This document summarizes a summer training project conducted at Genpact on analyzing the effects of inflation on the company's costs and profitability. It includes an analysis of key cost drivers like salaries, benefits, infrastructure expenses, IT expenses, and other employee costs. Trends in these costs and their relationship to factors like headcount, work stations, and inflation rate charged to clients are examined. Key findings are that salary costs are most impacted by inflation, the company charges an average 5% inflation rate to clients, and continuing high inflation could negatively impact future profitability if costs are not further controlled. Suggestions include controlling attrition to reduce hiring costs, negotiating inflation clauses in all contracts, and incrementally increasing inflation rates charged over