Capgemini makes India its hub for Offshore service delivery

Capgemini, IT services and Consulting company made India its hub for all offshore activities and services delivery. The company will recruit 6000 more people in Bangalore to make it a 10000 strong army of consultants. A news article quoted:

"In terms of ability to scale number of staff and everything else, I don't think any other country can offer what India can," Aruna Jayanthi, vice president for outsourcing at Capgemini India said Thursday on the sidelines of a conference in Bangalore, India

Recently IBM conducted its Annual Investors conference in Bangalore and announced that it will invest $6 Billion in Bangalore operations. This is a welcome sign for Bangalore, after the Indian IT titans ruled out Bangalore for future expansions citing infrastructure problems, and Nasscom openly accepted that comapanies setting up shop in Bangalore must incur additional expenses to build their own infrastructure like electricity.

However, on account of the poor infrastructure in India, outsourcing companies have to pay for captive generation of electricity, higher telecommunications costs, and for transporting staff to and from work. These costs account for about 24 percent of total costs, according to the National Association of Software and Service Companies (Nasscom) in Delhi.

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