The last quarter saw an influx of foreign businesses not only setting up shop but also ensuring a long term expansion in Indian soil. Reasons, Ease of Doing Business (EODB) and access to the great Indian IT talent pool. While this benefits these big foreign players, it also spells opportunity for Indian talent.
In November, T-Systems International, a European IT services provider, partnered with Tech Mahindra to expand its footprint in India by starting a Delivery Center in Nagpur, in addition to its delivery centres in Pune and Bengaluru.
Around the same time, Amadeus, the technology provider for the travel industry and the child company of the Spanish Amadeus IT Group, announced expanding its operations with the opening of its new engineering and R&D centre in Pune. The launch will be Amadeus’ second R&D and engineering site after Bengaluru, which is the second largest engineering site for Amadeus worldwide. The Pune centre is supposed to play a pivotal role in deepening Amadeus’ presence in the Indian market and anchoring activities for Amadeus Labs in India and worldwide.
Accessing Indian IT talent pool = Long term growth
These foreign companies have been growing steadily while leveraging the power of Indian IT talent pool. AppViewX, the New York based company in Machine Identity Management (MIM) and Application Infrastructure Security, launched and has been growing its India operations out of Coimbatore since 2017, helping establish Coimbatore as one of India’s leading technology hubs.
Since then, the company has become one of the leading tech companies in the region and has expanded to tech hubs like Bangalore and Chennai. The company continues to add to its capabilities across its offices in India. The company has increased its headcount by 82% in India in the last two years.
These foreign companies have been growing steadily while leveraging the power of Indian IT talent pool
Following the rapid growth in India, T-Systems is looking to add more than 6000 people over
the next 24 months and will be adding professionals with digital and cloud skills. The new hires will further expand and manage the cloud and digital capabilities for the customers of T Systems International.
Adel Al-Saleh, CEO of T-Systems International, said, “The partnership with Tech Mahindra and the expansion into Nagpur will benefit T-Systems’ strategy to scale in India to support our growth plans.”
Anant Padmanabhan, Managing Director, T-Systems ICT India Pvt. Ltd. said, “After having successfully ramped up in Pune and Bengaluru, we wanted to tap into talent in other locations to further scale our operations and we chose Nagpur as our next location to expand, in partnership with Tech Mahindra. This will help us exponentially scale our digital and cloud capabilities in India.”
Similarly, Amadeus, over the past 10 years, has grown expeditiously and efficiently making it one of the top key players in the Indian IT ecosystem for travel technology. For instance, besides transforming travel experiences for global travellers, the Pune site will also focus on strengthening Amadeus’ hospitality solutions. Through the new site, the company aims to expand its engineering capabilities and leverage the diverse and skilled local talent pool.
EODB for big players = Big opportunity
Much of these foreign expansions, which have to do with EODB, are not only building a steady growth path in India but are also offering a chance to Indian talent to experience working with global teams.
Attracting this kind of business from outside often becomes just as important as having homegrown talent. Exposure to bigger players can provide much opportunity
“Ease of Doing Business (EODB), availability of manpower, and access to infrastructure has accelerated Nagpur’s potential to become the next digital hub for cutting-edge innovation. The new Cloud and Digital Services Centre in Nagpur today marks another milestone in our long-standing partnership with T-Systems and will enable them to expand their digital foothold, unlock new business opportunities, and help enhance global customer experience and solution delivery. This will further help generate employment for local talent and provide them with opportunities to learn and grow with a global team” says CP Gurnani, Managing Director & Chief Executive Officer, Tech Mahindra.
Attracting this kind of business from outside often becomes just as important as having homegrown talent. Exposure to bigger players can provide much opportunity.
For instance, T-Systems, a Deutsche Telekom Group company, generates annual revenues of circa 4 billion Euros. The lion’s share is distributed between the two future-oriented business areas of cloud services and digital solutions, at around 85%. Advisory services are another key differentiating capability, supporting clients in the development of their digital strategies.
T- Systems is also set to place more focus on partnerships, with a particular focus on scaling near-shore and off-shore capabilities. This could mean more opportunities for India and similar countries.