One of the biggest challenges the IT industry in India faces is talent crunch, with majority of output from engineering colleges proving to be unemployable by the industry.
Capgemini seems to have found a way out. Go to places where talent is available instead of focussing only on major, established tier-I cities.
After identifying Salem and Tiruchi, the company has announced that it would open a (tier-III) centre every six months in India.
“We have opened a centre in Salem with about 500 people. We found good talent with good accounting background. What we found interesting is attrition rates there are zero. After its success, we are planning to open a centre at Tiruchi,” Ms Aruna Jayanthi, Chief Executive Officer (India) of Capgemini, said.
The company is planning to set up global delivery centres in smaller cities that will be hooked on to the bigger delivery centres. The hub-and-spoke model would have tier-III cities attached to the company’s bigger centres in the metros.
Though the company is using the Salem centre for its BPO operations, it has bigger plans. “We are going to use talent in these centres for delivery of IT services too. We have identified Tiruchi as our next tier-III destination. It too will be for BPO operations. But we might go there with a pilot for an IT service job,” she said.
Addressing reporters in a conducted tour to the company’s facilities in Paris and London, she said besides finding good talent, the move would help in bringing down costs.
The company has about 5,600 employees working for its BPO business in six delivery centres – Mumbai, Bangalore, Kolkata, Chennai, Gurgaon and Salem. The next destination for tier-III push could be around Kolkata and Bangalore.
Mr Hubert Giraud, Chief Executive officer (BPO) of Capgemini, said that India was the main hub for Data Analytics and Master Data Management.
“We have a lot of cost benefits. We see a difference of 20-30 per cent in salary payouts. Besides, you will get the advantage of cheaper infrastructure costs,” he said.