Accenture, Capgemini Increase Presence in India
According to published reports, outsourcing firm Accenture is expected to add another 8,000 employees boosting India's outsourcing strength. This is yet another sign that India will lead the offshore trend as the biggest such destination for IT and business services, reports computerweekly.com.
The news come on the heels of Capgemini's decision to set up a new business information unit in Bangalore, India. That puts Capgemini's headcount in India at 21,000 - larger than its staff employed in France, where the firm is based. Employees at Camgemini's French unit total to about 20,000. The outsourcing firm commented that it came to Bangalore due to its talent pool in technical and application skills in information management.
A report by the Financial Times reported that Capgemini's presence in India is a milestone and that it reveals India's dominance in global outsourcing industry. Yet another interpretation of Capgemini's presence in India is that the subcontinent is fast recovering from the economic turmoil that has triggered a recession.
In addition, Accenture follows suit with a higher workforce in India in order to benefit from the relatively cost efficient IT skills. Director of consultancy firm, Robert Morgan, says India is now the most offshore destination. He added that this trend will continue well into a five to eight year period.
Nonetheless, Morgan also cited that Indian outsourcing is also declining in growth from a 20+ percent to a growth that is in the teens. Additionally, China will put some pressure on outsourcing to India, and so will South America and North Africa - all of these regions have been taking some business away from India.
At the present time, Accenture has 42,000 staff in India and is planning to hit a target of about 50,000 toward the end of 2010. Incidentally, IBM has also shown interest in setting up shop in India.
Capgemini has announced that it will begin with about 1,000 for the newly formed Bangalore operation. In a span of 18 months, that figure is expected to rise to 3,000. French-based Capgemini's objective is to set up a business information management center of excellence. This is expected to assist firms in improving their data collection, and the use and analysis of data.
Capgemini's global business information service general manager, Paul Nannetti said in a statement that India enables the firm to access application and technical skills in information management. He added that the company can scale up in India much faster than in nearshore locations.