GENPACT OVERVIEW

Genpact is a business process management company it starts its operation in 1997 last decade know it has completed its 14 years in India with large number of small and large changes. Genpact is the pioneer of business process management in India. Genpact starts its operation first along with GE in its starting stage but later it becomes an independent unit. Genpact is working on its DNA 6 sigma and Lean from its initial stage so that it can provide a better quality of services to its client. Genpact Limited (NYSE: G) is a global business process and technology management company. It was formerly a GE owned company called GE Capital International Services or GECIS. It operates from India, China, Guatemala, Hungary, Mxico, Morocco, the Philippines, Poland, the Netherlands, Romania, Spain, South Africa, Australia, Brazil and the United States. Tiger Tyagarajan is the President and CEO of Genpact. Currently it employs over 49,000 people] in various locations providing services in 30 languages on a 24/7 basis. Genpact's services cover areas like Finance and Accounting, Sales and Marketing, Analytics, Supply chain, Collections, Customer Services, Information technology, Healthcare and Learning and Content Management. Genpact operates from Asia, Eastern Europe, Northern America, Australia and most recently Africa.

In India

Genpact, Uppal Hyderabad

In India it operates from Gurgaon, Delhi, Hyderabad, Jaipur, Bangalore, Dehradun and Kolkata. The operations in India are Finance and Accounting, Sales and Marketing Analytics, Customer Services, Financial Services Collections, Supply chain, Information Technology and Actuarial & Other Insurance Services with Learning Content Development. Genpact has got an approval to open its SEZ center in Bhubaneshwar.II Genpact has a 50:50 joint venture with NDTV in NGEN Media Services. Also has tied up with NIIT for training related services.

BUSINESS PROCESS OUTSOURCING (BPO)

BPO is the process of hiring another company to handle business activities for you .BPO is distinct from information technology (IT) outsourcing, which focuses on hiring a third-party company or service provider to do IT-related activities, such as application management and application development, data center operations, or testing and quality assurance. In the early days, BPO usually consisted of outsourcing processes such as payroll. Then it grew to include employee benefits management. Now it encompasses a number of functions that are considered "non-core" to the primary business strategy. Now it is common for organizations to outsource financial and administration (F&A) processes, human resources (HR) functions, call center and customer service activities and accounting and payroll. These outsourcing deals frequently involve multi-year contracts that can run into hundreds of millions of dollars. Often, the people performing the work internally for the client firm are transferred and become employees for the service provider. Dominant outsourcing service providers in the BPO fields (some of which also dominate the IT outsourcing business) include US companies IBM, Accenture, and Hewitt Associates, as well as European and Asian companies Capgemini, Genpact, TCS, Wipro and Infosys. Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm. BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing -

which includes customer-related services such as contact centre services. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called near shore outsourcing. Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. Many of these BPO efforts involve off shoring -hiring a company based in another country -- to do the work. India is a popular location for BPO activities. Frequently, BPO is also referred to as ITES -- information technologyenabled services. Since most business processes include some form of automation, IT "enables" these services to be performed. An offshoot of BPO is KPO -- knowledge process outsourcing. Considered by some to be a subset of BPO, KPO includes those activities that require greater skill, knowledge, education and expertise to handle. For example, whereas an insurance company might outsource data entry of its claims forms as part of a BPO initiative, it may also choose to use a KPO service provider to evaluate new insurance applications based on a set of criteria or business rules; this work would require the efforts of a more knowledgeable set of workers than the data entry would. The current definition of KPO encompasses R&D, product development and legal e-discovery, as well as a number of other business functions. Also coming into use is the term BTO -- business transformation outsourcing. This refers to the idea of having service providers contribute to the effort of transforming a business into a leaner, more dynamic, agile and flexible operation. Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined 4

and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Few of the motivation factors as to why BPO is gaining ground are:

Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement

Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes.

Different Types of Services Being Offered By BPO's

1. Customer Support Services Our customer service offerings create a virtual customer service center to manage customer concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 365 days basis. Service Example: Customers calling to check on their order status, customers calling to check for information on products and services, customers calling to verify their account status, customers calling to check their reservation status etc. 2.

Technical Support Services

Our technical support offerings include round-the-clock technical support and problem resolution for OEM customers and computer hardware, software, peripherals and Internet 5

infrastructure manufacturing companies. These include installation and product support, up & running support, troubleshooting and Usage support. Service Example: Customers calling to resolve a problem with their home PC, customers calling to understand how to dial up to their ISP, customers calling with a problem with their software or hardware. 3. Telemarketing Services Our telesales and telemarketing outsourcing services target interaction with potential customers for 'prospecting' like either for generating interest in products and services, or to up-sell / promte and cross sell to an existing customer base or to complete the sales process online. Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling to retail households to sell leisure holidays, outbound calling to existing customers to sell a new rate card for a mobile service provider or outbound calling to sell credit or debit cards etc.

4. Employee IT Help-desk Services Our employee IT help-desk services provide technical problem resolution and support for corporate employees. Service Example: of this service include level 1 and 2 multichannel support across a wide range of shrink wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS, connectivity etc., office productivity tools support including browsers and mail, new service requests, IT operational issues, product usage queries, routing specific requests to designated contacts and remote diagnostics etc. 5. Insurance Processing

Our insurance processing services provide specialized solutions to the insurance sector and support critical business processes applicable to the industry right from new business acquisition to policy maintenance to claims processing. Service Example: New Business / Promotion: Inbound/outbound sales, Initial Setup, Case Management, Underwriting, Risk assessment, Policy issuance etc. Policy Maintenance / Management: Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification, Surrender Audits Accounts Receivable, Accounting, Claim Overpayment, and Customer care service via voice/email etc.

6. Data Entry Services / Data Processing Services Service Example:

o o o o o o o o

Data entry from Paper/Books with highest accuracy and fast turn around time (TAT) Data entry from Image file in any format Business Transaction Data entry like sales / purchase / payroll. Data entry of E-Books / Electronic Books Data Entry : Yellow Pages / White Pages Keying Data Entry and compilation from Web site Data Capture / Collection Business Card Data Entry into any Format

o o o o o o o

Data Entry from hardcopy/Printed Material into text or required format Data Entry into Software Program and application Receipt and Bill Data Entry Catalog Data Entry. Data Entry for Mailing List/Mailing Label. Manuscripting typing in to word Taped Transcription in to word.

7. Data Conversion Services

Service Example:
o o o

o o o o o o o

Conversion of data across various databases on different platforms Data Conversion via Input / Output for various media. Data Conversion for databases, word processors, spreadsheets, and many other standard and custom-made software packages as per requirement. Conversion from Page maker to PDF format. Conversion from Ms-Word to HTML format Conversion from Text to Word Perfect. Conversion from Text to Word to HTML and Acrobat Convert Raw Data into required MS Office formats. Text to PDF and PDF to Word / Text / Doc Data Compilation in PDF from Several Sources.

8. Scanning, OCR with Editing & Indexing Services Service Example:

o o o o o o

High speed Image-Scanning and Data capture services High speed large volume scanning OCR Data From Scanned page / image Scan & OCR paper Book in to CD. ADOBE PDF Conversion Services. Conversion from paper or e-file to various formats

9. Book Keeping and Accounting Services Service Example:

o o o o o

General Ledger Accounts Receivables and Accounts Payable Financial Statements Bank Reconciliation Assets / Equipment Ledgers etc

10. Form Processing Services:

Service Example:
o o o o

Insurance claim form Medical Form / Medical billing Online Form Processing Payrol Processing etc.

11. Internet / Online / Web Research

Service Example:
o o

Internet Search, Product Research, Market Research, Survey, Analysis. Web and Mailing list research etc.

Employee Benefits Provided By Majority of the BPO Companies

Provident Fund: As per the statutory guidelines, the employee is required to contribute a percentage of his basic salary and DA to a common fund. The employer for this fund contributes as well. The employee can use the amount deposited in this fund for 9

various personal purposes such as purchase of a new house, marriage etc.

Gratuity: Gratuity is one of the retrial benefits given to the employee in which the employer every year contributes a particular amount. The fund created can be used by the employee for the purpose of long-term investment in various things such as a house etc. Group Mediclaim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, nonearning parents and children above three months Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. It is applicable to all the employees of JFWTC and covers total / partial disablement / death due to accident and due to accidents. Subsidized Food and Transportation: The organizations provides transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc 10

Cellular Phone / Laptop: Cellular phone and / or Laptop is provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset. Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year. Loans: Many BPO companies provides loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial settlement at the work location. Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools. Performance based incentives: In many BPO companies they have plans for , performance based incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation, Maternity, Formal education program Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-effective compensation structure 11

by balancing the monthly net income, yearly benefits and income tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, Special Allowance Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/to Rs. 7000/- based on their level in the organization. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. Paid Days Off Maternity Leave Employee Stock Option Plan

Inspite of all these benefits, the attrition rate in BPO industry is very high, why?. What is the reason for an employee to leave? These and many more are the questions that need immediate attention from the industrial gurus.

Genpact OTC Process

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OTC (Order to Cash) refers to a business process of receiving payments as and when due from clients for services rendered to them and get that payment applied by cash application. OTC is end to end (means when this process is complete it will again start from starting point). Genpact Order to Cash practice provides end to end solutions for the entire customer to cash life cycle. Genpact manage upstream processes, often referred to as Order-to bill, that include setting up customers and their contracts, assessing credit risk and managing order fulfillment. Genpact also handle downstream processes, or invoice to cash, such as collecting and applying cash payments and resolving customer disputes and deduction. OTC process is long, complex and comprises multiple functional descriptions creation of order, billing, dispatch, collection, cash application. Genpact team made it one of the areas of expertise. Genpact has the largest business-to-business OTC operations in the industry. They have 3000- plus associates around the globe managing more than $100 billion in revenue for their customers.

Vital Terms
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AR

[Accounts Receivable]

Money which is owned to a company by a customer for services rendered to them. A specific transaction is generally treated as a accounts receivable after customer accept the invoice. It is one of a series of accounting transactions dealing with billing of a customer for the goods and services that the customer has ordered. Collection team is part of accounts receivable department.

AP

[Accounts Payable]

Money which a company owes to vendor for products and services purchased on credit like, unpaid invoices, statements for goods and services rendered by outside contractors, amount payable to vendors or suppliers.

FPNA

[Financial Planning and Analysis]

FPNA produce accurate, timely, high quality financial analysis and advise to decision makers. FPNA department have all the financial records of client and client can approach to FP&A department to know the updates of his accounts.

Invoice
An invoice or bill is a commercial document issued by a seller to a buyer, indicating the products, quantities and agreed prices for product and services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay the due amount.

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Components of Invoice
All invoices that organization provide to clients for service rendered should include the following components Business Name Unique Invoice Number Client Name and Contact Information Invoice Date Purchase Order Number Service Summary Total Amount Payable Terms of Payment

Payment Terms
Payment terms also known as Terms these are those conditions under which a seller will complete a sale. Typically, these terms specify the period allowed to a buyer to pay the amount due, and may demand cash in advance, cash on delivery, a payment period of 30 days or more. Payment terms are very important for AR because it shows the time period allowed to clients to pay the due amount. Maximum time period allowed to a customer to make the payment is 90 days.

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Main Modes of Payment in Genpact

These three are the main modes of payment in which Genpact receive payments from clients. a. By Cheque

b. By Wire Transfer c. By EFT [ Electronic Fund Transfer ]

Due Date
Due date is the date on which customer have to pay the amount due for goods and services rendered to him by Genpact. Due date is also known as payment date. Each client have different due date. Collection team send a e mail one week before due date to the client to remind him the due date for payment.

Invoice Date
Invoice date is the date on which invoice is generated.

Payment Terms
Payment terms are the specific period allowed to a buyer to pay the amount due. Period allowed to clients are measure in days to avoid the wrong calculation because of variation of days in different months.

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Currencies in which Genpact received Payments

Following are the currencies in which Genpact receive payments from global clients: INR USD CAD AUD EURO GBP ZAR [Indian Rupee] [American Dollar] [Canadian Dollar] [Australian Dollar] [European Currency] [Great Britain Pound] [South African Countrys Currency]

These are the 7 currencies in which Genpact receive payments from most of clients.

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DSO

[Days Sales Outstanding]

A measure of the average number of days a company takes to collect revenue after sale has been made. A low number of days indicate that the company collects its outstanding receivables quickly. Normally, Days Sales Outstanding is calculated monthly. The Days Sales Outstanding analyses provide general information about the number of days on average that customers take to pay invoices. DSO is the main problem in OTC cycle; it is in a companys best interest to collect outstanding receivables as quickly as possible. So measures should be taken to reduce DSO.

Method to calculate DSO

DSO = Outstanding Amount + Unbilled Amount * Number of Days Total Revenue

OR

DSO = Accounts Receivable * Number of Days Total Credit Sales

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OTC Process
Order Requisition Approve Accepted by Supplier Accepted by is Services Buyer Approved Started

Order

Production Billing Generate Invoice Non Production

Dispatch

Send Invoice to Client

Collection

Receive payment and applied it

Cash Application received

Close the Invoice on which payment

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Purchase Order
A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes legal offer to buy products or services. The typical sections of a purchase order are: Date Purchase Order Number Names and addresses of both the customer and the supplier/vendor. Description of the items being ordered, the cost for each, and the total amount.

Order

Requisition

Approve Supplier

Accepted by

Accepted by Buyer

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Contract is Signed

Services Started

Billing
Billing team generate bill for services rendered to clients and invoice (bill) are send to the clients. Billing is of two types: 1. Production Billing Directly related to services rendered. Have two parts: FTE [Full Time Employment] Number of employees are employed by the organization for clients. Transactional Billing Based on number of transactions between the clients and organization. 2. Non Production Billing Not directly related to the production, for example Laptop charges.

Billing is done on monthly basis. Billing is done in GBS [Global Billing System] and then invoices are generated in Oracle.

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Dispatch
Simply dispatch is the act of sending of invoice to the clients. Dispatch is documented billing proof. It is the act of send the documented bill to the clients, so customer come to know about the amount he have pay for services rendered to him by the supplier.

Main modes of Dispatch

There are 3 main modes of dispatch in Genpact. They are: 1. Hard Copy 2. Soft Copy 3. Upload on customer site like GETS, Ariba etc.

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Collection
Collection is the function of accounts receivable department. It is very important step in OTC [order to cash] cycle. It is the process where AR collection team follow up with the clients for the invoices generated for services rendered to them. It is important to collect all the invoices as when due to steady the DSO [ Days Sales Outstanding ] prospective of any organization.

Collection includes
1. Collection teams check that dispatches happen on time. 2. On due date collector approach the customer for the payment.

Paid

Not Paid

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Receive

Follow Up

Applied

Cash Application
Cash Application is last step in OTC process. When collection team receive payments on invoices from clients, then collector send those invoices to cash application team to applied that money

Payment Received

Applied

Invoice Number

Invoice Amount

It is very important to apply those invoices on which payments are received, so these invoices removed from the outstanding report 24

timely, to avoid any issue related to payments received on these invoices in future and in last invoices are closed in Oracle.

Collection process is very critical stage in Genpact OTC end to end cycle. Collection Process
The work of collection team is started after invoices are dispatched to clients by the dispatch team. Collections get all the details for billing invoices from the outstanding report generated from oracle by the AR team.

Activities Performed To Collect the Due Invoices Are

Collection process starts when collection team receives a outstanding report from AR: 1. Every AR representative filters their portfolio from outstanding report. 2. Then collection team update the invoice status as per the different sources like GETS, Inventory, Last outstanding report, Inward Remittance Report.

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3. Collection teams mark the reminders mail for invoices due but not received. 4. From reporting prospective to leadership they share their latest outstanding report of their portfolio with operations. 5. If require collection team set call with different stakeholders. 6. After the payments are received it is the core responsibility of collector to get the money applied.

Outstanding Report
AR team share a report on weekly basis with collection which is generated from oracle and includes all the invoices build, due but not paid, invoice will be due in future. This report is called as outstanding report and this report is basis for collection team.

Inward Remittance Report

Inward Remittance Report is that report which needed by collector to check that actually money is received or not. This report has all the details about the money paid by the clients for services rendered to them. Collectors have to confirm from the inward remittance report that client make full payment or some amount is yet to pay by the client. If client not paid the full due amount then collector follow up him for payment and if client paid full payments then collector apply that money by cash application and invoice is removed from oracle. 26

Inward Remittance Report is very important in collection, when client make the payment, this report help collector to check that actually payment is received or not.

Follow up Clients
Collection team ensure that dispatches happen on time, if there is any disconnect with dispatch, collection team plays a vey vital role to get the dispatched issue resolved then collection team send reminders to clients :

Reminders to Client
Trigger Objective Invoice Not Due 5 avoid conflict which working days post may arise when invoice Invoice dispatch date. Get due for payment. Action To Whom

To Call / e-mail

Customer Contact

To

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Invoice Not Due 10 Call / mail to ensure invoice is scheduled for

To Call / e-mail Customer Contact days prior to due date

payment as per the due date and is not missed Out. Invoice past due, Bucket Follow up Reminder to (1-7 Days) No payment priority for AP team promise date To Call / e-mail Reminder 1 Customer Contact

Invoice past due, Bucket Total 3 Reminders (8-15 Days) No payment before escalating to Promise date managers at client.

To Call / e-mail Reminder 2 & 3

Customer Contact

Invoice past due, Bucket Total 5 Reminders (16-30 Days) No payment before involving to promise date GOL / GRM Invoice past due, Bucket Set priority of GOL (31-60 Days) No payment GRM. Regular promise date follow ups internally

To Call / e-mail Reminder 3 & 4

Customer Contact Genpact Operations / FPNA

To Call / e-mail Reminder 6 & 7

Customer Contact Operations GOL / GRM MF 28

till closure.

Invoice past due, Bucket GOL / GRM to take (60+ Days) Payment forward and drive Not received closure.

To Call / e-mail

GOL / GRM Operations MF COE Leader

GOL - Global Operation Leader GRM - Global Relationship Manager FPNA - Financial Planning and Analysis MF - Master of Finance COE- Centre of Excellence

Tracking Payments by Collection Team

As and when follow up is done by the collection team, then on due date of invoice AR representative get the payment promise from the client. After which he track payment in their Inward Remittance Report if received on promise date. There are 3 possibilities when collection team tracks payments: 29

Payment received and applied Payment received but not applied Payment made by client but not received

Chart of Collector Work When Payment Made By the Client

Payment Received Payment not and Applied Received

Payment Received but not Applied

These are the three situations which collection team face while tracking payments from clients and collection team overcome on problems if payment is received but not applied and payment is made by the client and not yet received and get payments applied to cash application.

Payment Received and Applied

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This possibility normally happens in Genpact. In this situation: Client Make the Payment

Payment Received by Collector

Check with Inward Remittance Report

Payment Applied to Cash Application

Invoice Removed from Outstanding Report

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Payment received and applied by the collector usually happen in Genpact. Client make the payment on due date, collector received the payment and get it applied. When payment is released then collector have to check the payment with Inward Remittance Report, to know that actually payment is received or full payment is paid by the client or some amount is yet to pay by client. If client make full payment then collector applied the money received on invoices to the cash application and if some amount yet to pay by the client then collector follow up the client for payment. After applying the payment received the main task is get the invoice removed from the outstanding report and closes the invoice. This is most suitable case in Genpact, that client make the payment, received and applied by the collector and invoice is removed from the outstanding report.

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Payment Received But Not Applied

This case arises when invoice break up is not provided in bank report to AR team by the client. In this case AR representative mark a mail and ask for the invoice break up from the AP team.

Then collection team: Check Detail Required for Invoice

Invoice Break up

Confirm with AP

Close in Next Outstanding Report

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This problem can be finding out in some cases. It occur when collector approaches the client for payment on due date and client make the payment in hurry, so sometimes payment is received by the collector but not applied because invoice break up is not provided by client. When client make the payment, then it is duty of collection team to apply that payment. So collector check detail require, this option is very important and needed by the collector to know all details about the payment made by the client. It include date of receipt, client name, currency, invoice number, bank reference number etc. After checking detail required the next thing is to check invoice break up, in Genpact there are so many invoices of same client so in invoice break up collector confirm with customer that for which invoice customer make the payment and then collector share it with A.R. Invoice break up is necessary to use, to avoid any mistake in applying payment and it is better to confirm with customer that on which invoice he make the payment. After confirm with AR it is very important to close that invoice on which payment is received in next outstanding report, to avoid any problems related to that payment in future.

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Payment Made By the Client But Not Received

This could be the possibility where AR representative receive the confirmation from client / AP team that payment has been released from their bank account but same is not received in our bank statement [Inward Remittance Report]. In this situation Collection team ask client to provide the remittance details of the payment. i.e.

Date of Payment
In remittance detail the first thing ask from client is date of payment, means the date when client make the payment. Date of payment is needed to check that any payment is received on that date or not.

Amount of Payment
The next thing asks from client in remittance details is amount of payment paid by the client. After receiving total amount of payment from the client collector check that any similar amount is paid or not on the date on which payment received from client.

Invoice Break Up
Invoice break up is the most important thing needed by the collector from the client. There are so many invoices on the name of the same client, so collector not know on which invoice client make the payment, so collector need confirmation from client that on which invoice he make the payment so collector check the payment made by the client with that invoice number.

Bank Details
Last thing ask by the collector from the client in remittance details is details about the Bank, like: 1. Account Holder Name 2. Bank Name 3. Bank Account Number 35

Collection in OTC Process

In OTC process there is two types of clients to whom Genpact collection team receive the payments. They are: Global Clients GE Clients

Global Clients
Genpact collection team receives the money from global clients. It includes all clients of Genpact except GE [General Electric]. Genpact have separate account for receiving payments from GE clients. Different portfolio is used for global clients. Some Global clients of Genpact are: Yahoo GSK Penseque Wolsforgo etc.

GE Clients
Genpac also have GE [ General Electric ] clients and collection team collect payments from GE clients also, they have separate account for all GE clients. Genpact have huge number of GE clients. A different portfolio is used for GE clients. Collection team is there to see all the accounts of GE client. Different FPNA is there for GE clients. The company name start with GE is GE client of Genpact.

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Some GE Clients Are

GE Corporate GE Infrastructure GE Energy GE Water GE Money

These are the name of some GE clients of Genpact.

GETS Report
Gets report is use for GE clients who provide AR representative the status of the invoice at various stages like invoice is due for approval; invoice is decline by the client etc.

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Responsibilities of Collection Team

Following are the main responsibilities of Collection Team

Dispatch Reconciliation
Collection team ensure that dispatches happen on time, if there is any disconnect with dispatch, collection team get the dispatch issue resolve. Once dispatch is done then collection team sends the 1st reminder after one week to get the acknowledgement on the dispatched invoices.

Follow Up with client

On due date collector send a mail to client to get the payment done by the client Payment date / Due date is the date on which customer have to make the payment for services rendered to him. Collector cannot approach to the client before due date.

Tracking Payment as and when received

Collection team receives payments from clients. When clients make the payments then it is the responsibility of collection team to receive payments on those invoices, so further processing can possible.

Close Monitoring Cash Application

After receiving the payments the next task is applied the payments received on the various invoices to cash application, means apply the invoice number or invoice amount.

Get Invoice Closed

When collection team applied payments to cash application, the last thing is get the invoice closed. So invoice is removed from the outstanding report. These are the main responsibilities of collection team which increase the importance of collections in Genpact.

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CONCLUSION
Following are the some recommendation to Genpact for improvement in collection:

1. Correct Invoice Is Dispatched To The Clients.

Complete invoice Accurate Invoice

2. Effective Use of AP Portals to Track Payments.

Gets Ariba

3. No Po, No Billing
Purchase order is very important in case of GE client. So if without purchase order, order is passed for GE clients and collector do the billing without purchase order. It will create delay in receiving payment from client. So there should be no billing without purchase order for GE clients.

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