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US multinational conglomerate General Electric (GE) announced that it will be selling its financial division. This business decision may affect top Business Process Outsourcing (BPO) provider Genpact adversely. The Bermuda based company tied up with GE in 2010 as its BPO provider. From 2010 GE has accounted for about 20% of Genpact’s annual revenue every year. While Genpact had an annual revenue of $2.3 billion last year, GE’s share with the company dropped 2.5%. This move raises concerns amongst the company’s officials regarding the company financial state which is in turmoil due to the already declining revenue from GE. "It is too early to evaluate the longterm potential impact on our overall revenue since many factors are involved. We often are asked to provide transition support through the disposition process. As such, this situation presents both risks and opportunities for us," said Genpact’s CEO NV Thyagarajan. While GE’s move raises concerns for Genpact financially, Thyagarajan assured that there will be no immediate impact on the company as the parts that GE intends to sell only contributes to a mere 4% of the company’s revenue. While Genpact officials including the CEO may believe that the company will not suffer any notable losses in the near future, Equity analysts believe otherwise. The analysts said that this sale could affect discretionary projects in the near future.
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