Global Cos Keen To Set Up Big Data Labs In India
With innovative technologies creating huge volume and velocity of data, it is critical to build capabilities in big data laboratories for analytics, states Nasscom. The global Inhouse Centres (GIC) of global companies are looking to invest in labs to work in the country in the areas of big data analytics, according to R Chandrashekhar, President, Nasscom at a recent Nasscom-GIC Conclave.
Of the 1,000 GICs, including IBM, Amazon, Barclays, Ford, and Xerox, nearly one third offer ER&D. However, going forward, big data and analytics will be a major thrust area for them and several more players will join the fray.
Chandrasekhar said that one of the fast growing new area is the big data, considering the use of all the new technologies which deal with each and every individual customer leading to mountains of data and this will become even more so as you move into internet of things where everything gets connected. Then it will be even further huge because there is M2M communication, automation and robotics.
Nasscom is also looking at setting up some Centre of Excellence in collaboration with some of the companies and the department and some of them are expected to start this year itself. “We are exploring five centres of excellence in internet of things to come up,” Chadrasekhar told Business Standard. He said that the booming start up ecosystem is a key factor that attracts the MNCs to have their captive center in India. For most of the MNCs, India centre is their largest GIC outside their own headquarters.
The number of GICs in the country has grown significantly in the last five years, from around 750 in 2010 to over 1,000 in 2014.
The GICs had its stronghold in engineering research and software development (ER&D), in which it had a share of 59%.The GICs revenue in India has seen a growth of 17% compound annual growth rate (CAGR), and currently has total revenue of $19.4 billion. The total employee strength of GICs has also increased at a CAGR of 14% to reach 7,45,000. GICs today account for about a fifth of India’s IT exports, according to Nassom data.
Today more number of GICs are being set up with increasing number of smaller firms entering the fray. As a result, India is emerging as the hotbed for ER&D and product development. Around 300 firms offering ER&D and product development services, particularly in emerging technologies of Internet of Things, robotics, wearable devices, 3D printing etc, says a senior Nasscom official.
These centers are building capabilities in India to enable digital transformation of their global enterprises. Factors such as availability of high skills combined with domain expertise make India an attractive location for these global firms.
In the next one year the country would see more penetration of the IT industry into the tier II, III locations. while transfer pricing was one of the major issues affecting GICs, Nasscom sees it is getting addressed and the industry is on the positive growth track.
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