10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period ended March 31, 2017

Or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from              to             

Commission file number: 001-33626

GENPACT LIMITED

(Exact name of registrant as specified in its charter)

Bermuda	98-0533350
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Canon’s Court

22 Victoria Street

Hamilton HM12

Bermuda

(441) 295-2244

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive office)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “accelerated filer”, “large accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section l3(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The number of the registrant’s common shares, par value $0.01 per share, outstanding as of April 28, 2017 was 192,743,610.

TABLE OF CONTENTS

	Item No.		Page No.
PART I		Financial Statements
	1.	Unaudited Consolidated Financial Statements
		Consolidated Balance Sheets as of December 31, 2016 and March 31, 2017	1
		Consolidated Statements of Income for the three months ended March 31, 2016 and 2017	2
		Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2016 and 2017	3
		Consolidated Statements of Equity and Redeemable Non-controlling Interest for the three months ended March 31, 2016 and 2017	5
		Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and 2017	6
		Notes to the Consolidated Financial Statements	7
	2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
	3.	Quantitative and Qualitative Disclosures About Market Risk	42
	4.	Controls and Procedures	42
PART II		Other Information
	1.	Legal Proceedings	43
	1A.	Risk Factors	43
	2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
	3.	Defaults upon Senior Securities	44
	5.	Other Information	44
	6.	Exhibits	45
SIGNATURES			46

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share data and share count)

	Notes	Asof December 31, 2016			As of March 31, 2017
Assets
Current assets
Cash and cash equivalents	4	$	422,623		$	388,186
Accounts receivable, net	5		615,265			602,871
Prepaid expenses and other current assets	8		189,149			227,635
Total current assets		$	1,227,037		$	1,218,692
Property, plant and equipment, net	9		200,115			212,562
Deferred tax assets	23		70,143			61,029
Investment in equity affiliates	24		4,800			769
Intangible assets, net	10		72,049			69,070
Goodwill	10		1,069,408			1,097,329
Other assets			242,328			252,279
Total assets		$	2,885,880		$	2,911,730
Liabilities and equity
Current liabilities
Short-term borrowings	11	$	160,000		$	15,000
Current portion of long-term debt	12		39,181			39,192
Accounts payable			9,768			9,086
Income taxes payable	23		24,159			33,091
Accrued expenses and other current liabilities	13		498,247			426,953
Total current liabilities		$	731,355		$	523,322
Long-term debt, less current portion	12		698,152			1,035,778
Deferred tax liabilities	23		2,415			1,815
Other liabilities	14		162,790			165,561
Total liabilities		$	1,594,712		$	1,726,476
Redeemable non-controlling interest			4,520			3,610
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued			—			—
Common shares, $0.01 par value, 500,000,000 authorized, 198,794,052    and  192,727,001 issued and outstanding as of December 31, 2016    and March 31, 2017, respectively			1,984			1,924
Additional paid-in capital			1,384,468			1,347,265
Retained earnings			358,121			219,776
Accumulated other comprehensive income (loss)			(457,925	)		(387,321	)
Total equity		$	1,286,648		$	1,181,644
Commitments and contingencies	25
Total liabilities, redeemable non-controlling interest and equity		$	2,885,880		$	2,911,730

See accompanying notes to the Consolidated Financial Statements.

1

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

		Three months ended March 31,
	Notes	2016 (1)			2017
Net revenues		$	609,703		$	622,995
Cost of revenue	19, 24		372,848			383,337
Gross profit		$	236,855		$	239,658
Operating expenses:
Selling, general and administrative expenses	20, 24		160,149			160,858
Amortization of acquired intangible assets	10		6,145			7,242
Other operating (income) expense, net	21		(5,061	)		(7,538	)
Income from operations		$	75,622		$	79,096
Foreign exchange gains (losses), net			(998	)		(4,913	)
Interest income (expense), net	22		(2,838	)		(5,493	)
Other income (expense), net			878			553
Income before equity-method investment activity, net and income tax    expense		$	72,664		$	69,243
Equity-method investment activity, net			(2,145	)		(4,558	)
Income before income tax expense		$	70,519		$	64,685
Income tax expense	23		12,014			12,245
Net income		$	58,505		$	52,440
Net loss (income) attributable to redeemable non-controlling interest			289			898
Net income attributable to Genpact Limited shareholders		$	58,794		$	53,338
Net income available to Genpact Limited common shareholders	18	$	58,794		$	53,338
Earnings per common share attributable to Genpact Limited    common shareholders	18
Basic		$	0.28		$	0.27
Diluted		$	0.27		$	0.26
Weighted average number of common shares used in computing earnings per    common share attributable to Genpact Limited common shareholders
Basic			210,780,165			199,069,528
Diluted			213,892,964			202,655,937
(1)Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

See accompanying notes to the Consolidated Financial Statements.

2

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(In thousands, except per share data and share count)

	Three months ended March 31,
	2016 (1)					2017
	Genpact Limited Shareholders		Redeemable Non- controlling interest			Genpact Limited Shareholders		Redeemable Non- controlling interest
Net Income (loss)	$	58,794	$	(289	)	$	53,338	$	(898	)
Other comprehensive income:
Currency translation adjustments		5,217		—			51,627		(12	)
Net income (loss) on cash flow hedging derivatives, net of taxes    (Note 7)		1,970		—			18,858		—
Retirement benefits, net of taxes		153		—			119		—
Other comprehensive income    (loss)	$	7,340	$	—		$	70,604	$	(12	)
Comprehensive income (loss)	$	66,134	$	(289	)	$	123,942	$	(910	)
(1) Net income for the three months ended March 31, 2016 has been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

See accompanying notes to the Consolidated Financial Statements.

3

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Equity and Redeemable Non-controlling Interest

(Unaudited)

(In thousands, except share count)

													Accumulated
	Common shares												Other						Redeemable
	No. of Shares			Amount			Additional Paid- in Capital (1)			Retained Earnings (1)			Comprehensive Income (Loss)			Total Equity			non-controlling interest
Balance as of January 1, 2016		211,472,312		$	2,111		$	1,342,022		$	411,508		$	(451,285	)	$	1,304,356		$	-
Issuance of common shares on    exercise of options (Note 16)		248,316			2			4,210		-			-				4,212			-
Issuance of common shares under the    employee stock purchase plan    (Note 16)		30,487			-			725			-			-			725			-
Net settlement on vesting of    restricted share units (Note 16)		95,191			1			(50	)		-			-			(49	)		-
Stock repurchased and retired    (Note 17)		(1,356,199	)		(14	)		-			(33,003	)		-			(33,017	)		-
Deferred tax assets recognized on early adoption of ASU 2016-09	-				-			-			24,912			-			24,912			-
Expenses related to stock purchase    (Note 17)	-			-			-				(27	)		-			(27	)		-
Stock-based compensation expense    (Note 16)	-			-				5,336			-			-			5,336			-
Acquisition of redeemable non-   controlling interest	-				—			-			-			-			-			3,910
Comprehensive income:
Net income	-				—			-			58,794			-			58,794			(289	)
Other comprehensive income	-			-				-			-			-			-			-
Balance as of  March 31, 2016		210,490,107		$	2,100		$	1,352,243		$	462,185		$	(451,285	)	$	1,365,243		$	3,621
(1) Net income, additional paid-in capital and retained earnings for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

See accompanying notes to the Consolidated Financial Statements.

4

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Equity and Redeemable Non-controlling Interest

(Unaudited)

(In thousands, except share count)

													Accumulated
	Common shares												Other						Redeemable
	No. of Shares			Amount			Additional Paid- in Capital			Retained Earnings			Comprehensive Income (Loss)			Total Equity			non-controlling interest
Balance as of January 1, 2017		198,794,052		$	1,984		$	1,384,468		$	358,121		$	(457,925	)	$	1,286,648		$	4,520
Issuance of common shares on    exercise of options (Note 16)		455,835			5			6,540			—		-				6,545		-
Issuance of common shares under the    employee stock purchase plan    (Note 16)		55,788			1			1,217			—			—			1,218			—
Net settlement on vesting of    restricted share units (Note 16)		76,865			1			(1	)		—			—			-			—
Net settlement on vesting of    performance units (Note 16)		731,701			7			(9,946	)		—			—			(9,939	)		—
Stock repurchased and retired    (Note 17)		(7,387,240	)		(74	)		(40,000	)		(179,710	)		—			(219,784	)		—
Expenses related to stock purchase    (Note 17)		—			—			—			(16	)		—			(16	)		—
Stock-based compensation expense    (Note 16)		-			-			4,986			-			—			4,986		-
Comprehensive income:
Net income		-			-			—			53,338			—			53,338			(898	)
Other comprehensive income		—		$	—			—			—			70,604			70,604			(12	)
Dividend (Note 17)		-			-			—			(11,957	)		—			(11,957	)		—
Balance as of March 31, 2017		192,727,001		$	1,924		$	1,347,265		$	219,776		$	(387,321	)	$	1,181,644		$	3,610

See accompanying notes to the Consolidated Financial Statements.

5

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Three months ended March 31,
	2016 (1)				2017
Operating activities
Net income attributable to Genpact Limited shareholders	$	58,794		$	53,338
Net income (loss) attributable to redeemable non-controlling interest		(289	)		(898	)
Net income	$	58,505		$	52,440
Adjustments to reconcile net income to net cash provided by  (used for) operating activities:
Depreciation and amortization		13,155			14,139
Amortization of debt issuance costs		385			375
Amortization of acquired intangible assets		6,145			7,242
Intangible assets write-down		4,943			-
Reserve  for doubtful receivables		3,120			-
Unrealized loss on revaluation of foreign currency asset/liability		354			8,757
Equity-method investment activity, net		2,145			4,558
Stock-based compensation expense		5,336			4,986
Deferred income taxes		(3,184	)		(2,890	)
Others, net		63			(4,301	)
Change in operating assets and liabilities:
Decrease (increase) in accounts receivable		(17,697	)		19,649
Increase in prepaid expenses, other current assets and other assets		(27,123	)		(12,025	)
Decrease in accounts payable		(70	)		(928	)
Decrease in accrued expenses, other current liabilities and other liabilities		(64,360	)		(69,131	)
Increase in income taxes payable		8,660			8,157
Net cash provided by (used for) operating activities	$	(9,623	)	$	31,028
Investing activities
Purchase of property, plant and equipment		(25,495	)		(19,698	)
Proceeds from sale of property, plant and equipment		132			389
Investment in equity affiliates		(3,783	)		(467	)
Payment for business acquisitions, net of cash acquired		(2,339	)		(9,237	)
Net cash used for investing activities	$	(31,485	)	$	(29,013	)
Financing activities
Repayment of capital lease obligations		(454	)		(494	)
Payment of debt issuance costs		-			(1,481	)
Proceeds from long-term debt		-			350,000
Repayment of long-term debt		(10,000	)		(10,000	)
Proceeds from short-term borrowings		60,000			40,000
Repayment of short-term borrowings		-			(185,000	)
Proceeds from issuance of  common shares under stock-based compensation plans		4,937			7,761
Payment for net settlement of stock-based awards		(49	)		(9,939	)
Payment of earn-out/deferred consideration		(965	)		(1,097	)
Dividend paid		-			(11,957	)
Payment for stock purchased and retired		(33,017	)		(219,784	)
Payment for expenses related to stock purchase		(27	)		(16	)
Net cash provided by (used for) financing activities	$	20,425		$	(42,007	)
Effect of exchange rate changes		(429	)		5,555
Net increase (decrease) in cash and cash equivalents		(20,683	)		(39,992	)
Cash and cash equivalents at the beginning of the period		450,907			422,623
Cash and cash equivalents at the end of the period	$	429,795		$	388,186
Supplementary information
Cash paid during the period for interest	$	3,968		$	5,324
Cash paid during the period for income taxes	$	23,229		$	16,426
Property, plant and equipment acquired under capital lease obligations	$	283		$	576
(1)   Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

See accompanying notes to the Consolidated Financial Statements.

6

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

1. Organization

   The Company is a global professional services firm focused on delivering digital transformation for its clients. The Company’s Lean Digital^SM approach integrates lean principles, design thinking, analytics and digital technologies with its domain and industry expertise. The Company delivers value to its clients in two ways – through digital-led, domain-enabled solutions that drive innovation, and through digitally-enabled intelligent operations that design, transform and run clients’ operations. The Company employs over 77,000 people in more than 20 countries.

 Prior to December 30, 2004, the business of the Company was conducted through various entities and divisions of GE. On December 30, 2004, in a series of transactions referred to as the “2004 Reorganization,” GE transferred such operations to the Company. In August 2007, the Company completed an initial public offering of its common shares. On October 25, 2012, Glory Investments A Limited, formerly known as South Asia Private Investments, an affiliate of Bain Capital Investors, LLC (“Bain Capital”), became the Company’s largest shareholder when, together with its affiliated assignees and two additional co-investors, it purchased 67,750,678 common shares of the Company from the Company’s initial investors.

2. Summary of significant accounting policies

(a) Basis of preparation and principles of consolidation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year.

The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.

Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income.

(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

7

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

(c) Business combinations, goodwill and other intangible assets

The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses.

Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures.

Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	2-9 years

Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized.

In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income.

(d) Financial instruments and concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 12% of receivables as of December 31, 2016 and March 31, 2017, respectively. GE accounted for 16% and 11% of revenues for the three months ended March 31, 2016 and 2017, respectively.

(e) Recently adopted accounting pronouncements

The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements.

8

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

The following recently released accounting standard has been adopted by the Company:

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and will apply ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. As a result, the Company’s, income taxes, net income, cash flows, retained earnings, additional paid-in capital, and basic and diluted net income per common share for the first quarter of 2016 have been restated due to the adoption of ASU No. 2016-09.

In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures:

Effective January 1, 2016, the Company adopted FASB ASU 2015-01 (Topic 225), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements.

Effective January 1, 2016, the Company adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract.

Effective January 1, 2016, the Company adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.

Effective January 1, 2016, the Company adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence.

9

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

3. Business acquisitions

Certain acquisitions

(a) LeaseDimensions, Inc.

           On February 15, 2017, the Company acquired 100% of the outstanding equity interest in LeaseDimensions, Inc. (“LeaseDimensions”), an Oregon corporation. The preliminary estimated total purchase consideration for LeaseDimensions is $11,626, subject to adjustment for closing date working capital and net debt. This amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $9,089, net of cash acquired of $217, and a preliminary adjustment for working capital and net debt. As of March 31, 2017, the total consideration paid by the Company to the sellers is $9,454, resulting in a receivable of $148. The purchase agreement also provides for contingent earn-out consideration ranging from $0 to $3,000, payable by the Company to the sellers based on the future performance of the business relative to the thresholds specified in the earn-out calculation. This acquisition enhances the Company’s capabilities in commercial lending and leasing.

           In connection with the transaction, the Company recorded $2,400 in customer-related intangibles and $1,000 in marketing-related intangibles, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,307, which has been allocated to the Company’s Americas reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company.

           Acquisition-related costs of $422 have been included in selling, general and administrative expenses as incurred. Through the transaction the Company acquired assets with a value of $2,277, assumed liabilities amounting to $1,038, and recognized a net deferred tax liability of $1,320. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition.

(b) Endeavour Software Technologies Private Limited

On April 13, 2016, the Company acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), an Indian private limited company. The total purchase consideration paid by the Company to acquire Endeavour is $14,788. This amount includes the estimated fair value of the contingent earn-out consideration, cash consideration of $10,345, net of cash acquired of $2,373, and an adjustment for working capital and net debt. Of this amount, $95 is payable by the Company to one of the sellers. During the quarter ended March 31, 2017, the Company recorded a measurement period adjustment that resulted in a $346 increase in the purchase consideration as a result of an adjustment to closing date working capital and net debt. The adjustments included an increase of $161 in assets acquired, a decrease of $118 in liabilities assumed and a corresponding impact on goodwill of $67. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows.

In connection with the transaction, the Company recorded $800 in customer-related intangibles, $900 in marketing-related intangibles and $950 in other intangible assets, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,936, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities in end-to-end mobility services, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. In connection with the transaction, the Company also acquired certain assets with a value of $5,854 and assumed certain liabilities amounting to $1,735.

(c) Strategic Sourcing Excellence Limited

On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The total consideration paid by the Company to the selling equityholders for the acquired interest in SSE was $14,541. This amount includes the fair value of earn-out consideration, cash consideration of $2,550, and an adjustment for working capital, transaction expenses and indebtedness. During the quarter ended December 31, 2016, the Company recorded a measurement period adjustment that resulted in a $51 increase in the purchase consideration through the recognition of $69 in current assets and $16 in non-current assets, with a corresponding impact on goodwill of $34. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period. The equity purchase agreement between the Company and the selling equityholders of SSE also provides for contingent earn-out consideration of up to $20,000, payable by the Company to the selling equityholders based on future performance of the acquired business relative to the thresholds specified in the earn-out calculation. Up to $9,800 of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable only if either the put or call option, each as described below, is exercised.

10

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

3. Business acquisitions(Continued)

The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company has the right to exercise between January 1, 2018 and January 31, 2018. If the Company does not exercise its call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2,450 to $2,950. This acquisition enhances the Company’s sourcing and procurement consulting domain expertise.

Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $412 and assumed liabilities amounting to $617. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition.

In connection with the transaction, the Company recorded $300 in customer-related intangible assets with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,445, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents future economic benefits the Company expects to derive from its expanded presence in the sourcing and procurement consulting domains, operating synergies and other anticipated benefits of combining the acquired operations with those of the Company.

4. Cash and cash equivalents

Cash and cash equivalents as of December 31, 2016 and March 31, 2017 are set out in the table below:

	As of December 31,		As of March 31,
	2016		2017
Cash and other bank balances		422,623		388,186
Total	$	422,623	$	388,186

5. Accounts receivable, net of reserve for doubtful receivables

The following table provides details of the Company’s reserve for doubtful receivables:

	Year ended December 31,			Three months ended
	2016			March 31,2017
Opening balance as of January 1	$	11,530		$	15,519
Additions charged to cost and expense		7,282			-
Deductions/Effect of exchange rate fluctuations		(3,293	)		121
Closing balance	$	15,519		$	15,640

Accounts receivable were $630,784 and $618,511, and the reserves for doubtful receivables were $15,519 and $15,640, resulting in net accounts receivable balances of $615,265 and $602,871 as of December 31, 2016 and March 31, 2017, respectively. In addition, accounts receivable due after one year of $3,272 and $1,182 as of December 31, 2016 and March 31, 2017, respectively, are included under other assets in the Consolidated Balance Sheets.

Accounts receivable from related parties were $2,490 and $2,130 as of December 31, 2016 and March 31, 2017, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties.

11

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

6. Fair value measurements

The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2016 and March 31, 2017:

	As of December 31, 2016
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Notes a, c)	$	55,386	$	—	$	55,386	$	—
Total	$	55,386	$	—	$	55,386	$	—
Liabilities
Earn-out consideration (Notes b, d)	$	22,435	$	—	$	—	$	22,435
Derivative instruments (Notes b, c)	$	17,353	$	—	$	17,353	$	—
Total	$	39,788	$	—	$	17,353	$	22,435
Redeemable non-controlling interest (Note e)	$	4,520	$	—	$	—	$	4,520

	As of March 31, 2017
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Notes a, c)	$	87,395	$	—	$	87,395	$	—
Total	$	87,395	$	—	$	87,395	$	—
Liabilities
Earn-out consideration (Notes b, d)	$	21,262		—		—	$	21,262
Derivative instruments (Notes b, c)	$	12,762	$	—	$	12,762	$	—
Total	$	34,024	$	—	$	12,762	$	21,262
Redeemable non-controlling interest (Note e)	$	3,610	$	—	$	—	$	3,610

(a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

(b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

(c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

(d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

(e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions.

12

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

6. Fair value measurements (Continued)

The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three months ended March 31, 2016 and 2017:

	As of March 31,			As of March 31,
	2016			2017
Opening balance	$	22,820		$	22,435
Earn-out consideration payable in connection with    acquisitions		8,120			2,320
Payments made on earn-out consideration		(1,557	)		(1,206	)
Changes in fair value of earn-out consideration (note a)		(9,507	)		(3,138	)
Others (note b)		978			852
Ending balance	$	20,853		$	21,262

a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income

b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss).

7. Derivative financial instruments

The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature during a period of up to 57 months and the forecasted transactions are expected to occur during the same period.

13

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure:

	Notional principal amounts (note a)				Balance sheet exposure asset (liability)  (note b)
	As of December 31, 2016		As of March 31, 2017		As of December 31, 2016			As of March 31, 2017
Foreign exchange forward contracts denominated in:
United States Dollars (sell) Indian Rupees (buy)	$	1,108,400	$	1,080,900	$	6,669		$	56,945
United States Dollars (sell) Mexican Peso (buy)		9,120		6,840		(187	)		663
United States Dollars (sell) Philippines Peso (buy)		70,050		57,600		(1,036	)		(1,492	)
Euro (sell) United States Dollars (buy)		138,613		118,018		9,180			7,201
Pound Sterling (buy) United States Dollars (sell)		-		22,333		-			151
Euro (sell) Romanian Leu (buy)		29,805		22,354		(152	)		(66	)
Japanese Yen (sell) Chinese Renminbi (buy)		77,267		10,373		(742	)		(2,873	)
Pound Sterling (sell) United States Dollars (buy)		104,142		106,246		14,228			9,838
Australian Dollars (sell) United States Dollars (buy)		114,412		108,097		2,328			(3,974	)
Interest rate swaps (floating to fixed)		456,810		456,810		7,746			8,240
						38,034			74,633

(a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

(b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency.

The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below:

	Cash flow hedges				Non-designated
	As of December 31, 2016		As of March 31, 2017		As of December 31, 2016		As of March 31, 2017
Assets
Prepaid expenses and other current assets	$	33,921	$	51,638	$	809	$	7,034
Other assets	$	20,657	$	28,723	$	—	$	—
Liabilities
Accrued expenses and other current liabilities	$	4,540	$	4,673	$	237	$	74
Other liabilities	$	12,576	$	8,015	$	—	$	—

14

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

Cash flow hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred.

In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below:

	Three months ended March 31,
	2016									2017
	Before-Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before-Tax amount		Tax (Expense) or Benefit			Net of tax Amount
Opening balance	$	(30,090	)	$	9,830		$	(20,260	)	$	37,461	$	(13,979	)	$	23,482
Net gains (losses) reclassified into statement of    income on completion of hedged transactions		(2,902	)		702			(2,200	)		9,295		(3,432	)		5,863
Changes in fair value of effective portion of    outstanding derivatives, net		(79	)		(151	)		(230	)		39,508		(14,787	)		24,721
Gain (loss) on cash flow hedging derivatives, net		2,823			(853	)		1,970			30,213		(11,355	)		18,858
Closing balance	$	(27,267	)	$	8,977		$	(18,290	)	$	67,674	$	(25,334	)	$	42,340

The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below:

							Amount of Gain (Loss)
	Amount of Gain (Loss)						reclassified from OCI into
	recognized in OCI on					Location of Gain (Loss)	Statement of Income
Derivatives in	Derivatives (Effective Portion)					reclassified	(Effective Portion)
Cash Flow	Three months ended					from OCI into	Three months ended
Hedging	March 31,					Statement of Income	March 31,
Relationships	2016			2017		(Effective Portion)	2016			2017
Forward foreign exchange contracts	$	1,847		$	39,296	Revenue	$	3,871		$	3,760
Interest rate swaps		(1,926	)		212	Cost of revenue		(5,312	)		4,570
						Selling, general and administrative expenses		(1,461	)		1,248
						Interest expense		—			(283	)
	$	(79	)	$	39,508		$	(2,902	)	$	9,295

Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2016 and 2017, respectively.

15

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

Non-designated Hedges

		Amount of Gain (Loss)
		recognized in Statement of
Derivatives not	Location of Gain (Loss)	Income on Derivatives
designated as hedging	recognized in Statement of	Three months ended March 31,
instruments	Income on Derivatives	2016		2017
Forward foreign exchange    contracts (Note a)	Foreign exchange gains    (losses), net	$	1,134	$	8,910
		$	1,134	$	8,910

(a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

8. Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Advance income and non-income taxes	$	50,676	$	62,792
Deferred transition costs		45,252		47,659
Derivative instruments		34,730		58,672
Prepaid expenses		22,222		21,816
Customer acquisition cost		11,126		11,733
Employee advances		6,880		6,526
Deposits		2,688		4,427
Advances to suppliers		10,059		7,142
Others		5,516		6,868
	$	189,149	$	227,635

9. Property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of December 31,			As of March 31,
	2016			2017
Property, plant and equipment, gross	$	607,451		$	634,577
Less: Accumulated depreciation and amortization		(407,336	)		(422,015	)
Property, plant and equipment, net	$	200,115		$	212,562

Depreciation expense on property, plant and equipment for the three months ended March 31, 2016 and 2017 was $11,104 and $11,230, respectively. Computer software amortization for the three months ended March 31, 2016 and 2017 amounted to $2,345 and $2,679, respectively.

The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $294 and $(228) for the three months ended March 31, 2016 and 2017, respectively.

16

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

10. Goodwill and intangible assets

The following table presents the changes in goodwill for the year ended December 31, 2016 and three months ended March 31, 2017:

	Asof December 31,			As of March 31,
	2016			2017
Opening balance	$	1,038,346		$	1,069,408
Goodwill relating to acquisitions consummated during    the period		51,535			8,307
Goodwill relating to divestitures consummated during    the period		(2,226	)		-
Impact of measurement period adjustments		(59	)		67
Effect of exchange rate fluctuations		(18,188	)		19,547
Closing balance	$	1,069,408		$	1,097,329

The total amount of goodwill deductible for tax purposes was $39,032 and $38,027 as of December 31, 2016 and March 31, 2017, respectively.

The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows:

	As of December 31, 2016						As of March 31, 2017
	Grosscarrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	310,277	$	259,460	$	50,817	$	317,225	$	269,000	$	48,225
Marketing-related intangible assets		42,587		29,277		13,310		42,856		30,527		12,329
Other intangible assets		33,266		25,344	$	7,922		35,896		27,380		8,516
	$	386,130	$	314,081	$	72,049	$	395,977	$	326,907	$	69,070

Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the three months ended March 31, 2016 and 2017 were $6,145 and $7,242, respectively.

During the three months ended March 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. The Company previously recorded a charge to this asset in the third quarter of 2015. Based on the results of its testing, the Company determined that the carrying value of the intangible asset exceeded the estimated undiscounted cash flows by $4,943 and recorded an additional charge to further reduce the carrying value by this amount. The Company used a combination of the income and cost approaches to determine the fair value of the intangible asset for the purpose of calculating the charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income.

17

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

11. Short-term borrowings

The Company has the following borrowing facilities:

(a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2016 and March 31, 2017, the limits available were $15,382 and $15,827, respectively, of which $10,980 and $11,037 was utilized, constituting non-funded drawdown.

(b) A fund-based and non-fund based revolving credit facility of $350,000, which the company obtained in June 2015 as described in note 12. This facility replaced the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2016 and March 31, 2017, a total of $160,978 and $15,978, respectively, was utilized, of which $160,000 and $15,000, respectively, constituted funded drawdown and $978 and $978, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum as of December 31, 2016. As of March 31, 2017, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.25% and 0.25% as of December 31, 2016 and March 31, 2017, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. For the three months ended March 31, 2017, the Company was in compliance with the financial covenants.     

12. Long-term debt

In June 2015, the Company refinanced its 2012 credit facility through a new credit facility comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020. For the three months ended March 31, 2017, the Company was in compliance with the financial covenants of the credit agreement.

As of December 31, 2016 and March 31, 2017, the amount outstanding under the term loan, net of debt amortization expense of $2,667 and $2,461, was $737,333 and $727,539, respectively. As of December 31, 2016 and March 31, 2017, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of March 31, 2017 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020.

The maturity profile of the term loan, net of debt amortization expense, is as follows:

Year ended	Amount
2017	$	29,387
2018		39,226
2019		39,272
2020		619,654
Total	$	727,539

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

12. Long-term debt (Continued)

In March 2017, the Company issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering, resulting in cash proceeds of approximately $348,519 and an underwriting fee of $1,481. In connection with the offering, the Company incurred other debt issuance costs of $1,093. The total debt issuance cost of $2,574 is being amortized over the life of the notes as an additional interest expense. As of March 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2,569, was $347,431, which is payable on April 1, 2022. The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. The Company, at its option, may redeem the notes at any time in whole or in part, at a redemption price equal to (i) 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest on the redeemed amount, and (ii) if the notes are redeemed prior to March 1, 2022, a specified “make-whole” premium. The notes are subject to certain customary covenants, including limitations on the ability of the Company and certain of its subsidiaries to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer their assets. Upon certain change of control transactions, the Company will be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.  The interest rate payable on the notes is subject to adjustment if the credit rating of the notes is downgraded up to a maximum increase of 2.0%. The Company is required to offer to exchange the notes for registered notes or have one or more shelf registration statements declared effective within 455 days after the issue date of the notes and, if such exchange offer fails to be consummated or such registration statement fails to be effective by June 25, 2018, then the interest payable on the notes will increase by 0.25% per annum during the 90-day period immediately following such date and will further increase by 0.25% per annum at the end of each subsequent 90-day period up to a maximum increase of 0.50%.The notes are senior unsecured obligations of the Company and will rank equally with all other senior unsecured indebtedness of the Company outstanding from time to time.

13. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Accrued expenses	$	163,400	$	155,889
Accrued employee cost		179,360		109,006
Deferred transition revenue		50,552		48,301
Statutory liabilities		36,878		46,670
Retirement benefits		17,616		18,347
Derivative instruments		4,777		4,747
Advance from customers		21,969		26,270
Earn-out consideration		6,885		6,502
Other liabilities		15,461		9,697
Capital lease obligations		1,349		1,524
	$	498,247	$	426,953

19

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

14. Other liabilities

Other liabilities consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Accrued employee cost	$	3,976	$	12,934
Deferred transition revenue		72,560		69,414
Retirement benefits		39,020		42,159
Derivative instruments		12,576		8,015
Amount received from GE under indemnification    arrangement, pending adjustment		3,159		3,318
Advance from customers		2,371		325
Earn-out consideration		15,550		14,760
Others		11,078		11,872
Capital lease obligations		2,500		2,764
	$	162,790	$	165,561

15. Employee benefit plans

The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees.

Defined benefit plans

In accordance with Indian law, the Company maintains a defined benefit retirement plan covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs.

Net defined benefit plan costs for the three months ended March 31, 2016 and 2017 include the following components:

	Three months ended March 31,
	2016			2017
Service costs	$	1,403		$	1,720
Interest costs		698			734
Amortization of actuarial loss		56			205
Expected return on plan assets		(486	)		(492	)
Net defined benefit plan costs	$	1,671		$	2,167

Defined contribution plans

During the three months ended March 31, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions:

	Three months ended March 31,
	2016		2017
India	$	4,303	$	5,217
U.S.		3,532		4,280
U.K.		1,652		1,720
China		3,753		3,828
Other regions		1,265		1,130
Total	$	14,505	$	16,175

20

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation

The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), the Genpact Global Holdings 2006 Plan (the “2006 Plan”), the Genpact Global Holdings 2007 Plan (the “2007 Plan”) and the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) to eligible persons, who are employees, directors and certain other persons associated with the Company.

With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any such plan is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective plans.

Beginning on July 13, 2007, the date of adoption of the 2007 Omnibus Plan, share-based awards forfeited, expired, terminated, or cancelled under any of the plans are added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares.

During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan and the 2005 Plan was increased by 8,858,823 and 495,915 shares, respectively, as the result of an adjustment to outstanding unvested share awards.

Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2016 and 2017 were $5,250 and $4,845, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses.

Stock options

Options granted are subject to a vesting requirement. Options granted under the plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes the compensation cost over the vesting period of the option. Compensation cost is determined as of the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model.

The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2016.

	Threemonthsended March31,2017
Dividend yield			0.97%
Expected life (in months)			84
Risk-free rate of interest		2.25%
Volatility		24.28%

21

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation (Continued)

A summary of stock option activity during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	Sharesarising out of options			Weightedaverage exercise price		Weightedaverage remaining contractuallife (years)		Aggregate intrinsic value
Outstanding as of January 1, 2017		5,707,690		$	18.65		5.8	$	—
Granted		250,000			24.74		—		—
Forfeited		(55,000	)		21.22		—		—
Expired		—			—		—		—
Exercised		(455,835	)		14.36		—		4,742
Outstanding as of March 31, 2017		5,446,855		$	19.27		6.2	$	31,829
Vested as of March 31, 2017 and expected to vest    thereafter (Note a)	5,183,854			$	19.01		6.2	$	31,395
Vested and exercisable as of March 31, 2017		2,365,356		$	15.89		4.5	$	20,970
Weighted average grant date fair value of grants    during the period	$	6.62

(a) Options expected to vest reflect an estimated forfeiture rate.

As of March 31, 2017, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $12,130, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years.

Restricted share units

The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one Company common share at a future date. The fair value of each RSU is the market price of a Company common share on the date of the grant. RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	NumberofRestricted ShareUnits			WeightedAverageGrant Date FairValue
Outstanding as of January 1, 2017		117,905		$	20.65
Granted		24,000			24.74
Vested (Note a)		(6,464	)		16.68
Forfeited		—			—
Outstanding as of March 31, 2017		135,441		$	21.56
Expected to vest (Note b)		123,798

(a) RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding).

(b) The number of RSUs expected to vest reflects an estimated forfeiture rate.

53,546 RSUs vested in the year ended December 31, 2015, in respect of which 53,023 shares were issued during three months ended March 31, 2017 after withholding shares to the extent of minimum statutory withholding taxes.

34,035 RSUs vested in the year ended December 31, 2016, in respect of which 17,802 shares were issued during three months ended March 31, 2017 after withholding shares to the extent of minimum statutory withholding taxes.

22

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation (Continued)

As of March 31, 2017, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $1,801, which will be recognized over the weighted average remaining requisite vesting period of 2.9 years.

Performance units

The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan.

Each PU represents the right to receive one Company common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares to be issued is adjusted upward or downward depending on the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets.

A summary of PU activity during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	Numberof PerformanceUnits			Weighted AverageGrant DateFairValue		MaximumShares EligibletoReceive
Outstanding as of January 1, 2017		3,772,128		$	23.04		5,524,114
Granted		707,092			24.74		1,414,184
Vested (Note a)		(1,136,047)			16.78		(1,136,047)
Forfeited (Note b)		(1,485,337	)		27.82		(1,489,737	)
Adjustment upon final determination of level of    performance goal achievement (Note c)							(1,747,586)
Outstanding as of March 31, 2017		1,857,836		$	23.69		2,564,928
Expected to vest (Note d)		1,624,573

(a) PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding).

(b) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

(c) Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

(d) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

As of March 31, 2017, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $20,044, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years.

23

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation (Continued)

Employee Stock Purchase Plan (ESPP)

On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”).

The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP.

During the three months ended March 31, 2016 and 2017, 30,487 and 55,788 common shares, respectively, were issued under the ESPP.

The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation.

The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during three months ended March 31, 2016 and 2017 was $86 and $141, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses.

24

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

17. Capital stock

Share repurchases

As of December 31, 2016, the Company’s board of directors (the “Board”) had authorized the Company to repurchase up to $750,000 in value of the Company’s common shares under its share repurchase program first announced in February 2015. On February 10, 2017 the Board approved up to an additional $500,000 in share repurchases, bringing the total authorization under the Company’s existing program to $1,250,000. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. The Company paid the aggregate purchase price to the Dealer and received an initial delivery of 6,578,947 common shares at a price of $24.32 per share. The purchase price was recorded as a reduction in shareholders’ equity through a $160,000 decrease in retained earnings and a $40,000 decrease in additional paid-in capital.

The final settlement of the transaction under the ASR agreement is expected to be completed by the end of the fourth quarter of 2017. The final number of common shares to be repurchased by the Company under the ASR agreement will be based on the volume-weighted average share price of the Company’s common shares during the term of the applicable transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. At settlement, under certain circumstances, the Company may be entitled to receive additional common shares from the Dealer or may be required either to deliver its common shares or to make a cash payment to the Dealer.

The ASR agreement contains customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity.

During the three months ended March 31, 2016, the Company purchased 1,356,199 of its common shares on the open market at a weighted average price of $24.35 per share for an aggregate cash amount of $33,017. During the three months ended March 31, 2017, the Company made payments in an aggregate cash amount of $219,784 toward share repurchases. Of this amount, the Company paid (i) $19,784 to repurchase 808,293 of its common shares on the open market at a weighted average price of $24.48 per share, (ii) $160,000 to the Dealer for the initial delivery of 6,578,947 of its common shares under the ASR agreement at a weighted average price of $24.32 per share, and (iii) $40,000 to the Dealer for shares to be delivered at the final settlement of the transaction under the ASR agreement as described above. All repurchased shares have been retired.

The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the three months ended March 31, 2016 and March 31, 2017, $27 and $16, respectively, was deducted from retained earnings in direct costs related to share repurchases.

Dividend

In February 2017, the Company’s board of directors approved a dividend program under which the Company intends to pay a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing a planned annual dividend of $0.24 per share. On March 28, 2017, the Company paid a dividend of $0.06 per share, amounting to $11,957 in the aggregate, to shareholders of record as of March 10, 2017.

25

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

18. Earnings per share

The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive.

The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 317,081 and 1,003,048 for the three months ended March 31, 2016 and 2017, respectively.

	Three months ended March 31,
	2016		2017
Net income available to Genpact Limited    common shareholders	$	58,794	$	53,338
Weighted average number of common shares used in    computing basic earnings per common share		210,780,165		199,069,528
Dilutive effect of stock-based awards		3,112,799		3,586,409
Weighted average number of common shares used in    computing dilutive earnings per common share		213,892,964		202,655,937
Earnings per common share attributable to Genpact    Limited common shareholders
Basic	$	0.28	$	0.27
Diluted	$	0.27	$	0.26

19. Cost of revenue

Cost of revenue consists of the following:

	Three months ended March 31,
	2016		2017
Personnel expenses	$	254,028	$	269,189
Operational expenses		107,542		102,716
Depreciation and amortization		11,278		11,432
	$	372,848	$	383,337

20. Selling, general and administrative expenses

Selling, general and administrative expenses consist of the following:

	Three months ended March 31,
	2016		2017
Personnel expenses	$	108,400	$	122,569
Operational expenses		49,578		35,813
Depreciation and amortization		2,171		2,476
	$	160,149	$	160,858

26

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

21. Other operating (income) expense, net

	Three months ended March 31,
	2016			2017
Other operating (income) expense	$	(498	)	$	(4,400	)
Provision for Impairment of intangible assets		4,943			-
Change in fair value of earn out consideration and deferred    consideration (relating to business acquisitions)	$	(9,506	)	$	(3,138	)
Other operating (income) expense, net	$	(5,061	)	$	(7,538	)

22. Interest income (expense), net

	Three months ended March 31,
	2016			2017
Interest income	$	2,364		$	1,131
Interest expense		(5,202	)		(6,624	)
Interest income (expense), net	$	(2,838	)	$	(5,493	)

23. Income taxes

The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

As of December 31, 2016, the Company had unrecognized tax benefits amounting to $23,467, including an amount of $22,469, which, if recognized, would impact the effective tax rate.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2017 to March 31, 2017:

	2017
Opening balance at January 1	$	23,467
Increase related to prior year tax positions, including recorded in acquisition accounting		515
Decrease related to prior year tax positions		(309	)
Decrease related to prior year tax position due to lapse of applicable statute of limitation		(132)
Effect of exchange rate changes		942
Closing balance at March 31	$	24,483

The Company’s unrecognized tax benefits as of March 31, 2017 include an amount of $23,484, which, if recognized, would impact the effective tax rate. As of December 31, 2016 and March 31, 2017, the Company had accrued approximately $3,856 and $4,068, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2016 and the three months ended March 31, 2017, the company recognized approximately $(206) and $34, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2016 and March 31, 2017, the Company had accrued approximately $977 and $1,000, respectively, for penalties.

27

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

24. Related party transactions

The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates.

The Company’s related party transactions can be categorized as follows:

Revenue from services

For the three months ended March 31, 2016 and 2017, the Company recognized net revenues of $79 and $83, respectively, from a client that is a significant shareholder of the Company.

For the three months ended March 31, 2016 and 2017, the Company recognized net revenues of $1,652 and $3,211 from a client that is a non-consolidating affiliate of the Company. $2,102 of this amount is receivable as of March 31, 2017.

Cost of revenue from services

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the three months ended March 31, 2016 and 2017, cost of revenue includes an amount of $498 and $575, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

Selling, general and administrative expenses

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2016 and 2017, selling, general and administrative expenses includes an amount of $67 and $94, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

During the three months ended March 31, 2016, the Company engaged a significant shareholder to provide a service to the Company at a cost of $15.

 Investment in equity affiliates

During the three months ended March 31, 2017, the Company invested $467 in its non-consolidating affiliates.   

During the three months ended March 31, 2017, the Company recorded a $2,821 charge related to an investment in one of its non-consolidating affiliates, which has been included in equity-method investment activity, net in the Company’s consolidated statement of income.

As of December 31, 2016 and March 31, 2017, the Company’s investments in its non-consolidating affiliates amounted to $4,800 and $769 respectively.

Others

During the three months ended March 31, 2016 and 2017, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $329 and $238, respectively, of which $238 is receivable and has been included in prepaid expenses and other current assets in the Company’s consolidated balance sheet as of March 31, 2017.

During the three months ended March 31, 2017, the Company made a payment of $1,307 to one of its non-consolidating affiliates under a tax-sharing arrangement in the U.K. As of March 31, 2017, $2,000 is payable under the tax-sharing arrangement and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. The amount represents a portion of the non-consolidated affiliate’s net operating losses surrendered to the Company under the tax sharing arrangement for the years 2015 and 2016.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

25. Commitments and contingencies

Capital commitments

As of December 31, 2016 and March 31, 2017, the Company has committed to spend $5,185 and $6,843, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases.

Bank guarantees

The Company has outstanding bank guarantees amounting to $11,958 and $12,015 as of December 31, 2016 and March 31, 2017, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purpose of maintaining a bonded warehouse. These guarantees may be revoked if the government agencies suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees.

Other commitments

The Company’s business process delivery centers in India are 100% export oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled.

26. Subsequent Events

Acquisitions

          On April 13, 2017, the Company acquired 100% of the outstanding equity interest in Rage Frameworks, Inc., a provider of knowledge-based automation technology and services, for estimated cash consideration of $125,000, subject to adjustment for cash and cash equivalents, working capital, closing debt and other items. This acquisition will enhance the Company’s artificial intelligence capabilities in line with its strategy to drive digital transformation for its clients.

          On May 3, 2017, the Company acquired 100% of the outstanding equity interest in BrightClaim, LLC and its associated Company National Vendor, LLC, both Delaware limited liability companies, for estimated cash consideration of $55,000, subject to adjustment for cash and cash equivalents, working capital, net debt and other items. This acquisition will enhance the Company’s breadth and depth of service offerings for clients in the insurance industry.

Genpact Limited 2017 Omnibus Incentive Compensation Plan

On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Plan”), pursuant to which 15,000,000 Company common shares are available for issuance to Company employees, directors and consultants. As a result of the shareholders’ approval of the 2017 Plan, no further awards will be made under the Company’s 2007 Omnibus Plan. All awards outstanding under the 2007 Omnibus Plan will continue to remain outstanding under the 2007 Omnibus Plan in accordance with their terms.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2016 and with the information under the heading “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, 2016. In addition to historical information, this discussion includes forward-looking statements and information that involves risks, uncertainties and assumptions, including but not limited to those listed below and under “Risk Factors” in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and in our Annual Report on Form 10-K for the year ended December 31, 2016.

Special Note Regarding Forward-Looking Statements

We have made statements in this Quarterly Report on Form 10-Q (the “Quarterly Report”) in, among other sections, Part I, Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are forward-looking statements. In some cases, you can identify these statements by forward-looking terms such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “could,” “may,” “shall,” “will,” “would” and variations of such words and similar expressions, or the negative of such words or similar expressions. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, which in some cases may be based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In particular, you should consider the numerous risks outlined in Part II, Item 1A—“Risk Factors” in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and in Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016.

These forward-looking statements include, but are not limited to, statements relating to:

• our ability to retain existing clients and contracts;

• our ability to win new clients and engagements;

• the expected value of the statements of work under our master service agreements;

• our beliefs about future trends in our market;

• political, economic or business conditions in countries where we have operations or where our clients operate;

• expected spending on business process outsourcing and information technology services by clients;

• foreign currency exchange rates;

• our ability to convert bookings to revenue;

• our rate of employee attrition;

• our effective tax rate; and

• competition in our industry.

Factors that may cause actual results to differ from expected results include, among others:

• our ability to grow our business and effectively manage growth and international operations while maintaining effective internal controls;

• our dependence on revenues derived from clients in the United States and Europe and clients that operate in certain industries, such as the financial services industry;

• our dependence on favorable tax legislation and tax policies that may be amended in a manner adverse to us or be unavailable to us in the future;

• our ability to successfully consummate or integrate strategic acquisitions;

• our ability to maintain pricing and asset utilization rates;

• our ability to hire and retain enough qualified employees to support our operations;

• increases in wages in locations in which we have operations;

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• our relative dependence on the General Electric Company (GE) and our ability to maintain our relationships with divested GE businesses;

• financing terms, including, but not limited to, changes in the London Interbank Offered rate, or LIBOR, and changes in our credit ratings;

• our ability to meet our corporate funding needs, pay dividends and service debt, including our ability to comply with the restrictions that apply to our indebtedness that may limit our business activities and investment opportunities;  

• restrictions on visas for our employees traveling to North America and Europe;

• fluctuations in exchange rates between the U.S. dollar, the euro, U.K. pound sterling, Chinese renminbi, Hungarian forint, Japanese yen, Indian rupee, Australian dollar, Philippines peso, Norwegian krone, Mexican peso, Polish zloty, Romanian leu, South African rand, Hong Kong dollar, Singapore dollar, Arab Emirates dirham, Brazilian real, Swiss franc, Swedish krona, Danish krone, Kenyan shilling, Czech koruna, Israeli new shekel, Colombian peso, Guatemalan quetzal, Macau pataca, Malaysian ringgit, Moroccan dirham and Canadian dollar;

• our ability to retain senior management;

• the selling cycle for our client relationships;

• our ability to attract and retain clients and our ability to develop and maintain client relationships on attractive terms;

• legislation in the United States or elsewhere that adversely affects the performance of business process outsourcing and information technology services offshore;

• increasing competition in our industry;

• telecommunications or technology disruptions or breaches, or natural or other disasters;

• our ability to protect our intellectual property and the intellectual property of others;

• our ability to maintain the security and confidentiality of personal and other sensitive data of our clients, employees or others;

• deterioration in the global economic environment and its impact on our clients, including the bankruptcy of our clients;

• regulatory, legislative and judicial developments, including the withdrawal of governmental fiscal incentives;

• the international nature of our business;

• technological innovation;

• our ability to derive revenues from new service offerings; and

• unionization of any of our employees.

Although we believe the expectations reflected in any forward-looking statements are reasonable at the time they are made, we cannot guarantee future results, level of activity, performance or achievements. Achievement of future results is subject to risks, uncertainties, and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to update any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations. You are advised, however, to consult any further disclosures we make on related subjects in our Forms 10-K, Forms 10-Q and Form 8-K reports to the SEC.

Overview

We are a global professional services firm focused on delivering digital transformation for our clients. Our Lean Digital^SM approach integrates lean principles, design thinking, analytics and digital technologies with our domain and industry expertise. We deliver value to our clients in two ways – through digital-led, domain-enabled solutions that drive innovation, and through digitally-enabled intelligent operations that design, transform and run our clients’ operations. We employ over 77,000 people in more than 20 countries and have key offices in New York City, Palo Alto, London and Delhi. Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.

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In the quarter ended March 31, 2017, we had net revenues of $623.0 million, of which $553.7 million, or 88.9%, was from clients other than GE, which we refer to as Global Clients, with the remaining $69.3 million, or 11.1%, coming from GE.

Acquisitions

On February 15, 2017, we acquired 100% of the outstanding equity interest in LeaseDimensions, Inc. (“LeaseDimensions”), an Oregon corporation. The preliminary estimated total purchase consideration for LeaseDimensions is $11.6 million, subject to adjustment for closing date working capital and net debt. This amount includes the estimated fair value of the contingent earn-out consideration and cash consideration of $9.1 million, net of cash acquired of $0.2 million, and a preliminary adjustment for working capital and net debt. As of March 31, 2017, we had paid the sellers total consideration of $9.5 million, resulting in a receivable of $0.1 million. The purchase agreement between us and the sellers also provides for contingent earn-out consideration ranging from $0 to $3.0 million, payable by us to the sellers based on the future performance of LeaseDimensions relative to the thresholds specified in the earn-out calculation. This acquisition enhances our capabilities in commercial lending and leasing. Goodwill arising from the acquisition amounted to $8.3 million, which has been allocated to our Americas reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company.

On April 13, 2016, we acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), an Indian private limited company. The total purchase consideration we paid the sellers to acquire Endeavour was $14.8 million. This amount includes the estimated fair value of the contingent earn-out consideration, cash consideration of $10.3 million, net of cash acquired of $2.4 million, and an adjustment for working capital and net debt. Goodwill arising from the acquisition amounted to $8.9 million, which has been allocated to our India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities in end-to-end mobility services, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company.

On January 8, 2016, we acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company, for initial cash consideration of $2.6 million, subject to adjustment for working capital, transaction expenses and indebtedness. This acquisition strengthens our procurement consulting, transformation and strategic sourcing capabilities. The equity purchase agreement between us and the selling equityholders provides for contingent earn-out consideration of up to $20.0 million, payable by us to the selling equityholders based on the future performance of SSE relative to the thresholds specified in the earn-out calculation. Up to $9.8 million of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable by us to the selling equityholders only if either the put or call option, each as described below, is exercised. Goodwill arising from the acquisition amounted to $14.4 million, which has been allocated to our India reporting unit and is deductible for tax purposes. The equity purchase agreement grants us a call option to purchase the remaining 49% equity interest in SSE, which option we have the right to exercise between January 1, 2018 and January 31, 2018. If we do not exercise our call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require us to purchase their 49% interest in SSE at a price ranging from $2.5 million to $3.0 million. The goodwill represents future economic benefits we expect to derive from our expanded presence in the sourcing and procurement consulting domains, operating synergies and other anticipated benefits of combining the acquired operations with our existing operations.

Critical Accounting Policies and Estimates

For a description of our critical accounting policies, see Note 2—“Summary of significant accounting policies” under Part I, Item 1—“Financial Statements” above, Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates,” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2016.

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Results of Operations

The following table sets forth certain data from our consolidated statements of income for the three months ended March 31, 2016 and 2017.

	Three months ended March 31,								Percentage Change Increase/(Decrease)
	2016				2017				2017 vs. 2016
	(dollars in millions)
Net revenues—GE*	$	95.5			$	69.3				(27.5	)	%
Net revenues—Global Clients*	514.2				553.7					7.7		%
Total net revenues	609.7				623.0					2.2		%
Cost of revenue	372.8				383.3					2.8		%
Gross profit	236.9				239.7					1.2		%
Gross profit margin		38.8		%		38.5		%
Operating expenses
Selling, general and administrative expenses	160.1				160.9					0.4		%
Amortization of acquired intangible assets	6.1				7.2					17.9		%
Other operating (income) expense, net	(5.1)				(7.5)					48.9		%
Income from operations	75.6				79.1					4.6		%
Income from operations as a percentage of    net revenues		12.4		%		12.7		%
Foreign exchange gains (losses), net	(1.0)				(4.9)					392.3		%
Interest income (expense), net		(2.8	)			(5.5	)			93.6		%
Other income (expense), net	0.9				0.6					(37.0	)	%
Income before equity-method investment activity,    net and income tax expense	72.7				69.2					(4.7	)	%
Equity-method investment activity, net	(2.1)				(4.6)					112.5		%
Income before income tax expense	70.5				64.7					(8.3	)	%
Income tax expense	12.0				12.2					1.9		%
Net income	58.5				52.4					(10.4	)	%
Net loss (income) attributable to redeemable non-controlling interest	0.3				0.9					100.0		%
Net income attributable to Genpact Limited    common shareholders	$	58.8			$	53.3				(9.3	)	%
Net income attributable to Genpact Limited    common shareholders as a percentage of net    revenues		9.6		%		8.6		%

* At the end of each fiscal year, we reclassify revenue from certain divested GE businesses as Global Client revenue as of the dates of divestiture. Such reclassifications are reflected in the revenue results and growth rates presented in the table above.

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Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

Net revenues. Our net revenues were $623.0 million in the first quarter of 2017, up $13.3 million, or 2.2%, from $609.7 million in the first quarter of 2016. The growth in net revenues was driven by an increase in business process outsourcing, or BPO, services delivered to our Global Clients. Adjusted for foreign exchange, primarily the impact of changes in the values of the U.K. pound sterling, euro and Australian dollar against the U.S. dollar, our net revenues grew 3% compared to the first quarter of 2016 on a constant currency basis. We provide information about our revenue growth on a constant currency basis so that our revenue may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of our business performance. Total net revenues on a constant currency basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and hedging gains/losses. Our average headcount increased by 6.6% to approximately 74,900 in the first quarter of 2017 from approximately 70,300 in the first quarter of 2016.

					Percentage Change
	Threemonths ended March 31,				Increase/(Decrease)
	2016		2017		2017 vs. 2016
	(dollars in millions)
Global Clients:
BPO services	$	417.9	$	462.3		10.6		%
IT services		96.2		91.4		(5.0	)
Total net revenues from Global Clients	$	514.2	$	553.7		7.7		%
GE:
BPO services		71.2		48.9		(31.3	)	%
IT services		24.3		20.3		(16.5	)
Total net revenues from GE	$	95.5	$	69.3		(27.5	)	%
Total net revenues from BPO services		489.1		511.3		4.5
Total net revenues from IT services		120.6		111.7		(7.4	)
Total net revenues	$	609.7	$	623.0		2.2		%

At the end of each fiscal year, we reclassify revenue from certain divested GE businesses as Global Client revenue as of the dates of divestiture. Such reclassifications are reflected in the revenue results and growth rates presented below and in the table above. In addition, to provide a consistent view of the trends underlying our business, we have also presented below revenue results and growth rates adjusted to assume that all 2016 revenue reclassifications occurred on January 1, 2016.

Net revenues from Global Clients were $553.7 million in the first quarter of 2017, up $39.6 million, or 7.7%, from $514.2 million in the first quarter of 2016. This increase was primarily driven by growth in our targeted verticals, including consumer product goods, banking and financial services and high tech. As a percentage of total net revenues, net revenues from Global Clients increased from 84.3% in the first quarter of 2016 to 88.9% in the first quarter of 2017. If all 2016 revenue reclassifications had occurred on January 1, 2016, revenue from Global Clients would have increased 5% year over year.

Net revenues from GE were $69.3 million in the first quarter of 2017, down $26.3 million, or 27.5%, from the first quarter of 2016. The decline in net revenues from GE was in line with expected decreases in services delivered to GE in the first quarter of 2017, largely due to phase-outs of work we do for GE Capital due to continued dispositions by GE of GE Capital businesses. Net revenues from GE declined as a percentage of our total net revenues from 15.7% in the first quarter of 2016 to 11.1% in the first quarter of 2017. If all 2016 revenue reclassifications had occurred on January 1, 2016, revenue from GE would have decreased 17% year over year.

Net revenues from BPO services were $511.3 million, up $22.2 million, or 4.5%, from $489.1 million in the first quarter of 2016. This increase was primarily attributable to an increase in services delivered to our Global Clients, particularly core industry vertical operations services, finance and accounting services, and analytics services. Net revenues from IT services were $111.7 million in the first quarter of 2017, down $8.9 million, or 7.4%, from $120.6 million in the first quarter of 2016 due to a decline in revenues from Global Clients in the capital markets and healthcare verticals.

Net revenues from BPO services as a percentage of total net revenues increased to 82.1% in the first quarter of 2017 from 80.2% in the first quarter of 2016 with a corresponding decline in the percentage of total net revenues attributable to IT services.

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Cost of revenue and gross margin. The following table sets forth the components of our cost of revenue and our resulting gross margin:

	ThreeMonths Ended March 31,						As a Percentage of Total Net Revenues
	2016			2017			2016			2017
	(dollars in millions)
Personnel expenses	$	254.0		$	269.2			41.7	%		43.2	%
Operational expenses		107.5			102.7			17.6			16.5
Depreciation and amortization	11.3				11.4			1.8			1.8
Cost of revenue	$	372.8		$	383.3			61.2	%		61.5	%
Gross margin		38.8	%		38.5	%

Cost of revenue was $383.3 million, up $10.5 million, or 2.8%, from the first quarter of 2016. Wage inflation, an increase in our operational headcount and an increase in infrastructure expenses in the first quarter of 2017 compared to the first quarter of 2016 all contributed to the increase in cost of revenue. The increase in cost of revenue was partially offset by improved operational efficiencies, lower travel expenses and favorable foreign exchange, primarily the impact of changes in the values of the Indian rupee and U.K. pound sterling against the U.S. dollar. Foreign exchange fluctuations cause gains and losses on our foreign currency hedges and have a translation impact when we convert our non-U.S. dollar income statement items to the U.S. dollar, our reporting currency.

Our gross margin decreased marginally from 38.8% in the first quarter of 2016 to 38.5% in the first quarter of 2017 due to the factors described above as well as lower headcount utilization on billable projects due to a decline in IT services engagements.

Personnel expenses. Personnel expenses as a percentage of total net revenues increased from 41.7% in the first quarter of 2016 to 43.2% in the first quarter of 2017. Personnel expenses in the first quarter of 2017 were $269.2 million, up $15.2 million, or 6.0%, from $254.0 million in the first quarter of 2016. Personnel expenses increased primarily due to wage inflation and an approximately 3,200-person, or 5.2%, increase in our operational headcount in the first quarter of 2017 compared to the first quarter of 2016. These increases were partially offset by favorable foreign exchange.

Operational expenses. Operational expenses as a percentage of total net revenues decreased from 17.6% in the first quarter of 2016 to 16.5% in the first quarter of 2017. Operational expenses were $102.7 million, down $4.8 million, or 4.5%, from the first quarter of 2016. This decrease is primarily due to lower travel and IT expenses and favorable foreign exchange in the first quarter of 2017 compared to the first quarter of 2016. This decrease was partially offset by higher infrastructure expenses.

Depreciation and amortization expenses. Depreciation and amortization expenses as a percentage of total net revenues were 1.8%, unchanged from the first quarter of 2016. Depreciation and amortization expenses as a component of cost of revenue were $11.4 million, up $0.2 million, or 1.4%, from the first quarter of 2016. This marginal increase was primarily due to the expansion of certain existing facilities in India, partially offset by favorable foreign exchange.

Selling, general and administrative expenses. The following table sets forth the components of our selling, general and administrative, or SG&A, expenses:

	ThreeMonths Ended March 31,				As a Percentage of Total Net  Revenues
	2016		2017		2016			2017
	(dollars in millions)
Personnel expenses	$	108.4	$	122.6		17.8	%		19.7	%
Operational expenses		49.6		35.8		8.1			5.7
Depreciation and amortization		2.2		2.5		0.4			0.4
Selling, general and administrative expenses	$	160.1	$	160.9		26.3	%		25.8	%

SG&A expenses as a percentage of total net revenues decreased from 26.3% in the first quarter of 2016 to 25.8% in the first quarter of 2017. SG&A expenses were $160.9 million, up $0.7 million, or 0.4%, from the first quarter of 2016. Our sales and marketing expenses as a percentage of net revenues were approximately 6.4% in the first quarter of 2017, down from 7.3% in the first quarter of 2016. Wage inflation, higher infrastructure expenses, higher stock-based compensation expense, and ongoing investments in digital and domain capabilities all contributed to higher SG&A expenses in the first quarter of 2017 compared to the first quarter of 2016. This increase was partially offset by lower travel expenses, a lower reserve for doubtful receivables and favorable foreign exchange, primarily the impact of changes in the values of the Indian rupee and U.K. pound sterling against the U.S. dollar in the first quarter of 2017 compared to the first quarter of 2016.

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Personnel expenses. As a percentage of total net revenues, personnel expenses increased from 17.8% in the first quarter of 2016 to 19.7% in the first quarter of 2017. Personnel expenses as a component of SG&A expenses were $122.6 million, up $14.2 million, or 13.1%, from the first quarter of 2016. The increase is primarily due to wage inflation, ongoing investments in digital and domain capabilities, higher stock-based compensation expenseand a 0.5% increase in our sales-team personnel expenses in the first quarter of 2017 compared to the first quarter of 2016, partially offset by favorable foreign exchange.

Operational expenses. As a percentage of total net revenues, operational expenses decreased from 8.1% in the first quarter of 2016 to 5.7% in the first quarter of 2017. Operational expenses as a component of SG&A expenses were $35.8 million, down $13.8 million, or 27.8%, from the first quarter of 2016. This decrease is primarily due to reduced travel expenses, a lower reserve for doubtful receivables and favorable foreign exchange, partially offset by higher infrastructure expenses in the first quarter of 2017 compared to the first quarter of 2016.

Depreciation and amortization. Depreciation and amortization expenses as a percentage of total net revenues were 0.4% in the first quarter of 2017, unchanged from the first quarter of 2016. Depreciation and amortization expenses as a component of SG&A expenses were $2.5 million, up $0.3 million, or 14.0%, from the first quarter of 2016. This marginal increase was primarily due to the expansion of certain existing facilities in India, partially offset by favorable foreign exchange.

Amortization of acquired intangibles. Non-cash charges on account of amortization of acquired intangibles were $7.2 million, up $1.1 million, or 17.9%, from the first quarter of 2016. This increase was primarily due to the amortization of intangibles acquired after the first quarter of 2016.

Other operating (income) expense, net. The following table sets forth the components of other operating (income) expense, net:

									Percentage Change
	Three months ended March 31,								Increase/(Decrease)
	2016				2017				2017 vs. 2016
	(dollars in millions)
Other operating (income) expense	$	(0.5	)		$	(4.4	)			783.5		%
Impairment of intangible assets		4.9				—				(100.0	)
Change in the fair value of earn-out consideration,    deferred consideration (relating to business    acquisitions)		(9.5	)			(3.1	)			(67.0	)
Other operating (income) expense, net	$	(5.1	)		$	(7.5	)			48.9		%
Other operating (income) expense, net as a    percentage of total net revenues		(0.8	)	%		(1.2	)	%

Other operating income, net of expense, was $7.5 million, compared to $5.1 million in the first quarter of 2017, primarily due to a $3.1 million gain in the first quarter of 2017 compared to a $9.5 million gain in the first quarter of 2016 as a result of changes in the fair value of earn-out consideration payable in connection with certain acquisitions. We also recorded $4.4 million in other operating income in the first quarter of 2017 primarily due to a gain on the sale of certain real property, compared to $0.5 million in other operating income in the first quarter of 2016. Additionally, we recorded a $4.9 million non-recurring charge in the first quarter of 2016 relating to a software intangible asset, which charge we discuss in Note 10—“Goodwill and intangible assets” under Part I, Item 1—“Financial Statements” above. No such charge was recorded in the first quarter of 2017.

Income from operations. As a result of the foregoing factors, income from operations as a percentage of total net revenues increased from 12.4% in the first quarter of 2016 to 12.7% in the first quarter of 2017. Income from operations increased by $3.5 million to $79.1 million in the first quarter of 2017 from $75.6 million in the first quarter of 2016.

Foreign exchange gains (losses), net. Foreign exchange gains (losses), net represents the impact of the re-measurement of our non-functional currency assets and liabilities and related foreign exchange contracts. We recorded a net foreign exchange loss of $4.9 million in the first quarter of 2017, up from $1.0 million in the first quarter of 2016. The loss in the first quarter of 2017 was primarily a result of the appreciation of the Indian rupee against the U.S. dollar during the quarter. The loss in the first quarter of 2016 was primarily a result of the appreciation of the Philippine peso, Brazilian real, euro, and Japanese yen against the U.S. dollar, and the depreciation of the U.K. pound sterling against the U.S. dollar during that quarter.

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Interest income (expense), net. The following table sets forth the components of interest income (expense), net:

									Percentage Change
	Three months ended March 31,								Increase/(Decrease)
	2016				2017				2017 vs. 2016
	(dollars in millions)
Interest income	$	2.4			$	1.1				(52.2	)	%
Interest expense	(5.2)				(6.6)					27.3
Interest income (expense), net	$	(2.8	)		$	(5.5	)			93.6		%
Interest income (expense), net as a percentage of    total net revenues		(0.5	)	%		(0.9	)	%

Our net interest expense increased by $2.7 million in the first quarter of 2017 compared to the first quarter of 2016, primarily due to a $1.4 million increase in interest expense. The increase in interest expense is primarily due to (i) a higher interest rate on the term loan under our credit facility in the first quarter of 2017 compared to the first quarter of 2016, which we discuss in the section titled “Liquidity and Capital Resources—Financial Condition” below, (ii) higher drawdown on our revolving credit facility in the first quarter of 2017 compared to the first quarter of 2016, (iii) $0.4 million in interest on interest rate swaps which we entered into after the first quarter of 2016 and (iv) $0.2 million in interest on the senior notes we issued in March 2017. Our interest income decreased by $1.2 million in the first quarter of 2017 compared to the first quarter of 2016 primarily due to lower account balances in India, where we earn higher interest rates on our deposits. The weighted average rate of interest on debt under our credit facility increased from 1.9% in the first quarter of 2016 to 2.5% in the first quarter of 2017, including interest on interest rate swaps.

Other income (expense), net. Our net other income was $0.6 million in the first quarter of 2017, down $0.3 million from $0.9 million in the first quarter of 2016.

Equity-method investment activity, net. Equity-method investment activity, net represents our share of loss in our non-consolidated affiliates and a charge related to one of our non-consolidated affiliates.

Income tax expense. Our income tax expense was $12.2 million in the first quarter of 2017, up from $12.0 million in the first quarter of 2016 (as restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016), representing an effective tax rate, or ETR, of 18.7%, up from 17.0% in the first quarter of 2016. The increase in our effective tax rate is primarily due to certain special economic zones units in India becoming partially taxable, partly offset by certain discrete items.

Net income attributable to redeemable non-controlling interest. Non-controlling interest primarily refers to the profit or loss associated with the redeemable non-controlling interest in the operations of SSE, which we acquired in the first quarter of 2016. See Note 3—“Business acquisitions” under Part I, Item 1—“Financial Statements” above.

Net income attributable to Genpact Limited common shareholders. As a result of the foregoing factors, net income attributable to Genpact Limited common shareholders as a percentage of total net revenues was 8.6% in the first quarter of 2017, down from 9.6% in the first quarter of 2016. Net income attributable to Genpact Limited common shareholders decreased by $5.5 million from $58.8 million in the first quarter of 2016 to $53.3 million in the first quarter of 2017.

Liquidity and Capital Resources

     Overview

Information about our financial position as of December 31, 2016 and March 31, 2017 is presented below:

	As of December 31, 2016		As of March 31, 2017				Percentage Change Increase/(Decrease)
	(dollars in millions)					2017 vs. 2016
Cash and cash equivalents	$	422.6	$		388.2				(8.1	)	%
Short-term borrowings		160.0			15.0				(90.6	)
Long-term debt due within one year	39.2			39.2				—
Long-term debt other than the current portion		698.2			1,035.8				48.4
Genpact Limited total shareholders’ equity	$	1,286.6	$		1,181.6				(8.2	)	%

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Financial Condition

We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities. In March 2017, we issued $350.0 million aggregate principal amount of 3.70% senior notes in a private offering. As of March 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2.6 million, was $347.4 million, which is payable on April 1, 2022. We will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. For additional information, see Note 12—“Long-term debt” under Part I, Item 1—“Financial Statements” above.

In February 2017, our board of directors approved a dividend program under which we intend to pay a regular quarterly cash dividend of $0.06 per share to holders of our common shares, representing a planned annual dividend of $0.24 per share. On March 28, 2017, we paid a dividend of $0.06 per share, amounting to $12.0 million in the aggregate, to shareholders of record as of March 10, 2017.

As of March 31, 2017, $379.2 million of our $388.2 million in cash and cash equivalents was held by our foreign (non-Bermuda) subsidiaries. $18.8 million of this cash was held by a foreign subsidiary for which we expect to incur a tax liability and have accordingly accrued a deferred tax liability on the repatriation of $10.3 million of retained earnings. $85.9 million of the cash and cash equivalents held by our foreign subsidiaries is held in jurisdictions where no tax is expected to be imposed upon repatriation. We currently intend to permanently reinvest the remaining $274.5 million in cash and cash equivalents held by certain of our foreign subsidiaries.

As of December 31, 2016, our board of directors had authorized repurchases of up to $750.0 million in value of our common shares under our share repurchase program first announced in February 2015. On February 10, 2017, our board of directors approved up to an additional $500.0 million in share repurchases, bringing the total authorization under our existing program to $1,250.0 million. On March 29, 2017, we entered into an accelerated share repurchase, or ASR, agreement with Morgan Stanley & Co. LLC to repurchase an aggregate of $200.0 million of our common shares. For additional information, see Note 17—“Capital Stock” under Part I, Item 1—“Financial Statements” above.

During the three months ended March 31, 2016, we purchased 1,356,199 of our common shares on the open market at a weighted average price of $24.35 per share for an aggregate cash amount of $33.0 million. During the three months ended March 31, 2017, we made payments in an aggregate cash amount of $219.8 million toward share repurchases. Of this amount, we paid (i) $19.8 million to repurchase 808,293 of our common shares on the open market at a weighted average price of $24.48 per share, (ii) $160.0 million to the Dealer for the initial delivery of 6,578,947 of our common shares under the ASR agreement at a weighted average price of $24.32 per share, and (iii) $40.0 million to the Dealer for shares to be delivered to us at the final settlement of the transaction under the ASR agreement as described above. All repurchased shares have been retired.

We expect that in the 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. 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. Our primary capital requirements include opening new delivery centers, expanding related operations to support our growth, and financing acquisitions.

Cash flows from operating, investing and financing activities, as reflected in our consolidated statements of cash flows, are summarized in the following table:

							Percentage Change
	Three months ended March 31,						Increase/(Decrease)
	2016			2017			2017 vs. 2016
	(dollars in millions)
Net cash provided by (used for)
Operating activities	$	(9.6	)	$	31.0			(422.4	)	%
Investing activities		(31.5	)		(29.0	)		(7.9	)
Financing activities	20.4			(42.0)				(305.7	)
Net increase (decrease) in cash and cash    equivalents	$	(20.7	)	$	(40.0	)		93.4		%

Cash flows from operating activities. Net cash generated from operating activities was $31.0 million in the three months ended March 31, 2017, compared to net cash used for operating activities of $9.6 million in the three months ended March 31, 2016. This

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increase is primarily due to a $46.3 million net change in our operating assets and liabilities in the three months ended March 31, 2017 compared to the three months ended March 31, 2016, mainly driven by (i) adecrease in investments in trade receivables in the first quarter of 2017 primarily due to adecrease in days sales outstanding and a reduction in revenue volume in the first quarter of 2017 compared to the fourth quarter of 2016 and (ii) a $6.8 million decrease in net income tax payments primarily due to certain tax payments in the first quarter of 2016 relating to a prior year. This was partially offset by $5.7 million decrease in net income adjusted for amortization, depreciation and other non-cash items in the first quarter of 2017 compared to the first quarter of 2016.

Cash flows from investing activities. Our net cash used for investing activities was $29.0 million in the three months ended March 31, 2017, down $2.5 million from the three months ended March 31, 2016. This decrease was primarily due to lower payments for purchases of property, plant and equipment (net of sales proceeds) of $6.1 million in the first quarter of 2017 compared to the first quarter of 2016. Additionally, the value of an investment in one of our non-consolidated affiliates was $3.3 million lower in the first quarter of 2017 than in the first quarter of 2016. This decrease was partially offset by a $6.9 million increase in payments related to acquisitions consummated in the first quarter of 2017 compared to the first quarter of 2016.

Cash flows from financing activities. Our net cash used for financing activities was $42.0 million in the three months ended March 31, 2017, compared to net cash generated from financing activities of $20.4 million in the three months ended March 31, 2016. In March 2017, we issued $350.0 million aggregate principal amount of 3.70% senior notes in a private offering. We also repaid $10.0 million in long-term debt payments in the first quarters of 2017 and 2016. We made net repayments of $145.0 million in the first quarter of 2017 compared to the receipt of $60.0 million in proceeds from short-term borrowings in the first quarter of 2016. For additional information, see notes 11 and 12 to our consolidated financial statements. Additionally, we made payments in connection with the issuance of common shares under stock-based compensation plans (net of proceeds) of $2.2 million in the first quarter of 2017 compared to proceeds from the issuance of common shares under stock-based compensation plans (net of payments) of $4.9 million in the first quarter of 2016. In the first quarter of 2017, we paid a cash dividend in an aggregate amount of $12.0 million. No dividends were paid in the first quarter of 2016. Payments for share repurchases were $220.0 million in the first quarter of 2017 compared to $33.0 million in the first quarter of 2016.

Financing Arrangements

In June 2015, we refinanced our 2012 credit facility through a new credit facility comprised of a term loan of $800 million and a revolving credit facility of $350 million. As of December 31, 2016 and March 31, 2017, our outstanding term loan debt, net of debt amortization expense of $2.7 million and $2.5 million, respectively, was $737.3 million and $727.5 million, respectively. We also have fund-based and non-fund based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2016 and March 31, 2017, the limits available under such facilities were $15.4 million and $15.8 million, respectively, of which $11.0 million, constituting non-funded drawdown, was utilized as of both dates. As of December 31, 2016 and March 31, 2017, a total of $161.0 million and $16.0 million, respectively, of our revolving credit facility was utilized, of which $160.0 million and $15.0 million, respectively, constituted funded drawdown and $1.0 million constituted non-funded drawdown in both periods.

In March 2017, we issued $350.0 million aggregate principal amount of 3.70% senior notes in a private offering, resulting in cash proceeds of approximately $348.5 million and an underwriting fee of approximately $1.5 million. In addition, there were other debt issuance related costs of $1.1 million which are unpaid as of March 31, 2017. The total debt issuance cost of $2.6 million incurred in connection with the offering of the notes is being amortized over the life of the notes as additional interest expense. As of March 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2.6 million, was $347.4 million, which is payable on April 1, 2022 when the notes mature. For additional information about our financing arrangements, see notes 11 and 12 to our consolidated financial statements.

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Off-Balance Sheet Arrangements

Our off-balance sheet arrangements consist of foreign exchange contracts and certain operating leases. For additional information, see Part I, Item 1A—Risk Factors—“Currency exchange rate fluctuations in various currencies in which we do business, especially the Indian rupee, the U.S. dollar and the euro, could have a material adverse effect on our business, results of operations and financial condition” in our Annual Report on Form 10-K for the year ended December 31, 2016, the section titled “Contractual Obligations” below, and Note 7 in Part I, Item 1—“Financial Statements” above.

Contractual Obligations

The following table sets forth our total future contractual obligations as of March 31, 2017:

	Total		Less than 1 year		1-3 years		3-5 years		After 5 years
	(dollars in millions)
Long-term debt	$	1,195.4	$	70.3	$	137.8	$	639.9	$	347.4
— Principal payments		1,074.9		39.2		78.5		609.8		347.4
— Interest payments*		120.5		31.1		59.3		30.1		0.0
Short-term borrowings		15.1		15.1	—		—		—
— Principal payments		15.0		15.0	—		—		—
— Interest payments**		0.1		0.1	—		—		—
Capital leases		5.3		2.0		2.6		0.7	—
— Principal payments		4.3		1.5		2.2		0.6	—
— Interest payments		1.0		0.5		0.4		0.1	—
Operating leases		181.9		36.0		59.2		42.2		44.5
Purchase obligations		30.5		24.0		6.3		0.2	—
Capital commitments net of advances		6.8		6.8	—		—		—
Earn-out consideration		24.1		6.7		12.3		5.1	—
— Reporting date fair value		21.3		5.7		10.8		4.8	—
— Interest		2.8		1.0		1.5		0.3	—
Other liabilities		26.3		17.4		8.7		0.2		—
Total contractual obligations	$	1,485.4	$	178.3	$	226.9	$	688.3	$	391.9

* Our interest payments on long-term debt are calculated based on our current debt rating at a rate equal to LIBOR plus a margin of 1.50% per annum as of March 31, 2017 which exclude the impact of interest rate swaps. Interest payments on long-term debt include interest on our senior notes due 2022 at a rate of 3.70% per annum, which is not based on LIBOR.

** Our interest payments on short-term debt are calculated based on our current debt rating at a rate equal to LIBOR plus a margin of 1.50% per annum as of March 31, 2017 and our expectation for the repayment of such debt.

Recent Accounting Pronouncements

Recently adopted accounting pronouncements

For a description of recently adopted accounting pronouncements, see Note 2—“Recently adopted accounting pronouncements” under Item 1—“Financial Statements” above and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations”—“Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2016.

Recently issued accounting pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. Subsequently, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Gross versus Net),” in March 2016, ASU No. 2016-10, “Identifying performance obligations and licensing,” in April 2016, and ASU 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” in December 2016, which amend and clarify ASU 2014-09. These ASUs will be effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018, and allow for both retrospective and prospective adoption. We expect to

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complete our assessment of the cumulative effect of adopting ASU No. 2014-09 as well as the selection of a transition approach during the first half of 2017. We do not believe there will be a material impact to our revenues upon adoption,althoughthere may be an impact on the recognition of timing of contract costs. We are continuing to evaluate the impact on our consolidated results of operations, cash flows,financial position and disclosures of our pending adoption of ASU 2014-09 and our preliminary assessments are subject to change.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities,” which primarily affects accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The ASU will be effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018. Early adoption is permitted. We are in the process of determining the method of adoption and assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. The ASU will be effective for us beginning January 1, 2019, including interim periods in our fiscal year 2019. Early adoption is permitted. We are in the process of determining the method of adoption and assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In June 2016, the FASB issued ASU No. 2016-13, “Measurement of credit losses on financial instruments,” The ASU requires measurement and recognition of expected credit losses for financial assets held. The ASU will be effective for us beginning January 1, 2020, including interim periods in our fiscal year 2020. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." The new guidance is intended to reduce diversity in how certain transactions are classified in the statement of cash flows. The ASU is effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018. Early adoption is permitted. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance eliminates the exception for deferment of tax recognition until the transferred asset is sold to a third party or otherwise recovered through use for all intra-entity sales of assets other than inventory. The ASU is effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018. Early adoption is permitted. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). The ASU is effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018. Early adoption is permitted. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which removes step two from the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Also, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The ASU is effective for us beginning January 1, 2020, including interim periods in our fiscal year 2020. Early adoption is permitted. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The ASU is effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to interest rate risk arising from changes in interest rates on the floating rate indebtedness under our term loan. Borrowings under our term loan bear interest at floating rates based on LIBOR, but in no event less than the floor rate of 0.0% plus an applicable margin. Accordingly, fluctuations in market interest rates may increase or decrease our interest expense which will, in turn, increase or decrease our net income and cash flow.

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 LIBOR and the floor rate under our term loan and make payments based on a fixed rate. As of March 31, 2017, we were party to interest rate swaps covering a total notional amount of $456.8 million. Under these swap agreements, the rate that we pay to banks in exchange for LIBOR ranges between 0.88% and 1.20%.

For a discussion of our market risk associated with foreign currency risk, interest rate risk and credit risk, see Part II, Item 7A—“Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2016.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are the Company’s controls and other procedures which are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 (“Exchange Act”) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to the Exchange Act Rule 13a-15(b). Based upon that evaluation, the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic SEC filings.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarterly period ended March 31, 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In making its assessment of the changes in internal controls over financial reporting during the quarterly period ended March 31, 2017, management excluded an evaluation of the internal controls over financial reporting in respect of any acquisition made in the three months ended March 31, 2017. See Note 3 to the Unaudited Consolidated Financial Statements for a discussion of acquisitions consummated during such period.

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PART II

Item 1. Legal Proceedings

There are no legal proceedings pending against us that we believe are likely to have a material adverse effect on our business, results of operations and financial condition.

Item 1A. Risk Factors

We have disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016 the risk factors that materially affect our business, financial condition or results of operations. You should carefully consider the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2016, the risk factors set forth below and the other information that appears elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016 and in this Quarterly Report on Form 10-Q. You should be aware that these risk factors and other information may not describe every risk facing our Company. Additional risks and uncertainties not currently known to us also may materially adversely affect our business, financial condition and/or results of operations.

We may be unable to service our debt or obtain additional financing on competitive terms.

On June 30, 2015, we entered into a five-year credit agreement with certain financial institutions as lenders which replaced our prior credit facility. The credit agreement provides for an $800 million term credit facility and a $350 million revolving credit facility, and may be increased by us by up to $150 million (or a greater amount based on certain conditions). The credit agreement obligations are unsecured, and guaranteed by certain subsidiaries. As of December 31, 2016, the total amount due under the credit facility, including the amount utilized under the revolving facility, was $900 million.  The credit agreement contains covenants that require maintenance of certain financial ratios, including consolidated leverage and interest coverage ratios, and also, under certain conditions, restrict our ability to incur additional indebtedness, create liens, make certain investments, pay dividends or make certain other restricted payments, repurchase common shares, undertake certain liquidations, mergers, consolidations and acquisitions and dispose of certain assets or subsidiaries, among other things. If we breach any of these restrictions and do not obtain a waiver from the lenders, subject to applicable cure periods the outstanding indebtedness (and any other indebtedness with cross-default provisions) could be declared immediately due and payable, which could adversely affect our liquidity and financial condition. In addition, we may have limited ability to increase our borrowings under our existing credit agreement without increased pricing.

On March 27, 2017, we issued $350.0 million aggregate principal amount of 3.70% senior notes in a private offering.  As of March 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2.6 million, was $347.4 million, which is payable on April 1, 2022 when the notes mature.  We are required to pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date. The notes are subject to certain customary covenants, 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. Upon certain change of control transactions, we would be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.  The interest rate payable on the notes is subject to adjustment if the credit rating of the notes is downgraded up to a maximum increase of 2.0%. We are required to offer to exchange the notes for registered notes or have one or more shelf registration statements declared effective within 455 days after the issue date of the notes and, if such exchange offer fails to be consummated or such registration statement fails to be effective by June 25, 2018, then the interest payable on the notes would increase by 0.25% per annum during the 90-day period immediately following such date and would further increase by 0.25% per annum at the end of each subsequent 90-day period up to a maximum increase of 0.50%.  We may redeem the 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 the notes are redeemed prior to March 1, 2022, a specified “make-whole” premium. The notes are our senior unsecured obligations and rank equally with all our other senior unsecured indebtedness outstanding from time to time.

Our indebtedness and related debt service obligations can have negative consequences, requiring us to dedicate significant cash flow from operations to the payment of principal and interest on our debt, which reduces the funds we have available for other purposes such as acquisitions and capital investment; limiting our ability to obtain additional financing and limiting our ability to undertake strategic acquisitions; increasing our vulnerability to adverse economic and industry conditions, including by reducing our flexibility in planning for or reacting to changes in our business and market conditions; and exposing us to interest rate risk since a portion of our debt obligations are at variable rates. We may incur more debt in the future, and there can be no assurance that our cost of funding will not substantially increase.  

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Our ability to make scheduled payments, refinance our obligations or obtain additional financing will depend on our future operating performance and on economic, financial, competitive and other factors beyond our control. Our business may not generate sufficientcash flow to meet our obligations. In addition, we may inthe future require additional financing to fund one or more acquisitions, pay dividends or repurchase shares and may not be able to obtain such additional financing on competitive terms, which could restrict our ability to complete such transactions.  

If we areunable to service our debt, refinance our existing debt or obtain additional financing, we may be forced to delay strategic acquisitions, capital expenditures or research and development expenditures, which could adversely affect our business and financial condition.  If we incur additional debt, the risks described above could increase.  

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

None.

Use of Proceeds

None.

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

As of December 31, 2016, our board of directors had authorized repurchases of up to $750.0 million in value of our common shares under our share repurchase program first announced in February 2015. On February 10, 2017, our board of directors approved up to an additional $500.0 million in share repurchases, bringing the total authorization under our existing program to $1,250.0 million. On March 29, 2017, we entered into an accelerated share repurchase, or ASR, agreement with Morgan Stanley & Co. LLC to repurchase an aggregate of $200.0 million in value of our common shares. For additional information, see Note 17—“Capital Stock” under Part I, Item 1—“Financial Statements” above. Our share 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 program, including under the ASR agreement, will be cancelled.

Share repurchase activity during the three months ended March 31, 2017 was as follows:

Period	Total Number of Shares Purchased		Average Price Paid per Share ($)		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program ($)
January 1-January 31, 2017		606,145		24.42		606,145		163,082,776
February 1-February 28, 2017		202,148		24.65		202,148		658,099,759
March 1-March 31, 2017		6,578,947		24.32		6,578,947		498,099,759

Item 3. Defaults Upon Senior Securities

None.

Item 5. Other Information

None.

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Item 6. Exhibits

3.1	Memorandum of Association of the Registrant (incorporated by reference to Exhibit 3.1 to Amendment No. 2 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on July 16, 2007).
3.3	Bye-laws of the Registrant (incorporated by reference to Exhibit 3.3 to Amendment No. 4 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on August 1, 2007).
4.1	Base Indenture, dated as of March 27, 2017, by and among the Registrant, Genpact Luxembourg S.à r.l. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
4.2	First Supplemental Indenture, dated as of March 27, 2017, by and among the Registrant, Genpact Luxembourg S.à r.l. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
4.3	Form of 3.700% Senior Note due 2022 (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
4.4	Registration Rights Agreement, dated March 27, 2017, by and among the Registrant, Genpact Luxembourg S.à r.l. and Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document (1)
101.SCH	XBRL Taxonomy Extension Schema Document (1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (1)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (1)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (1)

* Filed with this Quarterly Report on Form 10-Q.

(1) Filed as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2016 and March 31, 2017, (ii) Consolidated Statements of Income for the three months ended March 31, 2016 and March 31, 2017, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2016 and March 31, 2017, (iv) Consolidated Statements of Equity and Redeemable Non-controlling Interest for the three months ended March 31, 2016 and March 31, 2017, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and March 31, 2017, and (vi) Notes to the Consolidated Financial Statements.

45

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 10, 2017

GENPACT LIMITED

By:	/s/ N.V. TYAGARAJAN
	N.V. Tyagarajan
	Chief Executive Officer
By:	/s/ EDWARD J. FITZPATRICK
	Edward J. Fitzpatrick
	Chief Financial Officer

46

EXHIBIT INDEX

Exhibit Number	Description
3.1	Memorandum of Association of the Registrant (incorporated by reference to Exhibit 3.1 to Amendment No. 2 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on July 16, 2007).
3.3	Bye-laws of the Registrant (incorporated by reference to Exhibit 3.3 to Amendment No. 4 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on August 1, 2007).
4.1	Base Indenture, dated as of March 27, 2017, by and among the Registrant, Genpact Luxembourg S.à r.l. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
4.2	First Supplemental Indenture, dated as of March 27, 2017, by and among the Registrant, Genpact Luxembourg S.à r.l. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
4.3	Form of 3.700% Senior Note due 2022 (incorporated by reference to Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
4.4	Registration Rights Agreement, dated March 27, 2017, by and among the Registrant, Genpact Luxembourg S.à r.l. and Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K (File No. 001-33626) filed with the SEC on March 28, 2017).
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document (1)
101.SCH	XBRL Taxonomy Extension Schema Document (1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (1)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (1)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (1)

* Filed with this Quarterly Report on Form 10-Q.

(1) Filed as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2016 and March 31, 2017, (ii) Consolidated Statements of Income for the three months ended March 31, 2016 and March 31, 2017, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2016 and March 31, 2017, (iv) Consolidated Statements of Equity and Redeemable Non-controlling Interest for the three months ended March 31, 2016 and March 31, 2017, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and March 31, 2017, and (vi) Notes to the Consolidated Financial Statements.

47

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, N.V. Tyagarajan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Genpact Limited for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2017

/s/ N.V. Tyagarajan

N.V. Tyagarajan

Chief Executive Officer

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Edward J. Fitzpatrick, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Genpact Limited for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2017

/s/ Edward J. Fitzpatrick

Edward J. Fitzpatrick

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Genpact Limited (the “Company”) on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, N.V. Tyagarajan, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 10, 2017

/s/ N.V. Tyagarajan

N.V. Tyagarajan

Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Genpact Limited (the “Company”) on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Edward J. Fitzpatrick, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 10, 2017

/s/ Edward J. Fitzpatrick

Edward J. Fitzpatrick

Chief Financial Officer

Genpact Limited

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Trading Symbol	G
Entity Registrant Name	GENPACT LTD
Entity Central Index Key	0001398659
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		192,743,610

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 388,186	$ 422,623
Accounts receivable, net	602,871	615,265
Prepaid expenses and other current assets	227,635	189,149
Total current assets	1,218,692	1,227,037
Property, plant and equipment, net	212,562	200,115
Deferred tax assets	61,029	70,143
Investment in equity affiliates	769	4,800
Intangible assets, net	69,070	72,049
Goodwill	1,097,329	1,069,408
Other assets	252,279	242,328
Total assets	2,911,730	2,885,880
Current liabilities
Short-term borrowings	15,000	160,000
Current portion of long-term debt	39,192	39,181
Accounts payable	9,086	9,768
Income taxes payable	33,091	24,159
Accrued expenses and other current liabilities	426,953	498,247
Total current liabilities	523,322	731,355
Long-term debt, less current portion	1,035,778	698,152
Deferred tax liabilities	1,815	2,415
Other liabilities	165,561	162,790
Total liabilities	1,726,476	1,594,712
Redeemable non-controlling interest	3,610	4,520
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued
Common shares, $0.01 par value, 500,000,000 authorized, 198,794,052 and 192,727,001 issued and outstanding as of December 31, 2016 and March 31, 2017, respectively	1,924	1,984
Additional paid-in capital	1,347,265	1,384,468
Retained earnings	219,776	358,121
Accumulated other comprehensive income (loss)	(387,321)	(457,925)
Total equity	1,181,644	1,286,648
Commitments and contingencies
Total liabilities, redeemable non-controlling interest and equity	$ 2,911,730	$ 2,885,880

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, authorized	250,000,000	250,000,000
Preferred shares, issued	0	0
Common shares, par value	$ 0.01	$ 0.01
Common shares, authorized	500,000,000	500,000,000
Common shares, issued	192,727,001	198,794,052
Common shares, outstanding	192,727,001	198,794,052

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	[1]
Income Statement [Abstract]
Net revenues	$ 622,995	$ 609,703
Cost of revenue	383,337	372,848
Gross profit	239,658	236,855
Operating expenses:
Selling, general and administrative expenses	160,858	160,149
Amortization of acquired intangible assets	7,242	6,145	[2]
Other operating (income) expense, net	(7,538)	(5,061)
Income from operations	79,096	75,622
Foreign exchange gains (losses), net	(4,913)	(998)
Interest income (expense), net	(5,493)	(2,838)
Other income (expense), net	553	878
Income before equity-method investment activity, net and income tax expense	69,243	72,664
Equity-method investment activity, net	(4,558)	(2,145)	[2]
Income before income tax expense	64,685	70,519
Income tax expense	12,245	12,014
Net income	52,440	58,505	[2]
Net loss (income) attributable to redeemable non-controlling interest	898	289	[2]
Net income attributable to Genpact Limited shareholders	53,338	58,794	[2]
Net income available to Genpact Limited common shareholders	$ 53,338	$ 58,794
Earnings per common share attributable to Genpact Limited common shareholders
Basic	$ 0.27	$ 0.28
Diluted	$ 0.26	$ 0.27
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders
Basic	199,069,528	210,780,165
Diluted	202,655,937	213,892,964

[1] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

[2] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Income (loss)	$ 52,440	$ 58,505	[1],[2]
Other comprehensive income:
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7)	18,858	1,970
Genpact Limited Shareholders
Net Income (loss)	53,338	58,794	[3]
Other comprehensive income:
Currency translation adjustments	51,627	5,217	[3]
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7)	18,858	1,970	[3]
Retirement benefits, net of taxes	119	153	[3]
Other comprehensive income (loss)	70,604	7,340	[3]
Comprehensive income (loss)	123,942	66,134	[3]
Redeemable non-controlling interest
Net Income (loss)	(898)	(289)	[3]
Other comprehensive income:
Currency translation adjustments	(12)
Other comprehensive income (loss)	(12)
Comprehensive income (loss)	$ (910)	$ (289)	[3]

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[2] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

[3] Net income for the three months ended March 31, 2016 has been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

XML

Consolidated Statements of Equity and Redeemable Non-controlling Interest - USD ($) $ in Thousands		Total		Common shares	Additional Paid- in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)	Total Equity		Redeemable non-controlling interest
Beginning balance, value (in shares) at Dec. 31, 2015				211,472,312
Beginning balance, value at Dec. 31, 2015				$ 2,111	$ 1,342,022	[1]	$ 411,508	[1]	$ (451,285)	$ 1,304,356
Issuance of common shares on exercise of options (in shares)				248,316
Issuance of common shares on exercise of options				$ 2	4,210	[1]				4,212
Issuance of common shares under the employee stock purchase plan (in shares)				30,487
Issuance of common shares under the employee stock purchase plan					725	[1]				725
Net settlement on vesting of restricted share units				$ 1	(50)	[1]				(49)
Net settlement on vesting of restricted share units, shares				95,191
Stock repurchased and retired				$ (14)			(33,003)	[1]		(33,017)
Stock repurchased and retired, shares				(1,356,199)
Deferred tax assets recognized on early adoption of ASU 2016-09							24,912	[1]		24,912
Expenses related to stock purchase		$ (27)					(27)	[1]		(27)
Stock-based compensation expense					5,336	[1]				5,336
Acquisition of redeemable non- controlling interest												$ 3,910
Comprehensive income:
Net income		$ 58,505	[2],[3]				58,794	[1]		58,794	[4]	(289)	[4]
Other comprehensive income	[4]									7,340
End balance, value (in shares) at Mar. 31, 2016				210,490,107
End balance, value at Mar. 31, 2016				$ 2,100	1,352,243	[1]	462,185	[1]	(451,285)	1,365,243		3,621
Beginning balance, value (in shares) at Dec. 31, 2016		198,794,052		198,794,052
Beginning balance, value at Dec. 31, 2016				$ 1,984	1,384,468		358,121		(457,925)	1,286,648		4,520
Issuance of common shares on exercise of options (in shares)		455,835		455,835
Issuance of common shares on exercise of options				$ 5	6,540					6,545
Issuance of common shares under the employee stock purchase plan (in shares)				55,788
Issuance of common shares under the employee stock purchase plan				$ 1	1,217					1,218
Net settlement on vesting of restricted share units				$ 1	(1)
Net settlement on vesting of restricted share units, shares				76,865
Net settlement on vesting of performance units, shares		731,701		731,701
Net settlement on vesting of performance units				$ 7	(9,946)					(9,939)
Stock repurchased and retired				$ (74)	(40,000)		(179,710)			(219,784)
Stock repurchased and retired, shares				(7,387,240)
Expenses related to stock purchase		$ (16)					(16)			(16)
Stock-based compensation expense					4,986					4,986
Comprehensive income:
Net income		$ 52,440					53,338			53,338		(898)
Other comprehensive income									70,604	70,604		(12)
Dividend							(11,957)			(11,957)
End balance, value (in shares) at Mar. 31, 2017		192,727,001		192,727,001
End balance, value at Mar. 31, 2017				$ 1,924	$ 1,347,265		$ 219,776		$ (387,321)	$ 1,181,644		$ 3,610

[1] Net income, additional paid-in capital and retained earnings for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

[2] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[3] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

[4] Net income for the three months ended March 31, 2016 has been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net income attributable to Genpact Limited shareholders		$ 53,338	$ 58,794	[1],[2]
Net income (loss) attributable to redeemable non-controlling interest		(898)	(289)	[1],[2]
Net income		52,440	58,505	[1],[2]
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization		14,139	13,155	[1]
Amortization of debt issuance costs		375	385	[1]
Amortization of acquired intangible assets		7,242	6,145	[1],[2]
Intangible assets write-down	[1]		4,943
Reserve for doubtful receivables	[1]		3,120
Unrealized loss on revaluation of foreign currency asset/liability		8,757	354	[1]
Equity-method investment activity, net		4,558	2,145	[1],[2]
Stock-based compensation expense		4,986	5,336	[1]
Deferred income taxes		(2,890)	(3,184)	[1]
Others, net		(4,301)	63	[1]
Change in operating assets and liabilities:
Decrease (increase) in accounts receivable		19,649	(17,697)	[1]
Increase in prepaid expenses, other current assets and other assets		(12,025)	(27,123)	[1]
Decrease in accounts payable		(928)	(70)	[1]
Decrease in accrued expenses, other current liabilities and other liabilities		(69,131)	(64,360)	[1]
Increase in income taxes payable		8,157	8,660	[1]
Net cash provided by (used for) operating activities		31,028	(9,623)	[1]
Investing activities
Purchase of property, plant and equipment		(19,698)	(25,495)	[1]
Proceeds from sale of property, plant and equipment		389	132	[1]
Investment in equity affiliates		(467)	(3,783)	[1]
Payment for business acquisitions, net of cash acquired		(9,237)	(2,339)	[1]
Net cash used for investing activities		(29,013)	(31,485)	[1]
Financing activities
Repayment of capital lease obligations		(494)	(454)	[1]
Payment of debt issuance costs		(1,481)
Proceeds from long-term debt		350,000
Repayment of long-term debt		(10,000)	(10,000)	[1]
Proceeds from short-term borrowings		40,000	60,000	[1]
Repayment of short-term borrowings		(185,000)
Proceeds from issuance of common shares under stock-based compensation plans		7,761	4,937	[1]
Payment for net settlement of stock-based awards		(9,939)	(49)	[1]
Payment of earn-out/deferred consideration		(1,097)	(965)	[1]
Dividend paid		(11,957)
Payment for stock purchased and retired		(219,784)	(33,017)	[1]
Payment for expenses related to stock purchase		(16)	(27)	[1]
Net cash provided by (used for) financing activities		(42,007)	20,425	[1]
Effect of exchange rate changes		5,555	(429)	[1]
Net increase (decrease) in cash and cash equivalents		(39,992)	(20,683)	[1]
Cash and cash equivalents at the beginning of the period		422,623	450,907	[1]
Cash and cash equivalents at the end of the period		388,186	429,795	[1]
Supplementary information
Cash paid during the period for interest		5,324	3,968	[1]
Cash paid during the period for income taxes		16,426	23,229	[1]
Property, plant and equipment acquired under capital lease obligations		$ 576	$ 283	[1]

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[2] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Organization

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Organization

1. Organization

   The Company is a global professional services firm focused on delivering digital transformation for its clients. The Company’s Lean Digital^SM approach integrates lean principles, design thinking, analytics and digital technologies with its domain and industry expertise. The Company delivers value to its clients in two ways – through digital-led, domain-enabled solutions that drive innovation, and through digitally-enabled intelligent operations that design, transform and run clients’ operations. The Company employs over 77,000 people in more than 20 countries.

 Prior to December 30, 2004, the business of the Company was conducted through various entities and divisions of GE. On December 30, 2004, in a series of transactions referred to as the “2004 Reorganization,” GE transferred such operations to the Company. In August 2007, the Company completed an initial public offering of its common shares. On October 25, 2012, Glory Investments A Limited, formerly known as South Asia Private Investments, an affiliate of Bain Capital Investors, LLC (“Bain Capital”), became the Company’s largest shareholder when, together with its affiliated assignees and two additional co-investors, it purchased 67,750,678 common shares of the Company from the Company’s initial investors.

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Summary of significant accounting policies

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Summary of significant accounting policies

2. Summary of significant accounting policies

(a) Basis of preparation and principles of consolidation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year.

The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.

Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income.

(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

2. Summary of significant accounting policies (Continued)

(c) Business combinations, goodwill and other intangible assets

The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses.

Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures.

Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	2-9 years

Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized.

In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income.

(d) Financial instruments and concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 12% of receivables as of December 31, 2016 and March 31, 2017, respectively. GE accounted for 16% and 11% of revenues for the three months ended March 31, 2016 and 2017, respectively.

(e) Recently adopted accounting pronouncements

The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements.

2. Summary of significant accounting policies (Continued)

The following recently released accounting standard has been adopted by the Company:

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and will apply ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. As a result, the Company’s, income taxes, net income, cash flows, retained earnings, additional paid-in capital, and basic and diluted net income per common share for the first quarter of 2016 have been restated due to the adoption of ASU No. 2016-09.

In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures:

Effective January 1, 2016, the Company adopted FASB ASU 2015-01 (Topic 225), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements.

Effective January 1, 2016, the Company adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract.

Effective January 1, 2016, the Company adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.

Effective January 1, 2016, the Company adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence.

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Business acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Business acquisitions

3. Business acquisitions

Certain acquisitions

(a) LeaseDimensions, Inc.

           On February 15, 2017, the Company acquired 100% of the outstanding equity interest in LeaseDimensions, Inc. (“LeaseDimensions”), an Oregon corporation. The preliminary estimated total purchase consideration for LeaseDimensions is $11,626, subject to adjustment for closing date working capital and net debt. This amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $9,089, net of cash acquired of $217, and a preliminary adjustment for working capital and net debt. As of March 31, 2017, the total consideration paid by the Company to the sellers is $9,454, resulting in a receivable of $148. The purchase agreement also provides for contingent earn-out consideration ranging from $0 to $3,000, payable by the Company to the sellers based on the future performance of the business relative to the thresholds specified in the earn-out calculation. This acquisition enhances the Company’s capabilities in commercial lending and leasing.

           In connection with the transaction, the Company recorded $2,400 in customer-related intangibles and $1,000 in marketing-related intangibles, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,307, which has been allocated to the Company’s Americas reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company.

           Acquisition-related costs of $422 have been included in selling, general and administrative expenses as incurred. Through the transaction the Company acquired assets with a value of $2,277, assumed liabilities amounting to $1,038, and recognized a net deferred tax liability of $1,320. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition.

(b) Endeavour Software Technologies Private Limited

On April 13, 2016, the Company acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), an Indian private limited company. The total purchase consideration paid by the Company to acquire Endeavour is $14,788. This amount includes the estimated fair value of the contingent earn-out consideration, cash consideration of $10,345, net of cash acquired of $2,373, and an adjustment for working capital and net debt. Of this amount, $95 is payable by the Company to one of the sellers. During the quarter ended March 31, 2017, the Company recorded a measurement period adjustment that resulted in a $346 increase in the purchase consideration as a result of an adjustment to closing date working capital and net debt. The adjustments included an increase of $161 in assets acquired, a decrease of $118 in liabilities assumed and a corresponding impact on goodwill of $67. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows.

In connection with the transaction, the Company recorded $800 in customer-related intangibles, $900 in marketing-related intangibles and $950 in other intangible assets, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,936, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities in end-to-end mobility services, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. In connection with the transaction, the Company also acquired certain assets with a value of $5,854 and assumed certain liabilities amounting to $1,735.

(c) Strategic Sourcing Excellence Limited

On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The total consideration paid by the Company to the selling equityholders for the acquired interest in SSE was $14,541. This amount includes the fair value of earn-out consideration, cash consideration of $2,550, and an adjustment for working capital, transaction expenses and indebtedness. During the quarter ended December 31, 2016, the Company recorded a measurement period adjustment that resulted in a $51 increase in the purchase consideration through the recognition of $69 in current assets and $16 in non-current assets, with a corresponding impact on goodwill of $34. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period. The equity purchase agreement between the Company and the selling equityholders of SSE also provides for contingent earn-out consideration of up to $20,000, payable by the Company to the selling equityholders based on future performance of the acquired business relative to the thresholds specified in the earn-out calculation. Up to $9,800 of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable only if either the put or call option, each as described below, is exercised.

3. Business acquisitions (Continued)

The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company has the right to exercise between January 1, 2018 and January 31, 2018. If the Company does not exercise its call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2,450 to $2,950. This acquisition enhances the Company’s sourcing and procurement consulting domain expertise.

Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $412 and assumed liabilities amounting to $617. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition.

In connection with the transaction, the Company recorded $300 in customer-related intangible assets with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,445, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents future economic benefits the Company expects to derive from its expanded presence in the sourcing and procurement consulting domains, operating synergies and other anticipated benefits of combining the acquired operations with those of the Company.

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Cash and cash equivalents

3 Months Ended

Mar. 31, 2017

Cash And Cash Equivalents [Abstract]

Cash and cash equivalents

4. Cash and cash equivalents

Cash and cash equivalents as of December 31, 2016 and March 31, 2017 are set out in the table below:

	As of December 31,		As of March 31,
	2016		2017
Cash and other bank balances		422,623		388,186
Total	$	422,623	$	388,186

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Accounts receivable, net of reserve for doubtful receivables

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Accounts receivable, net of reserve for doubtful receivables

5. Accounts receivable, net of reserve for doubtful receivables

The following table provides details of the Company’s reserve for doubtful receivables:

	Year ended December 31,			Three months ended
	2016			March 31,2017
Opening balance as of January 1	$	11,530		$	15,519
Additions charged to cost and expense		7,282			-
Deductions/Effect of exchange rate fluctuations		(3,293	)		121
Closing balance	$	15,519		$	15,640

Accounts receivable were $630,784 and $618,511, and the reserves for doubtful receivables were $15,519 and $15,640, resulting in net accounts receivable balances of $615,265 and $602,871 as of December 31, 2016 and March 31, 2017, respectively. In addition, accounts receivable due after one year of $3,272 and $1,182 as of December 31, 2016 and March 31, 2017, respectively, are included under other assets in the Consolidated Balance Sheets.

Accounts receivable from related parties were $2,490 and $2,130 as of December 31, 2016 and March 31, 2017, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties.

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Fair value measurements

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair value measurements

6. Fair value measurements

The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2016 and March 31, 2017:

	As of December 31, 2016
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Notes a, c)	$	55,386	$	—	$	55,386	$	—
Total	$	55,386	$	—	$	55,386	$	—
Liabilities
Earn-out consideration (Notes b, d)	$	22,435	$	—	$	—	$	22,435
Derivative instruments (Notes b, c)	$	17,353	$	—	$	17,353	$	—
Total	$	39,788	$	—	$	17,353	$	22,435
Redeemable non-controlling interest (Note e)	$	4,520	$	—	$	—	$	4,520

	As of March 31, 2017
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Notes a, c)	$	87,395	$	—	$	87,395	$	—
Total	$	87,395	$	—	$	87,395	$	—
Liabilities
Earn-out consideration (Notes b, d)	$	21,262		—		—	$	21,262
Derivative instruments (Notes b, c)	$	12,762	$	—	$	12,762	$	—
Total	$	34,024	$	—	$	12,762	$	21,262
Redeemable non-controlling interest (Note e)	$	3,610	$	—	$	—	$	3,610

(a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

(b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

(c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

(d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

(e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions.

6. Fair value measurements (Continued)

The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three months ended March 31, 2016 and 2017:

	As of March 31,			As of March 31,
	2016			2017
Opening balance	$	22,820		$	22,435
Earn-out consideration payable in connection with    acquisitions		8,120			2,320
Payments made on earn-out consideration		(1,557	)		(1,206	)
Changes in fair value of earn-out consideration (note a)		(9,507	)		(3,138	)
Others (note b)		978			852
Ending balance	$	20,853		$	21,262

a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income

b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss).

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Derivative financial instruments

3 Months Ended

Mar. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative financial instruments

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments

The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature during a period of up to 57 months and the forecasted transactions are expected to occur during the same period.

7. Derivative financial instruments (Continued)

The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure:

	Notional principal amounts (note a)				Balance sheet exposure asset (liability)  (note b)
	As of December 31, 2016		As of March 31, 2017		As of December 31, 2016			As of March 31, 2017
Foreign exchange forward contracts denominated in:
United States Dollars (sell) Indian Rupees (buy)	$	1,108,400	$	1,080,900	$	6,669		$	56,945
United States Dollars (sell) Mexican Peso (buy)		9,120		6,840		(187	)		663
United States Dollars (sell) Philippines Peso (buy)		70,050		57,600		(1,036	)		(1,492	)
Euro (sell) United States Dollars (buy)		138,613		118,018		9,180			7,201
Pound Sterling (buy) United States Dollars (sell)		-		22,333		-			151
Euro (sell) Romanian Leu (buy)		29,805		22,354		(152	)		(66	)
Japanese Yen (sell) Chinese Renminbi (buy)		77,267		10,373		(742	)		(2,873	)
Pound Sterling (sell) United States Dollars (buy)		104,142		106,246		14,228			9,838
Australian Dollars (sell) United States Dollars (buy)		114,412		108,097		2,328			(3,974	)
Interest rate swaps (floating to fixed)		456,810		456,810		7,746			8,240
						38,034			74,633

(a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

(b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency.

The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below:

	Cash flow hedges				Non-designated
	As of December 31, 2016		As of March 31, 2017		As of December 31, 2016		As of March 31, 2017
Assets
Prepaid expenses and other current assets	$	33,921	$	51,638	$	809	$	7,034
Other assets	$	20,657	$	28,723	$	—	$	—
Liabilities
Accrued expenses and other current liabilities	$	4,540	$	4,673	$	237	$	74
Other liabilities	$	12,576	$	8,015	$	—	$	—

7. Derivative financial instruments (Continued)

Cash flow hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred.

In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below:

	Three months ended March 31,
	2016									2017
	Before-Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before-Tax amount		Tax (Expense) or Benefit			Net of tax Amount
Opening balance	$	(30,090	)	$	9,830		$	(20,260	)	$	37,461	$	(13,979	)	$	23,482
Net gains (losses) reclassified into statement of    income on completion of hedged transactions		(2,902	)		702			(2,200	)		9,295		(3,432	)		5,863
Changes in fair value of effective portion of    outstanding derivatives, net		(79	)		(151	)		(230	)		39,508		(14,787	)		24,721
Gain (loss) on cash flow hedging derivatives, net		2,823			(853	)		1,970			30,213		(11,355	)		18,858
Closing balance	$	(27,267	)	$	8,977		$	(18,290	)	$	67,674	$	(25,334	)	$	42,340

The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below:

							Amount of Gain (Loss)
	Amount of Gain (Loss)						reclassified from OCI into
	recognized in OCI on					Location of Gain (Loss)	Statement of Income
Derivatives in	Derivatives (Effective Portion)					reclassified	(Effective Portion)
Cash Flow	Three months ended					from OCI into	Three months ended
Hedging	March 31,					Statement of Income	March 31,
Relationships	2016			2017		(Effective Portion)	2016			2017
Forward foreign exchange contracts	$	1,847		$	39,296	Revenue	$	3,871		$	3,760
Interest rate swaps		(1,926	)		212	Cost of revenue		(5,312	)		4,570
						Selling, general and administrative expenses		(1,461	)		1,248
						Interest expense		—			(283	)
	$	(79	)	$	39,508		$	(2,902	)	$	9,295

Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2016 and 2017, respectively.

7. Derivative financial instruments (Continued)

Non-designated Hedges

		Amount of Gain (Loss)
		recognized in Statement of
Derivatives not	Location of Gain (Loss)	Income on Derivatives
designated as hedging	recognized in Statement of	Three months ended March 31,
instruments	Income on Derivatives	2016		2017
Forward foreign exchange    contracts (Note a)	Foreign exchange gains    (losses), net	$	1,134	$	8,910
		$	1,134	$	8,910

(a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

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Prepaid expenses and other current assets

3 Months Ended

Mar. 31, 2017

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Prepaid expenses and other current assets

8. Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Advance income and non-income taxes	$	50,676	$	62,792
Deferred transition costs		45,252		47,659
Derivative instruments		34,730		58,672
Prepaid expenses		22,222		21,816
Customer acquisition cost		11,126		11,733
Employee advances		6,880		6,526
Deposits		2,688		4,427
Advances to suppliers		10,059		7,142
Others		5,516		6,868
	$	189,149	$	227,635

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Property, plant and equipment, net

3 Months Ended

Mar. 31, 2017

Property Plant And Equipment [Abstract]

Property, plant and equipment, net

9. Property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of December 31,			As of March 31,
	2016			2017
Property, plant and equipment, gross	$	607,451		$	634,577
Less: Accumulated depreciation and amortization		(407,336	)		(422,015	)
Property, plant and equipment, net	$	200,115		$	212,562

Depreciation expense on property, plant and equipment for the three months ended March 31, 2016 and 2017 was $11,104 and $11,230, respectively. Computer software amortization for the three months ended March 31, 2016 and 2017 amounted to $2,345 and $2,679, respectively.

The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $294 and $(228) for the three months ended March 31, 2016 and 2017, respectively.

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Goodwill and intangible assets

3 Months Ended

Mar. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

10. Goodwill and intangible assets

The following table presents the changes in goodwill for the year ended December 31, 2016 and three months ended March 31, 2017:

	Asof December 31,			As of March 31,
	2016			2017
Opening balance	$	1,038,346		$	1,069,408
Goodwill relating to acquisitions consummated during    the period		51,535			8,307
Goodwill relating to divestitures consummated during    the period		(2,226	)		-
Impact of measurement period adjustments		(59	)		67
Effect of exchange rate fluctuations		(18,188	)		19,547
Closing balance	$	1,069,408		$	1,097,329

The total amount of goodwill deductible for tax purposes was $39,032 and $38,027 as of December 31, 2016 and March 31, 2017, respectively.

The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows:

	As of December 31, 2016						As of March 31, 2017
	Grosscarrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	310,277	$	259,460	$	50,817	$	317,225	$	269,000	$	48,225
Marketing-related intangible assets		42,587		29,277		13,310		42,856		30,527		12,329
Other intangible assets		33,266		25,344	$	7,922		35,896		27,380		8,516
	$	386,130	$	314,081	$	72,049	$	395,977	$	326,907	$	69,070

Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the three months ended March 31, 2016 and 2017 were $6,145 and $7,242, respectively.

During the three months ended March 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. The Company previously recorded a charge to this asset in the third quarter of 2015. Based on the results of its testing, the Company determined that the carrying value of the intangible asset exceeded the estimated undiscounted cash flows by $4,943 and recorded an additional charge to further reduce the carrying value by this amount. The Company used a combination of the income and cost approaches to determine the fair value of the intangible asset for the purpose of calculating the charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income.

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Short-term borrowings

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Short-term borrowings

11. Short-term borrowings

The Company has the following borrowing facilities:

(a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2016 and March 31, 2017, the limits available were $15,382 and $15,827, respectively, of which $10,980 and $11,037 was utilized, constituting non-funded drawdown.

(b) A fund-based and non-fund based revolving credit facility of $350,000, which the company obtained in June 2015 as described in note 12. This facility replaced the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2016 and March 31, 2017, a total of $160,978 and $15,978, respectively, was utilized, of which $160,000 and $15,000, respectively, constituted funded drawdown and $978 and $978, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum as of December 31, 2016. As of March 31, 2017, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.25% and 0.25% as of December 31, 2016 and March 31, 2017, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. For the three months ended March 31, 2017, the Company was in compliance with the financial covenants.     

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Long-term debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Long-term debt

12. Long-term debt

In June 2015, the Company refinanced its 2012 credit facility through a new credit facility comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020. For the three months ended March 31, 2017, the Company was in compliance with the financial covenants of the credit agreement.

As of December 31, 2016 and March 31, 2017, the amount outstanding under the term loan, net of debt amortization expense of $2,667 and $2,461, was $737,333 and $727,539, respectively. As of December 31, 2016 and March 31, 2017, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of March 31, 2017 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020.

The maturity profile of the term loan, net of debt amortization expense, is as follows:

Year ended	Amount
2017	$	29,387
2018		39,226
2019		39,272
2020		619,654
Total	$	727,539

12. Long-term debt (Continued)

In March 2017, the Company issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering, resulting in cash proceeds of approximately $348,519 and an underwriting fee of $1,481. In connection with the offering, the Company incurred other debt issuance costs of $1,093. The total debt issuance cost of $2,574 is being amortized over the life of the notes as an additional interest expense. As of March 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2,569, was $347,431, which is payable on April 1, 2022. The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. The Company, at its option, may redeem the notes at any time in whole or in part, at a redemption price equal to (i) 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest on the redeemed amount, and (ii) if the notes are redeemed prior to March 1, 2022, a specified “make-whole” premium. The notes are subject to certain customary covenants, including limitations on the ability of the Company and certain of its subsidiaries to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer their assets. Upon certain change of control transactions, the Company will be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest.  The interest rate payable on the notes is subject to adjustment if the credit rating of the notes is downgraded up to a maximum increase of 2.0%. The Company is required to offer to exchange the notes for registered notes or have one or more shelf registration statements declared effective within 455 days after the issue date of the notes and, if such exchange offer fails to be consummated or such registration statement fails to be effective by June 25, 2018, then the interest payable on the notes will increase by 0.25% per annum during the 90-day period immediately following such date and will further increase by 0.25% per annum at the end of each subsequent 90-day period up to a maximum increase of 0.50%.The notes are senior unsecured obligations of the Company and will rank equally with all other senior unsecured indebtedness of the Company outstanding from time to time.

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Accrued expenses and other current liabilities

3 Months Ended

Mar. 31, 2017

Payables And Accruals [Abstract]

Accrued expenses and other current liabilities

13. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Accrued expenses	$	163,400	$	155,889
Accrued employee cost		179,360		109,006
Deferred transition revenue		50,552		48,301
Statutory liabilities		36,878		46,670
Retirement benefits		17,616		18,347
Derivative instruments		4,777		4,747
Advance from customers		21,969		26,270
Earn-out consideration		6,885		6,502
Other liabilities		15,461		9,697
Capital lease obligations		1,349		1,524
	$	498,247	$	426,953

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Other liabilities

3 Months Ended

Mar. 31, 2017

Other Liabilities Disclosure [Abstract]

Other liabilities

14. Other liabilities

Other liabilities consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Accrued employee cost	$	3,976	$	12,934
Deferred transition revenue		72,560		69,414
Retirement benefits		39,020		42,159
Derivative instruments		12,576		8,015
Amount received from GE under indemnification    arrangement, pending adjustment		3,159		3,318
Advance from customers		2,371		325
Earn-out consideration		15,550		14,760
Others		11,078		11,872
Capital lease obligations		2,500		2,764
	$	162,790	$	165,561

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Employee benefit plans

3 Months Ended

Mar. 31, 2017

Compensation And Retirement Disclosure [Abstract]

Employee benefit plans

15. Employee benefit plans

The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees.

Defined benefit plans

In accordance with Indian law, the Company maintains a defined benefit retirement plan covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs.

Net defined benefit plan costs for the three months ended March 31, 2016 and 2017 include the following components:

	Three months ended March 31,
	2016			2017
Service costs	$	1,403		$	1,720
Interest costs		698			734
Amortization of actuarial loss		56			205
Expected return on plan assets		(486	)		(492	)
Net defined benefit plan costs	$	1,671		$	2,167

Defined contribution plans

During the three months ended March 31, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions:

	Three months ended March 31,
	2016		2017
India	$	4,303	$	5,217
U.S.		3,532		4,280
U.K.		1,652		1,720
China		3,753		3,828
Other regions		1,265		1,130
Total	$	14,505	$	16,175

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Stock-based compensation

3 Months Ended

Mar. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based compensation

16. Stock-based compensation

The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), the Genpact Global Holdings 2006 Plan (the “2006 Plan”), the Genpact Global Holdings 2007 Plan (the “2007 Plan”) and the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) to eligible persons, who are employees, directors and certain other persons associated with the Company.

With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any such plan is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective plans.

Beginning on July 13, 2007, the date of adoption of the 2007 Omnibus Plan, share-based awards forfeited, expired, terminated, or cancelled under any of the plans are added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares.

During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan and the 2005 Plan was increased by 8,858,823 and 495,915 shares, respectively, as the result of an adjustment to outstanding unvested share awards.

Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2016 and 2017 were $5,250 and $4,845, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses.

Stock options

Options granted are subject to a vesting requirement. Options granted under the plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes the compensation cost over the vesting period of the option. Compensation cost is determined as of the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model.

The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2016.

	Threemonthsended March31,2017
Dividend yield			0.97%
Expected life (in months)			84
Risk-free rate of interest		2.25%
Volatility		24.28%

16. Stock-based compensation (Continued)

A summary of stock option activity during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	Sharesarising out of options			Weightedaverage exercise price		Weightedaverage remaining contractuallife (years)		Aggregate intrinsic value
Outstanding as of January 1, 2017		5,707,690		$	18.65		5.8	$	—
Granted		250,000			24.74		—		—
Forfeited		(55,000	)		21.22		—		—
Expired		—			—		—		—
Exercised		(455,835	)		14.36		—		4,742
Outstanding as of March 31, 2017		5,446,855		$	19.27		6.2	$	31,829
Vested as of March 31, 2017 and expected to vest    thereafter (Note a)	5,183,854			$	19.01		6.2	$	31,395
Vested and exercisable as of March 31, 2017		2,365,356		$	15.89		4.5	$	20,970
Weighted average grant date fair value of grants    during the period	$	6.62

(a) Options expected to vest reflect an estimated forfeiture rate.

As of March 31, 2017, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $12,130, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years.

Restricted share units

The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one Company common share at a future date. The fair value of each RSU is the market price of a Company common share on the date of the grant. RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	NumberofRestricted ShareUnits			WeightedAverageGrant Date FairValue
Outstanding as of January 1, 2017		117,905		$	20.65
Granted		24,000			24.74
Vested (Note a)		(6,464	)		16.68
Forfeited		—			—
Outstanding as of March 31, 2017		135,441		$	21.56
Expected to vest (Note b)		123,798

(a) RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding).

(b) The number of RSUs expected to vest reflects an estimated forfeiture rate.

53,546 RSUs vested in the year ended December 31, 2015, in respect of which 53,023 shares were issued during three months ended March 31, 2017 after withholding shares to the extent of minimum statutory withholding taxes.

34,035 RSUs vested in the year ended December 31, 2016, in respect of which 17,802 shares were issued during three months ended March 31, 2017 after withholding shares to the extent of minimum statutory withholding taxes.

16. Stock-based compensation (Continued)

As of March 31, 2017, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $1,801, which will be recognized over the weighted average remaining requisite vesting period of 2.9 years.

Performance units

The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan.

Each PU represents the right to receive one Company common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares to be issued is adjusted upward or downward depending on the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets.

A summary of PU activity during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	Numberof PerformanceUnits			Weighted AverageGrant DateFairValue		MaximumShares EligibletoReceive
Outstanding as of January 1, 2017		3,772,128		$	23.04		5,524,114
Granted		707,092			24.74		1,414,184
Vested (Note a)		(1,136,047)			16.78		(1,136,047)
Forfeited (Note b)		(1,485,337	)		27.82		(1,489,737	)
Adjustment upon final determination of level of    performance goal achievement (Note c)							(1,747,586)
Outstanding as of March 31, 2017		1,857,836		$	23.69		2,564,928
Expected to vest (Note d)		1,624,573

(a) PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding).

(b) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

(c) Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

(d) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

As of March 31, 2017, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $20,044, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years.

16. Stock-based compensation (Continued)

Employee Stock Purchase Plan (ESPP)

On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”).

The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP.

During the three months ended March 31, 2016 and 2017, 30,487 and 55,788 common shares, respectively, were issued under the ESPP.

The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation.

The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during three months ended March 31, 2016 and 2017 was $86 and $141, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses.

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Capital stock

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Capital stock

17. Capital stock

Share repurchases

As of December 31, 2016, the Company’s board of directors (the “Board”) had authorized the Company to repurchase up to $750,000 in value of the Company’s common shares under its share repurchase program first announced in February 2015. On February 10, 2017 the Board approved up to an additional $500,000 in share repurchases, bringing the total authorization under the Company’s existing program to $1,250,000. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. The Company paid the aggregate purchase price to the Dealer and received an initial delivery of 6,578,947 common shares at a price of $24.32 per share. The purchase price was recorded as a reduction in shareholders’ equity through a $160,000 decrease in retained earnings and a $40,000 decrease in additional paid-in capital.

The final settlement of the transaction under the ASR agreement is expected to be completed by the end of the fourth quarter of 2017. The final number of common shares to be repurchased by the Company under the ASR agreement will be based on the volume-weighted average share price of the Company’s common shares during the term of the applicable transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. At settlement, under certain circumstances, the Company may be entitled to receive additional common shares from the Dealer or may be required either to deliver its common shares or to make a cash payment to the Dealer.

The ASR agreement contains customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity.

During the three months ended March 31, 2016, the Company purchased 1,356,199 of its common shares on the open market at a weighted average price of $24.35 per share for an aggregate cash amount of $33,017. During the three months ended March 31, 2017, the Company made payments in an aggregate cash amount of $219,784 toward share repurchases. Of this amount, the Company paid (i) $19,784 to repurchase 808,293 of its common shares on the open market at a weighted average price of $24.48 per share, (ii) $160,000 to the Dealer for the initial delivery of 6,578,947 of its common shares under the ASR agreement at a weighted average price of $24.32 per share, and (iii) $40,000 to the Dealer for shares to be delivered at the final settlement of the transaction under the ASR agreement as described above. All repurchased shares have been retired.

The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the three months ended March 31, 2016 and March 31, 2017, $27 and $16, respectively, was deducted from retained earnings in direct costs related to share repurchases.

Dividend

In February 2017, the Company’s board of directors approved a dividend program under which the Company intends to pay a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing a planned annual dividend of $0.24 per share. On March 28, 2017, the Company paid a dividend of $0.06 per share, amounting to $11,957 in the aggregate, to shareholders of record as of March 10, 2017.

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Earnings per share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings per share

18. Earnings per share

The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive.

The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 317,081 and 1,003,048 for the three months ended March 31, 2016 and 2017, respectively.

	Three months ended March 31,
	2016		2017
Net income available to Genpact Limited    common shareholders	$	58,794	$	53,338
Weighted average number of common shares used in    computing basic earnings per common share		210,780,165		199,069,528
Dilutive effect of stock-based awards		3,112,799		3,586,409
Weighted average number of common shares used in    computing dilutive earnings per common share		213,892,964		202,655,937
Earnings per common share attributable to Genpact    Limited common shareholders
Basic	$	0.28	$	0.27
Diluted	$	0.27	$	0.26

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Cost of revenue

3 Months Ended

Mar. 31, 2017

Other Income And Expenses [Abstract]

Cost of revenue

19. Cost of revenue

Cost of revenue consists of the following:

	Three months ended March 31,
	2016		2017
Personnel expenses	$	254,028	$	269,189
Operational expenses		107,542		102,716
Depreciation and amortization		11,278		11,432
	$	372,848	$	383,337

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Selling, general and administrative expenses

3 Months Ended

Mar. 31, 2017

Selling General And Administrative Expenses [Abstract]

Selling, general and administrative expenses

20. Selling, general and administrative expenses

Selling, general and administrative expenses consist of the following:

	Three months ended March 31,
	2016		2017
Personnel expenses	$	108,400	$	122,569
Operational expenses		49,578		35,813
Depreciation and amortization		2,171		2,476
	$	160,149	$	160,858

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Other operating (income) expense, net

3 Months Ended

Mar. 31, 2017

Other Income And Expenses [Abstract]

Other operating (income) expense, net

21. Other operating (income) expense, net

	Three months ended March 31,
	2016			2017
Other operating (income) expense	$	(498	)	$	(4,400	)
Provision for Impairment of intangible assets		4,943			-
Change in fair value of earn out consideration and deferred    consideration (relating to business acquisitions)	$	(9,506	)	$	(3,138	)
Other operating (income) expense, net	$	(5,061	)	$	(7,538	)

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Interest income (expense), net

3 Months Ended

Mar. 31, 2017

Banking And Thrift Interest [Abstract]

Interest income (expense), net

22. Interest income (expense), net

	Three months ended March 31,
	2016			2017
Interest income	$	2,364		$	1,131
Interest expense		(5,202	)		(6,624	)
Interest income (expense), net	$	(2,838	)	$	(5,493	)

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Income taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income taxes

23. Income taxes

The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

As of December 31, 2016, the Company had unrecognized tax benefits amounting to $23,467, including an amount of $22,469, which, if recognized, would impact the effective tax rate.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2017 to March 31, 2017:

	2017
Opening balance at January 1	$	23,467
Increase related to prior year tax positions, including recorded in acquisition accounting		515
Decrease related to prior year tax positions		(309	)
Decrease related to prior year tax position due to lapse of applicable statute of limitation		(132)
Effect of exchange rate changes		942
Closing balance at March 31	$	24,483

The Company’s unrecognized tax benefits as of March 31, 2017 include an amount of $23,484, which, if recognized, would impact the effective tax rate. As of December 31, 2016 and March 31, 2017, the Company had accrued approximately $3,856 and $4,068, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2016 and the three months ended March 31, 2017, the company recognized approximately $(206) and $34, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2016 and March 31, 2017, the Company had accrued approximately $977 and $1,000, respectively, for penalties.

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Related party transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related party transactions

24. Related party transactions

The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates.

The Company’s related party transactions can be categorized as follows:

Revenue from services

For the three months ended March 31, 2016 and 2017, the Company recognized net revenues of $79 and $83, respectively, from a client that is a significant shareholder of the Company.

For the three months ended March 31, 2016 and 2017, the Company recognized net revenues of $1,652 and $3,211 from a client that is a non-consolidating affiliate of the Company. $2,102 of this amount is receivable as of March 31, 2017.

Cost of revenue from services

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the three months ended March 31, 2016 and 2017, cost of revenue includes an amount of $498 and $575, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

Selling, general and administrative expenses

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2016 and 2017, selling, general and administrative expenses includes an amount of $67 and $94, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

During the three months ended March 31, 2016, the Company engaged a significant shareholder to provide a service to the Company at a cost of $15.

 Investment in equity affiliates

During the three months ended March 31, 2017, the Company invested $467 in its non-consolidating affiliates.   

During the three months ended March 31, 2017, the Company recorded a $2,821 charge related to an investment in one of its non-consolidating affiliates, which has been included in equity-method investment activity, net in the Company’s consolidated statement of income.

As of December 31, 2016 and March 31, 2017, the Company’s investments in its non-consolidating affiliates amounted to $4,800 and $769 respectively.

Others

During the three months ended March 31, 2016 and 2017, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $329 and $238, respectively, of which $238 is receivable and has been included in prepaid expenses and other current assets in the Company’s consolidated balance sheet as of March 31, 2017.

During the three months ended March 31, 2017, the Company made a payment of $1,307 to one of its non-consolidating affiliates under a tax-sharing arrangement in the U.K. As of March 31, 2017, $2,000 is payable under the tax-sharing arrangement and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. The amount represents a portion of the non-consolidated affiliate’s net operating losses surrendered to the Company under the tax sharing arrangement for the years 2015 and 2016.

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Commitments and contingencies

3 Months Ended

Mar. 31, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and contingencies

25. Commitments and contingencies

Capital commitments

As of December 31, 2016 and March 31, 2017, the Company has committed to spend $5,185 and $6,843, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases.

Bank guarantees

The Company has outstanding bank guarantees amounting to $11,958 and $12,015 as of December 31, 2016 and March 31, 2017, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purpose of maintaining a bonded warehouse. These guarantees may be revoked if the government agencies suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees.

Other commitments

The Company’s business process delivery centers in India are 100% export oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled.

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Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

26. Subsequent Events

Acquisitions

          On April 13, 2017, the Company acquired 100% of the outstanding equity interest in Rage Frameworks, Inc., a provider of knowledge-based automation technology and services, for estimated cash consideration of $125,000, subject to adjustment for cash and cash equivalents, working capital, closing debt and other items. This acquisition will enhance the Company’s artificial intelligence capabilities in line with its strategy to drive digital transformation for its clients.

          On May 3, 2017, the Company acquired 100% of the outstanding equity interest in BrightClaim, LLC and its associated Company National Vendor, LLC, both Delaware limited liability companies, for estimated cash consideration of $55,000, subject to adjustment for cash and cash equivalents, working capital, net debt and other items. This acquisition will enhance the Company’s breadth and depth of service offerings for clients in the insurance industry.

Genpact Limited 2017 Omnibus Incentive Compensation Plan

On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Plan”), pursuant to which 15,000,000 Company common shares are available for issuance to Company employees, directors and consultants. As a result of the shareholders’ approval of the 2017 Plan, no further awards will be made under the Company’s 2007 Omnibus Plan. All awards outstanding under the 2007 Omnibus Plan will continue to remain outstanding under the 2007 Omnibus Plan in accordance with their terms.

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Summary of significant accounting policies (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Basis of preparation and principles of consolidation

(a) Basis of preparation and principles of consolidation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year.

The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.

Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income.

Use of estimates

(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

Business combinations

2. Summary of significant accounting policies (Continued)

(c) Business combinations, goodwill and other intangible assets

The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses.

In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income.

Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures.

Other Intangible Assets

Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	2-9 years

Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized.

Financial instruments and concentration of credit risk

(d) Financial instruments and concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 12% of receivables as of December 31, 2016 and March 31, 2017, respectively. GE accounted for 16% and 11% of revenues for the three months ended March 31, 2016 and 2017, respectively.

Recently adopted accounting pronouncements

(e) Recently adopted accounting pronouncements

The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements.

2. Summary of significant accounting policies (Continued)

The following recently released accounting standard has been adopted by the Company:

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and will apply ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. As a result, the Company’s, income taxes, net income, cash flows, retained earnings, additional paid-in capital, and basic and diluted net income per common share for the first quarter of 2016 have been restated due to the adoption of ASU No. 2016-09.

In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures:

Effective January 1, 2016, the Company adopted FASB ASU 2015-01 (Topic 225), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements.

Effective January 1, 2016, the Company adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract.

Effective January 1, 2016, the Company adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.

Effective January 1, 2016, the Company adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence.

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Summary of significant accounting policies (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Estimated Useful Lives of Intangible Assets Acquired

Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	2-9 years

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Cash and cash equivalents (Tables)

3 Months Ended

Mar. 31, 2017

Cash And Cash Equivalents [Abstract]

Cash And Cash Equivalents

Cash and cash equivalents as of December 31, 2016 and March 31, 2017 are set out in the table below:

	As of December 31,		As of March 31,
	2016		2017
Cash and other bank balances		422,623		388,186
Total	$	422,623	$	388,186

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Accounts receivable, net of reserve for doubtful receivables (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Reserve for Doubtful Receivables

The following table provides details of the Company’s reserve for doubtful receivables:

	Year ended December 31,			Three months ended
	2016			March 31,2017
Opening balance as of January 1	$	11,530		$	15,519
Additions charged to cost and expense		7,282			-
Deductions/Effect of exchange rate fluctuations		(3,293	)		121
Closing balance	$	15,519		$	15,640

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Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on Recurring Basis

The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2016 and March 31, 2017:

	As of December 31, 2016
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Notes a, c)	$	55,386	$	—	$	55,386	$	—
Total	$	55,386	$	—	$	55,386	$	—
Liabilities
Earn-out consideration (Notes b, d)	$	22,435	$	—	$	—	$	22,435
Derivative instruments (Notes b, c)	$	17,353	$	—	$	17,353	$	—
Total	$	39,788	$	—	$	17,353	$	22,435
Redeemable non-controlling interest (Note e)	$	4,520	$	—	$	—	$	4,520

	As of March 31, 2017
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Notes a, c)	$	87,395	$	—	$	87,395	$	—
Total	$	87,395	$	—	$	87,395	$	—
Liabilities
Earn-out consideration (Notes b, d)	$	21,262		—		—	$	21,262
Derivative instruments (Notes b, c)	$	12,762	$	—	$	12,762	$	—
Total	$	34,024	$	—	$	12,762	$	21,262
Redeemable non-controlling interest (Note e)	$	3,610	$	—	$	—	$	3,610

(a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

(b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

(c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

(d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

(e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions.

Fair Value of Earn-out Consideration

6. Fair value measurements (Continued)

The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three months ended March 31, 2016 and 2017:

	As of March 31,			As of March 31,
	2016			2017
Opening balance	$	22,820		$	22,435
Earn-out consideration payable in connection with    acquisitions		8,120			2,320
Payments made on earn-out consideration		(1,557	)		(1,206	)
Changes in fair value of earn-out consideration (note a)		(9,507	)		(3,138	)
Others (note b)		978			852
Ending balance	$	20,853		$	21,262

a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income

b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss).

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Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure

7. Derivative financial instruments (Continued)

The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure:

	Notional principal amounts (note a)				Balance sheet exposure asset (liability)  (note b)
	As of December 31, 2016		As of March 31, 2017		As of December 31, 2016			As of March 31, 2017
Foreign exchange forward contracts denominated in:
United States Dollars (sell) Indian Rupees (buy)	$	1,108,400	$	1,080,900	$	6,669		$	56,945
United States Dollars (sell) Mexican Peso (buy)		9,120		6,840		(187	)		663
United States Dollars (sell) Philippines Peso (buy)		70,050		57,600		(1,036	)		(1,492	)
Euro (sell) United States Dollars (buy)		138,613		118,018		9,180			7,201
Pound Sterling (buy) United States Dollars (sell)		-		22,333		-			151
Euro (sell) Romanian Leu (buy)		29,805		22,354		(152	)		(66	)
Japanese Yen (sell) Chinese Renminbi (buy)		77,267		10,373		(742	)		(2,873	)
Pound Sterling (sell) United States Dollars (buy)		104,142		106,246		14,228			9,838
Australian Dollars (sell) United States Dollars (buy)		114,412		108,097		2,328			(3,974	)
Interest rate swaps (floating to fixed)		456,810		456,810		7,746			8,240
						38,034			74,633

(a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

(b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency.

Fair Value of Derivative Instruments and Location in Financial Statements

The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below:

	Cash flow hedges				Non-designated
	As of December 31, 2016		As of March 31, 2017		As of December 31, 2016		As of March 31, 2017
Assets
Prepaid expenses and other current assets	$	33,921	$	51,638	$	809	$	7,034
Other assets	$	20,657	$	28,723	$	—	$	—
Liabilities
Accrued expenses and other current liabilities	$	4,540	$	4,673	$	237	$	74
Other liabilities	$	12,576	$	8,015	$	—	$	—

Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income

In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below:

	Three months ended March 31,
	2016									2017
	Before-Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before-Tax amount		Tax (Expense) or Benefit			Net of tax Amount
Opening balance	$	(30,090	)	$	9,830		$	(20,260	)	$	37,461	$	(13,979	)	$	23,482
Net gains (losses) reclassified into statement of    income on completion of hedged transactions		(2,902	)		702			(2,200	)		9,295		(3,432	)		5,863
Changes in fair value of effective portion of    outstanding derivatives, net		(79	)		(151	)		(230	)		39,508		(14,787	)		24,721
Gain (loss) on cash flow hedging derivatives, net		2,823			(853	)		1,970			30,213		(11,355	)		18,858
Closing balance	$	(27,267	)	$	8,977		$	(18,290	)	$	67,674	$	(25,334	)	$	42,340

Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income

The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below:

							Amount of Gain (Loss)
	Amount of Gain (Loss)						reclassified from OCI into
	recognized in OCI on					Location of Gain (Loss)	Statement of Income
Derivatives in	Derivatives (Effective Portion)					reclassified	(Effective Portion)
Cash Flow	Three months ended					from OCI into	Three months ended
Hedging	March 31,					Statement of Income	March 31,
Relationships	2016			2017		(Effective Portion)	2016			2017
Forward foreign exchange contracts	$	1,847		$	39,296	Revenue	$	3,871		$	3,760
Interest rate swaps		(1,926	)		212	Cost of revenue		(5,312	)		4,570
						Selling, general and administrative expenses		(1,461	)		1,248
						Interest expense		—			(283	)
	$	(79	)	$	39,508		$	(2,902	)	$	9,295

Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2016 and 2017, respectively.

7. Derivative financial instruments (Continued)

Non-designated Hedges

		Amount of Gain (Loss)
		recognized in Statement of
Derivatives not	Location of Gain (Loss)	Income on Derivatives
designated as hedging	recognized in Statement of	Three months ended March 31,
instruments	Income on Derivatives	2016		2017
Forward foreign exchange    contracts (Note a)	Foreign exchange gains    (losses), net	$	1,134	$	8,910
		$	1,134	$	8,910

(a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

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Prepaid expenses and other current assets (Tables)

3 Months Ended

Mar. 31, 2017

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Advance income and non-income taxes	$	50,676	$	62,792
Deferred transition costs		45,252		47,659
Derivative instruments		34,730		58,672
Prepaid expenses		22,222		21,816
Customer acquisition cost		11,126		11,733
Employee advances		6,880		6,526
Deposits		2,688		4,427
Advances to suppliers		10,059		7,142
Others		5,516		6,868
	$	189,149	$	227,635

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Property, plant and equipment, net (Tables)

3 Months Ended

Mar. 31, 2017

Property Plant And Equipment [Abstract]

Property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of December 31,			As of March 31,
	2016			2017
Property, plant and equipment, gross	$	607,451		$	634,577
Less: Accumulated depreciation and amortization		(407,336	)		(422,015	)
Property, plant and equipment, net	$	200,115		$	212,562

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Goodwill and intangible assets (Tables)

3 Months Ended

Mar. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Goodwill

The following table presents the changes in goodwill for the year ended December 31, 2016 and three months ended March 31, 2017:

	Asof December 31,			As of March 31,
	2016			2017
Opening balance	$	1,038,346		$	1,069,408
Goodwill relating to acquisitions consummated during    the period		51,535			8,307
Goodwill relating to divestitures consummated during    the period		(2,226	)		-
Impact of measurement period adjustments		(59	)		67
Effect of exchange rate fluctuations		(18,188	)		19,547
Closing balance	$	1,069,408		$	1,097,329

Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination

The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows:

	As of December 31, 2016						As of March 31, 2017
	Grosscarrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	310,277	$	259,460	$	50,817	$	317,225	$	269,000	$	48,225
Marketing-related intangible assets		42,587		29,277		13,310		42,856		30,527		12,329
Other intangible assets		33,266		25,344	$	7,922		35,896		27,380		8,516
	$	386,130	$	314,081	$	72,049	$	395,977	$	326,907	$	69,070

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Long-term debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Maturity Profile of Term Loan, Net of Debt Amortization Expense

The maturity profile of the term loan, net of debt amortization expense, is as follows:

Year ended	Amount
2017	$	29,387
2018		39,226
2019		39,272
2020		619,654
Total	$	727,539

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Accrued expenses and other current liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Payables And Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Accrued expenses	$	163,400	$	155,889
Accrued employee cost		179,360		109,006
Deferred transition revenue		50,552		48,301
Statutory liabilities		36,878		46,670
Retirement benefits		17,616		18,347
Derivative instruments		4,777		4,747
Advance from customers		21,969		26,270
Earn-out consideration		6,885		6,502
Other liabilities		15,461		9,697
Capital lease obligations		1,349		1,524
	$	498,247	$	426,953

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Other liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Other Liabilities Disclosure [Abstract]

Other liabilities

Other liabilities consist of the following:

	As of December 31,		As of March 31,
	2016		2017
Accrued employee cost	$	3,976	$	12,934
Deferred transition revenue		72,560		69,414
Retirement benefits		39,020		42,159
Derivative instruments		12,576		8,015
Amount received from GE under indemnification    arrangement, pending adjustment		3,159		3,318
Advance from customers		2,371		325
Earn-out consideration		15,550		14,760
Others		11,078		11,872
Capital lease obligations		2,500		2,764
	$	162,790	$	165,561

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Employee benefit plans (Tables)

3 Months Ended

Mar. 31, 2017

Compensation And Retirement Disclosure [Abstract]

Net Defined Benefit Plan Costs

Net defined benefit plan costs for the three months ended March 31, 2016 and 2017 include the following components:

	Three months ended March 31,
	2016			2017
Service costs	$	1,403		$	1,720
Interest costs		698			734
Amortization of actuarial loss		56			205
Expected return on plan assets		(486	)		(492	)
Net defined benefit plan costs	$	1,671		$	2,167

Amount Contributed to Defined Contribution Plans in Various Jurisdictions

During the three months ended March 31, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions:

	Three months ended March 31,
	2016		2017
India	$	4,303	$	5,217
U.S.		3,532		4,280
U.K.		1,652		1,720
China		3,753		3,828
Other regions		1,265		1,130
Total	$	14,505	$	16,175

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Stock-based compensation (Tables)

3 Months Ended

Mar. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-based Payment Award, Stock Options Granted, Valuation Assumptions

The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2016.

	Threemonthsended March31,2017
Dividend yield			0.97%
Expected life (in months)			84
Risk-free rate of interest		2.25%
Volatility		24.28%

Summary of Stock Option Activity

16. Stock-based compensation (Continued)

A summary of stock option activity during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	Sharesarising out of options			Weightedaverage exercise price		Weightedaverage remaining contractuallife (years)		Aggregate intrinsic value
Outstanding as of January 1, 2017		5,707,690		$	18.65		5.8	$	—
Granted		250,000			24.74		—		—
Forfeited		(55,000	)		21.22		—		—
Expired		—			—		—		—
Exercised		(455,835	)		14.36		—		4,742
Outstanding as of March 31, 2017		5,446,855		$	19.27		6.2	$	31,829
Vested as of March 31, 2017 and expected to vest    thereafter (Note a)	5,183,854			$	19.01		6.2	$	31,395
Vested and exercisable as of March 31, 2017		2,365,356		$	15.89		4.5	$	20,970
Weighted average grant date fair value of grants    during the period	$	6.62

(a) Options expected to vest reflect an estimated forfeiture rate.

Summary of Restricted Share Units Granted

A summary of RSUs granted during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	NumberofRestricted ShareUnits			WeightedAverageGrant Date FairValue
Outstanding as of January 1, 2017		117,905		$	20.65
Granted		24,000			24.74
Vested (Note a)		(6,464	)		16.68
Forfeited		—			—
Outstanding as of March 31, 2017		135,441		$	21.56
Expected to vest (Note b)		123,798

(a) RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding).

(b) The number of RSUs expected to vest reflects an estimated forfeiture rate.

Summary of Performance Units Activity

A summary of PU activity during the three months ended March 31, 2017 is set out below:

	Three months ended March 31, 2017
	Numberof PerformanceUnits			Weighted AverageGrant DateFairValue		MaximumShares EligibletoReceive
Outstanding as of January 1, 2017		3,772,128		$	23.04		5,524,114
Granted		707,092			24.74		1,414,184
Vested (Note a)		(1,136,047)			16.78		(1,136,047)
Forfeited (Note b)		(1,485,337	)		27.82		(1,489,737	)
Adjustment upon final determination of level of    performance goal achievement (Note c)							(1,747,586)
Outstanding as of March 31, 2017		1,857,836		$	23.69		2,564,928
Expected to vest (Note d)		1,624,573

(a) PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding).

(b) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

(c) Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

(d) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

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Earnings per share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings Per share

	Three months ended March 31,
	2016		2017
Net income available to Genpact Limited    common shareholders	$	58,794	$	53,338
Weighted average number of common shares used in    computing basic earnings per common share		210,780,165		199,069,528
Dilutive effect of stock-based awards		3,112,799		3,586,409
Weighted average number of common shares used in    computing dilutive earnings per common share		213,892,964		202,655,937
Earnings per common share attributable to Genpact    Limited common shareholders
Basic	$	0.28	$	0.27
Diluted	$	0.27	$	0.26

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Cost of revenue (Tables)

3 Months Ended

Mar. 31, 2017

Other Income And Expenses [Abstract]

Cost of revenue

Cost of revenue consists of the following:

	Three months ended March 31,
	2016		2017
Personnel expenses	$	254,028	$	269,189
Operational expenses		107,542		102,716
Depreciation and amortization		11,278		11,432
	$	372,848	$	383,337

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Selling, general and administrative expenses (Tables)

3 Months Ended

Mar. 31, 2017

Selling General And Administrative Expenses [Abstract]

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist of the following:

	Three months ended March 31,
	2016		2017
Personnel expenses	$	108,400	$	122,569
Operational expenses		49,578		35,813
Depreciation and amortization		2,171		2,476
	$	160,149	$	160,858

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Other operating (income) expense, net (Tables)

3 Months Ended

Mar. 31, 2017

Other Income And Expenses [Abstract]

Other Operating (Income) Expense, Net

	Three months ended March 31,
	2016			2017
Other operating (income) expense	$	(498	)	$	(4,400	)
Provision for Impairment of intangible assets		4,943			-
Change in fair value of earn out consideration and deferred    consideration (relating to business acquisitions)	$	(9,506	)	$	(3,138	)
Other operating (income) expense, net	$	(5,061	)	$	(7,538	)

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Interest income (expense), net (Tables)

3 Months Ended

Mar. 31, 2017

Banking And Thrift Interest [Abstract]

Interest Income (Expense), Net

	Three months ended March 31,
	2016			2017
Interest income	$	2,364		$	1,131
Interest expense		(5,202	)		(6,624	)
Interest income (expense), net	$	(2,838	)	$	(5,493	)

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Income taxes (Tables)

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2017 to March 31, 2017:

	2017
Opening balance at January 1	$	23,467
Increase related to prior year tax positions, including recorded in acquisition accounting		515
Decrease related to prior year tax positions		(309	)
Decrease related to prior year tax position due to lapse of applicable statute of limitation		(132)
Effect of exchange rate changes		942
Closing balance at March 31	$	24,483

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Organization - Additional Information (Detail)	Mar. 31, 2017 Employee Country	Oct. 25, 2012 shares
Accounting Policies [Abstract]
Number of employees around the globe, minimum | Employee	77,000
Number of countries in which entity operates | Country	20
Common stock shares purchased by affiliates of Bain Capital Partners | shares		67,750,678

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Estimated Useful Lives of Intangible Assets Acquired (Detail)	3 Months Ended
	Mar. 31, 2017
Customer-Related Intangible Assets | Minimum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	1 year
Customer-Related Intangible Assets | Maximum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	14 years
Marketing-Related Intangible Assets | Minimum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	1 year
Marketing-Related Intangible Assets | Maximum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	10 years
Other Intangible Assets | Minimum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	2 years
Other Intangible Assets | Maximum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	9 years

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Summary of Significant Accounting Policies - Additional Information (Detail) - General Electric Company	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Schedule Of Significant Accounting Policies [Line Items]
Percentage of accounts receivables	12.00%		15.00%
Percentage of revenues	11.00%	16.00%

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Business Acquisitions - Additional Information (Detail) - USD ($)				2 Months Ended	3 Months Ended
	Feb. 15, 2017	Apr. 13, 2016	Jan. 08, 2016	Apr. 30, 2018	Mar. 31, 2017	Mar. 31, 2016	[1]	Jan. 31, 2018	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Payment for business acquisitions, net of cash acquired					$ 9,237,000	$ 2,339,000
Goodwill					1,097,329,000				$ 1,069,408,000	$ 1,038,346,000
Acquisition related cost			$ 164,000
Acquired assets			412,000
Liabilities assumed			$ 617,000
LeaseDimensions Inc.
Business Acquisition [Line Items]
Ownership percentage acquired	100.00%
Preliminary estimated purchase consideration	$ 11,626,000
Payment for business acquisitions, net of cash acquired	9,089,000
Cash and cash equivalents	217,000
Business combination change in contingent consideration paid to sellers					9,454,000
Business combination change in contingent consideration receivable					148,000
Contingent earn-out consideration-Low end	0
Contingent earn-out consideration-High end	$ 3,000,000
Acquired intangible assets, weighted average amortization period	3 years
Goodwill	$ 8,307,000
Acquisition related cost	422,000
Acquired assets	2,277,000
Liabilities assumed	1,038,000
Recognized net deferred tax liability	1,320,000
LeaseDimensions Inc. | Customer-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets	2,400,000
LeaseDimensions Inc. | Marketing-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets	$ 1,000,000
Endeavour Software Technologies Private Limited
Business Acquisition [Line Items]
Ownership percentage acquired		100.00%
Preliminary estimated purchase consideration		$ 14,788,000
Payment for business acquisitions, net of cash acquired		10,345,000
Cash and cash equivalents		$ 2,373,000
Acquired intangible assets, weighted average amortization period		3 years
Goodwill		$ 8,936,000
Acquired assets		5,854,000
Liabilities assumed		1,735,000
Cash withheld for seller		95,000
Business combination change in contingent consideration					346,000
Business combination contingent consideration change in assets					161,000
Business combination contingent consideration change in liabilities					118,000
Business combination contingent consideration change in goodwill					67,000
Endeavour Software Technologies Private Limited | Customer-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets		800,000
Endeavour Software Technologies Private Limited | Marketing-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets		900,000
Endeavour Software Technologies Private Limited | Other Intangible Assets
Business Acquisition [Line Items]
Intangible assets		$ 950,000
Strategic Sourcing Excellence LLC
Business Acquisition [Line Items]
Ownership percentage acquired			51.00%
Preliminary estimated purchase consideration			$ 14,541,000
Contingent earn-out consideration-High end			20,000,000
Goodwill			14,445,000
Business combination contingent consideration change in liabilities					51,000
Cash consideration to acquired certain assets and assumed certain liabilities			$ 2,550,000
Business combination contingent consideration change in current assets					69,000
Business combination contingent consideration change in noncurrent assets					$ 16,000
Equity method investment ownership percentage			49.00%
Strategic Sourcing Excellence LLC | Put Or Call Option
Business Acquisition [Line Items]
Contingent earn-out consideration-High end			$ 9,800,000
Strategic Sourcing Excellence LLC | Call Option | Scenario, Forecast
Business Acquisition [Line Items]
Equity method investment ownership percentage								49.00%
Strategic Sourcing Excellence LLC | Put Option | Scenario, Forecast
Business Acquisition [Line Items]
Equity method investment ownership percentage				49.00%
Strategic Sourcing Excellence LLC | Put Option | Scenario, Forecast | Minimum
Business Acquisition [Line Items]
Selling equity holders put option exercise price				$ 2,450,000
Strategic Sourcing Excellence LLC | Put Option | Scenario, Forecast | Maximum
Business Acquisition [Line Items]
Selling equity holders put option exercise price				$ 2,950,000
Strategic Sourcing Excellence LLC | Customer Relationships
Business Acquisition [Line Items]
Intangible assets			$ 300,000
Acquired intangible assets, weighted average amortization period			5 years

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

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Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	[1]	Dec. 31, 2015	[1]
Cash And Cash Equivalents [Abstract]
Cash and other bank balances	$ 388,186	$ 422,623
Total	$ 388,186	$ 422,623	$ 429,795		$ 450,907

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

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Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016		Dec. 31, 2016
Receivables [Abstract]
Opening balance	$ 15,519	$ 11,530		$ 11,530
Additions charged to cost and expense		$ 3,120	[1]	7,282
Deductions/Effect of exchange rate fluctuations	121			(3,293)
Closing balance	$ 15,640			$ 15,519

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

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Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Gross accounts receivable	$ 618,511,000	$ 630,784,000
Reserve for doubtful receivables	15,640,000	15,519,000	$ 11,530,000
Net accounts receivable	602,871,000	615,265,000
Accounts receivable due after one year	1,182,000	3,272,000
Accounts receivable from related parties	2,130,000	2,490,000
Reserve for doubtful receivables from related parties	$ 0	$ 0

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Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instrument, asset	[1],[2]	$ 87,395	$ 55,386
Total, assets		87,395	55,386
Earnout Consideration	[3],[4]	21,262	22,435
Derivative instrument, liability	[2],[3]	12,762	17,353
Total, liabilities		34,024	39,788
Redeemable non-controlling interest	[5]	3,610	4,520
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instrument, asset	[1],[2]	87,395	55,386
Total, assets		87,395	55,386
Derivative instrument, liability	[2],[3]	12,762	17,353
Total, liabilities		12,762	17,353
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Earnout Consideration	[3],[4]	21,262	22,435
Total, liabilities		21,262	22,435
Redeemable non-controlling interest	[5]	$ 3,610	$ 4,520

[1] Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

[2] The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

[3] Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

[4] The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

[5] The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions.

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Fair Value of Earn-out Consideration (Detail) - Fair Value, Inputs, Level 3 - Business Acquisition Contingent Consideration - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Opening balance		$ 22,435	$ 22,820
Earn-out consideration payable in connection with acquisitions		2,320	8,120
Payments made on earn-out consideration		(1,206)	(1,557)
Changes in fair value of earn-out consideration	[1]	(3,138)	(9,507)
Others	[2]	852	978
Ending balance		$ 21,262	$ 20,853

[1] Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income

[2] Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss).

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Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative [Line Items]
Amount of gain (loss) recognized in income on ineffective portion of derivatives and amount excluded from effectiveness testing	$ 0	$ 0
Forward Foreign Exchange Contracts | Maximum
Derivative [Line Items]
Derivative financial instrument contracts, maturity period	57 months
Interest Rate Swaps | Maximum
Derivative [Line Items]
Derivative financial instrument contracts, maturity period	57 months

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Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($)		Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	$ 74,633,000	$ 38,034,000
United States Dollars (sell) Indian Rupees (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	1,080,900,000	1,108,400,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	56,945,000	6,669,000
United States Dollars (sell) Mexican Peso (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	6,840,000	9,120,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	663,000	(187,000)
United States Dollars (sell) Philippines Peso (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	57,600,000	70,050,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(1,492,000)	(1,036,000)
Euro (sell) United States Dollars (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	118,018,000	138,613,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	7,201,000	9,180,000
Pound Sterling (buy) United States Dollars (sell)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	22,333,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	151,000
Euro (sell) Romanian Leu (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	22,354,000	29,805,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(66,000)	(152,000)
Japanese Yen (sell) Chinese Renminbi (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	10,373,000	77,267,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(2,873,000)	(742,000)
Pound Sterling (sell) United States Dollars (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	106,246,000	104,142,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	9,838,000	14,228,000
Australian Dollars (sell) United States Dollars (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	108,097,000	114,412,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(3,974,000)	2,328,000
Interest Rate Swap Floating To Fixed [Member]
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	456,810,000	456,810,000
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	$ 8,240,000	$ 7,746,000

[1] Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

[2] Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

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Fair Value of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Fair value of assets	$ 7,034	$ 809
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Fair value of liabilities	74	237
Cash Flow Hedges | Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Fair value of assets	51,638	33,921
Cash Flow Hedges | Other Assets
Derivatives Fair Value [Line Items]
Fair value of assets	28,723	20,657
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities
Derivatives Fair Value [Line Items]
Fair value of liabilities	4,673	4,540
Cash Flow Hedges | Other Liabilities
Derivatives Fair Value [Line Items]
Fair value of liabilities	$ 8,015	$ 12,576

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Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Opening balance, before-tax amount	$ 37,461	$ (30,090)
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount	9,295	(2,902)
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount	39,508	(79)
Gain (loss) on cash flow hedging derivatives, net, before-tax amount	30,213	2,823
Closing balance, before-tax amount	67,674	(27,267)
Opening balance, tax (expense) or benefit	(13,979)	9,830
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit	(3,432)	702
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit	(14,787)	(151)
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit	(11,355)	(853)
Closing balance, tax (expense) or benefit	(25,334)	8,977
Opening balance, net of tax amount	23,482	(20,260)
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount	5,863	(2,200)
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount	24,721	(230)
Gain (loss) on cash flow hedging derivatives, net of taxes amount	18,858	1,970
Closing balance, net of tax amount	$ 42,340	$ (18,290)

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Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)		$ 39,508	$ (79)
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		9,295	(2,902)
Non designated Hedges, amount of Gain (Loss) recognized in Statement of Income on Derivatives		8,910	1,134
Net revenues
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		3,760	3,871
Cost of Revenue
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		4,570	(5,312)
Selling, General and Administrative Expenses
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		1,248	(1,461)
Interest Expense
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		(283)
Forward Foreign Exchange Contracts
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)		39,296	1,847
Forward Foreign Exchange Contracts | Foreign Exchange (Gains) Losses, Net
Other Comprehensive Income (Loss) [Line Items]
Non designated Hedges, amount of Gain (Loss) recognized in Statement of Income on Derivatives	[1]	8,910	1,134
Interest Rate Swaps
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)		$ 212	$ (1,926)

[1] These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

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Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Prepaid Expense And Other Assets Current [Abstract]
Advance income and non-income taxes	$ 62,792	$ 50,676
Deferred transition costs	47,659	45,252
Derivative instruments	58,672	34,730
Prepaid expenses	21,816	22,222
Customer acquisition cost	11,733	11,126
Employee advances	6,526	6,880
Deposits	4,427	2,688
Advances to suppliers	7,142	10,059
Others	6,868	5,516
Prepaid expenses and other current assets, net	$ 227,635	$ 189,149

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Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Property, plant and equipment, gross	$ 634,577	$ 607,451
Less: Accumulated depreciation and amortization	(422,015)	(407,336)
Property, plant and equipment, net	$ 212,562	$ 200,115

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Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 14,139	$ 13,155	[1]
Effect of Reclassification of Foreign Exchange (Gains) Losses
Property Plant And Equipment [Line Items]
Depreciation and amortization	(228)	294
Depreciation Expense on Property, Plant And Equipment
Property Plant And Equipment [Line Items]
Depreciation and amortization	11,230	11,104
Computer Software Amortization
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 2,679	$ 2,345

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

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Changes in Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Opening balance	$ 1,069,408	$ 1,038,346
Goodwill relating to acquisitions consummated during the period	8,307	51,535
Goodwill relating to divestitures consummated during the period		(2,226)
Impact of measurement period adjustments	67	(59)
Effect of exchange rate fluctuations	19,547	(18,188)
Closing balance	$ 1,097,329	$ 1,069,408

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016		Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill deductible for tax purposes		$ 38,027			$ 39,032
Amortization of acquired intangible assets		$ 7,242	$ 6,145	[1],[2]
Intangible assets write-down	[1]		$ 4,943

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[2] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Acquired Finite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 395,977	$ 386,130
Accumulated amortization	326,907	314,081
Net	69,070	72,049
Customer-Related Intangible Assets
Acquired Finite Lived Intangible Assets [Line Items]
Gross carrying amount	317,225	310,277
Accumulated amortization	269,000	259,460
Net	48,225	50,817
Marketing-Related Intangible Assets
Acquired Finite Lived Intangible Assets [Line Items]
Gross carrying amount	42,856	42,587
Accumulated amortization	30,527	29,277
Net	12,329	13,310
Other Intangible Assets
Acquired Finite Lived Intangible Assets [Line Items]
Gross carrying amount	35,896	33,266
Accumulated amortization	27,380	25,344
Net	$ 8,516	$ 7,922

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Short-Term Borrowings - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Mar. 31, 2017	Dec. 31, 2016	Aug. 30, 2012
Line Of Credit Facility [Line Items]
Fund-based and non-fund-based credit facilities limits available		$ 15,827,000	$ 15,382,000
Utilization of credit facility for non fund-based usage		11,037,000	10,980,000
Credit facility, amount utilized		15,978,000	160,978,000
Short-term borrowings		$ 15,000,000	$ 160,000,000
Revolving credit facility, expiration month and year		2020-06
Margin over LIBOR	1.50%	1.50%	1.50%
Percentage of commitment fee		0.25%	0.25%
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 350,000,000		$ 250,000,000
Line of credit covenant condition		The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio.
Non-Fund-Based Credit Facility
Line Of Credit Facility [Line Items]
Credit facility, amount utilized		$ 978,000	$ 978,000
Fund-Based Credit Facility
Line Of Credit Facility [Line Items]
Margin over LIBOR		1.50%	1.50%

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Long-Term Debt - Additional Information (Detail)	1 Months Ended		3 Months Ended	12 Months Ended
	Mar. 31, 2017 USD ($) Day	Jun. 30, 2015 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Aug. 30, 2012 USD ($)
Debt Instrument [Line Items]
Extinguishment of outstanding term loan		$ 663,188,000
Acceleration amortization of debt issuance cost		$ 10,050,000
Margin over LIBOR		1.50%	1.50%	1.50%
Debt discount and underwriting fee			$ 1,481,000
New Credit Facility
Debt Instrument [Line Items]
Margin over LIBOR		1.50%
Credit facility, base rate		0.50%
3.70% Senior Notes
Debt Instrument [Line Items]
Debt amortization expense	$ 2,569,000
Debt amount outstanding	347,431,000		347,431,000
Principal amount of senior notes issued	$ 350,000,000		$ 350,000,000
Interest rate on senior notes	3.70%		3.70%
Proceeds from issue of senior notes	$ 348,519,000
Debt discount and underwriting fee	1,481,000
Other debt issuance costs	1,093,000		$ 1,093,000
Total debt issuance cost	$ 2,574,000		$ 2,574,000
Debt instrument, maturity date			Apr. 01, 2022
Debt instrument description			The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022.
Debt instrument redemption price percentage	100.00%
Debt instrument redemption date			Mar. 01, 2022
Debt repurchase price as percentage of aggregate principal value upon certain change of controls	101.00%
Maximum increase in downgrade of credit rating of notes to adjust interest rate payable	2.00%
Debt instrument, percentage increase in interest payable on notes if exchange offer fails during first 90 days	0.25%
Debt instrument, number of days to provide offer to exchange notes for registered notes | Day	455
Debt instrument, percentage increase in interest payable on notes if exchange offer fails, after first 90 days	0.25%
Debt instrument, percentage increase in interest payable on notes if exchange offer fails, maximum	0.50%
Term Loan Credit Facility
Debt Instrument [Line Items]
Debt amortization expense			$ 2,461,000	$ 2,667,000
Debt amount outstanding	$ 727,539,000		727,539,000	$ 737,333,000
Principal amount of term loan			$ 10,000,000
Credit facility, frequency of payments			Quarterly
Maturity date of term loan agreement			Jun. 30, 2020
Term Loan Credit Facility | New Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 800,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 350,000,000		$ 350,000,000		$ 250,000,000
Acceleration amortization of debt issuance cost		65,000
Revolving Credit Facility | New Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 350,000,000

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Maturity Profile of Term Loan Net of Debt Amortization Expense (Detail) - Term Loan Credit Facility - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
2017	$ 29,387
2018	39,226
2019	39,272
2020	619,654
Total	$ 727,539	$ 737,333

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Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued Liabilities And Other Liabilities [Abstract]
Accrued expenses	$ 155,889	$ 163,400
Accrued employee cost	109,006	179,360
Deferred transition revenue	48,301	50,552
Statutory liabilities	46,670	36,878
Retirement benefits	18,347	17,616
Derivative instruments	4,747	4,777
Advance from customers	26,270	21,969
Earn-out consideration	6,502	6,885
Other liabilities	9,697	15,461
Capital lease obligations	1,524	1,349
Accrued expenses and other current liabilities, net	$ 426,953	$ 498,247

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Other Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued employee cost	$ 12,934	$ 3,976
Deferred transition revenue	69,414	72,560
Retirement benefits	42,159	39,020
Derivative instruments	8,015	12,576
Amount received from GE under indemnification arrangement, pending adjustment	3,318	3,159
Advance from customers	325	2,371
Earn-out consideration	14,760	15,550
Others	11,872	11,078
Capital lease obligations	2,764	2,500
Other Liabilities	$ 165,561	$ 162,790

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Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Compensation And Retirement Disclosure [Abstract]
Service costs	$ 1,720	$ 1,403
Interest costs	734	698
Amortization of actuarial loss	205	56
Expected return on plan assets	(492)	(486)
Net defined benefit plan costs	$ 2,167	$ 1,671

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Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	$ 16,175	$ 14,505
India
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	5,217	4,303
U.S.
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	4,280	3,532
U.K.
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	1,720	1,652
China
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	3,828	3,753
Other Regions
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	$ 1,130	$ 1,265

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Stock-Based Compensation - Additional Information (Detail) - USD ($)		3 Months Ended		12 Months Ended
	Apr. 11, 2012	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2012
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation cost		$ 4,845,000	$ 5,250,000
Options granted, contractual period, years		10 years
Options granted			0
Unrecognized stock-based compensation cost for options		$ 12,130,000
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining requisite vesting period		2 years 8 months 12 days
Restricted Share Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining requisite vesting period		2 years 10 months 24 days
Unrecognized stock-based compensation cost		$ 1,801,000
Performance Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining requisite vesting period		2 years 1 month 6 days
Unrecognized stock-based compensation cost		$ 20,044,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions		90.00%
Maximum percentage of employee's base salary allowed to be purchased		15.00%
Maximum dollar amount of common shares allowed to be purchased		$ 25,000
Common shares reserved for issuance		4,200,000
Issuance of common shares under the employee stock purchase plan (in shares)		55,788	30,487
Compensation expense for ESPP		$ 141,000	$ 86,000
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award, vesting period, years		4 years
Minimum | Restricted Share Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award, vesting period, years		3 months
Minimum | Performance Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award, vesting period, years		6 months
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award, vesting period, years		5 years
Maximum | Restricted Share Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award, vesting period, years		4 years
Maximum | Performance Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award, vesting period, years		3 years
2007 Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amended Omnibus Plan, increase in number of common shares authorized for issuance	5,593,200			8,858,823
Number of common shares authorized for issuance	15,000,000
2005 Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amended Omnibus Plan, increase in number of common shares authorized for issuance				495,915

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Significant Assumptions used in Determination of Fair Value of Options Granted (Detail)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Dividend yield	0.97%
Expected life (in months)	84 months
Risk-free rate of interest	2.25%
Volatility	24.28%

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Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Shares arising out of options
Outstanding, shares arising out of options, beginning balance		5,707,690
Granted, shares arising out of options		250,000
Forfeited, shares arising out of options		(55,000)
Exercised, shares arising out of options		(455,835)
Outstanding, shares arising out of options, ending balance		5,446,855	5,707,690
Vested and expected to vest thereafter, shares arising out of options	[1]	5,183,854
Vested and exercisable, shares arising out of options		2,365,356
Weighted average grant-date fair value of options granted during the period		$ 6.62
Weighted average exercise price
Outstanding weighted average exercise price, beginning balance		18.65
Granted, weighted average exercise price		24.74
Forfeited, weighted average exercise price		21.22
Exercised, weighted average exercise price		14.36
Outstanding weighted average exercise price, ending balance		19.27	$ 18.65
Vested and expected to vest thereafter, weighted average exercise price	[1]	19.01
Vested and exercisable, weighted average exercise price		$ 15.89
Weighted average remaining contractual life (years)
Outstanding weighted average remaining contractual life (years)		6 years 2 months 12 days	5 years 9 months 18 days
Vested and expected to vest thereafter, weighted average remaining contractual life (years)	[1]	6 years 2 months 12 days
Vested and exercisable, weighted average remaining contractual life (years)		4 years 6 months
Aggregate intrinsic value
Exercised, aggregate intrinsic value		$ 4,742
Outstanding aggregate intrinsic value, ending balance		31,829
Vested and expected to vest thereafter, aggregate intrinsic value	[1]	31,395
Vested and exercisable, aggregate intrinsic value		$ 20,970

[1] Options expected to vest reflect an estimated forfeiture rate.

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Summary of Restricted Share Units Granted (Detail) - Restricted Share Units (RSUs) - $ / shares		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Restricted Share Units
Outstanding number of shares (Units), beginning balance		117,905
Granted, number of shares (Units)		24,000
Vested, number of shares (Units)	[1]	(6,464)
Outstanding number of shares (Units), ending balance		135,441	117,905
Expected to vest, number of shares (Units)	[2]	123,798
Weighted Average Grant Date Fair Value
Outstanding weighted average grant date fair value, beginning balance		$ 20.65
Granted, weighted average grant date fair value		24.74
Vested, weighted average grant date fair value	[1]	16.68
Outstanding weighted average grant date fair value, ending balance		$ 21.56	$ 20.65
Shares to be issued on vested awards other than options			34,035	53,546
Vested in December 31, 2015
Weighted Average Grant Date Fair Value
Vested RSU issued during the period		53,023
Vested in December 31, 2016
Weighted Average Grant Date Fair Value
Vested RSU issued during the period		17,802

[1] RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding).

[2] The number of RSUs expected to vest reflects an estimated forfeiture rate.

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Summary of Restricted Share Units Granted (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2017 shares
Restricted Share Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs settled on vesting by issuing shares (net of minimum tax withholding)	6,040

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Summary of Performance Units Activity (Detail) - Performance Units	3 Months Ended
	Mar. 31, 2017 $ / shares shares
Number of Restricted Share Units
Outstanding number of shares (Units), beginning balance	3,772,128
Granted, number of shares (Units)	707,092
Vested, number of shares (Units)	(1,136,047)	[1]
Forfeited, number of shares (Units)	(1,485,337)	[2]
Outstanding number of shares (Units), ending balance	1,857,836
Expected to vest, number of shares (Units)	1,624,573	[3]
Weighted Average Grant Date Fair Value
Outstanding weighted average grant date fair value, beginning balance | $ / shares	$ 23.04
Granted, weighted average grant date fair value | $ / shares	24.74
Vested, weighted average grant date fair value | $ / shares	16.78	[1]
Forfeited, weighted average grant date fair value | $ / shares	27.82	[2]
Outstanding weighted average grant date fair value, ending balance | $ / shares	$ 23.69
Maximum shares eligible to receive
Outstanding maximum shares eligible to receive, beginning balance	5,524,114
Granted, maximum shares eligible to receive	1,414,184
Vested, maximum shares eligible to receive	(1,136,047)	[1]
Forfeited, maximum shares eligible to receive	(1,489,737)	[2]
Adjustment upon final determination of level of performance goal achievement	(1,747,586)	[4]
Outstanding maximum shares eligible to receive, ending balance	2,564,928

[1] PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding).

[2] Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

[3] The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

[4] Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016.

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Summary of Performance Units Activity (Parenthetical) (Detail) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued, net of minimum statutory withholding taxes	731,701
Performance Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Forfeited, number of shares (Units)		1,443,624

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Capital Stock - Additional Information (Detail) - USD ($)			1 Months Ended	3 Months Ended
	Mar. 29, 2017	Mar. 28, 2017	Feb. 28, 2017	Mar. 31, 2017	Mar. 31, 2016		Feb. 10, 2017	Dec. 31, 2016
Class Of Stock [Line Items]
Stock repurchase authorized amount							$ 1,250,000,000	$ 750,000,000
Additional stock repurchase authorized amount							$ 500,000,000
Aggregate amount of common stock shares repurchased				$ 219,784,000	$ 33,017,000	[1]
Expenses related to stock purchases				16,000	27,000
Quarterly dividend declared			$ 0.06
Planned annual dividend			$ 0.24
Initial dividend paid			$ 11,957,000
Dividend payment date			Mar. 28, 2017
Dividends payable, date of record			Mar. 10, 2017
Dividends payable, date declared			2017-02
Dividends paid per share		$ 0.06
Retained Earnings
Class Of Stock [Line Items]
Expenses related to stock purchases				16,000	$ 27,000	[2]
Initial dividend paid				$ 11,957,000
Accelerated Share Repurchase Agreement
Class Of Stock [Line Items]
Aggregate purchase price of common shares	$ 200,000,000
Initial delivery of common shares received	6,578,947
Initial delivery of common shares received price per share	$ 24.32
Shares repurchased and retired (in shares)				6,578,947
Common stock shares repurchased price per share				$ 24.32
Aggregate amount of common stock shares repurchased				$ 160,000,000
Aggregate amount of common stock shares repurchased, final payment				$ 40,000,000
Accelerated Share Repurchase Agreement | Retained Earnings
Class Of Stock [Line Items]
Reduction to shareowners' equity	$ 160,000,000
Accelerated Share Repurchase Agreement | Additional Paid- in Capital
Class Of Stock [Line Items]
Reduction to shareowners' equity	$ 40,000,000
Open Market Repurchase
Class Of Stock [Line Items]
Shares repurchased and retired (in shares)				808,293	1,356,199
Common stock shares repurchased price per share				$ 24.48	$ 24.35
Aggregate amount of common stock shares repurchased				$ 19,784,000	$ 33,017,000

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[2] Net income, additional paid-in capital and retained earnings for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Number of stock awards outstanding but not included in the computation of diluted earnings per common share	1,003,048	317,081

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Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share (Abstract)
Net income available to Genpact Limited common shareholders	$ 53,338	$ 58,794	[1]
Weighted average number of common shares used in computing basic earnings per common share	199,069,528	210,780,165	[1]
Dilutive effect of stock-based awards	3,586,409	3,112,799
Weighted average number of common shares used in computing dilutive earnings per common share	202,655,937	213,892,964	[1]
Basic	$ 0.27	$ 0.28	[1]
Diluted	$ 0.26	$ 0.27	[1]

[1] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Cost of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Component Of Operating Other Cost And Expense [Line Items]
Cost of revenue	$ 383,337	$ 372,848	[1]
Personnel expenses
Component Of Operating Other Cost And Expense [Line Items]
Cost of revenue	269,189	254,028
Operational expenses
Component Of Operating Other Cost And Expense [Line Items]
Cost of revenue	102,716	107,542
Depreciation and amortization
Component Of Operating Other Cost And Expense [Line Items]
Cost of revenue	$ 11,432	$ 11,278

[1] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Component Of Operating Other Cost And Expense [Line Items]
Selling, general and administrative expenses	$ 160,858	$ 160,149	[1]
Personnel expenses
Component Of Operating Other Cost And Expense [Line Items]
Selling, general and administrative expenses	122,569	108,400
Operational expenses
Component Of Operating Other Cost And Expense [Line Items]
Selling, general and administrative expenses	35,813	49,578
Depreciation and amortization
Component Of Operating Other Cost And Expense [Line Items]
Selling, general and administrative expenses	$ 2,476	$ 2,171

[1] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Other Income And Expenses [Abstract]
Other operating (income) expense		$ (4,400)	$ (498)
Provision for Impairment of intangible assets	[1]		4,943
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions)		(3,138)	(9,506)
Other operating (income) expense, net		$ (7,538)	$ (5,061)	[2]

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[2] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other Income And Expenses [Abstract]
Interest income	$ 1,131	$ 2,364
Interest expense	(6,624)	(5,202)
Interest income (expense), net	$ (5,493)	$ (2,838)	[1]

[1] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 24,483	$ 23,467
Unrecognized tax benefits that would impact effective tax rate	23,484	22,469
Unrecognized tax benefits, interest on income taxes accrued	4,068	3,856
Unrecognized tax benefits, excluding exchange rate differences for interest recognized	34	(206)
Accrued penalties	$ 1,000	$ 977

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Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($)
Income Tax Uncertainties [Abstract]
Beginning balance	$ 23,467
Increase related to prior year tax positions, including recorded in acquisition accounting	515
Decrease related to prior year tax positions	(309)
Decrease related to prior year tax position due to lapse of applicable statute of limitation	(132)
Effect of exchange rate changes	942
Ending balance	$ 24,483

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016		Dec. 31, 2016
Related Party Transaction [Line Items]
Accounts receivable from related parties	$ 2,130			$ 2,490
Recognized loss from investment	4,558	$ 2,145	[1],[2]
Investment in equity affiliates	769			4,800
Affiliate of Significant Shareholder
Related Party Transaction [Line Items]
Recognized net revenues	83	79
Non-Consolidating Affiliates
Related Party Transaction [Line Items]
Recognized net revenues	3,211	1,652
Accounts receivable from related parties	2,102
Cost of revenue	575	498
Selling, general and administrative expenses, net of recovery	94	67
Investment in equity affiliates	467
Recognized loss from investment	2,821
Investment in equity affiliates	769			$ 4,800
Cost reimbursements from non-consolidating affiliates	238	329
Non-Consolidating Affiliates | U.K.
Related Party Transaction [Line Items]
Payment to non-consolidating affiliate against consortium relief	1,307
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets
Related Party Transaction [Line Items]
Reimbursements receivable	238
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities
Related Party Transaction [Line Items]
Payable against consortium relief	$ 2,000
Significant Shareholder of Company
Related Party Transaction [Line Items]
Selling, general and administrative expenses, net of recovery		$ 15

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.

[2] Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016.

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Commitments And Contingencies [Line Items]
Bank guarantees, outstanding	$ 12,015	$ 11,958
Capital Addition Purchase Commitments
Commitments And Contingencies [Line Items]
Commitments and contingencies	$ 6,843	$ 5,185

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Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended
	May 03, 2017	Apr. 13, 2017	Mar. 31, 2017	Mar. 31, 2016	[1]	May 09, 2017
Subsequent Event [Line Items]
Payment for business acquisitions, net of cash acquired			$ 9,237	$ 2,339
Subsequent Event | Genpact Limited 2017 Omnibus Incentive Compensation Plan
Subsequent Event [Line Items]
Common shares available for issuance to employees, directors and consultants						15,000,000
Subsequent Event | Rage Frameworks, Inc.
Subsequent Event [Line Items]
Date of acquisition		Apr. 13, 2017
Ownership percentage acquired		100.00%
Payment for business acquisitions, net of cash acquired		$ 125,000
Subsequent Event | BrightClaim, LLC and its Associated Company National Vendor, LLC
Subsequent Event [Line Items]
Date of acquisition	May 03, 2017
Ownership percentage acquired	100.00%
Payment for business acquisitions, net of cash acquired	$ 55,000

[1] Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016.