,

retirement provisions and stock ownership etc. (Refer annexure 2).

Our focus on learning and development and employee benefits have

been key contributors in curbing attrition at 25%, one of the lowest in the

industry.

Employee health and safety

Genpact is committed to achieving excellence in safe work practices by

keeping in mind employees’ interest. In 2012 we upgraded our Safe

Work Environment Policy to the new Global Environment, Health, Safety,

30% Attrition rate (2012) –

Employees on role > 1 day

16% Employees promoted in

2012

25% Attrition rate (2012) –

Employees on role > 6 months


and Sustainability Policy. The policy was launched in January 2012 and

is displayed and communicated across all our locations. All our major

Global operating sites (primarily India, China, Mexico, EMEA, and

Philippines) are OHSAS 18001-2007 certified which will enable us to

identify hazards in our operations and minimize any health and safety

risks.

As an IT and ITES company our focus largely rests on occupational

health and ergonomic related conditions (e.g. Repetitive Strain

Syndrome, lower back pain, and wrist sprains etc). All our employees

undergo two mandatory online courses – one on office ergonomics and

another on EHS awareness. Apart from these, there are other optional

courses available both online and in-practice. Courses on Defensive

Driving, First Aid and Life Saving Skills, Ergo Champion, Fire Fighting are

a few examples. All our operating sites have medical facilities fully

equipped for medical emergency, first aid, and basic illnesses like

fainting, abdominal pains, shortness of breath, seizures, etc. Our medical

centres are staffed 24X7 by nurses and doctors are available for about 8-

10 hours a day based on employee timings. Any safety concern can be

emailed to @GenpactEHSGlobal or the Site Logistics Leader or the Site

EHS leader can be informed about the unsafe condition. All such

concerns are investigated and due action taken.

Diversity and inclusion

We are a globally diverse organization across multiple dimensions. Our

focus is to create the right environment, level playing field and support

structure to enable a gender diverse work to equally participate, succeed

and rise to positions of leadership in the organization based on their

merit.

We maintain Diversity not only at our entry level but, continuously drives

programs and initiatives focusing on building diversity throughout the

company, including on our board and senior management. Currently,

women represent approximately 38% of our global headcount and 20%

at the leadership (VP+) level.

In the 2012 Mckenzie study of 54 Fortune 500 companies and 23 Wall

Street Journal CEO council members, Genpact emerged as one among

27 companies in the pool that satisfied at least 2 success metrics out of 4

critical success measures i.e. 1) Women at Entry Level 2) Odds of

advancement 3) Women at the top 4) Presence in line roles. Genpact

has also been awarded Nasscom’s Corporate Award for Excellence in

Diversity and Inclusion for promoting the cause of women in 2012.

To support our gender diversity focus and integrate it with workplace

culture, we have a global women affinity group called GenWIN (Genpact

Women’s International Network) which focuses on driving positive

reinforcement initiatives, hosts leadership and external speakers

sessions, awareness forums and targeted interventions for women like

work-life balance, health camps and self-defence sessions across

Genpact.

38% Of global headcount represented by women

20% Of the leadership comprises of women


Genpact is proud to engage people with disabilities including the

orthopedically challenged, hearing, and visually impaired. These

employees are all engaged with different operations and functions,

ranging from accounting, insurance, and customer care to hiring and HR

shared services. Some of our visually-impaired employees have been

with us for more than 3 years and have grown from an associate level to

middle management positions, handling different roles and

responsibilities and even leading teams. The company employs 38

differentially-abled personnel at our delivery centres (2012).

Human rights One of our core beliefs is that we grow when our people grow, and that

such growth is ensured through strong Fair Employment Practices. We

works hard to provide its employees with a workplace free of

harassment, and requires that all decisions relating to employment be

made on the basis of merit, which protects the rights of minorities and all

protected classes of people.

Fair Employment Policy

We are committed to observing all applicable labour and employment

laws wherever we operate. That includes observing those laws that

pertain to privacy, the prohibition of forced, compulsory and child labour,

and those laws that pertain to the elimination of any improper

employment discrimination. Irrespective of the country, we observe the

following globally:

• We do not tolerate nepotism or adverse bias

• Merit, qualifications (for example, education, experience, or skill

sets) and other job-related criteria are the sole basis for all employment

related decisions affecting employees and applicants

• No allowances are given to any discriminatory practices

regardless of what cultural practices may persist in the wider society

• Our goal is to maintain a congenial and productive working

environment conducive for all

Prevention of discrimination and harassment

Genpact prohibits basing any employment decisions on race, colour,

religion, sex, caste, sexual orientation, national or regional origin, or any

other characteristic protected by law. Genpact's Policy is to use merit,

qualifications, job-related and other criteria sanctioned by our Human

Resources function as the basis for all employment-related decisions.

Where harassment occurs as a result of an act or omission by any third

party or outsider, we are committed to take all steps that are reasonable

and appropriate to prevent the harassment from continuing.

Avoidance of child and forced labour

As a part of our Fair Employment Policy, employment of any or all forms

of forced, compulsory and child labour either directly or through

contractors are strictly prohibited. We endeavour to ensure that age

criteria as per laws are met by the company and the contractors we hire.

Accordingly, we have put in place procedures for background checks and

age verification.

Freedom of association

We do not prevent any employee from exercising the right to freedom of

association or collective bargaining. In many countries, local law

guarantees collective bargaining. In most of the countries however

Genpact is not a union based environment. We adhere to all necessary

regulations in the regions in which we operate. In Brazil and the Czech

Republic, 100% of our employees are trade union association members.


In Romania we have employee representatives instead of a trade union

and 100% of our employees are covered under it.

Investment screening

Before we take a decision to acquire a company or a stake in it, we

conduct a thorough due diligence process. This includes checking for

statutory compliances, employee welfare benefits, human resource

compensation and benefits, leave policy, bonus policy, policy related to

salary increases, etc. There are largely no issues relating to child/forced

labour in our acquisitions.

Protection of personal information of employees

We respect employee privacy and the sanctity of personal information or

communication stored in official systems. Such information is accessed

only for business reasons such as - in the course of performing

maintenance, when investigating a problem or concern or in response to

a legal request for such information etc. Due notice is given to employees

in such cases.

Human rights in supply chain

All new vendors undergo an extensive Environment Health & Safety

(EHS) audit which also checks compliance with labour laws prohibiting

child and forced Labour. Our legal teams check compliance with statutory

requirements. Screening processes like police verification, background

checks, etc. are also conducted. This forms the basic level of pre-

qualification. We expect 100% compliance to all applicable EHS

guidelines and regulatory requirements. If a serious violation of our

integrity rules including EHS rules and regulations occurs, the vendor (or

an employee of the vendor) will be suspended or dismissed.


Environmental performance Our BPO/ITES specific Environmental Policy was developed in 2006; this

was subsequently followed-up with an ‘Eco-transformation Roadmap’ in

2007. The roadmap consisted of three phases: achieving ISO 14001

(Environment Management System) certification, capturing and analysing

the carbon footprint of our India locations and implementing energy and

environment conservation programmes to reduce this carbon footprint.

The program achieved intended results – our Carbon footprint and

energy costs were reduced significantly. In January 2012, we took the

next step by drafting of a Global “Environment Health Safety &

Sustainability policy” (EHS&S) policy.

Environmental Compliance We ensure compliance to all established regulatory standards for air

pollution (E.g., ozone depleting substances, NOx, SOx emissions, etc. –

primary source air pollution from our operations – DG sets)., noise

pollution, effluent quality, etc. We have been compliant with all

surveillance audits. We have recorded no instances of exceeding limits

so far in all our facilities. We monitor our indoor air quality performance

thrice a year, in-line with necessary standards, and maintain good indoor

air quality standards.

Resource Conservation

We have set our own internal objectives and targets on specific

environmental standards. We have adopted a strategy to adopt Green

Building designs for all our newly constructed (owned) and leased sites

where feasible. We have also invested in latest technologies to improve

our energy efficiency and minimize environmental releases. We carry out

ongoing campaigns to recycle, reduce waste, and conserve energy. By

focusing on green sourcing our equipment, and the green IT and

virtualization initiatives, we have already aggregated benefits of more

than INR 200 million.

Energy

With increasing energy costs it makes financial and environmental sense

that we do our best to keep our energy usage in check. We work with our

Sourcing team and Project engineering team to ensure that we have

energy efficient lighting and HVAC systems. We have undertaken lighting

retrofits and switching to LEDs, installation of ‘pull chords’ at workstation

level so that employee can directly switch off their workstation lights, and

installation of occupancy sensors. For HVAC requirements, we now have

smart cool technologies, servomax, occupancy sensors at passages and

restrooms, AHU (Air handling Unit) load optimization, and improvement

in indoor air by installation of ERV (Energy recovering ventilators).

>200 INR Million

Of benefits from resource conservation initiatives


60 59

69 72

0

10

20

30

40

50

60

70

80

2009 2010 2011 2012

Indirect Energy Consumption for Operations in India (GWh)

Apart from this we also endeavour to make our buildings more energy

efficient both through retrofits and by consolidating small and old sites to

bigger and more efficient sites. We have also used renewable energy

source like solar power for heating water at a residential building in one

of our campuses.

In 2012, 89% of the indirect energy consumption for our operations in

India was attributed to electricity purchased from the grid.

Following are details of our direct and indirect energy consumption in

different geographies of operations.2

Energy Consumption Data for operations in China, Philippines, and Europe

for 2012

Direct Energy Consumed Diesel Oil Consumed (KL) 2019

Indirect Energy

Consumed

Electricity (kWh) 1333

2 For 2009, we do not have data for LPG consumed. Data for indirect energy consumed in 2012 includes electricity purchased from the grid, electricity from gensets operating on diesel and natural gas.

964 744 659 1042

5833

7144

8778

2400 2200 2300

1250

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2009 2010 2011 2012

Direct Energy Consumption for India operations

Diesel oil (KL) LPG (Kgs) Charcoal (Kgs)


310,785 324,232

204,319

149,119

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2009 2010 2011 2012

Water Consumption (KL) for operations in India

Green IT initiatives

Genpact’s IT Team drives a strong process to assess all

application / server requirements to host on Virtual environment

unless there is a specific need or I/O intensive application which

demands a physical server- There were approximate annual

savings of 419,428 kWh energy or 355 tCO2 of Carbon foot print

reduction due to this initiative.

35 servers and 82 network switches which were EOL were

refreshed. These devices were bulky and power guzzlers and all

35 servers were virtualized and 82 switches were consolidated

and reduced to 40 state of the art energy efficient switches. This

resulted in approximate annual savings of 127,668 kWh energy or

108 tCO2 of Carbon foot print reduction.

In the area of Travel and Living, spend reduction resulted in a

saving of Rs 90Mn. Using data de-duplication, 10TB of storage

space was freed up. Server virtualization and consolidations

have contributed to the tune of INR 130 Mn.

Since 2011, we have enhanced the usage of teleconferencing

facilities to reduce employee business travel. Furthermore, we

have initiated a Data Centre Consolidation project which will help

create a positive impact on energy and space requirement by

2013.

Water

For conservation of water as a resource, we focus on the principles of

3Rs: reduce, recycle, and reuse. All our owned sites have automatic

water control sensors for overhead tanks, automatic shut-off for hand

wash facilities etc.

The water sources for our sites in India are ground water (bore well

pumps), water brought by tankers and water supplied by municipal

authorities. Waste water from our operations in India is treated in sewage

treatment plants (STP). Barring rain water, no untreated water leaves our

sites.

Water from our STPs is regularly analysed and water quality reports are

submitted to the Pollution Control Board. Water recycling activities are

18% Reduction in

water consumption in 2012 over 2011


being carried out at our owned sites and are used for landscaping,

flushing, etc in our global sites, the waste water leaving our operations

flow into communal or local sewage treatment facilities. In such cases we

do not measure water recycling figures. Our focus for the next few years

is to map our water consumption pan India. We will also focus on

monitoring consumption against regional benchmarks. We also plan to

establish sewage treatment plants and adopt rain water harvesting

strategies in all our own buildings and leased buildings where possible.

Since 2011, we have started measuring water consumption in some of

our Global sites. The water consumption for our sites in China,

Philippines, and Europe in 2012 is 44849 KL. The total water

consumption figure in 2012 has been taken for owned sites and leased

sites-single tenant facilities since metered water monitoring mechanisms

are in place in these sites.

Waste Management

The key focus area on waste handling management is the segregation of

waste under two broad categories: hazardous and non-hazardous

wastes, dry and biodegradable, All hazardous waste including bio-

medical waste, chemical wastes, and electronic wastes are disposed to

Central Pollution Control Board approved recyclers. For some of the

waste items, we have buy-back arrangements with dealers and

manufacturers. At Hyderabad, we have engaged ITC as our direct

recyclers for paper wastes, cartons, wood products, etc.

Waste generation in Indian operations

Type 2010 2011 2012

Non Hazardous Waste

Food (organic waste) (Kg)

142792

192221

303066

Sludge (Kg) 3000 1658 2400

Hazardous Waste Used oil (Litres) 5593 5025 8050

Cotton waste (KGs) 202 0 0

DG Filters (Nos) 392 328 -

E-waste( MT Tonnes) 12.475

29.24

Batteries (Nos) 946 931 1122

In 2012 we also recorded generation of 2,29,396.15 Kg of other dry

wastes, viz. paper & cardboard waste, etc. from our facilities in Gurgaon,

Jaipur and Hyderabad. We have started measuring waste generation in

some of our global sites from 2012. China and Philippines generated

10799.4 kgs of food waste.

Paper Conservation

We aim to reduce paper consumption by at least 10% in our facilities; this

has been one of the key focus areas in the ISO-14001 objectives and

targets.

>10% Reduction in paper consumption in

2012 over 2011


0.31 0.05 0.07

1.81

1.61 1.73

1.63

1.47 1.61

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2008 2011 2012

GHG emissions (tCO2) per employee per year

Scope 3

Scope 2

Scope 1

Programs like – Minus One (Reducing the font size to 1 unit for paper

efficiency, online bills, back to back printing, promoting ceramic/reusable

cups to disposable, etc. are our key drivers for paper reduction. Other

initiatives include sending communication splashes to all employees to

minimise paper usage, maximising the use of soft copies for office

transactions, printing on both sides of the paper, restricted distribution of

stationery, and reducing the usage of paper towels in all facilities.

Carbon Minimization

The overall GHG footprint of Genpact in 2012 was to the tune of 1,44,948

tCO2 e. of which 1.94% is attributable to direct emission (Scope 1) and

98.06% is indirect emission (Scope 2 and 3). Our operations in India

contribute over 90% of our total GHG footprint.

Over all Carbon footprint has increased primarily due to:

Addition of 5 new sites since 2011, including our newly acquired

sites like capital markets in India. However, our per employee

GHG emissions have reduced by 10.16 % which is the result of

various initiatives taken across sites.

7711 1772 2818

44385 59583 67237

39925 54258

62402

0

20000

40000

60000

80000

100000

120000

140000

2008 2011 2012

Absolute GHG emissions (tCO2)

Scope 1 Scope 2 Scope 3


0.00

0.20

0.40

0.60

0.80

1.00

1.20

2008 2011 2012

Transport emissions

Air travelemissions peremployee per year

Road travelemissions peremployee per year

Increase in diesel consumption due to poor grid power availability

in our prime India locations

The major emission source under the scope 3 emissions is travel related

emissions with a contribution of more than 90%

Transport and Carbon

Our employees’ daily commute and business travel form part of our

carbon footprint. We provide transportation services only to our

employees in India. This facility is availed by 37% of our employees in

India. In China, we provide a shuttle service. At our other global sites,

our employees choose their own modes of transport. We have

encouraged our employees to use public transportation. We work in

tandem with public transit options like the Metro is Gurgaon where we

offer last mile connectivity to our offices through shuttles. We have also

introduced the Car Pool Tool under our Go Green Initiative for our

employees. Despite the reduction in our transport services, we still

transport about 7500 employees in Gurgaon and cover about 160000 km

pan India, every day. We have calculated the net effect of our

transportation activities on the environment.

Since the time we started monitoring our air travel related carbon

footprint in year 2008, we have put forward stringent measures to reduce

the air travel. Measures like audio bridges, web chats, Video

conferencing were primarily driven to educate employees to reduce

travel, employee communications and campaigns were run across sites

to educate and empower employees to switch to VCs then to travel. All

these initiatives have helped to bring down our travel footprint by 69% for

domestic and 1.7% for international air travel from 2007-08 levels

Engaging stakeholders

Our employees are our most significant stakeholder and the journey

towards a sustainable future cannot be attained without employee

participation and engagement. Some of the engagements are listed

below:

Genpact EHS team developed an initiative ‘YES’ – You Environment

and Sustainability’. Under this initiative, fun initiatives were rolled out

last year to engage employees in a creative manner

Since 2007 Genpact has been participating to support WWF initiative

of Earth Hour globally, 2012 had been a another year where Genpact

globally participated for the Earth Hour drive

69% Reduction in domestic travel footprint in 2012 over 2008

2% Reduction in international travel footprint in 2012 over 2008


Globally, our sites in China, Europe and Mexico also organized

events to raise employee consciousness. China had a ‘Greening

Tomorrow’ activity and Mexico had a plantation drive

Under the ‘Go Green’ drive and to celebrate the last week of ‘Earth

Day’ 2012 ,Genpact Hyderabad Logistics organized a ‘Flash Mob’ in

the Uppal premises. The objective was to bring employees together

and spread awareness on ‘Saving Our Planet’.

Offices in Hyderabad and Bangalore had ‘Safai-Abhyan’ clean up

drives

The Puttenhalli Lake Cleaning Drive on April 14, 2012, spearheaded

by the Bangalore I & L, EHS and CSR teams, was a tremendous

success, thanks to the spirited participation of some volunteers from

Genpact who truly care for the environment.

Genpact joined hands with the members of the ‘Spark the Rise

Project’ for the lake restoration and cleaning activity. The intention of

the drive was to enable the lake to breathe and foster a healthy

coexistence of bio- diverse forms, make it a clean water body and

restore it as a natural the habitats of avian, aquatic and other life

forms

Environmental Investments The details of both operational and capital expenses incurred in 2012

towards environmental initiatives are given below:

882 INR Million Operational expense

4606 INR Million Total expense

3724 INR Million Capital expense



Ethics and Governance

Our governance framework is designed to ensure that we have a process

to identify, measure, and manage risks responsibly. We conduct risk

assessments annually at the level of the entity, business segment and

business process, leading to effective statutory, policy and process

compliances. Genpact is among the first few to become a member of

Partnering against Corruption Initiative. Genpact conducts focused

training on our policies relating to corruption to key risk groups, such as

our business development teams and those handling government

contracts.

Our governance structure involves a Board composed of 11 directors out

of which 10 are independent and respective Board level committees -

Audit Committee, a Compensation Committee and a Nominating and

Governance Committee. The structure is backed by strong policies and

frameworks that ensure ethical conduct across levels throughout the

organization.

Integrity@Genpact

Genpact is united on a foundation of unyielding integrity. Our customers

rely on our integrity when they entrust their business to us. Genpact

expects that each and every employee needs to exemplify this essential

value every day in everything we do in order to maintain this trust.

Genpact communicates our expectations through its Code of Conduct

(Integrity@Genpact), through regular training on the policies outlined

under Integrity@Genpact and via round the year communications (eg.

‘Data Privacy Month’ in September 2012). Integrity@Genpact covers 9

policies grouped under 4 categories. These are listed below

It is critical for every Genpact employee to assimilate the message

behind these guidelines and ensure the strictest compliance in every

aspect of his or her professional life. Comprehensive training modules

“At Genpact, we believe that integrity, compliance

and controllership are non-negotiable. This culture is

driven relentlessly across the organization, and is

reinforced repeatedly with our employees. We adhere

to the highest levels of ethical business practices as

articulated by our Code of Conduct.”

Commitment Statement by President & CEO

Protecting Reputation

Privacy

Conflicts of Interest

Intellectual Property

Commitment to Integrity

Controllership

Improper payments

Insider trading

Respecting Genpact

Community

Safe work environment

Fair employment practices

Competing Globally

Complying with competition laws


are available for employees. The number and percentage of employees

receiving training on Integrity@Genpact are given below:

Employee Category No of employees who have received integrity trainings

% of total employees receiving training

Associates 6287 16.06%

Middle Management 1944 10.16%

Senior Management 54 3.43%

Top Management 21 8.14%

Total 8287 13.82%

Grievance Redressal

If an employee observes conduct that may violate Genpact’s policies,

including improper payments, they have an obligation to report it.

Genpact offers multiple avenues for such reporting – it can be to an

employee’s immediate supervisor, a higher level of management, a local

compliance person, a member of the Legal Department or a local or

global ombudsperson. In addition, there is an ‘Ombuds box’ at most of

Genpact’s larger locations where employees can place a concern, either

signed or anonymously. Concerns can also be raised via email to

[email protected], anonymously or signed. In 2012, the

ombudsman process generated 448 complaints against 281 in 2011.We

believe that the increase is attributable to the increase in communication

and hence awareness about the program.

In 2012, we instituted a Compliance Communications Program. Under

the program, the business leaders in each part of Genpact were required

to communicate with their people about the Ombuds Program.

Genpact absolutely prohibits retaliation against anyone for raising an

integrity concern in good faith or assisting in an investigation of an

integrity question. Retaliation is grounds for discipline, up to and

including dismissal.

Public Policy Advocacy

Genpact does not lobby directly. Instead, we join organizations and

industry forums whose values we support such as NASSCOM, CII, and

others and participate through them. We also provide speakers for

events, on request. For example, our leaders are solicited to speak on

topics of Business Ethics, Whistle blower Programs, etc. The issues we

lobby on are closely linked to our operational priorities. We have lobbied

on commercially viable options for green energy, better work codes for

unstructured worker groups like security guards, drivers etc. Genpact is

an active member of various trade associations at local and national

levels, including:

281 2011

448 2012

Number of complaints generated by the ombudsman process


IAOP (International Association of Outsourcing Professionals)

NASSCOM

CII

ASUG (Americas SAP Users Group)

IMA Asia

U.S.-India Business Council

Contributions to Political Parties

Genpact advises employees to obey the laws and regulations of all

applicable jurisdictions with respect to political contributions and to never

give or offer, directly or indirectly, a payment or anything of value (such

as money, goods or services) to any political party, party official, or any

candidate for political office of any country to influence or reward any

governmental act or decision, or to obtain any improper advantage. No

donations have been made to political parties during the reporting period

Amount donated to political parties (INR):

0


Corporate Citizenship As we expand our footprint into more cities around the world, we also

take on the responsibility to care for the communities which we operate

and draw our talent from. Caring@Genpact is our global Corporate

Social Responsibilities (CSR) platform. It involves us as individuals as

well as an organization and has cross-functional stakeholder

involvement. The platform aims to integrate our social and environmental

principles into our operational fabric. Principles that guide out CSR vision

are given below:

We focus on socially-relevant areas that complement our business model

and skills/competencies and systematically apply our distinctive strengths

to maximize social and environmental value. We formally appointed a

Global CSR Leader in 2007. All our major locations have community

engagement programs. Our Community impact programs focus on

Volunteering, Employee Payroll Donations, Disaster Relief, Social

Investments, and Recycling Used IT Equipment.

Employee volunteering

Our employees form the foundation of the Caring@Genpact platform and

utilize their skills to engage with the communities around them. We have

instituted a guideline which allows for an employee to take a minimum of

3 hours per month from work to devote to a social cause he or she is

passionate about. We have an Executive Champion and team of

Community Champions at most of our sites to catalyse employee CSR

volunteering and design effective community outreach programs,

supporting a wide range of causes which employees are passionate

about. In 2012, we had 29 executive champions, 65 community

champions, approximately 13000 volunteers, participating in 180

volunteering activites in different facets including literacy, health,

environment, children, elderly, disability, etc. We associate with many

credible non-profit organizations in these endeavours.

Our employee volunteers educate children - especially girls, donate

blood and stem cells, volunteer in orphanages and homes for the elderly.

Our employees also actively participate in programs focused on

Embedded social and environmental

code of conduct into our core

operations and functions

Leverage our differentiating

skills and competencies

Design and implement

sustainable and scalable

solutions 3 hrs

Per month from work employees

can spend on CSR activities

29 Executive

champions

65 Community champions

13000 Volunteers

180 Volunteering

activities


environmental wellbeing. Some such initiatives in which our employees

volunteered are listed below:

Employee volunteering in the US is mostly focused on health care

(e.g., Leukaemia and premature death of children) while most of

our volunteers in the eastern hemisphere work on education

related causes.

Genpact South Africa collaborated with Khulisani (a majority black

female-owned business focused exclusively on the employment

and mainstreaming of persons with disabilities) to support 3

vendor carts for food items – 1 in Durban and 2 in Johannesburg.

One of the vendor cart is placed in the Genpact Woodmead

building

Tree plantation drive – 1000 employees from our Gurgaon office

participated in the ‘Million Tree Initiative’ being driven by a non-

profit organization – ‘I am Gurgaon’; 3000 trees were planted by

our employee volunteers in one day

Our teams in Europe have also been involved in clean-up and

tree plantation drives.

Employee payroll contributions

We partner with credible local non-profit organizations in various

geographies to enable our employees make small donations from their

salaries. More than 12,000 employees across India, Mexico, Guatemala,

and Hungary are cumulatively donating more than USD $ 300,000 a year

Disaster relief

The victims of natural disaster struggle to rebuild their lives and get back

to their normal routine. Their immediate priority is food, shelter, clothing,

medical assistance, and security. Genpact has been contributing

significantly in the recovery process and has extended all the necessary

support and resources to the victims. One such examples is the North

America Cyclone in 2012 – coastal areas of New York and New Jersey

were badly hit. Both states border Pennsylvania, and as news reports

and pictures of the devastation were broadcast, members of the

Caring@Genpact Committee and the Employee Committee in Genpact

Wilkes Barre Service Center joined forces, determined to find a way to

help the storm victims. Likewise, when San Marcos in Central America

was rocked by an earthquake of severe magnitude, our CSR Mexico

team organized a Hot Dog Sale to raise money for the victims. Donation

were also made by the corporate team to help raise money

Country % of employees making donations

Local NGO Partner we have associated with

India 26% Give India

Mexico 22% United Way

Guatemala 30% Americas India Foundation

Romania 38% United Way

Hungary 16% United Way

USD 300,000 Payroll contribution by 12,000 employees

across the globe in 2012


Social Investments

We are currently involved in various other ongoing social investments

programs. Two such important programs are described below

Public Health

We adopted and restored a non-functional government-run primary

health centre in Gurgaon, Haryana (India). As part of this effort, we

provided the healthcare centre with a team of doctors and nurses to help

the many underprivileged citizens who otherwise do not have access to

primary healthcare. Services at the health centre focus on providing

preventive care, basic health check-ups, pathological tests,

immunizations, eye examinations and diagnostic tests. Free medicine is

also provided at the facility.

Industry academia partnership

In India, we have partnered with IMT Ghaziabad in a program

titled ‘IMPACT’; upon signing a MoU with the institution in July

2012, we have launched five pilot courses in Analytics to improve

the employability of the students. The campus recruitment teams

in India assess candidature of students in remote locations of the

country for entrant level openings.

The Training Team in China partnered with the local government

to train unskilled graduates from campuses. 400 students were

trained and hired in 2012 from Huaqiao as part of the

government. sponsored initiative

In Philippines, we partner with the government in the ‘Training for

work’ program – a national program launched in 2012 to enhance

competitiveness of Filipino workforce. Since 2012, as a part of the

‘Near-hire’ program, we trained over 400 students in skills

relevant to BPO/BPM industry and recruited over 90 of them

Recycling used IT equipment

Till date, we have donated over 5,256 computers to educational

institutions and non-profit organizations in India. We have also been

streamlining our IT asset donation program – this includes an end-to –

end process of testing the equipments and assessing longevity, reloading

the Operating Systems, suggesting reasonable Annual Maintenance

Costs and prescribing vendors for e-waste disposal.

Highlights of few activities conducted in 2012 are presented below:

Education and Employability

Koshish CSR Team at Kolkata: Volunteers designed and delivered a 6-month F&A and Communications training for underprivileged girls of Udayan Care under the Shalini Girl Programme, leading to our first hire from this pilot project (which is now expected to be scaled up)

Capital Markets team with Chirag Trust, have provided scholarships and sponsorships to students and coaching to teachers. The team has also mentored students helping their employability

Healthcare

2615 units of blood donated globally by our employees (1600 in India, 925 in the US – mostly from Danville)

Inclusion

Genpact China: 869 employees donated books, bags, stationery and clothes for underprivileged students of Hope School

CSR Jaipur team worked with NGO ‘Akshya Patra’ to provide mid-day meal support for school children

Environment

Guatemala, Cluj and NCR (40 volunteers of Silokhera) Build homes for the homeless in association with ‘Habitat For Humanity’


GRI Index (sample) STANDARD DISCLOSURES PART I: Profile Disclosures

1. Strategy and Analysis

Profile Disclosure

Description Reported Status

Section Reference Explanation

1.1 Statement from the most senior decision-maker of the organization.

Full Message from the CEO

1.2 Description of key impacts, risks, and opportunities. Full Business overview & strategy

2. Organizational Profile

2.1 Name of the organization. Full Business overview & strategy

2.2 Primary brands, products, and/or services. Full Business overview & strategy

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Full Business overview & strategy

2.4 Location of organization's headquarters. Full Delivery centres Headquarters for global operations - India

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Full Delivery centres

2.6 Nature of ownership and legal form. Full Private limited company – listed in USA

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Full Delivery centres

2.8 Scale of the reporting organization. Full Economic


performance

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

Full None

Profile Disclosure


Section Reference Explanation

2.10 Awards received in the reporting period. Full Awards and Recognitions

3. Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided.

Full About the report

3.2 Date of most recent previous report (if any). Full About the report

3.3 Reporting cycle (annual, biennial, etc.) Full About the report

3.4 Contact point for questions regarding the report or its contents.


3.5 Process for defining report content. Full Data for complete global operations consolidated – presented in this report with emphasis on material issues.

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.


3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

Full None

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Full Not applicable

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other

Full Explained in the respective sections where data points are reported


information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Full No re-statements

Profile Disclosure

Description Reported Page No. Explanation

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Full None

3.12 Table identifying the location of the Standard Disclosures in the report.

Full This table

3.13 Policy and current practice with regard to seeking external assurance for the report.

Full External assurance has not been sought for this report.

4. Governance, Commitments, and Engagement

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

Full Corporate Governance

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

Full Yes

4.3 For organizations that have a unitary board structure, state the number ansd gender of members of the highest governance body that are independent and/or non-executive members.

Partial Corporate Governance

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Partial Share holders use Annual General Meetings share their views with the management of the Company.

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance).

Full Customer focus Significant part of the Variable pay for senior leaders is linked to economic performance criteria (including NPS); there is currently no linkage to social & environmental performances


4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.


4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

Not reported

Profile Disclosure

Description Reported

Status

Section reference Explanation

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Full

4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.


4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.

Partial Significant part of the Variable pay for senior leaders is linked to economic performance criteria (including NPS); there is currently no linkage to social & environmental performances

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

Not reported

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Partial Corporate Governance & Ethics

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

Full Genpact is a member in leading industry forums internationally (e.g. NASSCOM) and in local markets where we operate


4.14 List of stakeholder groups engaged by the organization.

4.15 Basis for identification and selection of stakeholders with whom to engage.

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

DMA Description Reported Page No. Explanation

DMA EC Disclosure on Management Approach EC

Our approach to the management of issues material to us under each of these categories (economic, environmental, labour and so forth) is covered in the respective sections.

DMA EN Disclosure on Management Approach EN

DMA LA Disclosure on Management Approach LA

DMA HR Disclosure on Management Approach HR

DMA SO Disclosure on Management Approach SO

DMA PR Disclosure on Management Approach PR

STANDARD DISCLOSURES PART III: Performance Indicators

Economic

Performance Indicator

Description Reported status


Economic performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation,

Full Economic performance


donations and other community investments, retained earnings, and payments to capital providers and governments.

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.

Full Our Delivery Centres may face potential risks of damage from natural disasters and other disruptions caused due to climate change; we may also be susceptible to energy related issues with linkage to climate change

EC3 Coverage of the organization's defined benefit plan obligations.

Partial People practices

EC4 Significant financial assistance received from government. Partial Economic performance

Market Presence

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

Full At all locations where we operate, we are fully compliant to the applicable laws; our standard entry level wages in each country where we operate is substantially higher than that mandated by law.

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Full This data is currently not being tracked.

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Full Definition of local – country level. At senior management levels, we prefer hiring locals where possible. All the major leadership roles at operating locations are currently filled by locals

Indirect economic impacts

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Full Corporate Social Responsibility

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Full Economic performance

Environmental





Materials

EN1 Materials used by weight or volume. Not Genpact is a services company; there is no significant material consumption

EN2 Percentage of materials used that are recycled input materials.

Not Genpact is a services company; there is no significant material consumption

Energy

EN3 Direct energy consumption by primary energy source. Full Energy (Environmental Sustainability)

EN4 Indirect energy consumption by primary source. Full Energy (Environmental Sustainability)

EN5 Energy saved due to conservation and efficiency improvements.

Partial Energy, Carbon minimization (Environmental Sustainability)

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

Not Not applicable

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

Full Energy, Carbon minimization (Environmental Sustainability)

Water

EN8 Total water withdrawal by source. Full Water (Environmental sustainability)


EN9 Water sources significantly affected by withdrawal of water. Full NIL

EN10 Percentage and total volume of water recycled and reused. Partial Water (Environmental sustainability)

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Not Applicable. Genpact delivery centres are not located near areas of high biodiversity value

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

EN13 Habitats protected or restored.

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

Emissions, effluents and waste

EN16 Total direct and indirect greenhouse gas emissions by weight. Full Carbon

EN17 Other relevant indirect greenhouse gas emissions by weight. Full Carbon (Environmental sustainability)

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Full Energy, Carbon (Environmental sustainability)

EN19 Emissions of ozone-depleting substances by weight. Full No significant emissions of Ozone Depleting substances from our operations

EN20 NOx, SOx, and other significant air emissions by type and Partial Environmental


weight. compliance (Environmental sustainability)

EN21 Total water discharge by quality and destination. Partial Water (Environmental sustainability)

EN22 Total weight of waste by type and disposal method. Full Waste Management

EN23 Total number and volume of significant spills. Full NIL (not applicable)

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

Full

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.

Not Not Applicable. Genpact delivery centres are not located near areas of high biodiversity value

Products and services

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Full Not applicable

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

Not applicable

Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Full During the course of the last three years, Genpact has not paid any material fines for non-compliance.

Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce.

Full Not applicable; our efforts to reduce Carbon emissions linked to employee transportation have been presented in the section on Carbon Minimization.


Overall

EN30 Total environmental protection expenditures and investments by type.

Full Total (INR) 4,606,000,000

Capital expenses - 3,724,000,000

Operational expenses - 882,000,000

Social: Labor Practices and Decent Work




Employment

LA1 Total workforce by employment type, employment contract, and region, broken down by gender.

Full People practices

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region.


LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.


LA15 Return to work and retention rates after parental leave, by gender.

Full Return to work and retention rates in the US were 100%. In china, while 100% of the employees returned to work, the retention rate was only 3%. In the reporting period, there were no staff in our Latin American operations who availed parental leave. In other geographies, this data is not currently tracked.

Labor/management relations

LA4 Percentage of employees covered by collective bargaining agreements.

Full Human rights (Freedom of Association)

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

Partial Human rights (Freedom of Association)

The company adheres to all applicable laws and regulations relating to labour-management relations in all locations.


Occupational health and safety

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

Full Health and Safety topics are not covered

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

Partial Safety data and absenteeism. Data currently not tracked in locations where it is not mandated

LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Full Employee health & safety

LA9 Health and safety topics covered in formal agreements with trade unions.

Not Applicable.

Training and education

LA10 Average hours of training per year per employee by gender, and by employee category.

Full People practices Gender. Data currently not tracked

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.


LA12 Percentage of employees receiving regular performance and career development reviews, by gender.


Diversity and equal opportunity

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Partial Corporate Governance

Equal remuneration for women and men

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

Full There is no difference in ratio of basic salary of men and women in any geography where we


operate;

Social: Human Rights




Investment and procurement practices

HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

Full Human rights Human rights screening. Not part of investment process

HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

Full Human rights

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Partial Human rights All Genpact employees undergo Integrity training which encompasses training on non-discrimination etc. No separate training on human rights is provided

Non-discrimination

HR4 Total number of incidents of discrimination and corrective actions taken.

Partial Human rights (Ombudsman)

Freedom of association and collective bargaining

HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

Partially Human rights

Child labor

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

Partial Human rights


Forced and compulsory labour

HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

Partial Human rights

Security practices

HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations.

Full Currently, no training on human rights provided to security personnel

Indigenous rights

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.

Not Applicable. No indigenous population near locations of operation

Assessment

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

Partial Human rights, Governance & Ethics

Human rights. All human rights aspects applicable to Genpact are covered in the Integrity policy.

Remediation

HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.

Partial Human Rights (ombudsman)

Social: Society




Local communities

SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.

Full Corporate Social Responsibility


SO9 Operations with significant potential or actual negative impacts on local communities.

No significant negative impacts.

SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Not applicable

Corruption

SO2 Percentage and total number of business units analysed for risks related to corruption.

Full Governance & ethics

SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.

Full Governance & ethics

SO4 Actions taken in response to incidents of corruption. Full There were no identified incidents of corruption in the reporting period

Public policy

SO5 Public policy positions and participation in public policy development and lobbying.

Full All public policy positions are taken through the Industry bodies that we are a part of at each location.

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Full Nil

Anti-competitive behaviour

SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes.

Full NIL

Compliance

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Full Nil

Social: Product Responsibility

Performance Description Reported Section reference Explanation


Indicator status

Customer health and safety

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Not Applicable.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Not Applicable

Product and service labelling

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Not Applicable

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes.

Not Applicable

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Full Economic performance (Customer focus)

Marketing communications

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Full We are compliant to all applicable laws in this regard in all operating geographies.

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Full Nil

Customer privacy


PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Partially Our Ombuds data includes breaches of customer privacy

Compliance

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Full Nil


Annexure 1: Economic Value Added Year ended December 31, 2012

Region Net Revenues (USD in Mn) As a % of Net Revenues

India 1,111.2 69.4%

Asia, other than India 184.2 11.5%

Americas 165.9 10.4%

Europe 139.1 8.7%

Total 1,600.4 100%

Economic Value Added (USD Mn)

2009 2010 2011 2012

Direct Economic Value Generated (A)

Revenue (through core business segments) 1120.1 1259 1600.4 1902

Other Income (through other sources) 4.4 5.2 10.7 13.6

Total 1124.5 1264.2 1611.1 1915.6



2009 2010 2011 2012

Economic Value Distributed (B)

Operating cost 296.5 303.2 376.5 446.6

Personnel expenses (wages + benefits) 584.4 704.5 925.9 1110.1

Interest charges 2.7 9.2 28.1

Other Expenses* 83.1 73.3 46.9 67.80

Taxes and royalties (given to various govt. wherever business units are located) 25.5 34.2 70.7 78.4

Net income attributable to non controlling interest 6.85 6.78 6.37

Dividends (payments to capital providers) 0 0 0 0

Donations (political parties/politicians) 0 0 ~ 0

Community development/CSR investments** 0

Total 989.5 1115.2 1420 1737.37



2009 2010 2011 2012

Economic value added (A-B) 135 142.15 184.2 178.23

Other Expenses*

Depreciation and amortization 57 62.9 60.3 57.70

Amortization of acquired intangible assets 26 16 20 23.20

Other operating (income) expense, net -6.1 -5.5 1.4 0.00

Foreign exchange (gains) losses, net 5.5 -1.1 -35.1 (13.10)

Equity method investment activity, net 0.7 1 0.3 0.00

Total 83.1 73.3 46.9 67.80


Summary of Income Tax expenses and tax benefit for year ending December 31 - 2009, 2010 and 2011 in USD (‘000)

2009 2010 2011 2012

Income before income tax expense 1,60,424 1,83,234 2,61,732 263,009

Statutory tax rates 35% 35% 35% 35%

Computed expected income tax expense 56,148 64,132 91,606 92,053

Increase (decrease) in income taxes resulting from:

Foreign tax rate differential 2,690 1,541 -5,902 1,331

Tax benefit from tax holiday -26,024 -30,713 -22,757 (25,554)

Non-deductible expenses 1,544 -701 2,721 2,011

Effect of change in tax rates -1,691 2,084 617 635


Summary of Income Tax expenses and tax benefit for year ending December 31 - 2009, 2010 and 2011 in USD (‘000)

2009 2010 2011 2012

Change in valuation allowance -2,436 -2,305 1,248 12,548

Change in tax status -10,343 -658 — —

Others 5,578 823 3,123 (4,605)

Reported income tax expense (benefit) 25,466 34,203 70,656 78,419

Percentage of Tax benefit to Profit before tax (PBT) 16% 17% 9% 10%


23474 27125

31822

37421

15144 16708

18908 22688

0

5000

10000

15000

20000

25000

30000

35000

40000

2009 2010 2011 2012

Gender distribution of employees

Male Female

27242

29904

34465

38251

11028

13327

15617

20888

348

602

648

970

0 20000 40000 60000 80000

2009

2010

2011

2012

Age distribution of employees

<30 30-50 >50

28606

31895

37018

44130

4744

5388

6523

7196

2947

4090

4432

4959

2321

2459

2757

3824

0 10000 20000 30000 40000 50000

2009

2010

2011

2012

Geographical distribution of employees

EMEA

Americas

Asia Other than India

India

Annexure 2: Human resource data


The following table summarizes recruitments across geographies and the gender distribution.

Geography 2010 2011 2012

Male Female Total Male Female Total Male Female Total

India 10012 3506 13518 11604 3999 15603 8515 3663 12178

Asia

(ex. India)

930 1528 2458 1070 2000 3070 1047 1650 2697

Americas 758 1185 1943 1036 689 1725 931 868 1799

EMEA 232 549 781 262 718 980 491 1401 1892

Total 11932 6768 18700 13950 7390 21378 10984 7582 18566

New employees and employee turnover:

Categorisation

2009 2010 2011 2012

Male Female Total Male Female Total Male Female Total Male Female Total

New Employee Hire turnover by category

Associates 844 571 1415 1635 932 2567 2043 938 2980 8439

6584

15023

Middle Management

171 62 233 291 116 407 185 82 267 2353

954

3307

Senior Management

17 3 20 20 7 27 7 4 11 176

41

217


Categorisation

2009 2010 2011 2012


Top Management

1 0 1 0 0 0 1 0 1 16

3

19

Total 1033 636 1669 1946 1055 3001 2246 1024 3259 10984 7582 18566

New Employee Hire Turnover by Region

India 683 248 931 1640 571 2211 1770 493 2263 8515

3663

12178

Asia, other than India

50 92 142 142 263 405 148 265 413 1047

1650

2697

Americas 282 233 515 123 162 285 282 177 459 931

868

1799

EMEA 18 63 81 41 59 100 35 89 124 491

1401

1892

Total 1033 636 1669 1946 1055 3001 2246 1024 3259 10984 7582 18566

New Employee Hire Turnover by Age

<30 819 480 1299 1566 798 2364 1933 842 2775 8104

5566

13670

30-50 206 131 337 368 223 591 289 169 458 2729

1809

4538

>50 8 25 33 12 34 46 13 13 26 152

206

358

Total 1033 636 1669 1946 1055 3001 2246 1024 3259 10984 7582 18566

Total Employee Turnover by Category


Categorisation

2009 2010 2011 2012


Associates 3800 2982 6782 6146 4109 10255 7033 4170 11204 7140

4647

11787

Middle Management

987 549 1536 1579 840 2419 1797 848 2645 2185

1039

3224

Senior Management

149 46 195 244 79 323 183 55 238 181

49

230

Top Management

18 1 19 20 4 24 24 1 25 21

3

24

Total 4954 3578 8532 7989 5032 13021 9037 5074 14111 9527 5738 15265

Total Employee Turnover by Region

India 3717 1817 5534 6684 3029 9713 7351 2723 10074 7766

3200

10966


392 665 1057 624 1147 1771 672 1241 1914 790

1298

2088

Americas 689 709 1398 466 419 885 792 645 1437 757

664

1421

EMEA 156 387 543 215 437 652 222 465 687 214

576

790

Total 4954 3578 8532 7989 5032 13021 9037 5074 14111 9527 5738 15265

Total Employee Turnover by Age

<30 3532 2471 6003 5850 3706 9556 6666 3613 10280 6853

4060

10913

30-50 1363 1015 2378 2086 1249 3335 2298 1359 3657 2572 1578 4150


Categorisation

2009 2010 2011 2012


>50 59 92 151 53 77 130 73 102 175 102

100

202

Total 4954 3578 8532 7989 5032 13021 9037 5074 14111 9527 5738 15265

Rate of Employee Turnover by Category

Associates 24% 26% 25% 34% 33% 33% 33% 29% 31% 30% 30% 30%

Middle Management

14% 16% 15% 19% 22% 20% 19% 20% 19% 20% 20% 20%

Senior Management

16% 15% 16% 28% 27% 28% 19% 18% 19% 10% 10% 10%

Top Management

19% 6% 17% 18% 17% 18% 19% 4% 16% 10% 10% 10%

Total 21% 24% 22% 29% 30% 30% 28% 27% 28%

Rate of Employee Turnover by Region

India 19% 20% 19% 30% 33% 30% 28% 26% 27% 20% 20% 20%


26% 20% 22% 35% 32% 33% 31% 29% 29% 30% 30% 30%

Americas 43% 53% 47% 24% 20% 22% 34% 30% 32% 20% 20% 20%

EMEA 23% 23% 23% 31% 25% 27% 29% 23% 25% 30% 30% 30%

Total 21% 24% 22% 29% 30% 30% 28% 27% 28%

Rate of Employee Turnover by Age

<30 22% 22% 22% 32% 32% 32% 31% 28% 30% 30% 30% 30%


Categorisation

2009 2010 2011 2012


30-50 19% 26% 22% 25% 26% 25% 23% 24% 23% 20% 20% 20%

>50 40% 46% 43% 26% 19% 22% 31% 25% 27% 20% 20% 20%

Total 21% 24% 22% 29% 30% 30% 28% 27% 28%

Employee benefits:

Difference in Employee Benefits for Full Time, Part Time, and Contract Employees

Region/ Standard Benefits Life insurance Health care Disability/ invalidity coverage

Parental leave Retirement provision Stock ownership

India FT Y Y Y Y Y Y

PT Y Y Y Y Y Y

C N N N N N N

China FT Y Y Y Y Y Y*

PT N N N N N N

C N N N N N N

Philippines FT Y Y Y Y N Y

PT Y Y Y Y N N

C N N N N N N

US FT Y Y Y Y Y Y





PT Y (for 30+ hours per week)

Y (for 30+ hours per week)

Y (for 30+ hours per week)

N Y Y (for 20+ hours per week)

C N N N N N N

Mexico FT Y YBand4+ Y YBand4+*** Y N Y

PT NA NA NA NA NA NA

C NA NA NA NA NA NA

Guatemala FT Y Y N# Y N N

PT Y Y N# Y N N

C NA NA NA NA NA NA

Brazil FT Y Y Y Y N N


C NA NA NA NA NA NA

Colombia FT Y Y Y Y Y Y


C Y Y NA Y Y N

Romania FT Y Y Y Y Y^ Y^^

PT Y Y Y Y Y^ Y^^





C NA NA NA NA NA NA

Hungary FT N Y N Y N N

PT N Y N Y N N

C N Y N Y N N

Czech FT Y N Y Y N N

PT N N N Y N N

C NA NA NA NA NA NA

FT - Full Time | PT - Part Time | C - Contract *Not all, but selectively **For 30+ hours per week and 20+ hours per week respectively ***Band 4+ #This is given by the Guatemalan Social Security System only ^Mandatory contribution to pension fund ^^ Handled from the U.S.

Defined benefit plans based on an actuarial valuation carried out as of December 31 in USD (‘000)

2011 2012

Projected benefit obligation at the end of the year 22044 29821

Fair value of plan assets at the end of the year 16274 14957


Company contribution to defined contribution plans as of December 31 in USD (‘000)

2009 2010 2011 2012

India 8,111 10,386 13,014 14102

U.S. 1,011 1,693 2,295 3012

U.K. 561 849 1,047 1444

Hungary 62 41 34 58

China 6,771 7,998 9,480 12477

Mexico 57 44 27 27

Morocco 100 117 150 156

South Africa 87 358 321 327

Hong Kong — — 21 34

Singapore — — 8 9

Philippines — — 10 15

Netherlands - - - 1523

Total 16,760 21,486 26,407 33,184

More Details are provided on Page F-37 to F-42 of the Annual Report Parental leave:

Region Maternity Leave

Duration

Return to work rate*

Retention Rate**

Paternity Leave Duration

Return to work

rate*

Retention Rate**



Duration


Retention Rate**


Return to work

rate*

Retention Rate**

India No Data

China*** 98days normally; 150

days for female age over 24

95%

24%

15 days 100% 3%

Philippines 60 days for normal delivery and 78 days for

caesarean section

No Data No Data Upto 7 days No Data No Data

US Short Term Disability (STD): 4

weeks before and 6 to 8

weeks after FMLA (if

eligible, runs concurrently

with STD): 12 weeks

Parental Leave: 2 to 3 weeks

90% 79% Yes, under the FMLA which

offers 12 weeks Parental Leave: 2

weeks

100% 100%

Mexico 84 days 100% 97% 5 days NA NA

Guatemala 84 days 100% 100% 2 days No one availed

No one availed



Duration


Retention Rate**


Return to work

rate*

Retention Rate**

Brazil 180 consecutive

days

100% 100% 5 consecutive days

No one availed

No one availed

Colombia 14 weeks No one availed

No one availed

8 days No one availed

No one availed

Romania 1 or 2 years as per employee's

option and Labour Code

No Data No Data 3 weeks + possibility to use one month from

the maternity leave or paternity leave instead of maternity leave

No Data No Data

Hungary Up to 3 years / child but

women can ask for sick leave

any time before the birth of the

child

No Data No Data 5 days + possibility to go

for maternity leave (fathers

can go for GYED, GYES)

No Data No Data

Czech 28 weeks No Data No Data Until the child is three years old

No Data No Data

98

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