Computer Sciences is the latest company to announce plans to increase its investment in India.
Computer Sciences has said that it plans to add 1,400 software engineers and two new development centers to its operation in India over the next two years, in order to offer more, low-cost offshore services to its client base.
The El Segundo, California-based company currently has 700 employees in India based at centers in Noida and Indore. The company’s president for the Asian region Mike Brinsford told the Times of India that it plans to add a further center in Noida and one in the south of the country.
IBM Global Services has 4,700 staff in India following its takeover of PwC Consulting, and consulting firm Accenture claims to have 7,000 employees in the country. Both plan to increase their numbers to around 20,000 over the next three to four years.
According to the National Association of Software and Service companies (Nasscom), software exports from multinational companies in India grew by 131% to IRP 9,855 crore ($2 billion) in the 12 months to March 2002.
Consulting firm Sapient has around half of its 1,500 employees working out of its operation in New Delhi. Some 57% of Sapient’s fourth quarter sales of $43.9 million came from contracts that utilized what it calls its ‘globally distributed delivery’ model, and it claims that this has helped it to win business against larger consulting and systems integration rivals.
Colin Windsor, head of Sapient’s UK operation, said: Companies like Accenture have to go to an offshore model as they cannot continue to do work at their current rates, but to do so will cannibalize a lot of their existing revenue.
Western IT services providers are building up their resource bases in India to help them lower the cost of delivering application development, systems integration, support and increasingly business process outsourcing projects to clients, driven by severe price competition in the market.
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