Helping IT-GICs Reach The Next Growth Level

by CXOtoday News Desk    Aug 11, 2014

growth

IT industry body Nasscom, along with the Indian School of Business and Deloitte Consulting, has developed a maturity index for global in-house centres (GICs). The objective is to help Indian GICs benchmark their performance relative to industry peers.

“GICs create significant value for the parent company. The Index will help them to not only benchmark their performance but also identify capabilities and processes that they must invest in to yield optimal performance,” ISB Assistant Professor, Deepa Mani, told PTI.

According to a Nasscom report, captive centres or global in-house centres (GICs) contribute more than a fifth, or about $20 billion of software exports revenue from India. This is expected to touch USD 50 billion by 2020. There are over 800 GICs in India offering services across IT, Business Process Management, Engineering R&D and software products.

Nasscom Vice-President (Industry Initiatives), K S Viswanathan informed that many GICs in India are already creating value and business impact to their global corporations. “Such a comparative Index also enables the GIC to understand the good practices being followed by their peers in the industry and enabling them to move ahead in the value chain,” he added.

According to the preliminary findings of the Index, there is a need for process optimization and data integration. The benefits of process optimization would include lower operating costs per employee, which can result in at least 20 percent savings. In addition, it would lead to lower marginal costs thereby increasing scope of operations tremendously. The index also notes that a 10 percent increase in investments in information sharing in innovation centres helped a mean increase of 45 patents filed with the Indian Patent Office.

The IT-GICs have been playing an important role in adoption of cutting edge technology by their organizations, concluded a recent Microsoft MNC IT Summit 2014 last week in Bangalore. Microsoft India Chairman Bhaskar Pramanik who said, “The IT-GICs have been playing an important role in adoption of cutting edge technology by their organizations. At Microsoft we are committed to strengthen the ecosystem with future-ready productivity and platform tools for the mobile-first, cloud-first world.

Dr. Sadagopan pointed out that IT centers in India are playing a leading role in establishing centers in other countries, including Vietnam and Argentina. Nasscom President Som Mittal highlighted the contribution of the overall IT industry to India’s economy creating 3.2 million jobs and generating over $100 billion in exports, of which IT-GICs make a substantial contribution in this impact.