Capgemini to increase investment and headcount in India

by Abhinna Shreshtha    Sep 21, 2010

Capgemini to increase investments in BIMConsulting service provider Capgemini has recently unveiled its first innovation center in the country, targeted at offering dedicated customer experiences for business intelligence management (BIM). Located in Mumbai, and named CUBE for ‘CU’stomer ‘B’IM ‘E’xperience, the 400 sq.ft. center, will allow potential clients to examine solutions created to address specific customer issues, review proofs of concept and productivity tools, and confer with Capgemini staff on-site or through video conferencing.

Service providers like Capgemini are looking to cash in on a BI market, which is showing signs of revitalization since the economic meltdown last year. The company’s BIM division, which includes its data management and business intelligence solutions, contributed around 20 percent to its global revenue of Euro 8,000 million last year. Leveraging on the talent available in the country, the company has decided to drive its global BIM operations from India. As part of this strategy the company will be increasing its employee strength and making fresh investments in the country.

The company has been on a recruitment drive since the beginning of 2010 and has already hired 800 new employees in its India CoE, with more hirings expected by the end of the year. Currently, the company has 5,000 employees in its BIM division globally, of which 1,500 are based in India.

With this renewed focus on BIM, Paul Nannetti, GM (BIM group) of Capgemini, says sales have already increased by 48 percent in the first half over last year, and this is further expected to increase to 52 percent by year-end.

Speaking about the importance of CUBE, Nannetti said BI projects are usually not outsourced as they are generally small and require a high-user interaction. In this scenario, customers want to be convinced about the value proposition offered by the vendor. “Many customers visit Mumbai regularly, so it made sense to create a physical environment where they could experience our solutions first-hand. We hope the experience offered by CUBE will encourage more companies to opt for Capgemini’s BIM solutions,” said Nannetti. He further said that Capgemini will continue to invest and improve in areas like master data management, predictive analysis, information strategy, etc.

To drive growth in this competitive segment, Capgemini, last year, spun off its BIM as a separate business division. This is one reason for the company’s good performance in the space, says Nanneti. “We have been offering BIM for the past 20 years. However, until recently, we offered BI as just a solution portfolio. This has now changed, with the creation of a dedicated business organization to push our BIM portfolio,” he explained.

Capgemini is also looking to develop India as a global hub for innovation, not only for BIM, but also for other disciplines. Including CUBE, it currently has 12 similar innovation centers in India, focusing on key industry sectors and technologies; with the company aiming to increase this number to 20 by the end of the year. The company will be launching ‘CHIMES’ for the media and entertainment sector and ‘CELLS’ for the life sciences sector by the end of next month.