Genpact (G) risk factors, FY2025 10-K

Risks Related to our Business and Operations

1. 01Our success largely depends on our ability to develop and achieve our business strategies, and our results of operations and financial condition may suffer if we are unable to continually develop and successfully execute our business strategies
2. 02We may fail to attract and retain enough qualified employees to support our business, especially our advanced technology solutions
3. 03We face legal, operational, reputational and financial risks from any failure to safeguard our systems and protect client, Genpact or employee data from security incidents or cyberattacks23% rewritten
4. 04Our profitability will suffer if we are not able to price appropriately, effectively utilize new technologies, maintain employee and asset utilization levels and control our costs
5. 05Our 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 activity49% rewritten
6. 06multinational projects or may reduce client spending on discretionary services or the types of services we provide generallyNew
7. 07A substantial portion of our assets, employees and operations is located in India and we are subject to regulatory, economic, social and political uncertainties in India51% rewritten
8. 08Changes in our tax rates or tax provisions, adverse tax audits and other proceedings, or changes in tax laws or their interpretation or enforcement could have an adverse effect on our business, results of operations, effective tax rate and financial condition27% rewritten
9. 09Our industry is highly competitive, and we may not be able to compete effectively
10. 10Wage increases in the countries where we operate may reduce our profit margin31% rewritten
11. 11Our success depends in part on our retention of key members of our senior leadership team
12. 12Our business depends on generating and maintaining ongoing, profitable client demand for our services and solutions, and a significant reduction in such demand or an inability to respond to or compete in the rapidly evolving technological environment could materially affect our results of operations
13. 13We enter into long-term contracts and fixed-price contracts with our clients. Our failure to price these contracts correctly may negatively affect our profitability
14. 14Our partnerships, alliances and other third-party relationships are critical to our growth strategy and expose us to a variety of risks that could have a material adverse effect on our business79% rewritten
15. 15Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses
16. 16We may be subject to claims and lawsuits for substantial damages, including by our clients arising out of disruptions to their businesses or our inadequate performance of services
17. 17Under our MSAs with our clients, our liability for breach of our obligations is generally limited to actual damages suffered by the client and is typically capped at an agreed amount. These limitations and caps on liability may be unenforceable or otherwise may not protect us from liability for damages
18. 18Recent and future legislation and executive action in the United States and other jurisdictions could significantly affect the ability or willingness of our clients and prospective clients to utilize our services56% rewritten
19. 19Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and we are or may become subject to government investigations, regulatory examinations and enforcement actions worldwide that could harm our businessNew
20. 20Our revenues are highly dependent on clients located in North America and Europe, as well as on clients that operate in certain industries
21. 21We are implementing a new enterprise resource planning system, and challenges with the planning or implementation of the system may impact our internal controls over financial reporting, business and operations
22. 22Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls
23. 23We may face difficulties in providing end-to-end business solutions or delivering complex, large or unique projects for our clients that could cause clients to discontinue their work with us, which in turn could harm our business and our reputation
24. 24Currency 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
25. 25Restrictions on entry or work visas may affect our ability to compete for and provide services to clients, which could have a material adverse effect on our business and financial results82% rewritten
26. 26We may be unable to service our debt or obtain additional financing on competitive terms or at all33% rewritten
27. 27We often face a long selling cycle to secure a new Digital Operations contract as well as long implementation periods that require significant resource commitments, which result in a long lead time before we receive revenues from new relationships
28. 28We make estimates and assumptions in connection with the preparation of our consolidated financial statements, and any changes to those estimates and assumptions could adversely affect our financial results
29. 29Our operating results may experience significant fluctuations
30. 30If we are unable to collect our receivables, our results of operations, financial condition and cash flows could be adversely affected
31. 31Some of our contracts contain provisions which, if triggered, could result in lower future revenues and have a material adverse effect on our business, results of operations and financial condition45% rewritten
32. 32Our business could be materially and adversely affected if we do not protect our intellectual property or if our solutions or services are found to infringe on the intellectual property of others71% rewritten
33. 33take 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 conditionNew
34. 34We may face difficulties as we expand our operations into countries in which we have no prior operating experience
35. 35Armed conflicts, terrorism or other acts of violence involving any of the countries in which we or our clients have operations could adversely affect our operations and client confidence32% rewritten
36. 36If more stringent labor laws become applicable to us or if a significant number of our employees unionize, our profitability may be adversely affected
37. 37We may engage in strategic transactions that could create risks
38. 38Bermuda recently enacted new tax legislation that will impose a corporate income tax on certain Bermuda companies. Any new tax liability in Bermuda or another jurisdiction based on our incorporation in Bermuda could have a material adverse effect on our business, results of operations and financial condition55% rewritten
39. 39Economic substance requirements in Bermuda could adversely affect us
40. 40We may not be able to realize the entire book value of goodwill and other intangible assets from acquisitions59% rewritten

Risks Related to our Shares

1. 41The issuance of additional common shares by us or the sale of our common shares by our employees could dilute our shareholders’ ownership interest in the Company and could significantly reduce the market price of our common shares
2. 42Sales of a substantial number of our common shares in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common shares
3. 43There can be no assurance that we will continue to declare and pay dividends on our common shares, and future determinations to pay dividends will be at the discretion of our board of directors
4. 44We are organized under the laws of Bermuda, and Bermuda law differs from the laws in effect in the United States and may afford less protection to shareholders
5. 45The market price for our common shares has been and may continue to be volatile
6. 46You may be unable to effect service of process or enforce judgments obtained in the United States or Bermuda against us or our assets in the jurisdictions in which we or our executive officers operate