Genpact to send some work from Danville to India
DANVILLE — Genpact officials are planning to transfer some of the Danville facility's existing work to lower-cost locations, including India, according to company officials, who maintain that the global company does not intend to reduce its workforce in Danville.
An independent, worldwide company since 2005, Genpact Limited specializes in business process services, such as accounting and customer service, for clients around the world, and took over the 383,299-square-foot Walgreens accounting center at 1901 E. Voorhees St., Danville, in May 2010. Genpact has more than 50,000 employees globally.
Gail Marold, vice president of public relations for Genpact, said in an emailed statement Thursday that "while we are focused on growth of the Danville center, we do have to transfer some of the existing work to lower-cost locations this year. We have communicated this to our employees whose positions may be affected, but we do not intend to reduce the number of positions held in Danville. Any affected employee who is not experiencing performance issues will be offered positions in new roles that fit their skills and current pay in 2012."
Marold said the company does not know how many positions will be affected by the transfer of work, but it's a small percentage. She said it's less than 20 percent. Genpact has 500 permanent positions at the Danville center, she said, and more than 100 temporary positions. She said the temporary positions are full-time clerical jobs, but are temporary due to the nature of some of Genpact's work.
Marold said the lower-cost locations have not been finalized, but one would be India, where Genpact has multiple centers.
"This was all part of the agreement with Walgreens. This isn't anything that's not known," Marold said.
Despite the transfer of work, Marold said Genpact does not intend to reduce its workforce at the Danville center, because the company has a number of open jobs coming in with additional clients. She said the facility has more than 100 open positions right now. Since Genpact took over the Danville facility, Dollar General has become a client. In a Feb. 8 news release, Genpact announced that the transition services the company started last year on behalf of Dollar General are complete and information technology production support services are fully operational as of Jan. 1. Under its agreement with Dollar General, the news release stated, Genpact is managing a range of services out of its center in Danville.
Marold said she cannot disclose the identity of any other new clients to be served out of Danville.
"We don't have approval. They represent a cross-section of industries," she said.
Asked whether the Danville workers whose work is being transferred will receive the same level of pay after 2012 in the new positions they are being offered, Marold said she "thinks so."
"We are just taking it a year at a time. We are not asking anyone to take pay cuts or anything like that," she said.
In the emailed statement, Marold said Genpact has maintained the same number of jobs since it took over in Danville and is focused on adding positions, especially with new client business.
"Given the dynamic business and economic environment that we and our clients are operating in, we structure our delivery teams to be able to deliver in the most cost-effective way to drive value and business impact to our clients, and that may mean services provided onshore, near-shore, offshore, or many times a combination," she said in the statement. Marold said near-shore would be Mexico or Guatemala, and offshore could be at multiple places overseas.
The former Walgreens accounting center had long handled all the accounting for the more than 7,000 Walgreens drugstores in all 50 states. In early 2010, Genpact and Walgreens announced their new 10-year agreement for Genpact to take over its accounting service center. And on May 1, 2010, 500 of the workers became Genpact employees, and Walgreens became a client of Genpact per the agreement.
Another 200 workers at the Danville Genpact facility remain Walgreens employees, however, doing office functions for Walgreens stores other than accounting, and Walgreens rents space from Genpact for those workers.
Genpact started in 1997 as a business within General Electric Co. and was known as GE Capital International Services. Eight years later, it was spun off as a separate company and began offering its business-office services to clients outside of the GE conglomerate. It became a publicly traded company on the New York Stock Exchange in 2007, under the ticker symbol G.
Genpact officials have said in the past that their move to Danville was to better position itself in the U.S. business market by bringing its services within the country and closer to its U.S.-based clients.
Genpact announced its 2011 fourth-quarter performance on Monday, which showed the company's net income rose nearly 33 percent, beating Wall Street expectations.