Indian IT eyes captives as global companies rejig operations

BENGALURU: India’s cash rich IT services companies are eyeing captive technology centres of global corporations, as they gear up to provide IT and back-office services at lower costs and offset a demand slowdown from the US and European markets in the wake of the COVID-19 pandemic.

In the last three years, many global firms have either expanded their global in-house centres or set up new ones in India, looking to own the digital and analytics-based tech operations within the company as it became strategic.

The global economic slowdown has, however, made some of these companies shed costs and outsource work to large services companies.

India has nearly 1,300 captives across cities and they together employ nearly one-fourth of the 4.3 million workers in the $191-billion IT-Business Process Management sector.