Why did Yahoo start outsourcing those services? And what were the reasons for selecting Genpact as a partner?
Hernan: In 2007 Yahoo started to review outsourcing for the finance organization. We saw the growth that Yahoo was experiencing and realized the difference in terms of needs in the business units, for example, display is a really low volume high dollar type of business, whereas search is a combo. Then we did an online job for Kelkoo – the comparison website, but it was the other way around, high volume low value. We decided to start looking for outsourcing to support these businesses better because from a credit and collections point of view we always focus on the big dollar, thus we were not providing the same type of services to customers. This led us to realize that if we worked in outsourcing we could provide the same sort for services to our customers and forget about the dollar value. We could also keep the in-house teams, focusing on the high-end tier customers while Genpact focused on the lower-end tier customer. To answer the second part of the question; we reviewed different
