India's Genpact acquires Nissan's HR operation

Genpact, a large Indian outsourcer, has acquired the human resources services subsidiary of Nissan Motor for an undisclosed amount, and has bagged a seven-year contract to offer HR services to employees of the Japanese automotive company.

Nissan Human Information Service in Yokohama has 136 staff who will be absorbed by Genpact, a spokeswoman said. It currently handles HR functions for Nissan's over 54,000 employees worldwide.

The center, renamed Genpact Japan Service, will significantly increase Genpact’s onshore service delivery capability in Japan, Genpact said in a statement on Monday.

Genpact has about 110 staff of its own in Japan.

Indian outsourcers are setting up operations close to customers so they can offer services in the local language. Like Genpact, some of them have acquired customers' services operations in return for long-term business from these customers.

Indian outsourcers have to start operating as global companies, with a significant presence in all key markets, said Siddharth Pai, a partner at TPI, a sourcing data and advisory firm.

Besides offering services to Nissan, Genpact will use the center to offer services to other clients in the Japanese market.

It plans to deliver low-cost services to Nissan and other customers by supplementing staff in Japan with services delivered from Dalian in China. The company employs over 3,000 staff in China spread across Dalian, Changchun, Shanghai, and Beijing.

Genpact will provide payroll, benefits, staffing, training and other key HR services to Nissan.

Starting in 1997 as a business process outsourcing operation of General Electric, Genpact became an independent company in 2005, with GE divesting a majority of its stake.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

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