Genpact Ltd.

That said, downside risks to our forecasts are likely to persist in the coming quarters depending on the pace of recovery across industry sectors and geographic markets. We expect hard-hit sectors such as hotels and leisure as well as transportation to improve in 2021, but not fully recover. We believe enterprises will continue to scrutinize their IT budgets and delay growth-oriented projects that have longer payback periods depending on the pace of recovery. The stable outlook on Genpact reflects our expectation that the company will maintain its competitive position and above-average profitability over the next 12-18 months. The company's healthy operating cash flows and limited discretionary spending should help maintain its debt-to-EBITDA ratio below 2.5x over this period. We are

...Genpact Ltd.'s revenue will remain sensitive to the pace of economic recovery in 2021. We estimate global information technology (IT) spending will grow about 3.4% in 2021, compared to our global GDP forecast of 5.7%. In our view, non-discretionary spending around digitalization and analytics is likely to continue through 2021. This should support Genpact's revenue, which we estimate will grow about 7% in 2021, compared to 5.4% in 2020. We attribute the resilience in the company's performance in 2020 to its strong position in the niche outsourcing of finance and accounting services and established client relationships. That said, downside risks to our forecasts are likely to persist in the coming quarters depending on the pace of recovery across industry sectors and geographic markets. We expect hard-hit sectors such as hotels and leisure as well as transportation to improve in 2021, but not fully recover. We believe enterprises will continue to scrutinize their IT budgets and delay growth-oriented...

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