Capgem­ini

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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

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