Global firms' captive IT units in India gain importance

Cost advantages, expertise main reasons for surge in offshore presence

At a time when the Indian information technology services industry is the focus of anti-outsourcing rhetoric, the global in-house centres (GICs) or captive units of multinational companies are increasing their offshore penetration. According to a survey by McKinsey & Co and Nasscom, 52 per cent of companies with captives in India intend to increase their offshore penetration by 15-30 per cent over the next two to three years. This is also evident in the growth of captive units and their contribution to India exports. GICs revenues across categories — engineering research and ...