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What changed in Genpact LTD's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Genpact LTD's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+486 added−487 removedSource: 10-K (2025-03-03) vs 10-K (2024-02-29)

Top changes in Genpact LTD's 2024 10-K

486 paragraphs added · 487 removed · 399 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

66 edited+11 added−17 removed68 unchanged
Biggest changeWe cover the complete supply chain operations reference model and provide services in critical areas such as supply chain resiliency, sustainable/circular supply chain and orchestrated enterprise. 9 Sourcing and procurement: We offer advisory and managed services across the direct and indirect procurement value chain, including strategic sourcing, responsible sourcing, category management, spend analytics, procurement operations and digital platform transformation.
Biggest changeProcurement: We offer advisory and managed services across the direct and indirect procurement value chain, including strategic sourcing, responsible sourcing, category management, spend analytics, procurement operations and digital platform transformation. 9 Human resources and people advisory services Our human resources services include change management services, where we partner with clients to drive HR function transformations through an approach that combines strategic communications, leadership enablement and training design services.
In addition to our professional services, such as finance and accounting, CFO advisory, supply chain, sourcing and procurement, and sales and commercial, that are available to clients across our verticals, we offer core industry-specific services to clients in select verticals.
In addition to our professional services, such as finance and accounting, CFO advisory, supply chain, sourcing and procurement, and sales and commercial, that are available to clients across verticals, we offer core industry-specific services to clients in select verticals.
Prior to his appointment as our Chief Executive Officer, he served as the Senior Vice President and Business Leader for our Consumer Goods, Retail and Life Sciences business since 2008, our Healthcare business since 2016 and our Financial Services business since 2020.
Prior to his appointment as our President and Chief Executive Officer, he served as the Senior Vice President and Business Leader for our Consumer Goods, Retail and Life Sciences business since 2008, our Healthcare business since 2016 and our Financial Services business since 2020.
We make available free of charge on our website, www.genpact.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as 17 reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
We make available free of charge on our website, www.genpact.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
We are affected by laws and regulations in the United States, the United Kingdom, the EU and its member states, and other countries in which we do business that are intended to limit the impact of outsourcing on employees in those jurisdictions, and occasional changes to laws and regulations in such jurisdictions may impose changes that further restrict or discourage offshore outsourcing or otherwise harm our business.
We are affected by laws and regulations in the United States, the United Kingdom ("UK"), the EU and its member states, and other countries in which we do business that are intended to limit the impact of outsourcing on employees in those jurisdictions, and occasional changes to laws and regulations in such jurisdictions may impose changes that further restrict or discourage offshore outsourcing or otherwise harm our business.
Other jurisdictions, such as the EU, also maintain similar laws and regulations that apply to some of our operations. Several of our service delivery centers, primarily located in China, Costa Rica, India, Israel, Malaysia and the Philippines, benefit from tax incentives or concessional rates provided by local laws and regulations.
Other jurisdictions, such as the EU and UK, also maintain similar laws and regulations that apply to some of our operations. Several of our service delivery centers, primarily located in China, Costa Rica, India, Israel, Malaysia and the Philippines, benefit from tax incentives or concessional rates provided by local laws and regulations.
Our banking and capital markets clients include retail, investment and commercial banks, mortgage lenders, equipment and lease financing providers, fintech companies, payment providers, wealth and asset management firms, broker/dealers, exchanges, auto finance providers, clearing and settlement organizations, renewable energy lenders and other financial services companies.
Our banking and capital markets clients include retail, investment and commercial banks, equipment and lease financing providers, fintech companies, payment providers, wealth and asset management firms, broker/dealers, exchanges, auto finance providers, clearing and settlement organizations, renewable energy lenders and other financial services companies.
In 2018, the Clarifying Lawful Overseas Use of Data (CLOUD) Act established new required processes and procedures for handling U.S. law enforcement requests for data that we may store outside of the U.S. In the EU, the General Data Protection Regulation (GDPR) went into effect in May 2018.
In 2018, the Clarifying Lawful Overseas Use of Data Act established new required processes and procedures for handling U.S. law enforcement requests for data that we may store outside of the U.S. In the EU, the General Data Protection Regulation ("GDPR") went into effect in May 2018.
We foster a culture of giving and volunteering through several global platforms, projects, and social initiatives. More than 62,000 of our employees have volunteered their time to support a range of causes, such as mentoring underprivileged children and young adults, providing meals to food-insecure communities, planting saplings, and engaging in e-waste collection drives.
We foster a culture of giving and volunteering through several global platforms, projects, and social initiatives. More than 65,000 of our employees have volunteered their time to support a range of causes, such as mentoring underprivileged children and young adults, providing meals to food-insecure communities, planting saplings, and engaging in e-waste collection drives.
We also provide services in the areas of partner management and commercial operations, such as pricing and promotion optimization, and B2B customer experience, including order management, deductions and dispute management. Marketing and experience: We enable our clients to drive growth by delivering transformational experiences that leverage our deep understanding of data, technology and process design.
We also provide services in the areas of partner management and commercial operations, such as pricing and promotion optimization, B2B customer experience, and deductions and dispute management. Marketing and experience: We enable our clients to drive growth by delivering transformational experiences that leverage our deep understanding of data, technology and process design.
In the United States, we are subject to laws and regulations governing foreign trade, such as export control, customs and sanctions regulations maintained by government bodies such as the Commerce Department’s Bureau of Industry and Security, the Treasury Department’s Office of Foreign Assets Control, and the Homeland Security Department’s Bureau of Customs and Border Protection.
In the United States, we are subject to laws and regulations governing foreign trade, such as export control, customs and sanctions regulations maintained by government bodies such as the Commerce Department’s Bureau of Industry and Security, the Treasury Department’s Office of Foreign Assets Control, the Department of Justice and the Homeland Security Department’s Bureau of Customs and Border Protection.
We also train our teams in our clients’ cultures, processes, and business environments. Intellectual Property The solutions we offer our clients often include a range of proprietary methodologies, software, and reusable knowledge capital. We also develop intellectual property in the course of our business and our agreements with our clients regulate the ownership of such intellectual property.
We also train our teams in our clients’ cultures, processes, and business environments. Intellectual Property The solutions we offer our clients often include a range of proprietary methodologies, software, and reusable knowledge capital. We develop intellectual property in the course of our business and our agreements with our clients govern the ownership of such intellectual property.
As a talent-led organization, our people are critical to the success of our business. We have created, and constantly reinforce, a culture that emphasizes collaboration, innovation, process improvement, and dedication to our clients.
As a talent-led organization, our people are critical to the success of our business. We have created, and constantly reinforce, a culture that emphasizes collaboration, innovation, continuous learning, process improvement, and dedication to our clients.
Our competitors include: • large multinational service providers, primarily accounting and consulting firms, that provide consulting and other professional services; • companies that are primarily business process service providers operating from low-cost countries, most commonly India; 14 • companies that are primarily information technology service providers with some business process service capabilities; and • smaller, niche service providers that provide services or products in a specific geographic market, industry or service area, including new AI and digital technologies.
Our competitors include: • large multinational service providers, primarily accounting and consulting firms, that provide consulting, technology transformation and other professional services; • companies that are primarily business process service providers operating from low-cost countries, most commonly India; 14 • companies that are primarily information technology service and transformation providers with some business process service capabilities; and • smaller, niche service providers that provide services or products in a specific geographic market, industry or service area, including AI and other advanced technologies.
If they determine that the new business is aligned with our strategic objectives and a good use of our resources, then our business development team is authorized to pursue the opportunity. 13 Global delivery We serve our clients using our global network of more than 90 delivery centers in more than 25 countries.
If they determine that the new business is aligned with our strategic objectives and a good use of our resources, then our business development team is authorized to pursue the opportunity. 13 Global delivery We serve our clients using our global network of more than 100 delivery centers in more than 20 countries.
In 2023, we continued to invest in technologies and programs designed to improve employee experience, with a particular focus on employee well being.
In 2024, we continued to invest in technologies and programs designed to improve employee experience, with a particular focus on employee well-being.
As of December 31, 2023, we had a portfolio of more than 60 patents and pending patent applications globally. Additionally, we have over 200 trademarks registered in various jurisdictions. We often use third-party and client software platforms and systems to provide our services.
As of December 31, 2024, we had a portfolio of more than 70 patents and pending patent applications globally. Additionally, we have over 200 trademarks registered in various jurisdictions. We often use third-party and client software platforms and systems to provide our services.
Finance and accounting services We believe we are one of the world’s premier providers of finance and accounting services. Our focus is on delivering fast and high-quality results, minimizing exceptions, providing a seamless user experience, and making a working capital impact for our clients.
Finance and accounting services We believe we are one of the world’s premier providers of finance and accounting services. Our focus is on delivering fast and high-quality results, minimizing exceptions, providing a seamless user experience, and driving working capital improvements for our clients.
However, the United Kingdom has implemented its own guidance for handling outbound data transfers to jurisdictions such as the U.S. whose privacy laws are not covered by an existing adequacy decision, has adopted an International Data Transfer Agreement as a framework for companies to transfer personal data outside of the United Kingdom, and has implemented its own version of DPF, called the UK-U.S.
However, the UK has implemented its own guidance for handling outbound data transfers to jurisdictions, such as the U.S., whose privacy laws are not covered by an existing adequacy decision and has adopted an International Data Transfer Agreement as a framework for companies to transfer personal data outside of the UK.
We believe that the principal competitive factors in our industry include: • deep expertise in industry-specific domains and processes; • ability to advise clients on how to transform their processes and deliver transformation that drives business value; • ability to provide innovative services and products, including digital offerings; • ability to consistently add value through digital transformation and continuous process improvement; • reputation and client references; • contractual terms, including competitive pricing and innovative commercial models; • scope of services; • quality of products, services and solutions; • ability to sustain long-term client relationships; and • global reach and scale.
We believe that the principal competitive factors in our industry include: • deep expertise in industry- and function-specific domains and processes; • ability to advise clients on how to transform their processes and deliver transformation that drives business value; • ability to provide innovative services and products, including digital offerings; • access to data, AI and technology expertise to identify opportunities for transformation and value creation; • ability to consistently add value through digital transformation and continuous process improvement; • reputation and client references; • contractual terms, including competitive pricing and innovative commercial models; • scope of services; • quality of products, services and solutions; • ability to sustain long-term client relationships; and • global reach and scale.
We also have employees in these and additional countries, such as Ireland, Singapore and South Africa, who work with our clients either onsite or virtually, which offers flexibility for both clients and employees. With this global network, we are able to manage complex processes around the world.
We also have employees in these and additional countries, such as the Czech Republic, Ireland, Italy, Singapore and Slovakia, who work with our clients either onsite or virtually, which offers flexibility for both clients and employees. With this global network, we are able to manage complex processes around the world.
We have delivery centers in Argentina, Australia, Brazil, Bulgaria, Canada, China, Costa Rica, Egypt, Germany, Guatemala, Hungary, India, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Thailand, Turkey, the United Kingdom and the United States.
We have delivery centers in Argentina, Brazil, Bulgaria, Canada, China, Costa Rica, Egypt, Germany, Guatemala, Hungary, India, Israel, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, South Africa, Thailand, Turkey and the United States.
There are also various state-level privacy laws that specifically regulate consumer health data, including recently enacted laws in Connecticut, Nevada and Washington. All fifty U.S. states and the District of Columbia have implemented separate data security breach notification laws with which we must comply, and some states have added specific data security standards to their existing laws.
There are also various state-level privacy laws that specifically regulate consumer health data. All fifty U.S. states and the District of Columbia have implemented separate data security breach notification laws with which we must comply, and some states have added specific data security standards to their existing laws.
We provide financial crime and risk management services in areas such as fraud and dispute management, anti-money laundering, transaction monitoring, KYC and due diligence, sanctions screening, negative media monitoring and platform implementation. Our insurance clients include insurers, brokers, agents, reinsurers and insurtech companies operating across property and casualty, specialty, life, annuity, disability and employee benefits lines of business.
We provide financial crime and risk management services in areas such as fraud and dispute management, anti-money laundering, transaction monitoring, Know Your Customer, due diligence, and sanctions screening. Our insurance clients include insurers, brokers, agents, reinsurers and insurtech companies operating across property and casualty, specialty, life, annuity, disability and employee benefits lines of business.
These services allow enterprises to be more flexible and help them focus on high-value work to better compete in their industries. Our Digital Operations solutions also include certain IT services functions, including end-user computing support and infrastructure production support.
These services allow enterprises to be more flexible and focus on high-value work to better compete in their industries. Our Digital Operations solutions also include certain IT support services for legacy applications, including end-user computing support and infrastructure production support.
In the United States, we are either directly subject to, or contractually required to comply or facilitate our clients’ compliance with, laws and regulations arising out of our work for clients operating there, especially in the area of banking, financial services and insurance, such as the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, the Right to Financial Privacy Act, the Bank Secrecy Act, the USA PATRIOT Act, the Bank Service Company Act, the Home Owners Loan Act, the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, and regulation by U.S. agencies such as the SEC, the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau. 16 Because of our debt collections work in the United States, we are also regulated by laws such as the Truth in Lending Act, the Fair Credit Billing Act, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act and related regulations.
In the United States, we are either directly subject to, or contractually required to comply or facilitate our clients’ compliance with, laws and regulations arising out of our work for clients operating there, especially in the area of banking, financial services and insurance, such as the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, the Right to Financial Privacy Act, the Bank Secrecy Act, the USA PATRIOT Act, the Bank Service Company Act, the Home Owners Loan Act, the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, executive action and regulation by U.S. agencies such as the Securities and Exchange Commission ("SEC"), the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau and the Department of Justice.
Additionally, in 2023 more than 5,000 of our employees participated in our payroll-based charitable donation programs, and many of our employee volunteers participated in virtual volunteering initiatives such as creating learning aids for students, awareness posters for non-profits, holiday cards for veterans, and completing at-home sustainability challenges to build a better planet.
Additionally, in 2024 more than 3,500 of our employees participated in our payroll-based charitable donation programs, and many of our employee volunteers participated in virtual volunteering initiatives such as creating learning aids for students, awareness posters for non-profits, and completing at-home sustainability challenges to build a better planet.
Our services for healthcare clients include end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, care services and customer experience. Revenues from our Consumer and Healthcare segment in 2023 were $1.57 billion, representing 35% of our total 2023 revenue.
Our services for healthcare clients include end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, care services and customer experience. Revenues from our Consumer and Healthcare segment in 2024 were $1.69 billion, representing 36% of our 2024 net revenues.
We may also face losses or potential losses of business when in-house departments of companies use their own resources rather than engage an outside firm for the types of services and solutions we provide.
We may also face losses or potential losses of business when in-house departments of companies use their own resources – often through a global capability center ("GCC") model – rather than engage an outside firm for the types of services and solutions we provide.
Piyush Mehta has served as our Senior Vice President, Chief Human Resources Officer since March 2005. He has worked for us since 2001, initially as Vice President of Human Resources.
Piyush Mehta has served as our Senior Vice President, Chief Human Resources Officer since March 2005 and as our Country Manager for India since April 2024. He has worked for us since 2001, initially as Vice President of Human Resources.
We offer a comprehensive range of services in this area, including: Accounts payable : Our accounts payable services include document management, vendor master data management, invoice receipt and processing, accuracy audits, reconciliations, aging analyses, help desk management, payments processing and travel and expense processing; Invoice-to-cash : Our invoice-to-cash services include customer master data management, credit and contract management, data validation and credit worthiness assessments, billing, collections, accounts receivable maintenance and reporting, credit review support, bad debts research, accounts receivable reconciliation, and dispute and deduction management services; Record to report : Our record to report services include closing and reporting process management, general accounting and industry-specific accounting services, treasury services, tax services, and external reporting, including statutory accounting and reporting; Financial planning and analysis : Our financial planning and analysis services include budgeting, planning and forecasting support, management reporting, business, financial and operational analytics, transformation design, digital-infused process enhancement, enterprise data and advisory services, master data management and data quality services and data lake implementation; and Enterprise risk and compliance : Our enterprise risk and compliance services include operational risk and controls across a wide range of regulatory environments, including SOX and controls monitoring, controls transformation, ERP and digital controls, third party risk management, internal audit and audit analytics.
We offer a range of services in this area, including: Accounts payable : Our accounts payable services include document management, vendor master data management, invoice receipt and processing, accuracy audits, reconciliations, aging analyses, help desk management, payments processing and travel and expense processing; Invoice-to-cash : Our invoice-to-cash services include customer master data management, credit and contract management, data validation and credit worthiness assessments, billing, collections, accounts receivable maintenance and reporting, credit review support, bad debts research, accounts receivable reconciliation, and dispute and deduction management services; Record to report : Our record to report services include closing and reporting process management, general accounting and industry-specific accounting services, treasury services, tax services, and external reporting, including statutory accounting and reporting; Financial planning and analysis : Our financial planning and analysis services include budgeting, planning and forecasting support, management reporting, business, financial and operational analytics, transformation design, digital-infused process enhancement, enterprise data and advisory services, master data management and data quality services and data lake implementation; Enterprise risk and compliance : Our enterprise risk and compliance services include operational risk and controls across a wide range of regulatory environments, including SOX and controls monitoring, controls transformation, ERP and digital controls, third party risk management, internal audit and audit analytics; and Finance strategy : These services cover the entire finance value stream, working capital optimization, operational finance transformation, as well as corporate development and event-driven initiatives, such as carve-outs and post-merger integration services, including transactional due diligence.
Our core operations solutions for these clients include industry-specific solutions for supply chain management, direct and indirect procurement, logistics, field, aftermarket support and engineering services. Revenues from our High Tech and Manufacturing segment in 2023 were $1.68 billion, representing 38% of our total 2023 revenue. Our clients We serve approximately 800 clients across many industries and geographies.
Our core operations solutions for these clients include industry-specific solutions for supply chain management, direct and indirect procurement, logistics, field, aftermarket support and engineering services. Revenues from our High Tech and Manufacturing segment in 2024 were $1.79 billion, representing 37% of our 2024 net revenues. Our clients We serve more than 800 clients across many industries and geographies.
For more about our contracting frameworks, see Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Net Revenues.” Partnerships and alliances We continue to invest in and expand our strategic alliances with companies whose services and solutions complement ours. Together, we work to enhance our existing solutions or create new offerings to meet market needs.
For more about our contracting frameworks, see Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Net Revenues.” Partnerships and alliances We continue to invest in and expand our strategic alliances with companies whose services and solutions complement ours.
In this environment, companies need industry-tailored solutions to reimagine their business models end-to-end and adapt to rapid change. These organizations seek partners that can improve productivity while creating competitive advantages and driving business outcomes, such as expanded market share, seamless customer experiences, increased revenue, working capital improvement, increased profitability, and minimized risk and loss.
In this environment, companies need industry-tailored solutions to reimagine their business models end-to-end and adapt to rapid change. These organizations seek partners that can improve productivity while driving competitive advantages and business value through expanded market share, increased revenue, seamless customer experiences, and working capital improvements.
Our clients include some of the biggest brands in the world, many of which are leaders in their industries, including about a quarter of the Fortune Global 500.
Our clients include some of the biggest brands in the world, many of which are leaders in their industries, including about a quarter of the Fortune Global 500, as well as smaller, emerging companies that are disrupting their industries.
Data Bridge, to allow participating companies to transfer personal data from the UK to the U.S. Additionally, foreign governments outside of the EU and UK are also taking steps to fortify their data privacy laws and regulations. For example, India recently enacted a data protection law that may affect how we handle vendor and employee data in India.
Additionally, foreign governments outside of the EU and UK are also taking steps to fortify their data privacy laws and regulations. For example, India recently enacted a data protection law that will affect how we handle vendor and employee data in India.
TalentMatch also gives our employees the opportunity to take their careers in their desired directions, thus increasing employee satisfaction, and bolstering our ability to scale our flexible working model. In 2023, we filled more than 40% of our open positions with internal hires. Amber , our engagement AI chatbot and employee experience platform, enables transformation of our employee engagement strategy.
TalentMatch also gives our employees the opportunity to take their careers in their desired directions, thus increasing employee satisfaction, and bolstering our ability to scale our flexible working model. Amber , our engagement AI chatbot and employee experience platform, enables transformation of our employee engagement strategy.
Our core operations services for these clients include retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan servicing, equipment and auto loan servicing, mortgage origination and servicing, compliance services, risk management services, reporting and monitoring services and wealth management operations support.
Our core operations services for these clients include customer onboarding, customer service, collections, retail and commercial loan operations, payment operations, mortgage origination and servicing, compliance, and wealth management and capital market operations support.
Corporate social responsibility Our approach to corporate social responsibility focuses on two pillars tied to our purpose: Better Access , which reflects our aim to provide the communities in which we operate with better access to healthcare, education and opportunities, and Better Planet , which reflects our aim to inform, educate, and catalyze action on the different facets of the environment and climate change and help make the planet work better for all.
These investments included developing and launching a series of AI agents to support employee learning, career development and issue resolution. 12 Corporate social responsibility Our approach to corporate social responsibility focuses on two pillars tied to our purpose: Better Access , which reflects our aim to provide the communities in which we operate with better access to healthcare, education and opportunities, and Better Planet , which reflects our aim to inform, educate, and catalyze action on the different facets of the environment and climate change and help make the planet work better for all.
Our focus is to differentiate through operational transformation, generative AI enablement and improved experience across customers, employees and products, with data led insights. Our services in this area are supported by strategic partnerships with leading ecosystem providers in marketing and experience.
Our focus is to differentiate through operational transformation, generative AI enablement and improved experience across customers, employees and products, with data led insights. Our services in this area are supported by strategic partnerships with leading ecosystem providers in marketing and experience. Core industry operations We help our clients design, transform and run processes that are specific to their industries.
Information about our executive officers The following table sets forth information concerning our executive officers as of February 29, 2024: Name Age Position(s) Balkrishan Kalra 54 President, Chief Executive Officer and Director Michael Weiner 52 Senior Vice President, Chief Financial Officer Sameer Dewan 53 Senior Vice President, Global Business Leader, Financial Services Piyush Mehta 55 Senior Vice President, Chief Human Resources Officer Anil Nanduru 49 Senior Vice President, Global Business Leader, High Tech & Manufacturing and Consumer & Healthcare Riju Vashisht 56 Senior Vice President, Chief Growth Officer and Global Business Leader, Enterprise Services and Partnerships & Alliances Heather White 51 Senior Vice President, Chief Legal Officer and Corporate Secretary Balkrishan Kalra became our President and Chief Executive Officer in February 2024.
The contents of our website are not incorporated by reference into this Annual Report. 17 Information about our executive officers The following table sets forth information concerning our executive officers as of March 3, 2025: Name Age Position(s) Balkrishan Kalra 55 President, Chief Executive Officer and Director Michael Weiner 53 Senior Vice President, Chief Financial Officer Sameer Dewan 54 Senior Vice President, Global Business Leader, Financial Services Piyush Mehta 56 Senior Vice President, Chief Human Resources Officer and Country Manager, India Anil Nanduru 50 Senior Vice President, Global Business Leader, High Tech & Manufacturing and Consumer & Healthcare Riju Vashisht 57 Senior Vice President, Chief Growth Officer and Global Business Leader, Enterprise Services and Partnerships & Alliances Heather White 52 Senior Vice President, Chief Legal Officer and Corporate Secretary Balkrishan Kalra has served as our President and Chief Executive Officer since February 2024.
Consumer and Healthcare Our Consumer and Healthcare segment covers services we provide to clients in the consumer goods, retail, life sciences and healthcare sectors. Our consumer goods and retail clients include companies in the food and beverage, household goods, consumer health and beauty and apparel industries, as well as grocery chains and general and specialty retailers.
Our consumer goods and retail clients include companies in the food and beverage, 10 household goods, consumer health and beauty and apparel industries, as well as grocery chains and general and specialty retailers.
In 2023, we promoted more than 13,000 of our employees and encouraged employee career growth through our Destination Growth program . We also closely monitor employee retention levels and regularly evaluate our pay-for-performance approach in an effort to retain our top talent.
In 2024, we promoted more than 12,000 of our employees and encouraged employee career growth through internal training, including our Genome learning platform, and professional development programs . We also closely monitor employee retention levels and regularly evaluate our pay-for-performance approach in an effort to retain our top talent.
In the United States, Section 230 of the Communications Decency Act shields “interactive computer services” (e.g., websites, social media platforms) from liability for the speech of their users, with certain exceptions.
Certain laws may apply to our content moderation activity, such as laws regulating hate speech on the internet. In the United States, Section 230 of the Communications Decency Act shields “interactive computer services” (e.g., websites, social media platforms) from liability for the speech of their users, with certain exceptions.
Our chosen industry verticals, described in more detail below, are grouped within our three reportable segments, namely: (1) Financial Services, (2) Consumer and Healthcare, and (3) High Tech and Manufacturing.
Industries we serve We work with clients across our chosen industry verticals — areas we have selected based on our deep industry expertise. Our chosen industry verticals, described in more detail below, are grouped within our three reportable segments, namely: (1) Financial Services, (2) Consumer and Healthcare, and (3) High Tech and Manufacturing.
Amber provides an outlet for unbiased and judgment free conversations for our employees and live predictive people analytics for business and HR leaders. 12 By digitizing how we engage with our employees through Amber, we have increased the scope and frequency of employee feedback and have gained the ability to assess employee engagement and identify trends in employee engagement and satisfaction across the company.
By digitizing how we engage with our employees through Amber, we have increased the scope and frequency of employee feedback and have gained the ability to assess employee engagement and identify trends in employee engagement and satisfaction across the company.
Sales and commercial, marketing and experience services Sales and commercial: We drive growth and experience for our clients by transforming and running the end-to-end sales lifecycle for our clients through services such as campaign management, lead generation, qualification and deductions.
We also provide HR advisory services, which focus on HR operating model design, technology implementation and M&A people integration services. Sales and commercial, marketing and experience services Sales and commercial: We drive growth and experience for our clients by transforming and running the end-to-end sales lifecycle for our clients through services such as campaign management, lead generation, qualification and deductions.
Core industry operations We help our clients design, transform and run processes that are specific to their industries. Using our industry and domain expertise embedded in our Digital SEP frameworks, we collaborate with our clients to power their operations in areas such as claims, underwriting, commercial leasing and lending, regulatory affairs, insurance actuarial, and trust and safety.
Using the industry and domain expertise included in our Digital SEP frameworks, we collaborate with our clients to power their operations in industry-specific areas such as claims, underwriting, commercial leasing and lending, regulatory affairs, insurance actuarial, and trust and safety. We provide industry-specific operations services across all of our chosen industry verticals.
Revenues from our Digital Operations services in 2023 were $2.48 billion, representing 55% of our total 2023 revenue. 8 Data-Tech-AI Services Our Data-Tech-AI services focus on designing and building solutions that harness the power of digital technologies, data and advanced analytics, AI, and cloud-based software-as-a-service (SaaS) offerings to help transform our clients’ businesses and operations.
Data-Tech-AI Services Our Data-Tech-AI services focus on designing and building solutions that harness the power of advanced technologies, data and advanced analytics, AI, and cloud-based software-as-a-service (SaaS) offerings to help transform our clients’ businesses and operations. These services include advisory, implementation and execution work.
Employee development and engagement We are committed to the career development of our employees and making them future-ready, and we strive to engage them with challenging and rewarding career opportunities.
We promote these values by seeking to maintain hiring and management practices that ensure opportunities are equally open to all. Employee development and engagement We are committed to the career development of our employees and making them future-ready, and we strive to engage them with challenging and rewarding career opportunities.
We enable domain-led digital transformation for our clients through our Digital Operations Services and Data-Tech-AI Services . Digital Operations Services Our Digital Operations services embed digital, advanced analytics, AI and cloud-based offerings into our business process outsourcing solutions where we transform and run our clients’ operations with an aim to achieve higher levels of end-to-end performance.
Digital Operations Services Our Digital Operations services embed advanced technology solutions, including agentic solutions, analytics, AI and cloud-based offerings into our traditional managed service solutions where we transform and run our clients’ operations with an aim to achieve higher levels of end-to-end performance.
Additionally, many of our client solutions are embedded with our Digital Smart Enterprise Processes SM ( Digital SEPs ), a patented and highly granular approach to recognize the critical factors that dramatically improve business performance to help drive client outcomes.
Many of our client solutions also include our Digital Smart Enterprise Processes SM (" Digital SEPs "), which define and benchmark the critical factors that improve business performance to help drive client outcomes.
We believe our approach to digital-led business transformation, enabled through combining our domain expertise with our skills in AI, digital and analytics, differentiates us from our competitors. Our approach to digital-led transformation Industry disruption is pervasive, driven by an explosion in digital technologies, increased use of AI, data and analytics, new competitors, and shifting market dynamics.
We believe our combination of deep industry expertise, operational excellence, client centricity and advanced technology solutions differentiates us from our competitors. Our approach Industry disruption is pervasive, driven by an explosion in advanced technologies, the increased use of AI, data and analytics, new competitors, and shifting market dynamics.
This platform also uses AI for prescriptive actions to pinpoint transformation opportunities that can unlock operational excellence and growth.
This platform also uses AI for prescriptive actions to pinpoint transformation opportunities that can unlock operational excellence and growth. Revenues from our Digital Operations services in 2024 were $2.53 billion, representing 53% of our 2024 net revenues.
Supply chain, sourcing and procurement services Supply chain: We help our clients transform process-led and technology-enabled operating models across the value chain (plan, source, make, deliver, and aftersales).
Supply chain and procurement services Supply chain: We help our clients transform process-led and technology-enabled operating models across the value chain (plan, source, make, deliver, and aftersales). We cover the complete supply chain operations reference model and provide advisory and managed services in critical areas such as supply chain resiliency, sustainable/circular supply chain and orchestrated enterprise.
We are currently licensed to engage in debt collection activities in all jurisdictions in the United States where licensing is required. U.S. banking and debt collection laws and their implementing regulations are occasionally amended, and these changes may impose new obligations on us or may change existing obligations.
U.S. banking and debt collection laws and their implementing regulations are occasionally amended, and these changes may impose new obligations on us or may change existing obligations. 16 Because of our insurance processing activities in the United States, we are currently licensed as a third-party administrator in 43 states and are regulated by the department of insurance in each such state.
Our alliances generally fall into one of the following categories: • Strategic, go-to-market partnerships • Deal-specific relationships to jointly solve a specific issue for a client • Reseller arrangements to provide third party partner software and cloud solutions • Digital and other “white label” embedded technology-based relationships 11 We have three primary types of partners: consulting partners, digital partners, and solution partners.
Our alliances generally fall into one of the following categories: • Strategic, go-to-market partnerships • Deal-specific relationships to jointly solve a specific issue for a client • Reseller arrangements to provide third party partner software and cloud solutions • Digital and other “white label” embedded technology-based relationships We believe these partnerships are integral to driving growth and innovation, allowing us to maintain a competitive edge and deliver value to our clients. 11 Our people As of December 31, 2024, we had approximately 140,000 employees working in more than 35 countries.
Our service offerings We offer the following professional services to our clients: • Enterprise services : Finance and accounting, CFO advisory, supply chain, sourcing and procurement, sales and commercial, marketing and experience, and environmental, social and governance services; and • Core industry operations services that are specific to our chosen industry verticals.
Revenues from our Data-Tech-AI services in 2024 were $2.23 billion, representing 47% of our 2024 net revenues. 8 Our service offerings We offer the following services to our clients: • Enterprise services : Finance and accounting, global business services, supply chain and procurement, sales and commercial, human resources and people advisory, and marketing and experience services; and • Core industry operations services that are specific to our chosen industry verticals.
Our core operations services for these clients include underwriting support, new business processing, policy administration, customer service, claims management, catastrophe modeling and actuarial services. We also provide end-to-end third party administration for property and casualty claims. 10 Revenues from our Financial Services segment in 2023 were $1.23 billion, representing 27% of our total 2023 revenue.
Our core operations services for these clients include underwriting support, new business processing, policy administration, customer service and claims management, as well as data and analytics services such as catastrophe and exposure/risk modeling and actuarial services. We also provide end-to-end third-party administration for property and casualty claims, and technology services specific to insurance, including insurance platform systems integration.
Our Digital SEPs combine Lean Six Sigma methodologies – which reduce inefficiency and improve process quality – with advanced domain-specific digital technologies, drawing on our industry acumen, our expertise in AI and experience-centric principles, and our deep understanding of how businesses run.
Our Digital SEPs combine Lean Six Sigma methodologies with domain-specific advanced technologies, including agentic AI solutions, drawing on our industry knowledge, expertise in AI, and deep understanding of how businesses run. We enable domain-led digital transformation for our clients through our Digital Operations Services and Data-Tech-AI Services .
The GDPR also prohibits the transfer of personal data from the European Economic Area (“EEA”) to countries outside of the EEA unless made to a country deemed to have adequate data privacy laws by the European Commission or an appropriate data transfer mechanism has been put in place.
The GDPR also prohibits the transfer of personal data from the European Economic Area (“EEA”) to countries outside of the EEA unless an appropriate data transfer mechanism has been put in place. Such mechanisms include adequacy decisions, standard contractual clauses ("SCCs") and binding corporate rules ("BCRs").
We partner with clients to show them how new digital solutions can drive business outcomes. We apply user and customer experience principles to our domain expertise and innovative technology to create solutions designed to quickly and aptly meet client objectives. The results can include quick-turnaround proof of concept prototypes that clients can install and test in their own environments.
We collaborate with clients to develop and implement advanced technology solutions that can drive business outcomes. We apply user and customer experience principles to our domain expertise and innovative technology to create solutions designed to quickly meet client objectives.
Diversity, equity and inclusion We believe that a culture of diversity, equity and inclusion is critical to our business. We believe in equal opportunity for each individual, irrespective of their gender, age, ethnicity, cultural background, race or sexual orientation.
We believe in equal opportunity for each individual, irrespective of their gender, age, ethnicity, cultural background, race or sexual orientation. Understanding each other’s uniqueness, recognizing our differences, respecting varied opinions and accepting various points of view is at the heart of our organization’s culture.
Using human-centric design, we help clients build new products and services, create digital workspaces, and drive customer, client, employee and partner engagement. Revenues from our Data-Tech-AI services in 2023 were $1.99 billion, representing 45% of our total 2023 revenue.
We provide consultative advice to clients as well as technology engineering support and migration and optimization of our clients’ data and technology enterprise infrastructures. Using human-centric design, we help clients build new products and services, create digital workspaces, and drive customer, client, employee and partner engagement.
Following the withdrawal of the UK from the EU, the United Kingdom has amended the UK Data Protection Act 2018 to retain the GDPR in UK national law. The penalties prescribed in the UK GDPR are the same as under the EU GDPR.
The penalties prescribed in the UK GDPR are the same as under the EU GDPR.
Because of our insurance processing activities in the United States, we are currently licensed as a third-party administrator in 43 states and are regulated by the department of insurance in each such state. In two other states, we qualify for regulatory exemption from licensing based on the insurance processing activities we provide.
In two other states, we qualify for regulatory exemption from licensing based on the insurance processing activities we provide. We also hold entity adjuster licenses in 24 states that require licensing. Our debt collections and insurance processing activities are also subject to licensing or authorization in other countries, including the UK, France, and Australia.
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Item 1. Business Genpact is a global professional services and solutions firm that makes business transformation real. We drive digital-led innovation and run digitally-enabled operations for our clients, guided by our experience running thousands of processes for hundreds of global companies. We have over 129,100 employees serving clients in key industry verticals from more than 35 countries.
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Item 1. Business Genpact is a global advanced technology services and solutions company. Powered by our mix of deep industry expertise, operational excellence, and advanced technology, we help companies reimagine finance and risk, supply chain and other core industry operations. We have over 140,000 employees serving clients from more than 35 countries. Our 2024 total net revenues were $4.8 billion.
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Our 2023 total net revenues were $4.5 billion. In 2023, we made progress on key strategic initiatives to help drive long-term profitable growth. These efforts included making continued investments in a portfolio of clients who are on significant digital transformation journeys and for whom we believe we can drive meaningful business outcomes.
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Global business services Our global business services ("GBS"), including our global capability center ("GCC") advisory services, help our clients to set up their own GBS and GCC capabilities. These services include strategy and feasibility assessment, location selection, target operating model design, hiring, recruitment and onboarding, transition, change management and service delivery optimization.
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We continued to develop and refine our artificial intelligence ("AI") capabilities, prioritizing our investments in new generative AI solutions. We also continued to focus on the learning and development of our employees to provide them with the critical skills needed for the future and to build their careers.
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Revenues from our Financial Services segment in 2024 were $1.29 billion, representing 27% of our 2024 net revenues. Consumer and Healthcare Our Consumer and Healthcare segment covers services we provide to clients in the consumer goods, retail, life sciences and healthcare sectors.
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Digital SEPs test the effectiveness of client processes using best-in-class benchmarks developed by mapping and analyzing millions of client transactions across thousands of end-to-end business processes. In this way, we identify opportunities for improving clients’ operations by applying our deep process knowledge and process-centric technologies to transform them.
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As we develop new advanced technology solutions for our clients, we partner closely with many market-leading technology players, as well as with emerging innovators, to develop solutions that we can embed into our offerings or jointly bring to market.
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CFO advisory services Our CFO advisory services aim to enable CFOs to optimize the impact the finance organization can have on a company's performance and shareholder value creation.
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Amber provides an outlet for unbiased and judgment free conversations for our employees and live predictive people analytics for business and HR leaders.
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These services cover the entire finance value stream, including target operating model design, working capital optimization, operational finance transformation, as well as corporate development and event-driven initiatives, such as carve-outs and post-merger integration services, including transactional due diligence.
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Our agreements with vendors normally include an assignment of rights to all intellectual property developed by such vendors on our behalf.
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Environmental, social and governance services We help our clients meet their sustainability objectives, environmental, social and governance (ESG) regulatory requirements, voluntary commitments and operational improvements. Our services in this area include advisory, data management and analytics, carbon accounting, responsible sourcing, sustainable supply chain, human rights assessment, sustainability diligence, sustainable technology, ESG reporting and limited assurance for ESG reporting.
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Our BCR for data processors was approved in May 2024 and is subject to the oversight of our supervisory authority, the Romanian National Supervisory Authority for Personal Data Processing.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur utilization rates are affected by a number of factors, including our ability to transition employees from completed projects to new assignments, hire and assimilate new employees, forecast demand for our services and thereby maintain an appropriate headcount in each of our geographies and manage attrition, and our need to devote time and resources to training, professional development and other typically non-chargeable activities. 23 The prices we are able to charge for our services are affected by a number of factors, including our clients’ perceptions of our ability to add value through our services, competition, introduction of new services, technologies (including generative AI) or products by us or our competitors, our ability to accurately estimate, attain and sustain revenues from client engagements, margins and cash flows over long contract periods and general economic and political conditions.
Biggest changeThe prices we are able to charge for our services are affected by a number of factors, including our clients’ perceptions of our ability to add value through our services, competition, introduction of new services, technologies (including generative and agentic AI) or products by us or our competitors, our ability to accurately estimate, attain and sustain revenues from client engagements, margins and cash flows over long contract periods and general economic and political conditions.
Most of our revenues are denominated in U.S. dollars, with the remaining amounts largely in euros, UK pounds sterling, the Australian dollar, the Japanese yen and the Indian rupee.
Most of our revenues are denominated in U.S. dollars, with the remaining amounts largely in euros, UK pounds sterling, the Australian dollar, the Indian rupee and the Japanese yen.
Most of our expenses are incurred and paid in U.S. dollars, with the remaining amounts largely in Indian rupees, Chinese renminbi, Romanian lei, euros, UK pounds sterling, Philippine pesos, Japanese yen, Polish zloty, Mexican pesos, Guatemalan quetzals, Hungarian forint, Canadian dollars, South African rand, Costa Rican Colón, Malaysian ringgit and Australian dollars.
Most of our expenses are incurred and paid in U.S. dollars, with the remaining amounts largely in Indian rupees, Romanian lei, Chinese renminbi, UK pounds sterling, Philippine pesos, Polish zloty, euros, Mexican pesos, Costa Rican colón, Japanese yen, Australian dollars, Canadian dollars, Guatemalan quetzals, South African rand, Malaysian ringgit and Hungarian forint.
We currently do not expect this corporate income tax to have an impact on us given that we have no profits in Bermuda and we do not expect to have profits in Bermuda in the foreseeable future.
We currently do not expect this corporate income tax to have an impact on us given that we have no profits in Bermuda and we do not currently expect to have profits in Bermuda in the foreseeable future.
Among the factors that could affect our share price are: • technological developments that have an actual or perceived impact on us or our industry, such as generative AI; • terrorist attacks, other acts of violence or war, such as the conflicts between Russia and Ukraine and Israel and Hamas, natural disasters, epidemics or pandemics, or other such events impacting countries where we or our clients have operations; • actual or anticipated fluctuations in our quarterly and annual operating results; • changes in or our inability to meet our financial estimates or the estimates of securities research analysts; • changes in the economic performance or market valuations of our competitors and other companies engaged in providing similar or competitive services; • the loss of one or more significant clients; • the addition or loss of executive officers or key employees; • regulatory developments in our target markets affecting us, our clients or our competitors; • general economic, industry and market conditions, such as geopolitical events, inflation and sustained high interest rates; • limited liquidity in our trading market; • sales or expected sales of additional common shares, either by us, our employees, or any of our shareholders, or purchases or expected purchases of common shares, including by us under existing or future share repurchase programs, which purchases are at the discretion of our board of directors and may not continue in the future; and 39 • actions or announcements by activist shareholders or others.
Among the factors that could affect our share price are: • technological developments that have an actual or perceived impact on us or our industry, such as generative and agentic AI; • terrorist attacks, other acts of violence or war, such as the conflicts between Russia and Ukraine and Israel and Hamas, natural disasters, epidemics or pandemics, or other such events impacting countries where we or our clients have operations; • actual or anticipated fluctuations in our quarterly and annual operating results; • changes in or our inability to meet our financial estimates or the estimates of securities research analysts; • changes in the economic performance or market valuations of our competitors and other companies engaged in providing similar or competitive services; • the loss of one or more significant clients; • the addition or loss of executive officers or key employees; • regulatory developments in our target markets affecting us, our clients or our competitors; • general economic, industry and market conditions, such as geopolitical events, inflation and sustained high interest rates; • limited liquidity in our trading market; • sales or expected sales of additional common shares, either by us, our employees, or any of our shareholders, or purchases or expected purchases of common shares, including by us under existing or future share repurchase programs, which purchases are at the discretion of our board of directors and may not continue in the future; and • actions or announcements by activist shareholders or others.
See Item 7A—“Quantitative and Qualitative Disclosures about Market Risk.” Our results of operations have been adversely affected and could be further adversely affected by certain movements in exchange rates, particularly if the Indian rupee or other currencies in which we incur expenses appreciate against the U.S. dollar or if, as has occurred over the past year, the currencies in which we receive revenues, such as the euro, depreciate against the U.S. dollar.
See Item 7A—“Quantitative and Qualitative Disclosures about Market Risk.” Our results of operations have been adversely affected and could be further adversely affected by certain movements in exchange rates, particularly if the Indian rupee or other currencies in which we incur expenses appreciate against the U.S. dollar or if, as has occurred over the past year, the currencies in which we receive revenues, such as the euro, 32 depreciate against the U.S. dollar.
Ineffective or inadequate AI development or deployment practices by us, our clients, or third parties with whom we do business could result in unintended consequences, such as disclosure of sensitive information, infringement of third-party intellectual property rights or other incidents that impair the acceptance of AI solutions or cause harm to individuals or society.
Ineffective or inadequate AI development, monitoring or deployment practices by us, our clients, or third parties with whom we do business could result in unintended consequences, such as disclosure of sensitive information, infringement of third-party intellectual property rights or other incidents that impair the acceptance of AI solutions or cause harm to individuals or society.
In order to protect our rights in these various intellectual properties, we rely upon a combination of nondisclosure and other contractual arrangements as well as patent, trade secret, copyright and trademark laws. We also generally enter into confidentiality agreements with our employees, consultants, clients and potential clients and limit access to and distribution of our proprietary information.
In order to protect our rights in these various intellectual properties, we rely upon a combination of nondisclosure and other contractual arrangements as well as patent, trade secret, copyright and trademark laws. We also generally enter into confidentiality agreements with our employees, consultants, vendors, clients and potential clients and limit access to and distribution of our proprietary information.
If we have to resort to legal proceedings to enforce our rights, the proceedings could be burdensome, protracted, distracting to management and expensive and could involve a high degree of risk and be unsuccessful. Although we believe that we are not infringing on the intellectual property rights of others, claims may nonetheless be successfully asserted against us in the future.
If we have to resort to legal proceedings to enforce our rights, the proceedings could be burdensome, protracted, distracting to management and expensive and could involve a high degree of risk and be unsuccessful. Although we believe that we are not infringing the intellectual property rights of others, claims may nonetheless be successfully asserted against us in the future.
If we fail to keep pace with the development or integration of new technologies, including generative AI, or to adapt to other changes in the industries we serve or our clients' demand for new services and solutions, we may be less competitive in these new areas or need to make significant investment to meet that demand.
If we fail to keep pace with the development or integration of new technologies, including generative and agentic AI, or to adapt to other changes in the industries we serve or our clients' demand for new services and solutions, we may be less competitive in these new areas or need to make significant investment to meet that demand.
While we are not subject to tax on income, profits, withholding, capital gains or capital transfers under current law, the Bermuda Government recently passed a new law titled the Corporate Income Tax Act, 2023 (the "CIT Act"), which imposes a 15% minimum corporate income tax rate and expressly supersedes the written assurance we received under the EUTP.
While we are not subject to tax on income, profits, withholding, capital gains or capital transfers under 37 current law, the Bermuda Government recently passed a new law titled the Corporate Income Tax Act, 2023 (the "CIT Act"), which imposes a 15% minimum corporate income tax rate and expressly supersedes the written assurance we received under the EUTP.
We may not be able to detect unauthorized use and take appropriate steps to enforce our rights, and any such steps may not be successful. 35 Infringement by others of our intellectual property, including the costs of enforcing our intellectual property rights, may have a material adverse effect on our business, results of operations and financial condition.
We may not be able to detect unauthorized use and take appropriate steps to enforce our rights, and any such steps may not be successful. Infringement by others of our intellectual property, including the costs of enforcing our intellectual property rights, may have a material adverse effect on our business, results of operations and financial condition.
Following a 2017 assessment by the Code of Conduct Group (Business Taxation), or the COCG, which included Bermuda in a list of jurisdictions required by the EU to address the COCG’s concerns relating to the demonstration of economic substance, the Bermuda Government implemented legislation which brought certain substance requirements into force in 2019 for Bermuda entities.
Following a 2017 assessment by the Code of Conduct Group (Business Taxation) ("COCG"), which included Bermuda in a list of jurisdictions required by the EU to address the COCG’s concerns relating to the demonstration of economic substance, the Bermuda Government implemented legislation which brought certain substance requirements into force in 2019 for Bermuda entities.
We base our estimates on historical experience, contractual commitments and on various other assumptions that we believe to be reasonable under the circumstances and at the time they are made. These estimates and assumptions involve the use of judgment and are subject to significant uncertainties, some of which are beyond our control.
We base our estimates on historical experience, contractual commitments and on various other assumptions that we believe to be reasonable under the circumstances and at the time they are made. These estimates and assumptions involve the use of judgment and are subject to significant uncertainties, 34 some of which are beyond our control.
The substance requirements could be difficult to manage or implement, and compliance with the requirements could be difficult or costly and could have a material adverse effect on us or our operations. 37 We may not be able to realize the entire book value of goodwill and other intangible assets from acquisitions.
The substance requirements could be difficult to manage or implement, and compliance with the requirements could be difficult or costly and could have a material adverse effect on us or our operations. We may not be able to realize the entire book value of goodwill and other intangible assets from acquisitions.
Additionally, the Indian government has also challenged our entitlement to certain benefits we have claimed in the past. During the period from 2017 to 2020, we received benefits totaling $59 million from the Director General of Foreign Trade (“DGFT”) of India pursuant to the Services Export from India Scheme (“SEIS").
Additionally, the Indian government has challenged our entitlement to certain benefits we have claimed in the past. During the period from 2017 to 2020, we received benefits totaling $59 million from the Director General of Foreign Trade (“DGFT”) of India pursuant to the Services Export from India Scheme (“SEIS").
Our failure, or the failure of such third parties, to comply with applicable laws and regulations could result in sanctions being imposed on us, including fines, injunctions, civil penalties and criminal prosecutions, any of which could significantly and adversely affect our business.
Our failure, or the failure of such third parties, to comply with applicable laws and regulations could result in sanctions being imposed on us, including 27 fines, injunctions, civil penalties and criminal prosecutions, any of which could significantly and adversely affect our business.
Additionally, new labor codes enacted by the Government of India in 2019 will, once made effective, change the definition of wages for purposes of determining employer contributions under the provident fund and other statutory benefit schemes, including the Indian gratuity plan.
Additionally, labor codes enacted by the Government of India in 2019 will, once made effective, change the definition of wages for purposes of determining employer contributions under the provident fund and other statutory benefit schemes, including the Indian gratuity plan.
Some of our contracts also provide that, during the term of the contract and for a certain period thereafter ranging from six to 12 months, we may not provide similar services to certain or any of our client’s competitors using the same personnel.
Some of our contracts also provide that, during the term of the contract and for a certain period thereafter ranging from six to 12 months, we may not provide similar services to certain or any of 35 our client’s competitors using the same personnel.
We manage only a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps. A portion of our indebtedness, including borrowings under our credit facility, bears interest at variable interest rates primarily based 33 on the Secured Overnight Financing Rate.
We manage only a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps. A portion of our indebtedness, including borrowings under our credit facility, bears interest at variable interest rates primarily based on the Secured Overnight Financing Rate.
Our failure to effectively manage, develop and sell these shorter-cycle engagements, as well as our inability to accurately forecast revenues from these engagements (as has occurred in the past), could adversely affect our business, growth strategy and results of operations.
Our failure to continue to effectively manage, develop and sell these shorter-cycle engagements, as well as our inability to accurately forecast revenues from these engagements (as has occurred in the past), could adversely affect our business, growth strategy and results of operations.
The impact of these cybersecurity attacks, data losses, and other security breaches cannot be predicted, but any such attack, loss or breach could disrupt our operations, or the operations of our clients, suppliers, subcontractors, or other third parties.
The impact of these cybersecurity attacks, data losses, and other security breaches cannot be predicted, but any such attack, loss or breach could disrupt our 21 operations, or the operations of our clients, suppliers, subcontractors, or other third parties.
This has in the past any may in the future involve expanding into countries other than those in which we currently operate. It may involve expanding into less developed countries, which may have less political, social or economic stability and less developed infrastructure and legal systems.
This has in the past and may in the future involve expanding into countries other than those in which we currently operate. It may involve expanding into less developed countries, which may have less political, social or economic stability and less developed infrastructure and legal systems.
We have been advised by Appleby (Bermuda) Limited, our Bermuda counsel, that the United States and Bermuda do not currently have a treaty providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters.
We have been advised by Appleby (Bermuda) 40 Limited, our Bermuda counsel, that the United States and Bermuda do not currently have a treaty providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters.
Actual losses on client balances could differ from those that we currently anticipate, and, as a result, we might need to adjust our allowances. 34 We might not accurately assess the creditworthiness of our clients.
Actual losses on client balances could differ from those that we currently anticipate, and, as a result, we might need to adjust our allowances. We might not accurately assess the creditworthiness of our clients.
Legislation enacted in certain European jurisdictions, and any future legislation in Europe, Japan or any other region or country in which we have clients restricting the performance of business process services from an offshore location or imposing burdens on companies that outsource data processing functions, could also have a material adverse effect on our business, results of operations and financial condition.
Legislation enacted in certain European jurisdictions, and any future legislation in Europe, Japan or any other region or country in which we have clients restricting the performance of managed services from an offshore location or imposing burdens on companies that outsource data processing functions, could also have a material adverse effect on our business, results of operations and financial condition.
A final determination of tax in the amounts claimed by the ITA would likely have a material adverse effect on our business, results of operations, effective tax rate and financial condition. See Note 26—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information relating to these matters.
A final determination of tax in the amounts claimed by the ITA would likely have a material adverse effect on our business, results of operations, effective tax rate and financial condition. See Note 25—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information relating to these matters.
The 2026 Notes were issued by, and are senior unsecured indebtedness of, Genpact Luxembourg S.à r.l. and Genpact USA, Inc., and are guaranteed on a senior unsecured basis by Genpact Limited.
The 2026 Notes and 2029 Notes were issued by, and are senior unsecured indebtedness of, Genpact Luxembourg S.à r.l. and Genpact USA, Inc., and are guaranteed on a senior unsecured basis by Genpact Limited.
All of the above could result in harm to our reputation or our clients, as well as expose us to regulatory actions or claims, any of which could materially impact our business, results of operations, financial condition and stock price. 30 Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls.
All of the above could result in harm to our reputation or our clients, as well as expose us to regulatory actions or claims, any of which could materially impact our business, results of operations, financial condition and stock price. 31 Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls.
Additionally, in 2012, the Government of India appealed a 2011 ruling by the Delhi High Court that Genpact India Private Limited (one of our subsidiaries) cannot be held to be a representative assessee of GE in connection with an assertion that GE has tax liability in India by reason of a 2004 transfer of shares of our predecessor company.
Additionally, in 2012, the Government of India appealed a 2011 ruling by the Delhi High Court that Genpact India Private Limited (one of our subsidiaries) cannot be held to be a representative assessee of General Electric Company ("GE") in connection with an assertion that GE has tax liability in India by reason of a 2004 transfer of shares of our predecessor company.
Failure to consistently meet service requirements of a client, whether due to: (a) natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics, pandemics or other contagious diseases, or other natural or manmade disasters or catastrophic events; (b) breach of or incursion into our computer systems (for example, through a ransomware attack); (c) other systems failure, including due to aged IT systems or infrastructure; or (d) errors made by our employees in the course of delivering services to our clients could disrupt the client’s business and result in a reduction in our revenues, clients terminating their business relationships with us and/or a claim for damages against us.
Failure to consistently meet service requirements of a client, whether due to: (a) natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics, pandemics 28 or other contagious diseases, or other natural or manmade disasters or catastrophic events; (b) breach of or incursion into our computer systems (for example, through a ransomware attack); (c) other systems failure, including due to aged IT systems or infrastructure; or (d) errors made by our employees in the course of delivering services to our clients have in the past and could in the future disrupt a client’s business and result in a reduction in our revenues, clients terminating their business relationships with us and/or a claim for damages against us.
Actual or perceived breaches of our security, whether through breach of our computer systems, systems failure (including due to aged IT systems or infrastructure) or otherwise, could influence the market perception of the effectiveness of our security measures and, as a result, our reputation could be harmed and we could lose existing or potential clients.
Actual or perceived breaches of our security, whether through breach of our computer systems, systems failure (including due to aged IT systems or infrastructure or system misconfigurations) or otherwise, could influence the market perception of the effectiveness of our security measures and, as a result, our reputation could be harmed and we could lose existing or potential clients.
The price of our common shares has been adversely affected by lower-than-expected operating results in the past, including in 2023, and would likely be materially and adversely affected if we report significantly lower-than-expected operating results in the future. If we are unable to collect our receivables, our results of operations, financial condition and cash flows could be adversely affected.
The price of our common shares has been adversely affected by lower-than-expected operating results in the past and would likely be materially and adversely affected if we report significantly lower-than-expected operating results in the future. If we are unable to collect our receivables, our results of operations, financial condition and cash flows could be adversely affected.
The 2024 Notes and 2026 Notes are subject to certain customary covenants set forth in their respective governing indentures, including limitations on our ability to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer our assets.
The 2026 Notes and 2029 Notes are subject to certain customary covenants set forth in their respective governing indentures, including limitations on our ability to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer our assets.
Similarly, those judgments may not be enforceable in countries, other than the United States, where we have assets. 40
Similarly, those judgments may not be enforceable in countries, other than the United States, where we have assets.
This will depend on the condition of the capital markets and our financial condition at such time. If we refinance the 2024 Notes, the interest rate we pay on the refinanced notes is likely to be higher than the rate we pay on the 2024 Notes, which would likely adversely affect our net interest expense.
This will depend on the condition of the capital markets and our financial condition at such time. If we refinance the 2026 Notes, the interest rate we pay on the refinanced notes is likely to be higher than the rate we pay on the 2026 Notes, which would likely adversely affect our net interest expense.
Upon certain change of control transactions, we would be required to make an offer to repurchase the 2024 Notes and the 2026 Notes, as applicable, at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.
Upon certain change of control transactions, we would be required to make an offer to repurchase the 2026 Notes and the 2029 Notes, as applicable, at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.
We face significant competition from our traditional competitors as well as other third parties, including those that are new to the market or our industry, and our clients may develop their own AI-related capabilities.
We face significant competition from our traditional competitors as well as other third parties, including those that are new to the market or our industry, as well as our own clients, who may develop their own AI-related capabilities.
We compete for business with a variety of companies, including large multinational firms that provide consulting, technology and/or business process services, offshore business process service providers in low-cost locations like India, in-house captives of potential clients, software services companies that also provide business process services, smaller, niche companies that compete with us in a specific geographic market, industry or service area, and accounting firms that also provide consulting or other business process services.
We compete for business with a variety of companies, including large multinational firms that provide consulting, technology and/or managed services, offshore business process service providers in low-cost locations like India, in-house captives of potential clients, software services companies that also provide managed services or advanced technology solutions, smaller, niche companies that compete with us in a specific geographic market, industry or service area, and accounting firms that also provide consulting or other business process services.
Our results of operations could be adversely affected by economic and political conditions and the effects of these conditions on our and our clients’ businesses and levels of business activity. Global macroeconomic conditions affect our business, our clients’ businesses and the markets we serve.
Our results of operations could be adversely affected by economic and geopolitical conditions and the effects of these conditions on our and our clients’ businesses and levels of business activity. Global macroeconomic conditions affect our business, our clients’ businesses and the markets we serve.
If our attrition rate increases beyond the 2023 level or rises above our historical average attrition rate for an extended period, our operating efficiency and productivity may decrease. Competition for qualified employees, particularly in India and the United States, remains high and we expect such competition to continue.
If our attrition rate increases beyond the 2024 level or rises above our historical average attrition rate for an extended period, our operating efficiency and productivity may decrease. Competition for highly qualified employees, particularly in India and the United States, remains high and we expect such competition to continue.
India recently enacted a data protection law, the Digital Personal Data Protection Act (the "DPDP Act"), that is expected to impact how we handle vendor and employee data in India and may require us to develop new controls governing our processing of employee data.
India recently enacted a data protection law, the Digital Personal Data Protection Act (the "DPDP Act"), that will impact how we handle vendor and employee data in India and may require us to develop new controls governing our processing of employee data.
In addition, some states have passed laws imposing increased data security and breach notification obligations on companies operating in the U.S. In the EU, the General Data Protection Regulation (GDPR) imposes privacy and data security compliance obligations and significant penalties for noncompliance.
In addition, some states have passed laws imposing increased data security and breach notification obligations on companies operating in the U.S. In the EU, the GDPR imposes privacy and data security compliance obligations and significant penalties for noncompliance.
Some of these technologies, such as cloud-based services, AI, automation, and others that may emerge, have reduced and replaced some of our historical services and solutions and may continue to do so in the future.
Some of these technologies, such as cloud-based services, AI, automation, and others that may emerge, have reduced and replaced, in whole or in part, some of our historical services and solutions and may continue to do so in the future.
The amended and restated credit agreement provides for a $530 million term loan and a $650 million revolving credit facility. The credit agreement obligations are unsecured, and guaranteed by certain subsidiaries. As of December 31, 2023, the total amount due under the credit facility net of debt amortization expenses, including the amount utilized under the revolving facility, was $520 million.
The amended and restated credit agreement provides for a $530 million term loan and a $650 million revolving credit facility. The credit agreement obligations are unsecured, and guaranteed by certain subsidiaries. As of December 31, 2024, the total amount due under the credit facility net of debt amortization expenses, including the amount utilized under the revolving facility, was $478 million.
The 2024 Notes and 2026 Notes are our senior unsecured obligations and rank equally with all our other senior unsecured indebtedness outstanding from time to time.
The 2026 Notes and 2029 Notes are our senior unsecured obligations and rank equally with all our other senior unsecured indebtedness outstanding from time to time.
Examples of areas of significant change include digital- and cloud-related offerings, which are continually evolving as developments such as AI, automation, Internet of Things and as-a-service solutions are commercialized.
Examples of areas of significant change include digital- and cloud-related offerings, which are continually evolving as developments such as AI, including generative and agentic AI solutions, automation, Internet of Things and as-a-service solutions are commercialized.
As wage levels for skilled employees increase in most of the countries in which we operate because of, among other reasons, tight labor markets and inflation, wage increases continue to adversely affect our profitability and may continue to adversely affect our profitability in the future to the extent that we are not able to control or share wage increases with our clients.
As wage levels for skilled employees increase in most of the countries in which we operate because of, among other reasons, inflation and tight labor markets for employees with particular skills, wage increases have adversely affected our profitability in the past and may continue to adversely affect our profitability in the future to the extent that we are not able to control or share wage increases with our clients.
Macroeconomic conditions, including persistent inflation in the countries in which we do business and have operations, increasing geopolitical tensions, the possibility of an economic downturn globally or regionally and changes in global trade policies, could also result in financial difficulties for our clients, including bankruptcy and insolvency.
Macroeconomic conditions, including persistent inflation in the countries in which we do business and have operations, increasing geopolitical tensions, the possibility of an economic downturn globally or regionally and changes in global trade policies, particularly trade relations involving the U.S., could also result in financial difficulties for our clients, including bankruptcy and insolvency.
We may redeem the 2024 Notes and 2026 Notes at any time in whole or in part, at a redemption price equal to 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest or, if redemption occurs prior to, in the case of the 2024 Notes, November 1, 2024 and, in the case of the 2026 Notes, March 10, 2026, a specified “make-whole” premium.
We may redeem the 2026 Notes and 2029 Notes at any time in whole or in part, at a redemption price equal to 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest or, if redemption occurs prior to, in the case of the 2026 Notes, March 10, 2026, and in the case of the 2029 Notes, May 4, 2029, a specified “make-whole” premium.
More recently, some of our clients have begun to delay their payments to us in order to take advantage of increased interest rates to earn additional interest income, which has had an adverse impact on our days sales outstanding.
In recent years, some of our clients have begun to delay their payments to us in order to take advantage of increased interest rates to earn additional interest income, which has had an adverse impact on our days sales outstanding.
If we enable or offer AI products or solutions or implement AI capabilities in our internal operations that are controversial because of their impact on human rights, privacy, employment, or other social, economic, or political issues, we may experience brand or reputational harm or greater employee attrition.
If we enable or offer AI products or solutions or implement AI capabilities in our internal operations that are controversial because of their impact on human rights, privacy, employment, or other social, economic, or political issues, we may experience brand or reputational harm, financial or legal liability or increased employee attrition.
We have employees in more than 35 countries and significant operations in more than 20 countries, and these global operations could be disrupted at any time by natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics or pandemics and other natural or manmade disasters or catastrophic events.
We have employees in more than 35 countries and significant operations in more than 20 countries, and these global operations have in the past and could in the future be disrupted by natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics or pandemics and other natural or manmade disasters or catastrophic events.
While we have confidence that our strategic plans reflect opportunities that are appropriate and achievable, the execution of our strategy may not result in long-term growth in revenue or profitability due to a number of factors, including incorrect assumptions, global or local economic conditions, competition, changes in the industries in which we operate, suboptimal resource allocation or any of the other risks described in this “Risk Factors” section.
While we believe that our strategic plans reflect opportunities that are appropriate and achievable, we may not select the best or most appropriate business strategies and the execution of our strategies may not result in long-term growth in revenue or profitability due to a number of factors, including incorrect assumptions, global or local economic conditions, competition, changes in the industries in which we operate, suboptimal resource allocation or any of the other risks described in this “Risk Factors” section.
Any deficiencies in the design, or delays or issues encountered in the implementation, of the new ERP could result in significantly greater capital expenditures and employee time and attention than currently contemplated, and could adversely affect our ability to operate our business, file timely reports with the SEC or otherwise affect the proper and efficient operation of our controls.
Any deficiencies in the design, or delays or issues encountered in the implementation, of the new ERP could result in significantly greater capital expenditures and employee time and attention than currently contemplated, and could adversely affect our ability to operate our business, including effective management of our invoicing and accounts receivable and collections processes, file timely reports with the SEC or otherwise affect the proper and efficient operation of our controls.
Our failure to price these contracts correctly may negatively affect our profitability. The pricing of our services is usually included in SOWs entered into with our clients, many of which are for terms of two to five years.
We enter into long-term contracts and fixed-price contracts with our clients. Our failure to price these contracts correctly may negatively affect our profitability. The pricing of our services is usually included in SOWs entered into with our clients, many of which are for terms of two to five years.
As of December 31, 2023, we had $1,684 million of goodwill and $53 million of intangible assets. We periodically assess these assets to determine if they are impaired and we monitor for impairment of goodwill relating to all acquisitions and our formation in 2004.
As of December 31, 2024, we had $1,670 million of goodwill and $27 million of intangible assets. We periodically assess these assets to determine if they are impaired and we monitor for impairment of goodwill relating to all acquisitions and our formation in 2004.
Resulting political tensions could create a greater perception that investments in companies with Indian operations involve a high degree of risk, and that there is a risk of disruption of services provided by companies with Indian operations, which could have a material adverse effect on our share price and/or the market for our services.
Any of the foregoing could also create a perception that investments in companies with Indian operations involve a high degree of risk or that there is a risk of disruption of services provided by companies with Indian operations, which could have a material adverse effect on our share price and/or the market for our services.
Our industry relies on large numbers of skilled employees, and our success and profitability depend on our ability to attract, train and retain a sufficient number of employees with the right mix of skills and experience to perform services for our clients. High employee attrition is common in our industry.
Our industry relies on large numbers of skilled employees, and our success and profitability depend on our ability to attract, train and retain a sufficient number of employees with the right mix of skills and experience, including advanced technology skills, to deliver our services and solutions to our clients. High employee attrition is common in our industry.
Volatile, negative or uncertain economic conditions in our significant markets have in the past and could in the future undermine business confidence and cause our clients to reduce, postpone or cancel their spending on projects with us, which has negatively affected our business and may continue to do so in the future, including by making it more difficult for us to accurately forecast client demand and effectively build revenue and resource plans. 26 For example, in 2023 some of our clients reduced their discretionary spending in response to economic uncertainty, which negatively impacted our revenues.
Volatile, negative or uncertain economic conditions in our significant markets have in the past and could in the future undermine business confidence and cause our clients to reduce, postpone or cancel their spending on projects with us, which has negatively affected our business and may continue to do so in the future, including by making it more difficult for us to accurately forecast client demand and effectively build revenue and resource plans.
In 2023, we continued to face increased competition for talent with scarce skills and capabilities in new technologies, and our competitors have directly targeted our employees with these highly sought-after skills and may continue to do so.
In 2024, we continued to face increased competition for talent with scarce skills and capabilities in advanced technologies, including AI, and our competitors have directly targeted our employees with these highly sought-after skills and may continue to do so.
Our growth strategy focuses on responding to these types of developments by driving innovation that will enable us to expand our business into new growth areas.
Our growth strategy focuses on responding to these types of developments by driving innovation that will enable us to expand our business into new growth areas, including through our new agentic AI solutions.
In addition, as these technologies evolve, we expect that some services that we currently perform for our clients will be replaced, in whole or in part, by AI or forms of automation.
In addition, as these technologies evolve, we expect that some services that we currently perform for our clients will be replaced, in whole or in part, by AI, including generative AI and agentic solutions, or other forms of automation.
On March 26, 2021, we issued $350 million aggregate principal amount of 1.75% senior notes (the "2026 Notes") in an underwritten public offering. As of December 31, 2023, the amount outstanding under the 2026 Notes, net of debt amortization expense of $1.4 million, was $348.6 million, which is payable on April 10, 2026 when the notes mature.
On March 26, 2021, we issued $350 million aggregate principal amount of 1.75% senior notes (the "2026 Notes") in an underwritten public offering. As of December 31, 2024 , the amount outstanding under the 2026 Notes, net of debt amortization expense of $0.8 million, was $349.2 million, which is payable on April 10, 2026 when the notes mature.
In addition, any deterioration in economic activity in the United States or Europe, or in industries in which our clients operate, could adversely affect demand for our services, thus reducing our revenue.
In addition, any deterioration in economic activity in North America or Europe, or in industries in which our clients operate, could adversely affect demand for our services, thus reducing our revenue.
We have experienced security incidents due to the actions of our employees or contractors, though none of these incidents has had a material impact on our operations or financial results or resulted in any regulatory fines or penalties.
We have experienced security incidents due to the actions of our employees or contractors, though none of these incidents has had a material impact on our operations or financial results.
To date, we have received favorable orders from appellate judicial authorities in India relating to $119 million of the $230 million demanded in the assessment orders, and we continue to defend against the remaining $111 million in demands.
To date, we have received favorable orders from appellate judicial authorities in India relating to $22 million of the $128 million demanded in the assessment orders, and we continue to defend against the remaining $106 million in demands.
As part of our business strategy, we regularly review potential strategic transactions, including potential acquisitions, dispositions, consolidations, joint ventures or similar transactions, some of which may be material.
We may engage in strategic transactions that could create risks. As part of our business strategy, we regularly review potential strategic transactions, including potential acquisitions, dispositions, consolidations, joint ventures or similar transactions, some of which may be material.
In addition, we collect, process and store data regarding our employees and contractors. As a result, we are subject to numerous data protection and privacy laws and regulations designed to protect this information in the countries in which we operate as well as the countries of residence of the persons whose data we process.
As a result, we are subject to numerous data protection and privacy laws and regulations designed to protect this information in the countries in which we operate as well as the countries of residence of the persons whose data we process.
Additionally, in the first quarter of 2023, the ITA issued an assessment order seeking to impose tax on us of $856 million (converted from Indian rupees and including interest through the date of the order) in relation to a 2015 internal restructuring transaction involving our Indian subsidiaries. In March 2023, the tax appellate authority in India struck down this order.
Additionally, in the first quarter of 2023, the ITA issued an assessment order seeking to impose tax on us of $832 million (converted from Indian rupees and including interest through the date of the order) in relation to a 2015 internal restructuring transaction involving our Indian subsidiaries.
A material portion of our revenues is derived from our clients in North America and Europe, and weak demand, or any other adverse economic, political or legal uncertainties or developments, in these markets could have a material adverse effect on our results of operations.
A material portion of our revenues is derived from our clients in North America — in particular the United States — and Europe, and weak demand, or any other adverse economic, political or legal uncertainties or developments, in these markets could have a material adverse effect on our results of operations. The 22 election of a new U.S.
If these labor laws become applicable to us or if more stringent labor laws apply to us in the future, it may become difficult for us to maintain flexible human resource policies, to attract and employ the numbers of sufficiently qualified candidates we require or to terminate employees, and our compensation expenses may increase significantly. 36 In addition, a small percentage of our global employee population is currently unionized.
If these labor laws become applicable to us or if more stringent labor laws apply to us in the future, it may become difficult for us to maintain flexible human resource policies, to attract and employ the numbers of sufficiently qualified candidates we require or to terminate employees, and our compensation expenses may increase significantly.
Shareholders of Bermuda companies generally do not have the right to take action against directors or officers of the company except in limited circumstances.
Generally, the duties of directors and officers of a Bermuda company are owed to the company only. Shareholders of Bermuda companies generally do not have the right to take action against directors or officers of the company except in limited circumstances.
The Companies Act differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including the provisions relating to interested directors, mergers, amalgamations, takeovers and indemnification of directors. Generally, the duties of directors and officers of a Bermuda company are owed to the company only.
As a Bermuda company, we are governed by, in particular, the Companies Act. The Companies Act differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including the provisions relating to interested directors, mergers, amalgamations, takeovers and indemnification of directors.
However, there is no assurance that such impacts will not be material in the future. 21 Additionally, our hybrid working model, which includes a high number of employees working remotely, has reduced our ability to enforce physical security controls and monitor employee conduct and has increased the risk that our employees will engage in impermissible or careless conduct, which could give rise to reputational harm and legal liability.
Additionally, our hybrid working model, which includes a high number of employees working remotely, has reduced our ability to enforce physical security controls and monitor employee conduct and has increased the risk that our employees will engage in impermissible or careless conduct, which could give rise to reputational harm and legal liability.
We are required to pay interest on the 2024 Notes semi-annually in arrears on June 1 and December 1 of each year, ending on the maturity date. We may seek to repay or refinance the 2024 Notes at or prior to the scheduled maturity date.
We are required to pay interest on the 2026 Notes semi-annually in arrears on April 10 and October 10 of each year, ending on the maturity date. We may seek to repay or refinance the 2026 Notes at or prior to the scheduled maturity date.
However, if any person, including any of our current or former employees or contractors, negligently disregards or intentionally breaches our or our clients’ established security policies, measures and controls with respect to client, third-party or Genpact protected data or if we do not adapt to changes in data protection legislation, we could be subject to significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions. 20 Our employees and contractors have in the past engaged, and may in the future engage, in fraudulent conduct or other conduct that violates our client contracts or our internal controls or policies, whether intentionally or inadvertently.
However, if any person, including any of our current or former employees or contractors, negligently disregards or intentionally breaches our or our clients’ established security policies, measures and controls with respect to client, third-party or Genpact protected data or if we do not adapt to changes in data protection legislation, we could be subject to significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions.
In addition, our future revenues, operating margins and profitability may fluctuate as a result of lower demand for our services, lower win rates versus our competition, changes in pricing in response to client demands and competitive pressures, changes to the financial condition of our clients, employee wage levels and utilization rates, changes in foreign exchange rates, including the Indian rupee versus the U.S. dollar and the euro versus the U.S. dollar, the timing of collection of accounts receivable, enactment of new taxes, changes in income tax rates and regulations in the countries where we do business, and changes to levels and types of share-based compensation awards and assumptions used to determine the fair value of such awards.
Our future revenues, operating margins and profitability may fluctuate as a result of, among other factors, lower demand for our services, lower win rates versus our competition, changes in pricing in response to client demands, new services and solutions, and competitive pressures, changes to the financial condition of our clients, employee wage levels and utilization rates, the availability of, and our ability to attract and retain, employees with specialized skills in advanced technologies, changes in foreign exchange rates, including the Indian rupee versus the U.S. dollar and the euro versus the U.S. dollar, the timing of collection of accounts receivable, enactment of new taxes, changes in income tax rates and regulations in the countries where we do business, changes in laws and regulations affecting the willingness of clients to purchase the types of services and solutions we provide or our ability to provide services from offshore, and changes to levels and types of share-based compensation awards and assumptions used to determine the fair value of such awards.
We are subject to, or subject to contractual requirements to comply with or facilitate our clients’ compliance with, numerous, and sometimes conflicting, legal regimes on matters such as anticorruption, import/export controls, trade restrictions, taxation, immigration, internal and disclosure control obligations, securities regulation, anti-competition, data privacy and protection, wage-and-hour standards, and employment and labor relations.
We are subject to numerous, and sometimes conflicting, legal regimes on matters such as anticorruption, import/export controls, trade restrictions, taxation, immigration (including temporary work authorizations or work permits), internal and disclosure control obligations, securities regulation, anti-competition, data privacy and protection, wage-and-hour standards, and employment and labor relations.
Negative outcomes from those examinations or any appeals therefrom may adversely affect our provision for income taxes and tax liability, and the amounts we are ultimately required to pay could be materially different from the amounts we anticipated, which in turn could have a material adverse effect on our business, results of operations, effective tax rate and financial condition. 22 We are currently subject to several tax audits by the Indian tax authorities (“ITA”) related to intercompany transactions that occurred in 2009, 2013 and 2015.
Negative outcomes from those examinations or any appeals therefrom may adversely affect our provision for income taxes and tax liability, and the amounts we are ultimately required to pay could be materially different from the amounts we anticipated, which in turn could have a material adverse effect on our business, results of operations, effective tax rate and financial condition.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur CISO has served in this position since 2014 and, before Genpact, was previously CISO at another US-listed public company. Our CISO is supported by our information security team, many of whom hold cybersecurity certifications and who collectively possess relevant experience in different areas of cybersecurity.
Biggest changeOur CISO has served in this position since 2014 and, before Genpact, was previously CISO at another US-listed public company. Our CISO is supported by our information security team, many of whom hold cybersecurity certifications and who collectively possess relevant experience in different areas of cybersecurity, and by our information technology team who operate several critical controls.
In addition, cybersecurity threats are constantly evolving and increasing in sophistication, which increases the difficulty of successfully defending against them or implementing adequate preventative measures. See "Risk Factors" above for more information about the cybersecurity risks we face.
In addition, cybersecurity threats are constantly evolving and increasing in sophistication, which increases the difficulty of successfully defending against them or implementing adequate preventative and detective measures. See "Risk Factors" above for more information about the cybersecurity risks we face.
Our CISO regularly reports directly to the audit committee on our cybersecurity program and our efforts to prevent, detect, mitigate, and remediate cybersecurity risks. In addition, we have a Security Governance Council, made up of members of our senior management team as well as relevant security personnel, that meets periodically to discuss and address relevant cybersecurity matters.
Our CISO regularly reports directly to the audit committee on our cybersecurity program and our efforts to prevent, detect, mitigate, and remediate cybersecurity risks. In addition, we have an Information Security Governance Council, made up of members of our senior management team as well as relevant information security personnel, that meets periodically to discuss and address relevant cybersecurity matters. 41
We also have processes in place to manage cybersecurity risks associated with third-party service providers. Certain key security controls are tested annually by independent third-party auditors.
We also have processes in place to manage cybersecurity risks associated with third-party service providers. Certain key security controls are tested annually by independent third-party auditors as well as our internal auditors.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties We have delivery centers in 26 countries. We have a mixture of owned and leased properties and substantially all of our leased properties are leased under long-term leases with varying expiration dates. We believe that our properties and facilities are suitable and adequate for our present purposes and are well-maintained. 41
Biggest changeItem 2. Properties We have delivery centers in more than 20 countries. We have a mixture of owned and leased properties and substantially all of our leased properties are leased under long-term leases with varying expiration dates. We believe that our properties and facilities are suitable and adequate for our present purposes and are well-maintained.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe performance shown in the graph and table below is historical and should not be considered indicative of future price performance. 43 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 Genpact 130.68 141.81 144.57 157.66 109.44 Peer Group 118.45 120.30 121.44 126.90 98.96 S&P 500 113.65 118.54 120.55 131.49 105.72 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 Genpact 137.24 146.74 156.20 162.13 172.42 Peer Group 124.75 146.37 173.43 184.18 199.14 S&P 500 127.44 138.81 155.68 165.29 179.42 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 Genpact 180.69 202.30 166.34 162.39 168.25 Peer Group 215.49 264.11 230.61 181.76 166.82 S&P 500 180.47 200.37 191.15 160.37 152.54 12/31/22 03/31/23 06/30/23 09/30/23 12/31/23 Genpact 178.55 178.69 145.79 140.99 135.73 Peer Group 173.66 180.31 187.48 190.64 215.19 S&P 500 164.08 176.38 191.80 185.52 207.21 This graph is not deemed to be “filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.
Biggest changeThe performance shown in the graph and table below is historical and should not be considered indicative of future price performance. 43 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 Genpact 69.42 87.06 93.08 99.08 102.84 Peer Group 77.99 98.31 115.35 136.67 145.14 S&P 500 80.40 96.92 105.57 118.40 125.71 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 Genpact 109.37 114.62 128.33 105.51 103.01 Peer Group 156.94 169.81 208.13 181.73 143.24 S&P 500 136.46 137.25 152.39 145.38 121.97 9/30/22 12/31/22 03/31/23 06/30/23 09/30/23 Genpact 106.72 113.26 113.35 92.48 89.44 Peer Group 131.46 136.85 142.09 147.74 150.24 S&P 500 116.02 124.79 134.14 145.87 141.09 12/31/23 03/31/24 06/30/24 09/30/24 12/31/24 Genpact 86.10 82.09 80.57 98.53 108.30 Peer Group 169.58 167.69 156.89 182.36 183.83 S&P 500 157.59 174.23 181.69 192.39 197.02 This graph is not deemed to be “filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.
This repurchase program does not obligate us to acquire any specific number of shares and does not specify an expiration date. All shares repurchased under the plan have been cancelled. See Note 19—“Capital stock” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
This repurchase program does not obligate us to acquire any specific number of shares and does not specify an expiration date. All shares repurchased under the plan have been cancelled. See Note 18—“Capital stock” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Price Information and Stockholders The principal market on which the Company’s common shares are traded is the New York Stock Exchange under the symbol “G.” As of January 31, 2024, there were 35 holders of record of our common shares.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Price Information and Stockholders The principal market on which the Company’s common shares are traded is the New York Stock Exchange under the symbol “G.” As of January 31, 2025, there were 35 holders of record of our common shares.
The returns of the component entities of our peer group index are weighted according to the market capitalization of each company as of the end of each period for which a return is presented. The returns assume that $100 was invested on December 31, 2018 and that all dividends were reinvested.
The returns of the component entities of our peer group index are weighted according to the market capitalization of each company as of the end of each period for which a return is presented. The returns assume that $100 was invested on December 31, 2019 and that all dividends were reinvested.
The following graph and table compare the performance of an investment in our common shares (measured as the cumulative total shareholder return) with investments in the S&P 500 Index (market capitalization weighted) and a peer group of companies for the period from January 1, 2019 to December 31, 2023.
The following graph and table compare the performance of an investment in our common shares (measured as the cumulative total shareholder return) with investments in the S&P 500 Index (market capitalization weighted) and a peer group of companies for the period from January 1, 2020 to December 31, 2024.
In February 2024, our board of directors approved an 11% increase in our quarterly cash dividend to $0.1525 per common share, representing a planned annual dividend of $0.61 per common share for 2024. Any future dividends will be at the discretion of the board of directors and subject to Bermuda and other applicable laws. Unregistered Sales of Equity Securities None.
In February 2025, our board of directors approved an 11% increase in our quarterly cash dividend to $0.17 per common share, representing a planned annual dividend of $0.68 per common share for 2025. Any future dividends will be at the discretion of the board of directors and subject to Bermuda and other applicable laws. Unregistered Sales of Equity Securities None.
Dividends In February 2023, our board of directors approved a 10% increase in our quarterly cash dividend to $0.1375 per common share, representing an annual dividend of $0.55 per common share. In 2023, dividends were declared in February, May, July and October and paid in March, June, September and December.
Dividends In February 2024, our board of directors approved an 11% increase in our quarterly cash dividend to $0.1525 per common share, representing an annual dividend of $0.61 per common share. In 2024, dividends were declared in February, May, July and October and paid in March, June, September and December.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended December 31, 2023 was as follows: Period Total Number of Shares Purchased Weighted Average Price Paid per Share ($) Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program ($) October 1-October 31, 2023 — — — 474,453,005 November 1-November 30, 2023 710,947 33.70 710,947 450,491,112 December 1-December 31, 2023 1,474,762 34.55 1,474,762 399,544,868 Total 2,185,709 34.27 2,185,709 In February 2023, our board of directors authorized a $500 million increase to our existing $1.75 billion share repurchase program, first announced in February 2015, bringing the total authorization under our existing program to $2.25 billion.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended December 31, 2024 was as follows: Period Total Number of Shares Purchased Weighted Average Price Paid per Share ($) Total Number of Shares Purchased as Part of Publicly Announced Plan or Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program ($) October 1-October 31, 2024 — — — 231,983,299 November 1-November 30, 2024 922,232 45.53 922,232 189,992,842 December 1-December 31, 2024 949,010 45.30 949,010 147,005,441 Total 1,871,242 45.41 1,871,242 In February 2025, our board of directors authorized a $500 million increase to our existing $2.25 billion share repurchase program, first announced in February 2015, bringing the total authorization under our existing program to $2.75 billion.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

138 edited+23 added−41 removed68 unchanged
Biggest changeThis increase was primarily due to a (i) $277.9 million increase in net income in 2023 compared to 2022, (ii) a $195.5 million decrease in non-cash expenses in 2023 compared to 2022, primarily due to a deferred income tax asset recorded in connection with a n on-recurring deferred tax benefit of $169.9 million in 2023 on an intra-entity transfer of certain intellectual prop erty rights from certain non-US subsidiaries to certain wholly-owned US subsidiaries in an effort to better align with our business operations, lower write-downs of operating lease right-of-use assets, intangible assets and property, plant and equipment, including those previously classified as held for sale, lower depreciation and amortization expense, partially offset by an increase in stock-based compensation expense in 2023 compared to 2022, and (iii) a $35.2 million increase in net operating assets driven by higher investments in accounts receivable, higher tax payments (net of refunds) and higher payments for statutory liabilities, partially offset by higher Goods and Service Tax ("GST") refunds in India and lower vendor related payments.
Biggest changeThis increase in cash provided by operating activities was primarily driven by (i) a $160.1 million increase in non-cash expense, primarily due to an increase in deferred tax expense and an increase in allowances for credit losses, partially offset by lower stock-based compensation expense, a decrease in depreciation and amortization expense and a higher unrealized gain on the revaluation of foreign currency assets/liabilities in 2024 compared to 2023, and (ii) an $82.1 million decrease in operating assets and liabilities, which was primarily driven by lower tax payments, lower investment in accounts receivable and higher refunds of Indian Goods and Services Tax payments, partially offset by higher vendor advances for employee related payments in 2024 compared to 2023.
In connection with our entry into the 2022 Credit Agreement, we terminated our existing credit facility under our amended and restated credit agreement entered into August 2018 (the “2018 Credit Agreement”) with the Borrowers, as borrowers, Wells Fargo, as administrative agent, and the lenders and other financial institutions party thereto, which was comprised of a $680.0 million term loan and a $500.0 million revolving credit facility.
In connection with our entry into the 2022 Credit Agreement, we terminated our existing credit facility under our amended and restated credit agreement entered into in August 2018 (the “2018 Credit Agreement”) with the Borrowers, as borrowers, Wells Fargo, as administrative agent, and the lenders and other financial institutions party thereto, which was comprised of a $680.0 million term loan and a $500.0 million revolving credit facility.
For additional information, see Notes 14—“Long-term debt” and 15—“Short-term borrowings” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” We use a revolving accounts receivable-based facility for managing our cash flows. As part of this arrangement, accounts receivable sold under this facility are de-recognized upon sale along with the related allowances, if any.
For additional information, see Notes 13—“Long-term debt” and 14—“Short-term borrowings” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” We use a revolving accounts receivable-based facility for managing our cash flows. As part of this arrangement, accounts receivable sold under this facility are de-recognized upon sale along with the related allowances, if any.
Net revenues from "Business held for sale" in the table above represent revenues from a business we had previously classified as held for sale with effect from April 1, 2022 as part of a series of actions we took in 2022 to focus our business on emerging solutions where we see the greatest opportunities for growth and to deprioritize assets that no longer fit with our long-term strategy.
Net revenues from "Business held for sale" in the table above represent revenues from a business we had classified as held for sale with effect from April 1, 2022 as part of a series of actions we took in 2022 to focus our business on emerging solutions where we see the greatest opportunities for growth and to deprioritize assets that no longer fit with our long-term strategy.
Additionally, the operational costs component of SG&A expenses includes acquisition related costs, legal and professional fees (which represent the costs of third-party legal, tax, accounting and other advisors), investments in research and development, digital technology, advanced automation and robotics, and an allowance for credit losses. Amortization of acquired intangible assets .
Additionally, the operational costs component of SG&A expenses includes acquisition related costs, legal and professional fees (which represent the costs of third-party legal, tax, accounting and other advisors), strategic investments in research and development, digital technology, advanced automation and robotics, and an allowance for credit losses. Amortization of acquired intangible assets .
This is because the number of supervisory and direct support personnel relative to the number of employees who are performing services typically declines in later periods of the contract. It is also because we may retain a portion of the benefit of productivity increases realized over time. Selling, general and administrative expenses .
This is because the number of supervisory and direct support personnel relative to the number of employees who are performing services typically declines in later periods of the contract. It is also because we may retain a portion of the benefit of productivity increases realized over time. 46 Selling, general and administrative expenses .
Claims of holders of the Senior Notes are structurally subordinated to the liabilities of certain non-Guarantors pursuant to their liabilities under our senior credit facility. 64 Recent Accounting Pronouncements Recently adopted accounting pronouncements For a description of recently adopted accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.” For a description of recently issued accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Claims of holders of the Senior Notes are structurally subordinated to the liabilities of certain non-Guarantors pursuant to their liabilities under our senior credit facility. 62 Recent Accounting Pronouncements Recently adopted accounting pronouncements For a description of recently adopted accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.” For a description of recently issued accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
We have operating subsidiaries or branches in several countries, including Argentina, Australia, Brazil, Bulgaria, Canada, China, Costa Rica, the Czech Republic, Egypt, Germany, Guatemala, Hungary, India, Ireland, Israel, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Singapore, South Africa, Thailand, Turkey, the United Kingdom and the United States, as well as sales and marketing subsidiaries in certain jurisdictions, including the United States and the United Kingdom, which are subject to tax in such jurisdictions.
We have operating subsidiaries or branches in several countries, including Argentina, Australia, Brazil, Bulgaria, Canada, China, Colombia, Costa Rica, the Czech Republic, Egypt, Germany, Guatemala, Hungary, India, Ireland, Israel, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Singapore, Slovakia, South Africa, Thailand, Turkey, the United Kingdom and the United States, as well as sales and marketing subsidiaries in certain jurisdictions, including the United States and the United Kingdom, which are subject to tax in such jurisdictions.
For additional information, see Note 19—“Capital stock” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” We expect that for the next twelve months and for the foreseeable future our cash from operations, cash reserves and debt capacity will be sufficient to finance our operations, our growth and expansion plans, dividend payments and additional share repurchases we may make under our share repurchase program.
For additional information, see Note 18—“Capital stock” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” We expect that for the next twelve months and for the foreseeable future, our cash from operations, cash reserves and debt capacity will be sufficient to finance our operations, our growth and expansion plans, dividend payments and additional share repurchases we may make under our share repurchase program.
We enter into forward currency contracts, which are generally designed to qualify for hedge accounting, in order to hedge most of our net cost currency exposure between the U.S. dollar and the Indian rupee and Mexican peso, between the Australian dollar and the Indian rupee, and between the euro and the Romanian leu, and our revenue currency exposure between the U.S. dollar and the U.K. pound sterling, Philippine peso, Hungarian forint, Chinese renminbi, Polish zloty and the euro, and between the Chinese renminbi and the Japanese yen.
We enter into forward currency contracts, which are generally designed to qualify for hedge accounting, in order to hedge most of our net cost currency exposure between the U.S. dollar and the Indian rupee and Mexican peso, between the Australian dollar and the Indian rupee, and between the euro and the Romanian leu, and our revenue currency exposure between the U.S. dollar and the U.K. pound sterling, Philippine peso, Hungarian forint, Chinese renminbi, Malaysian ringgit, Polish zloty and the euro, and between the Chinese renminbi and the Japanese yen.
Capitalized software and technology costs include only (i) the external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. 50 We test our intangible assets for impairment whenever events occur or changes in circumstances indicate that the related carrying amounts may not be recoverable.
Capitalized software and technology costs include only (i) the external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. 49 We test our intangible assets for impairment whenever events occur or changes in circumstances indicate that the related carrying amounts may not be recoverable.
The impairment charge was recorded in “other operating (income) expense, net.” During 2023, the sale of these assets was completed and we recorded a loss on the sale in "other operating (income) expense, net." See Note 8—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
The impairment charge was recorded in “other operating (income) expense, net.” During 2023, the sale of these assets was completed and we recorded a loss on the sale in "other operating (income) expense, net." See Note 7—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
Based on our assessment of such qualitative factors, in accordance with ASC 350, we concluded that as of December 31, 2022 and 2023, the fair values of all of our reporting units are likely to be higher than their respective carrying values. Off-Balance Sheet Arrangements Our off-balance sheet arrangements consist of foreign exchange contracts.
Based on our assessment of such qualitative factors, in accordance with ASC 350, we concluded that as of December 31, 2023 and 2024, the fair values of all of our reporting units are likely to be higher than their respective carrying values. Off-Balance Sheet Arrangements Our off-balance sheet arrangements consist of foreign exchange contracts.
These covenants require us to maintain a net debt to EBITDA leverage ratio of below 3x and an interest coverage ratio of more than 3x. During the year ended December 31, 2023, we were in compliance with the terms of the 2022 Credit Agreement, including all of the financial covenants therein.
These covenants require us to maintain a net debt to EBITDA leverage ratio of below 3x and an interest coverage ratio of more than 3x. During the year ended December 31, 2024, we were in compliance with the terms of the 2022 Credit Agreement, including all of the financial covenants therein.
Our delivery centers also enjoy corporate tax holidays or concessional tax rates in certain other jurisdictions, including Costa Rica, Israel and the Philippines. These tax concessions will expire over the next few years, possibly increasing our overall tax rate.
Our delivery centers also enjoy corporate tax holidays or concessional tax rates in certain other jurisdictions, including Costa Rica, Israel, Malaysia, the Philippines and Poland. These tax concessions will expire over the next few years, possibly increasing our overall tax rate.
In addition, we may raise additional funds through public or private debt or equity financings. Our working capital needs are primarily to finance our payroll and other administrative and information technology expenses in advance of the receipt of accounts receivable.
In addition, we may raise additional funds through public or private debt or equity financing. Our working capital needs are primarily to finance our payroll and other administrative and information technology expenses in advance of the receipt of accounts receivable.
Based on the results of our assessments of qualitative factors, we determined that the fair values of all of our reporting units are likely to be higher than their respective carrying amounts as of December 31, 2022 and 2023.
Based on the results of our assessments of qualitative factors, we determined that the fair values of all of our reporting units are likely to be higher than their respective carrying amounts as of December 31, 2023 and 2024 .
For additional information, see Note 4—“Accounts receivable, net of allowance for credit losses” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 61 Goodwill Impairment Testing Goodwill of a reporting unit is tested for impairment at least annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
For additional information, see Note 3—“Accounts receivable, net of allowance for credit losses” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 59 Goodwill Impairment Testing Goodwill of a reporting unit is tested for impairment at least annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
Due to rounding, the numbers presented in the tables included in this Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided. 51 Results of Operations For a discussion of our results of operations for the year ended December 31, 2021, including a year-to-year comparison between 2022 and 2021, refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2022.
Due to rounding, the numbers presented in the tables included in this Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided. 50 Results of Operations For a discussion of our results of operations for the year ended December 31, 2022, including a year-to-year comparison between 2023 and 2022, refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.
The Company (with respect to both series of Senior Notes) and Genpact USA (with respect to the 2019 Senior Notes) have fully and unconditionally guaranteed (i) that the payment of the principal, premium, if any, and interest on the Senior Notes shall be promptly paid in full when due, whether at stated maturity of the Senior Notes, by acceleration, redemption or otherwise, and that the payment of interest on the overdue principal and interest on the Senior Notes, if any, if lawful, and all other obligations of the applicable issuer or issuers of the Senior Notes, respectively, to the holders of the Senior Notes or the trustee under the Senior Notes shall be promptly paid in full or performed, and (ii) in case of any extension of time of payment or renewal of any Senior Notes or any of such other obligations, that the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
The Company (with respect to both series of Senior Notes) has fully and unconditionally guaranteed (i) that the payment of the principal, premium, if any, and interest on the Senior Notes shall be promptly paid in full when due, whether at stated maturity of the Senior Notes, by acceleration, redemption or otherwise, and that the payment of interest on the overdue principal and interest on the Senior Notes, if any, if lawful, and all other obligations of the applicable issuer or issuers of the Senior Notes, respectively, to the holders of the Senior Notes or the trustee under the Senior Notes shall be promptly paid in full or performed, and (ii) in case of any extension of time of payment or renewal of any Senior Notes or any of such other obligations, that the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
See Note 8—"Assets and liabilities held for sale" and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Seasonality Our financial results may vary from period to period. Our revenues are typically higher in the third and fourth quarters than in other quarters, as a result of several factors.
See Note 7—"Assets and liabilities held for sale" and Note 23—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Seasonality Our financial results may vary from period to period. Our revenues are typically higher in the third and fourth quarters than in other quarters, as a result of several factors.
Bermuda taxes . We are organized in Bermuda. Bermuda does not currently impose any income tax on us. On December 27, 2023, the government of Bermuda passed legislation introducing a corporate income tax of 15%, which will become effective on January 1, 2025.
Bermuda taxes . We are organized in Bermuda. Bermuda does not currently impose any income tax on us. On December 27, 2023, the government of Bermuda passed legislation introducing a corporate income tax of 15%, which became effective on January 1, 2025.
The cost of factoring accounts receivable sold under this facility during the years ended December 31, 2022 and 2023 was $0.6 million and $2.0 million, respectively. We also have arrangements with financial institutions that manage the accounts payable program for certain of our large clients.
The cost of factoring accounts receivable sold under this facility during the years ended December 31, 2023 and 2024 was $2.0 million and $2.3 million, respectively. We also have arrangements with financial institutions that manage the accounts payable program for certain of our large clients.
One of our subsidiaries in China obtained a ruling from the Government of China certifying it to be a Technologically Advanced Service Enterprise. As a result, that subsidiary was subject to a lower corporate income tax rate of 15% through December 31, 2023, subject to the fulfillment of certain conditions.
One of our subsidiaries in China obtained a ruling from the Government of China certifying it to be a Technologically Advanced Service Enterprise. As a result, that subsidiary is subject to a lower corporate income tax rate of 15% through December 31, 2026, subject to the fulfillment of certain conditions.
The ongoing conflict between Russia and Ukraine and actions taken by the United States and other countries in response, including the imposition of sanctions, as well as the ongoing conflict between Hamas and Israel, have contributed to and may continue to exacerbate supply chain disruption and inflation, regional instability and geopolitical tensions.
The ongoing conflict between Russia and Ukraine and actions taken by the United States and other countries in response, including the imposition of sanctions, as well as the ongoing conflict in the Middle East, have contributed to and may continue to exacerbate supply chain disruption and inflation, regional instability and geopolitical tensions.
As of December 31, 2022 and 2023, the limit available under such facilities was $22.9 million and $23.3 million, respectively, of which $5.4 million and $9.3 million, respectively, was utilized, constituting non-funded drawdown.
As of December 31, 2023 and 2024, the limit available under such facilities was $23.3 million and $22.4 million, respectively, of which $9.3 million and $8.5 million, respectively, was utilized, constituting non-funded drawdown.
As of December 31, 2022 and 2023, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $2.0 million and $1.4 million, respectively, was $348.0 million and $348.6 million, respectively, which is payable on April 10, 2026.
As of December 31, 2023 and 2024, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $1.4 million and $0.8 million, respectively, was $348.6 million and $349.2 million, respectively, which is payable on April 10, 2026.
As of December 31, 2022 and 2023, we have a revolving accounts receivable-based facility of $100.0 million and $75.0 million, respectively, permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business.
As of December 31, 2023 and 2024, we have a revolving accounts receivable-based facility of $75.0 million and $60.0 million, respectively, permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business.
The table below sets forth the percentage of our total net revenues derived from our largest clients, in the years ended December 31, 2022 and 2023: Percentage of Total Net Revenues Year ended December 31, 2022 2023 Top five clients 22.1 % 17.5 % Top ten clients 31.2 % 26.3 % Top fifteen clients 37.3 % 32.7 % Top twenty clients 42.2 % 37.2 % We earn revenues pursuant to contracts that generally take the form of a master service agreement ("MSA"), which is a framework agreement that is then supplemented by statements of work ("SOWs").
The table below sets forth the percentage of our total net revenues derived from our largest clients in the years ended December 31, 2023 and 2024 : Percentage of Total Net Revenues Year ended December 31, 2023 2024 Top five clients 17.5 % 14.1 % Top ten clients 26.3 % 22.4 % Top fifteen clients 32.7 % 28.8 % Top twenty clients 37.2 % 34.2 % We earn revenues pursuant to contracts that generally take the form of a master service agreement ("MSA"), which is a framework agreement that is then supplemented by statements of work ("SOWs").
We also received payments in euros, U.K. pounds sterling, Australian dollars, Japanese yen a nd Indian rupees. Our costs are primarily incurred in U.S. dollars, as well as in Indian rupees, U.K. pounds sterling, Romanian leu, Chinese renminbi, euros and the currencies of the other countries in which we have operations.
We also received payments in euros, UK pounds sterling, Australian dollars, Indian rupees and Japanese yen . Our costs are primarily incurred in U.S. dollars, as well as in Indian rupees, Romanian leu, Chinese renminbi, U.K. pounds sterling, Philippine pesos and the currencies of the other countries in which we have operations.
We pay interest on (i) the 2019 Senior Notes semi-annually in arrears on June 1 and December 1 of each year, and (ii) the 2021 Senior Notes semi-annually in arrears on April 10 and October 10 of each year, ending on the maturity dates of December 1, 2024 and April 10, 2026, respectively.
We pay interest on (i) the 2021 Senior Notes semi-annually in arrears on April 10 and October 10 of each year and (ii) the 2024 Senior Notes semi-annually in arrears on June 4 and December 4 of each year ending on the maturity dates of April 10, 2026 and June 4, 2029, respectively.
For additional information, see Item 1A—“Risk Factors—Currency exchange rate fluctuations in various currencies in which we do business, especially the Indian rupee, the euro and the U.S. dollar, could have a material adverse effect on our business, results of operations and financial condition" and Note 6—“Derivative financial instruments” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Other Liquidity and Capital Resources Information As of December 31, 2022 and 2023, we have purchase commitme nts, net of capital advances paid in respect of such purchases, of $18.0 million and $16.0 million, respectively, to be paid in respect of such purchases over the next year .
For additional information, see Item 1A—“Risk Factors—Currency exchange rate fluctuations in various currencies in which we do business, especially the Indian rupee, the euro and the U.S. dollar, could have a material adverse effect on our business, results of operations and financial condition" and Note 5—“Derivative financial instruments” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Other Liquidity and Capital Resources Information As of December 31, 2023 and 2024, we have purchase commitme nts, net of capital advances paid in respect of such purchases, of $16.0 million and $25.3 million, respectively .
See Note 2—“Summary of significant accounting policies” to our Consolidated Financial Statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ and Item 7A—“Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk.” 47 77% of our fiscal 2023 revenues were earned in U.S. dollars.
See Note 2—“Summary of significant accounting policies” to our Consolidated Financial Statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ and Item 7A—“Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk.” 76 % of our fiscal 2024 net revenues were earned in U.S. dollars.
We recorded a net foreign exchange gain of $4.3 million in 2023, compared to $15.4 million in 2022. The gains in both the years resulted primarily from the depreciation of the Indian rupee against the U.S. dollar. Interest income (expense), net .
We recorded a net foreign exchange gain of $2.9 million in 2024, compared to $4.3 million in 2023. The gains in both years resulted primarily from the depreciation of the Indian rupee against the U.S. dollar. Interest income (expense), net .
For additional information, see Note 8—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Cash flows used for financing activities . Our net cash used for financing activities was $483.0 million in 2023, compared to $571.4 million in 2022.
For additional information, see Note 7—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Cash flows used for financing activities . Our net cash used for financing activities was $424.8 million in 2024, compared to $483.0 million in 2023.
Any future dividends will be at the discretion of our board of directors and subject to Bermuda and other applicable laws. 58 As of December 31, 2023, the total authorization under our existing share repurchase program was $2,250.0 million, of which $399.5 million remained available as of December 31, 2023.
Any future dividends will be at the discretion of our board of directors and subject to Bermuda and other applicable laws. As of December 31, 2024, the total authorization under our existing share repurchase program was $2,250.0 million, of which $147.0 million remained available as of December 31, 2024.
As of December 31, 2023, we were party to interest rate swaps covering a total notional amount of $148.1 million. Under these swap agreements, the rate that we pay to banks in exchange for Term SOFR ranges between 0.15% and 4.72%. Genpact Luxembourg issued $400 million aggregate principal amount of 3.375% senior notes in November 2019 (the “2019 Senior Notes”).
As of December 31, 2024, we were party to interest rate swaps covering a total notional amount of $234.4 million. Under these swap agreements, the rate that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%. Genpact Luxembourg issued $400 million aggregate principal amount of 3.375% senior notes in November 2019 (the “2019 Senior Notes”).
We provide information about our revenue growth on a constant currency 2 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of our business performance.
Revenue growth on a constant currency 3 basis is a non-GAAP measure. We provide information about our revenue growth on a constant currency 3 basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations compared to prior fiscal periods, thereby facilitating period-to-period comparisons of our business performance.
Total net revenues on a constant currency 2 basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and adjusted for hedging gains/losses. Our average headcount increased to approximately 123,400 in 2023 from approximately 115,800 in 2022.
Total net revenues on a constant currency 3 basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and adjusted for hedging gains/losses. Our average headcount increased to approximately 135,400 in 2024 from approximately 123,400 in 2023.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 27—“Restructuring” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Income from operations . As a result of the foregoing factors, income from operations as a percentage of total net revenues increased from 11.5% in 2022 to 14.1% in 2023.
For additional information, see Note 7—“Assets and liabilities held for sale” and Note 26—“Restructuring” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Income from operations . As a result of the foregoing factors, income from operations as a percentage of total net revenues increased from 14.1% in 2023 to 14.7% in 2024.
For additional information, see Note 26—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” As of December 31, 2022 and 2023, we also have operating and finance lease commitments of $330.1 million and $287.5 million, respectively, to be paid over the remaining lease terms.
For additional information, see Note 25—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” As of December 31, 2023 and 2024, we also have operating and finance lease commitments of $287.5 million and $276.2 million, respectively, to be paid over the remaining lease terms.
The 2019 Senior Notes are fully guaranteed by the Company and Genpact USA, Inc. The total debt issuance cost of $2.9 million incurred in connection with the 2019 Senior Notes offering is being amortized over the life of the notes as additional interest expense.
The 2019 Senior Notes were fully guaranteed by the Company and Genpact USA. The total debt issuance cost of $2.9 million incurred in connection with the 2019 Senior Notes offering was amortized over the life of the notes as additional interest expense.
We used these arrangements to sell accounts receivable amounting to $299.9 million and $324.4 million during the years ended December 31, 2022 and December 31, 2023, respectively, which also represents the maximum utilization under these arrangements in each such year.
We used these arrangements to sell accounts receivable amounting to $324.4 million and $270.2 million during the years ended December 31, 2023 and December 31, 2024, respectively, which also represents the maximum utilization under these arrangements in each such year.
See “Special Note Regarding Forward-Looking Statements” included elsewhere in this Annual Report on Form 10-K. Macroeconomic environment Our results of operations are affected by various economic and macroeconomic conditions, including the inflationary environment, high interest rates, numerous geopolitical risks and levels of overall business confidence.
See “Special Note Regarding Forward-Looking Statements” included elsewhere in this Annual Report on Form 10-K. Macroeconomic environment Our results of operations are affected by economic conditions, including the overall inflationary environment and levels of business confidence.
For additional information, see Note 12—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 62 Supplemental Guarantor Financial I nformation As discussed in Note 14, “Long-term debt,” to our consolidated financial statements under Part IV, Item 15- "Exhibits and Financial Statement Schedules," Genpact Luxembourg issued the 2019 Senior Notes, and Genpact Luxembourg and Genpact USA co-issued the 2021 Senior Notes.
For additional information, see Note 11—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 60 Supplemental Guarantor Financial I nformation As discussed in Note 13, “Long-term debt,” to our consolidated financial statements under Part IV, Item 15- "Exhibits and Financial Statement Schedules," Genpact Luxembourg and Genpact USA co-issued the 2021 Senior Notes and the 2024 Senior Notes.
While we do not have operations in Russia or Ukraine, it is difficult to anticipate the future impacts of the Russia-Ukraine conflict on our business or our clients’ businesses. We have limited operations in Israel and are closely monitoring the situation.
While we do not have operations in Russia or Ukraine, it is difficult to anticipate the future impacts of the Russia-Ukraine conflict on our business or our clients’ businesses. We have limited operations in Israel and continue to closely monitor the situation in the Middle East.
The cost of factoring such accounts receivable during the years ended December 31, 2022 and 2023 was $4.2 million and $7.9 million, respectively.
The cost of factoring such accounts receivable during the years ended December 31, 2022 and 2023 was $7.9 million and $6.0 million, respectively.
The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 3.0% in 2022 to 3.7% in 2023. Other income (expense), net. Our other income (net of expense) was $15.0 million in 2023, compared to other expense (net of income) of $0.1 million in 2022.
The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 3.7% in 2023 to 4.5% in 2024. Other income (expense), net. Our other income (net of expense) was $19.0 million in 2024 , compared to $15.0 million in 2023 .
Such an assertion could affect the size and scope of the services requested by such clients in the future. 48 Our ability to repatriate surplus earnings from our foreign subsidiaries in a tax-efficient manner is dependent upon interpretations of local laws, possible changes in such laws and the renegotiation of existing double tax avoidance treaties.
Such an assertion could affect the size and scope of the services requested by such clients in the future. Our ability to repatriate surplus earnings from our foreign subsidiaries in a tax-efficient manner is dependent upon interpretations of local laws and applicable double taxation treaties.
For additional information, see Note 10—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease right-of-use assets decreased by $12.2 million The decrease in operating lease right-of-use assets is due to amortization, partially offset by assets recognized due to leases entered into in 2023.
For additional information, see Note 9—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease right-of-use assets decreased by $4.0 million The decrease in operating lease right-of-use assets is due to amortization, partially offset by assets recognized due to new leases/lease renewals entered into in 2024.
For additional information, see Note 23—“Income taxes” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Liquidity and Capital Resources Overview Information about our financial position as of December 31, 2022 and 2023 is presented below: As of December 31, As of December 31, Percentage Change increase/(decrease) 2022 2023 2023 vs. 2022 (dollars in millions) Cash and cash equivalents $ 646.8 $ 583.7 (9.8) % Short-term borrowings 151.0 10.0 (93.4) % Long-term debt due within one year 26.1 432.2 1,553.8 % Long-term debt other than the current portion 1,249.2 824.7 (34.0) % Genpact Limited total shareholders’ equity $ 1,826.2 $ 2,248.4 23.1 % Financial Condition We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities.
For additional information, see Note 22—“Income taxes” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Liquidity and Capital Resources Overview Information about our financial position as of December 31, 2023 and 2024 is presented below: As of December 31, As of December 31, Percentage change increase/ (decrease) 2024 vs. 2023 2023 2024 (dollars in millions) Cash and cash equivalents $ 583.7 $ 648.2 11.1 % Short-term investments — 23.4 NM* Short-term borrowings 10.0 — (100.0) % Long-term debt due within one year 432.2 26.2 (93.9) % Long-term debt other than the current portion $ 824.7 $ 1,195.3 44.9 % Genpact Limited total shareholders’ equity $ 2,248.4 $ 2,389.6 6.3 % *Not Meaningful Financial Condition We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities.
We believe that presenting AOI together with our reported results can provide useful supplemental information to our investors and management regarding financial and business trends relating to our financial condition and results of operations.
We believe that presenting AOI alongside our reported results offers useful supplemental information to our investors and management regarding financial and business trends relating to our financial condition and results of operations.
As of December 31, 2022 and 2023, a total of $153.7 million and $11.6 million, respectively, of our revolving credit facility was utilized, of which $151.0 million and $10.0 million, respectively, constituted funded drawdown, and $2.7 million and $1.6 million, respectively, constituted non-funded drawdown.
As of December 31, 2023 and 2024, a total of $11.6 million and $1.5 million, respectively, of our revolving credit facility was utilized, of which $10.0 million and $0.0 million, respectively, constituted funded drawdown, and $1.6 million and $1.5 million, respectively, constituted non-funded drawdown.
Other income (expense), net . Other income (expense), net primarily includes certain government incentives received by our subsidiaries and changes in the fair value of assets in our deferred compensation plan. Income taxes . We are incorporated in Bermuda and have operations in many countries.
Other income (expense), net primarily includes certain government incentives received by our subsidiaries, gains (losses) on the sale/disposal of property, plant and equipment and changes in the fair value of assets in our deferred compensation plan. 47 Income taxes . We are incorporated in Bermuda and have operations in many countries.
On February 8, 2024, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1375 per common share to $0.1525 per common share, representing a planned annual dividend of $0.61 per common share for 2024, up from $0.55 per common share in 2023.
On February 7, 2025, our board of directors approved an 11% increase in our quarterly cash dividend from $0.1525 per common share to $0.17 per common share, representing a planned annual dividend of $0.68 per common share for 2025, up from $0.61 per common share in 2024.
The aggregate maximum capacity utilized at any time during the period ended December 31, 2022 and 2023 was $33.0 million and $51.4 million, respectively. The principal amount outstanding against this facility as of December 31, 2022 and 2023 was $33.0 million and $51.3 million, respectively.
The aggregate maximum capacity utilized at any time during the period ended December 31, 2023 and 2024 was $51.4 million and $55.9 million, respectively. The principal amount outstanding against this facility as of December 31, 2023 and 2024 was $51.3 million and $26.6 million, respectively.
As a result of the foregoing factors, net income as a percentage of net revenues was 14.1% in 2023, up from 8.1% in 2022.
As a result of the foregoing factors, net income as a percentage of net revenues was 10.8% in 2024, down from 14.1% in 2023.
Our revenues recognized each year will vary from the new bookings value since new bookings is a snapshot measurement of a portion of the total client contract value at a given time. 49 Critical Accounting Policies and Estimates A summary of our significant accounting policies is included in Note 2—“Summary of significant accounting policies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if changes in the estimate that are reasonably possible could materially impact the financial statements or require a higher degree of judgment than others in their application.
Critical Accounting Policies and Estimates A summary of our significant accounting policies is included in Note 2—“Summary of significant accounting policies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if changes in the estimate that are reasonably possible could materially impact the financial statements or require a higher degree of judgment than others in their application.
For additional information, se e Note 15—“Short-term borrowings” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information. • Prepaid expenses, other current assets, contract cost assets and other assets increased by $35.3 million The increase in prepaid expenses, other current assets, contract cost assets and other assets is primarily due to higher tax payments (net of refunds), higher contract assets (net of amortization) and higher deferred billings.
For additional information, se e Note 14—“Short-term borrowings” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information. • Prepaid expenses, other current assets, contract cost assets and other assets increased by $66.5 million The increase in prepaid expenses, other current assets, contract cost assets and other assets is primarily due to higher deferred billings, higher contract assets (net of amortization), higher vendor advances for employee related liabilities and higher prepaid expenses.
Throughout 2023, continued economic and geopolitical uncertainty in many markets around the world, including with respect to slowing global economic growth, monetary policy and continued volatility in foreign currency exchange rates , impacted and may continue to impact our business.
Throughout 2024, continued economic and geopolitical uncertainty in many markets around the world, including with respect to monetary policy and slowing global economic growth, impacted our business and may continue to impact our business in the future.
Interest income (expense), net consists primarily of interest expense on indebtedness, including resulting from interest rate swaps and a treasury rate lock agreement, finance lease obligation s, interest adjustments relating to earn-out consideration in connection with certain acquisitions, certain items related to debt restructuring, and interest income on certain deposits.
Interest income (expense), net consists primarily of interest expense on indebtedness, including resulting from interest rate swaps and a treasury rate lock agreement, finance lease obligation s, certain items related to debt restructuring, and interest income on certain deposits.
We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of London Interbank Offered Rate ("LIBOR") or Term Secured Overnight Financing Rate (“SOFR”), as applicable, and the floor rate under our term loan and make payments based on a fixed rate.
We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term Secured Overnight Financing Rate (“SOFR”) and the floor rate under our term loan and make payments based on a fixed rate. Other income (expense), net .
During the years ended December 31, 2022 and 2023, we repurchased 4,777,205 and 6,013,793 of our common shares, respectively, on the open market at a weighted average price of $44.79 and $37.48 per share, respectively, for an aggregate purchase price of $214.0 million and $225.4 million, respectively. All repurchased shares have been retired.
During the years ended December 31, 2023 and 2024, we repurchased 6,013,793 and 6,591,550 of our common shares, respectively, on the open market at a weighted average price of 37.48 and 38.31 per share, respectively, for an aggregate purchase price of $225.4 million and $252.5 million, respectively. All repurchased shares have been retired.
We typically have multiple SOWs under any given MSA, and the terms of our SOWs vary depending on the nature of the services to be provided. We seek to develop long-term relationships with our clients.
We typically have multiple SOWs under any given MSA, and the terms of our SOWs vary depending on the nature of the services to be provided.
See Item 1—“Business—Sales and marketing” for additional information. Many factors affect how we price our contracts. Under some of our MSAs, we are able to share a limited amount of inflation and currency exchange risk for engagements lasting longer than 12 months.
In this way, we try to ensure that contract terms meet our pricing, cash and service objectives. See Item 1—“Business—Sales and marketing” for additional information. Many factors affect how we price our contracts. Under some of our MSAs, we are able to share a limited amount of inflation and currency exchange risk for engagements lasting longer than 12 months.
To date, we do not believe the conflicts between Russia and Ukraine and Hamas and Israel, or the economic or political impacts of these conflicts, have had a material impact on our business, financial position or operations, but we continue to monitor the situation.
To date, we do not believe the conflicts in Ukraine or the Middle East, or the economic or political impacts of these conflicts, have had a material impact on our business, financial position or operations, but we continue to monitor both conflicts.
The remaining $95.7 million in cash and cash equivalents held by foreign subsidiaries is being indefinitely reinvested.
The remaining $200.6 million in cash and cash equivalents held by subsidiaries is being indefinitely reinvested.
Our intangible assets decreased by $36.7 million due to the amortization of intangible assets.
Our intangible assets decreased by $26.1 million due to the amortization of intangible assets.
Our ability to utilize our tax loss carry forwards and other deferred tax assets and credits may be affected if our profitability deteriorates or if new legislation is introduced that changes carry-forward or crediting rules. Additionally, reductions in enacted tax rates may affect the value of our deferred tax assets and our tax expense.
Tax losses and other deferred tax assets . Our ability to utilize our tax loss carry forwards and other deferred tax assets and credits may be affected if our profitability deteriorates or if new legislation is introduced that changes carry-forward or crediting rules.
On March 24, 2023, June 26, 2023, September 26, 2023 and December 22, 2023, we paid dividends of $0.1375 per share, amounting to $25.3 million, $25.0 million, $24.9 million and $24.8 million in the aggregate, to shareholders of record as of March 10, 2023, June 9, 2023, September 8, 2023 and December 8, 2023, respectively.
On March 26, 2024, June 26, 2024, September 25, 2024 and December 23, 2024 we paid dividends of $0.1525 per share, amounting to $27.5 million, $27.3 million, $26.9 million and $26.7 million in the aggregate, to shareholders of record as of March 11, 2023, June 10, 2024, September 11, 2024 and December 9, 2024, respectively.
As of December 31, 2022 and 2023, the amount outstanding under the 2019 Senior Notes, net of debt amortization expense of $1.1 million and $0.5 million, was $398.9 million and $399.5 million, respectively, which is payable on December 1, 2024.
As of December 31, 2023 and 2024, the amount outstanding under the 2019 Senior Notes, net of debt amortization expense of $0.5 million and $0 million, was $399.5 million and $0 million, respectively. The 2019 Senior Notes matured on December 1, 2024 and were fully repaid.
We calculate AOI as net income, excluding (i) stock-based compensation, (ii) amortization and impairment of acquired intangible assets, (iii) acquisition-related expenses excluded in the period in which an acquisition is consummated, (iv) foreign exchange (gains)/losses (other than those included in income from operations) , (v) restructuring (income) expense, (vi) any loss or gain on businesses held for sale, including impairment charges, (vii) interest (income) expense, and (viii) income tax expense/(benefit), as we believe that our results after taking into account these adjustments more accurately reflect our ongoing operations.
We calculate AOI as net income, excluding (i) stock-based compensation, (ii) amortization and impairment of acquired intangible assets, (iii) foreign exchange gains/(losses), net, (iv) restructuring (income) expense, (v) the operating loss from the business classified as held for sale, (vi) losses on the sale of businesses classified as held for sale, (vii) interest (income) expense, and (viii) income tax expense/(benefit), as we believe that our results after taking into account these adjustments more accurately reflect our ongoing operations.
The ratio of cost of revenue to revenues for any particular SOW or for all SOWs under an MSA is typically higher in the early periods of the contract or client relationship than in later periods.
The ratio of cost of revenue to revenues for any particular SOW or for all SOWs under an MSA, which generally has a longer term ranging from two to five years, is typically higher in the early periods of the contract or client relationship than in later periods.
For additional information, see Note 12—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease liability decreased by $26.1 million The decrease in operating lease liability is due to lease payments, partially offset by additions and modifications in 2023. • Accounts payable, accrued expenses, other current liabilities and other liabilities decreased by $20.6 million The decrease in accounts payable, accrued expenses, other current liabilities and other liabilities is primarily due to a reduction in accounts payable, contract liabilities, finance lease liabilities, statutory liabilities and lower mark-to-market losses on derivative financial instruments in 2023 compared to 2022.
For additional information, see Note 11—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 55 • Operating lease liability decreased by $12.1 million The decrease in operating lease liability is due to lease payments made in 2024, partially offset by additions and modifications in 2024. • Accounts payable, accrued expenses, other current liabilities and other liabilities increased by $96.6 million The increase in accounts payable, accrued expenses, other current liabilities and other liabilities is primarily due to an increase in accounts payable, expense related accruals, higher mark-to-market losses on derivative financial instruments and employee related accruals in 2024 compared to 2023.
The related loss and impairment charge were excluded from AOI. 55 For additional information, see Note 8—“Assets and liabilities held for sale” and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” The following table shows the reconciliation of AOI to the most directly comparable GAAP measure for the years ended December 31, 2022 and 2023: Year ended December 31, 2022 2023 (dollars in millions) Net income $ 353.4 $ 631.3 Foreign exchange (gains) losses, net $ (15.4) $ (4.3) Interest (income) expense, net $ 52.2 $ 47.9 Income Tax Expense/ (Benefit) $ 111.8 $ (29.0) Stock-based compensation $ 77.4 $ 88.6 Amortization and impairment of acquired intangible assets $ 42.6 $ 31.3 Loss on the sale of business classified as held for sale $ — $ 0.8 Restructuring expense (income) $ 38.8 $ (4.9) Loss relating to business held for sale $ 24.8 $ 1.2 Impairment charge on assets classified as held for sale $ 32.6 $ — Adjusted income from operations $ 718.2 $ 762.9 The following table sets forth our AOI by reportable business segment for the years ended December 31, 2022 and 2023: Year ended December 31, Percentage change increase/ (decrease) 2023 vs. 2022 2022 2023 (dollars in millions) Financial Services $ 172.3 $ 193.4 12.2 % Consumer and Healthcare $ 233.0 $ 242.5 4.0 % High Tech and Manufacturing $ 303.6 $ 297.9 (1.9) % Total reportable segment $ 708.9 $ 733.7 3.5 % Others $ (15.5) $ 28.0 281.0 % Total $ 693.4 $ 761.7 9.9 % Loss relating to business held for sale $ 24.8 $ 1.2 NM* Adjusted income from operations $ 718.2 $ 762.9 6.2 % *Not Meaningful AOI of our Financial Services segment increased to $193.4 million in 2023 from $172.3 million in 2022, primarily due to higher revenues, improved efficiency and the net favorable impact of allocating foreign exchange gains/(losses) and resource costs in 2023 compared to 2022, partially offset by the impact of wage inflation.
For additional information, see Note 7—“Assets and liabilities held for sale” and Note 23—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” The following table shows the reconciliation of AOI to the most directly comparable GAAP measure for the years ended December 31, 2023 and 2024: Year ended December 31, 2023 2024 (dollars in millions) Net income $ 631.3 $ 513.7 Foreign exchange (gains) losses, net $ (4.3) $ (2.9) Interest (income) expense, net $ 47.9 $ 47.2 Income tax expense/ (benefit) $ (29.0) $ 163.2 Stock-based compensation expense $ 88.6 $ 66.4 Amortization and impairment of acquired intangible assets $ 31.3 $ 26.5 Restructuring expense (income) $ (4.9) $ — Operating loss on the sale of business classified as held for sale $ 1.2 $ — Loss on the sale of business classified as held for sale $ 0.8 $ — Adjusted income from operations $ 762.9 $ 813.9 The following table sets forth our AOI by reportable business segment for the years ended December 31, 2023 and 2024: Year ended December 31, Percentage change increase/ (decrease) 2024 vs. 2023 2023 2024 (dollars in millions) Financial Services $ 193.4 $ 215.9 11.7 % Consumer and Healthcare $ 242.5 $ 293.1 20.9 % High Tech and Manufacturing $ 297.9 $ 319.4 7.2 % Total reportable segment $ 733.7 $ 828.4 12.9 % Unallocated corporate expenses $ 28.0 $ (14.5) NM* Total $ 761.7 $ 813.9 6.9 % Loss relating to business held for sale $ 1.2 $ — NM* Adjusted income from operations $ 762.9 $ 813.9 6.7 % *Not Meaningful 54 AOI of our Financial Services segment increased to $215.9 million in 2024 from $193.4 million in 2023, primarily due to higher revenues and improved operating efficiency in 2024 compared to 2023.
See Note 2—“Summary of significant accounting policies—Business combinations, goodwill and other intangible assets” and Note 10—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ for more information about how we value our intangible assets.
See Note 2—“Summary of significant accounting policies—Goodwill and other intangible assets” and Note 9—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ for more information about how we value our intangible assets. Actual results may vary, and may cause significant adjustments to the valuation of our assets in the future.
With respect to the 2019 Senior Notes, failing payment by Genpact Luxembourg when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Company and Genpact USA shall be obligated to pay the same immediately.
Failing payment by Genpact Luxembourg or Genpact USA when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Company shall be obligated to pay the same immediately. The Company has agreed that the guarantees described above are guarantees of payment of the Senior Notes and not guarantees of collection.
Summarized Statements of Income Year ended December 31, 2022 Year ended December 31, 2023 (dollars in millions) Net revenues $ 141.3 $ 298.1 Gross profit 141.3 298.1 Net income 72.3 382.4 Below is a summary of transactions with non-Guarantors included in the summarized statement of income above: Year ended December 31, 2022 Year ended December 31, 2023 (dollars in millions) Royalty income $ — $ 0.7 Revenue from services 141.3 297.4 Interest income /(expense), net 36.9 52.1 Other income /(expense), net 25.2 (4.5) 63 Summarized Balance Sheets As of December 31, 2022 As of December 31, 2023 (dollars in millions) Assets Current assets $ 2,181.4 $ 2,193.4 Non-current assets 178.3 1,045.4 Liabilities Current liabilities $ 3,639.6 $ 5,121.3 Non-current liabilities 1,749.2 904.7 Below is a summary of the balances with non-Guarantors included in the summarized balance sheets above: As of December 31, 2022 As of December 31, 2023 (dollars in millions) Assets Current assets Accounts receivable, net $ 62.1 $ 114.4 Loans receivable 1,420.3 1,433.1 Others 453.1 594.8 Investment in debentures/bonds 193.3 — Non-current assets Others $ 79.5 $ 69.5 Liabilities Current liabilities Loans payable $ 2,805.8 $ 3,559.7 Others 620.2 1,117.8 Non-Current liabilities Loans payable $ 500.0 $ 75.0 The Senior Notes and the related guarantees rank pari passu in right of payment with all senior and unsecured debt of the Debt Issuers and the Guarantors and rank senior in right of payment to all of the Debt Issuer’s and the Guarantor’s future subordinated debt.
Summarized Statements of Income Year ended December 31, 2023 Year ended December 31, 2024 (dollars in millions) Net revenues $ 298.1 $ 422.4 Gross profit 298.1 422.4 Net income 382.4 237.1 Below is a summary of transactions with non-Guarantors included in the summarized statement of income above: Year ended December 31, 2023 Year ended December 31, 2024 (dollars in millions) Royalty income $ 0.7 $ — Revenue from services 297.4 422.4 Interest income /(expense), net 52.1 (15.5) Other income /(expense), net (4.5) (4.4) Summarized Balance Sheets As of December 31, 2023 As of December 31, 2024 (dollars in millions) Assets Current assets $ 2,193.4 $ 1,842.4 Non-current assets 1,045.4 1,000.5 Liabilities Current liabilities $ 5,121.3 $ 4,150.1 Non-current liabilities 904.7 1,236.1 61 Below is a summary of the balances with non-Guarantors included in the summarized balance sheets above: As of December 31, 2023 As of December 31, 2024 (dollars in millions) Assets Current assets Accounts receivable, net $ 114.4 $ 174.7 Loans receivable 1,433.1 932.4 Others 594.8 589.0 Non-current assets Others $ 69.5 $ 46.2 Liabilities Current liabilities Loans payable $ 3,559.7 $ 3,447.0 Others 1,117.8 659.9 Non-Current liabilities Loans payable $ 75.0 $ 38.0 The Senior Notes and the related guarantees rank pari passu in right of payment with all senior and unsecured debt of the Debt Issuers and the Guarantors and rank senior in right of payment to all of the Debt Issuer’s and the Guarantor’s future subordinated debt.
Cash flows from operating, investing and financing activities, as reflected in our consolidated statements of cash flows, are summarized in the following table: Year ended December 31, Percentage change increase/ (decrease) 2023 vs. 2022 2022 2023 (dollars in millions) Net cash provided by (used for) Operating activities $ 443.7 $ 490.8 10.6 % Investing activities (36.6) (78.9) 115.7 % Financing activities (571.4) (483.0) (15.5) % Net decrease in cash and cash equivalents $ (164.3) $ (71.1) (56.7) % Cash flows from o perating activities .
Cash flows from operating, investing and financing activities, as reflected in our consolidated statements of cash flows, are summarized in the following table: Year ended December 31, Percentage change 2023 2024 (dollars in millions) Net cash provided by (used for) Operating activities $ 490.8 $ 615.4 25.4 % Investing activities (78.9) (106.0) 34.3 % Financing activities (483.0) (424.8) 12.0 % Net increase (decrease) in cash and cash equivalents $ (71.1) $ 84.6 219.0 % Cash flows from o perating activities .
Net cash provided by operating activities was $490.8 million in 2023, up from $443.7 million in 2022.
Net cash provided by operating activities was $615.4 million in 2024, up from $490.8 million in 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2023, we had $1,257.0 million of indebtedness, comprised of (a) $508.9 million of indebtedness under our 2022 Credit Agreement consisting of a long-term loan of $508.9 million, net of $1.3 million in unamortized debt issuance expenses, (b) $399.5 million in indebtedness under our 2019 Senior Notes, net of $0.5 million in unamortized bond issuance expenses, and (c) $348.6 million in indebtedness under our 2021 Senior Notes, net of $1.4 million in unamortized bond issuance expenses.
Biggest changeAs of December 31, 2024 , we had $1,221.4 million of indebtedness, comprised of (a) $476.1 million of indebtedness under our 2022 Credit Agreement consisting of a long-term loan of $476.1 million, net of $0.9 million in unamortized debt issuance expenses, (b) $349.2 million in indebtedness under our 2021 Senior Notes, net of $0.8 million in unamortized bond issuance expenses, and (c) $396.1 million in indebtedness under our 2024 Senior Notes, net of $3.9 million in unamortized bond issuance expenses.
We have sought to reduce the effect of any Indian rupee-U.S. dollar, Indian rupee-Australian dollar, Philippine Peso-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, euro-Romanian leu, Mexican peso-U.S. dollar, Polish zloty-U.S. dollar, Hungarian forint-U.S. dollar, Malaysian ringgit-U.S. dollar and certain other local currency exchange rate fluctuations on our results of operations by purchasing forward foreign exchange contracts to cover a portion of our expected cash flows and accounts receivable.
We have sought to reduce the effect of any Indian rupee-U.S. dollar, Indian rupee-Australian dollar, Philippine Peso-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, Romanian leu-euro, Mexican peso-U.S. dollar, Polish zloty-U.S. dollar, Hungarian forint-U.S. dollar, Malaysian ringgit-U.S. dollar and certain other local currency exchange rate fluctuations on our results of operations by purchasing forward foreign exchange contracts to cover a portion of our expected cash flows and accounts receivable.
Additionally, the interest rates on our Senior Notes are subject to adjustment based on the ratings assigned by Moody’s and S&P to the notes from time to time. A decline in such ratings could result in an increase of up to 2% in the rate of interest on the Senior Notes.
Additionally, the interest rates on our 2019 and 2021 Senior Notes are subject to adjustment based on the ratings assigned by Moody’s and S&P to the notes from time to time. A decline in such ratings could result in an increase of up to 2% in the rate of interest on the 2019 and 2021 Senior Notes.
Our expenses are primarily in U.S. dollars and we also incur expenses in Indian rupees, U.K. pounds sterling, Romanian lei, Chinese renminbi, euros and the currencies of the other countries in which we have operations. Our exchange rate risk arises from our foreign currency revenues, expenses, receivables and payables.
Our expenses are primarily in U.S. dollars and we also incur expenses in Indian rupees, Romanian lei, Chinese renminbi, U.K. pounds sterling, Philippine pesos and the currencies of the other countries in which we have operations. Our exchange rate risk arises from our foreign currency revenues, expenses, receivables and payables.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign currency risk Our exposure to market risk arises principally from exchange rate risk. A substantial portion of our revenues (77% in fiscal 2023) is received in U.S. dollars. We also receive revenues in euros, U.K. pounds sterling, Australian dollars, Japanese yen and Indian rupees.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign currency risk Our exposure to market risk arises principally from exchange rate risk. A substantial portion of our revenues (76% in fiscal 2024 ) is received in U.S. dollars. We also receive revenues in euros, U.K. pounds sterling, Australian dollars, Indian rupees and Japanese yen.
Based on the results of our European operations for fiscal 2023, and excluding any hedging arrangements that we had in place during that period, a 10.0% appreciation or depreciation of the euro against the U.S. dollar would have increased or decreased, as applicable, our revenues in fiscal 2023 by $14.0 million.
Based on the results of our European operations for fiscal 2024 , and excluding any hedging arrangements that we had in place during that period, a 10.0% appreciation or depreciation of the euro against the U.S. dollar would have increased or decreased, as applicable, our revenues in fiscal 2024 by $15.0 million.
The treasury rate lock agreement was terminated on March 23, 2021, and a deferred gain was recorded in accumulated other comprehensive income and is being amortized to interest expense over the life of the 2021 Senior Notes. The remaining gain to be amortized related to the treasury rate lock agreement as of December 31, 2023 was $0.4 million.
The treasury rate lock agreement was terminated on March 23, 2021, and a deferred gain was recorded in accumulated other comprehensive income and is being amortized to interest expense over the life of the 2021 Senior Notes. The remaining gain to be amortized related to the treasury rate lock agreement as of December 31, 2024 was $0.2 million.
Similarly, excluding any hedging arrangements that we had in place during that period, a 10.0% depreciation of the Indian rupee against the U.S. dollar would have decreased our expenses incurred and paid in Indian rupees in fiscal 2023 by $109.0 million.
Similarly, excluding any hedging arrangements that we had in place during that period, a 10.0% depreciation of the Indian rupee against the U.S. dollar would have decreased our expenses incurred and paid in Indian rupees in fiscal 2024 by $124.0 million.
For fiscal 2023, such an increase would have had an impact of up to $15.0 million on our net interest expense. 65 We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term SOFR and the floor rate under our term loan and make payments based on a fixed rate.
For fiscal 2024, such an increase would have had an impact of up to $14.0 million on our net interest expense. 63 We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of Term SOFR and the floor rate under our term loan and make payments based on a fixed rate.
As of December 31, 2023, we were party to interest rate swaps covering a total notional amount of $148.1 million. Under our swap agreements outstanding as of December 31, 2023, the rate that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%.
As of December 31, 2024 , we were party to interest rate swaps covering a total notional amount of $234.4 million. Under our swap agreements outstanding as of December 31, 2024 , the rate that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%.
Conversely, a 10.0% appreciation of the Indian rupee against the U.S. dollar would have increased our expenses incurred and paid in rupees in fiscal 2023 by $133.0 million.
Conversely, a 10.0% appreciation of the Indian rupee against the U.S. dollar would have increased our expenses incurred and paid in rupees in fiscal 2024 by $152.0 million.
See Item 1A—"Risk Factors"—"We may be unable to service our debt or obtain additional financing on competitive terms or at all.” Based on our indebtedness, a 2% change in interest rates, including the impact on the cost of our interest rate swaps, would have had a $6.5 million impact on our net interest expense in fiscal 2023.
See Item 1A—"Risk Factors"—"We may be unable to service our debt or obtain additional financing on competitive terms or at all.” Based on our indebtedness, a 2% change in interest rates, including the impact on the cost of our interest rate swaps, would have had a $6.0 million impact on our net interest expense in fisc al 2024.
Credit risk As of December 31, 2023, we had accounts receivable, including deferred billings, net of allowance for credit losses, of $1,202.3 million. No single client owed more than 10% of our accounts receivable balance as of December 31, 2023.
Credit risk As of December 31, 2024 , we had accounts receivable, including deferred billings, net of allowance for credit l osses, of $1,321.5 million. No single client owed more than 10% of our accounts receivable balance as of December 31, 2024.
Added
We executed treasury rate lock agreements for $400 million in connection with future interest payments to be made on the 2024 Senior Notes, and the treasury rate lock agreements were designated as cash flow hedges.
Added
These treasury rate lock agreements were terminated on May 30, 2024, and a deferred loss was recorded in accumulated other comprehensive income and is being amortized to interest expense over the life of the 2024 Senior Notes. The remaining loss to be amortized related to the treasury rate lock agreements as of December 31, 2024 was $0.4 million.

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