Telstra’s Captive Center in India Aligns with Global Trends

Melbourne, Australia-based telecom major Telstra is  setting up a captive offshore center within India’s information technology consulting company, Infosys, Telstra’s largest technology vendor in the country. Pareekh Jain, research vice-president (engineering services) at Massachusetts-based HfS Research says, “We cannot call this a trend yet, but we’re observing that many companies are getting or planning to get their work back in-house.”


Global in-house centers, or captives, operate in India across all service lines —  IT services, BPM, engineering services, and product development. The country has about 1,050 captives which contribute 22% of India’s $108-billion software and business process management exports, while employing 790,000 professionals. ‘These are playing a diversified role for global enterprises and are viewed as cost centers, centers of excellence, program management offices and an innovation hotbed for emerging markets,” industry body NASSCOM said.

Analysts say that global firms are struggling in their shift to adapt newer technologies and business models and look at working on smaller models in closed units before they implement across organizations, reports Business Standard.


Jain added, “Customers are facing tremendous disruption in their core industries with the new-age companies and would like to have some technology capability in-house, especially in newer areas such as digital, which can help them navigate digital disruption. India is becoming a hotspot for talent in newer technologies for the same reason the country was popular for traditional IT services.”



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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.


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