Shell to raise IT headcount in Bengaluru

Plans to consolidate its global IT vendor base

Anglo-Dutch petroleum major Shell will consolidate its technology vendor base and insource bulk of the work to its centre in Bengaluru, which would emerge as the largest information technology-focused unit for the company globally.

The firm, which has around 900 professionals since it opened its information technology centre in India last year, expects a three-fold rise in headcount at this centre to nearly 3,000 over the next few years.

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Shell employs around 4,000 people in India across a backoffice processing centre in Chennai and a centre in Bengaluru that helps the firm in improving refining processes, mapping new wells and identifying water resources.

“India is paying for itself in the first year of its operations,” said Jay Crotts, chief information officer at Shell, on Wednesday. “This is not a cost play; it is a value play in India.”

He said the firm is in talks with start-ups in the country to explore partnerships and outsourcing works. The firm looks at moving more work to its centres in India, a trend that is being witnessed by several multinational firms that have cut down outsourcing to third-party vendors and instead set up their own captive centres.

With this, they can retain proprietary technology work within in its organisation while benefiting from low-cost labour base in India.

Recalling the initial plan to base Shell’s IT centre in India was discussed during end-2013, Yasmine Hilton, chairman of Shell Companies in India, said it got approval in July 2014 before the dip in oil prices and that it was a strategic long-term move in India.

“If you look at the pipeline of the IT talent beyond 2020 and 2030, there are very few choices beyond India.”

Shell did not specify investment numbers or financial details citing the silent period ahead of its quarterly results.