Capgemini’s India business and global delivery operations is estimated to have grown a healthy 9 percent in 2016-17 to touch revenue of Rs. 15446 crore which is nearly a $2.3 B entity in USD terms. We estimate that more than a tenth of the revenue comes from India domestic business.
The APAC and Latin America geographies account for 8 percent of the global revenues. In the APAC region, Capgemini has more than 8,000 employees serving the region’s domestic markets with strategic client account base. In India, Capgemini counts Bharat Petroleum Corporation Ltd., Ashok Leyland, Kotak Bank, and HUL as its largest customers.
Capgemini launched a “Digital Manufacturing” end-to-end service offering to accompany enterprises in the era of Industry 4.0. Digital and Cloud offerings contribute 30% of our revenues, the company reports.
The company is investing heavily on upskilling its employees in digital technologies like Cloud, IOT, Big Data & Analytics, among others. In 2016, it trained 51,000 employees in India and another 45,000 till May 2017. The company reports that offshore leverage reached 57% by the end of last March, and has nearly 97,000 employees based in India out of the global headcount of 190,000.
India plays a prominent role in delivering Capgemini’s technology and managed services businesses. India also plays a lead role in Applied Innovation Exchanges, a network of innovation centers, that provide thrust to new ideas for digital business innovation. Two examples of how the company leverages India offshore for innovation:
The financial services sector is the strongest vertical even for India offshore delivery. Capgemini works with a partner ecosystem in India that includes more than 1,000 startups and is able to draw on its growing network of Applied Innovation Exchanges around the world. The Financial Services Center in Pune, a campus hosting 10,000 employees, is using blockchain to meet emerging regulatory compliance needs in banking and capital markets.
In retail the innovation is centered around reimagining in-store retail experiences based on customer assistant robots and augmented reality technology. The Consumer Products & Retail Solutions Center (CRESCENT) located in Kolkata, India, supports the deployment of industry solutions and accelerators. CRESCENT has, for example, created process models and templates for the rapid roll out of various SAP modules for the retail industry.
With more than 400 clients making 1,700 visits to Capgemini centers in India during 2016, this customer relationship role is becoming increasingly important. Capgemini operates from 40+ locations throughout India, including large centers in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, the National Capital Region (Delhi), and Pune.
The key achievement of 2016 was the integration of 27,500 former Igate employees into a single operating structure in India. Nearly 24,000 former Igate employees attended more than 300 systems orientation sessions to equip all teams with the same tools and applications. The successful integration of IGATE delivered higher synergies than expected and contributed to the further improvement in the operating margin in 2016, the company reports.
CAPGEMINI ANTICIPATES THE CHALLENGES FACED BY ITS CLIENTS BY BUILDING UP TALENT IN AREAS WHICH HELP THEM TRANSFORM THEIR OPERATIONS
What is your appraisal of FY 17 from an industry and Capgemini’s perspective?
Technology disruption is creating a pressing need for businesses around the world to evolve. The Group has identified key focus in Digital and Cloud services. Last year, we upgraded our cloud and digital offerings to help clients succeed in an era of unprecedented digital transformation. India continues to be the delivery epicenter of the Group and in 2017 and we will be focusing on further strengthening our capabilities and skills so that we are able to align ourselves with the Group’s strategic focus to drive growth and create value for our clients.
What are the 2 big challenges that took most of your management time during the last fiscal?
As technology evolves, so do the skills needed for an increasingly digital world. Capgemini anticipates the challenges facing its clients by building up talent in areas that help them to transform their operations. As the delivery epicenter of the Group, our goal is to align our capabilities and skills to emerging needs of our customers. We are investing heavily on upskilling our employees in digital technologies like Cloud, IOT, Big Data & Analytics, among others. In 2016, we trained 51,000 employees in India and another 45,000 till May 2017. This will continue to be an important focus area for India going forward.
The second focus area has been to drive greater agility and efficiency and adapt to the emerging delivery methodologies and systems to create increased value for our customers. We have created a new client-visit experience methodology called the Accelerated Solution Environment.
How would you place Capgemini right now given the protectionist mentality in both Europe and the US and the disruptions happenings in the tech space?
Technology innovation will continue to accelerate at an exciting and alarming pace. Agility and rapid execution will be critical if technology companies are to drive their own disruption and respond quickly to new challenges. In Capgemini we believe transformation will lay the foundation for seizing new opportunities. With such transformation, market occupants can become as active and innovative. It is an organization challenge to innovate itself in a manner that it can result in improved efficiency and higher customer satisfaction.
We see disruption as a way to emerge in the market and evolve in terms of business models, talent development, improved performance standards and excellence in services we deliver to our customers. In a nutshell, we see disruption as a positive change.
What would be the direction for Capgemini in FY 18: the key focus areas and the growth drivers and your Industry outlook?
We are excited about the opportunities that are coming from digital. Driving agility and competiveness will be the key pillars of focus for Capgemini in India in 2018 that will help deliver the true value of digital to our customers. India will continue to play a crucial role in raising the bar on delivery excellence and help customers co-innovate solutions. We measure success through a corollary of three things: investor, clients and employees and their satisfaction and we will continue to do so going forward. That will determine our success.
—SRINIVAS KANDULA Country Head, India