Cap Gemini eyes outsourcing market
European consulting major Cap Gemini has joined the list of multinational IT firms aspiring to capture a slice of the domestic IT outsourcing market.
MUMBAI: European consulting major Cap Gemini has joined the list of multinational IT firms aspiring to capture a slice of the domestic IT outsourcing market.
The company is slated to draw up a plan to target the domestic market next month that will review and identify the key verticals in this space and determine how much manpower should be assigned to them, based on their potential, according to Capgemini India executive chairman Salil Parekh.
Unlike Accenture and IBM, Cap Gemini has not won any high-profile deals in the domestic IT market so far. However, the company is among the few European IT firms to have significant offshore presence in India through its acquisition of Kanbay last year.
Although it has not won any major deals here, it has one of the most high-profile BPO accounts that it services from India for Unilever group companies across the world, including Hindustan Lever in India. In September last, Cap Gemini announced it was acquiring majority stake in Unilever’s BPO operation in India, Indigo.
Under the terms of the deal, Indigo was to also deliver finance and accounting (F&A) services to Unilever firms globally for a seven-year period. Prior to this, Unilever had entered into a seven-year outsourcing agreement with Accenture for recruitment, payroll processing and performance management.
While Cap Gemini lags its rivals in Accenture and IBM in terms of headcount in India, the Paris-headquarterd firm has been the most aggressive among its European peers. While companies like Atos Orgin have outlined plans to do boost capacity in India by acquiring small and mid-size firms, and others like T-systems have been actively exploring partnerships with Indian IT firms, nothing has materialised so far.
In India, Cap Gemini has around 14,000 people with 200 of them in domestic IT. It plans to increase its India headcount to 40,000 by 2010 growing both organically and through acquisitions.
“All the multinationals here are looking at a dedicated sales force and sales focus for the domestic market. So far their presence here has been more in terms of hardware and software support services and maintenance,” said Gartner India senior research analyst (IT services) Arup Roy. Gartner has projected the IT spends in the country will touch $36.6 billion in 2009.
While IBM has got a headstart in the telecom vertical, Hewlett Packard is perceived to be strong in the financial services vertical where it has won deals from Bank of Baroda and Bank of India. All the players are also eyeing the government vertical, another area where big IT spends are expected.