Telstra to establish India captive centre with Infosys

Telstra, Australian telecom major, which has been

outsourcing technology work to IT major Infosys for
nearly 10 years, is planning to set up a captive offshore
centre in the Indian subcontinent. Infosys shall aid
Telstra set up the captive centre with close to 200
people to begin with, as the telco is looking to work on
emerging technology areas at minimal costs, people
knowing about the development said.
A Telstra spokesperson said that Telstra has always
been reviewing opportunities to find novel ways to
enhance customer experience across all areas of their business. He added that no decision
had been made as to whether an offshore captive centre would be part of that plan.
Analysts say that Telstras move to set up a captive centre in the country is in line with
what they call a second wave of captives in India.
In April, Indias software lobby, Nasscom - National Association of Software and Services
Companies, said that global in-house centres, as it calls captives, had become an integral
component of the fast-growing Indian information technology-business process
management or IT-BPM sector and contribute a 20% share or 22 billion dollars in IT-BPM
exports from India. The country has close to 1,050 captives employing around 790,000
professionals. Nasscom stated that Indias software and back office exports stood at 108
billion dollars in the last financial year.
Last week, Diageo - British liquor major said that it would hire 1,000 professionals at its
newly opened captive back office in Bengaluru by the year 2017. Global in-house centres,
or captives, operate in the country across all service lines - IT services, BPM, engineering
services, and product development.
Nasscom said in April that banking, financial services and insurance, software, telecom,
and semi-conductor are vital industry verticals with a growing focus in aerospace, health
care, retail, and automotive.

Analysts say that global companies are struggling in their shift to adapt novel technologies
and business models and seem at working on smaller models in closed units before they
implement across organizations.
Such moves, a research analyst, could be the next operational strategy for enhancing the
effectiveness of IT and business processes or could be part of future-proofing customers
operations. He added that customers were facing tremendous disruption in their core
industries with the novel-age companies and would like to have some technology
capability in-house, specifically in newer areas like digital, which can help them navigate
digital disruption. He further added that Indias traditional advantage of the huge base of
English-speaking and higher-educated talent pool continued to be an attraction for the
global firms. He concluded that India was becoming a hotspot for talent in novel
technologies for the same reason the nation was popular for traditional IT services.

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Article Written by
Salman Hashmi