PUNE: Global financial services providers are moving more core technology development work inhouse, making India captive centres increasingly important in their business plans.
More than 78 global banking and financial services companies, including Goldman Sachs, Deutsche Bank, JP Morgan and Standard Chartered, have set up captive units here that employ a combined 250,000 people, according to industry consultancy Zinnov.
Earlier this month, former SAP Labs India head Dilipkumar Khandelwal was appointed head of Deutsche Bank’s technology centres, the first time the bank has created a technology position that reports directly to the global board.
“(Global) banks are focusing on strengthening their engineering culture, so much so that in the past few years, we have seen the percentage of their application development teams going up drastically. They are now hiring engineers, data scientists, designers and blockchain experts in large numbers,” he said. “Moreover, these experts are being embedded into business teams and are playing key roles in customer acquisition and servicing.”
New York-based investment firm BNY Mellon has two technology centres in India, which are critical to its ongoing digitisation effort.
“BNY Mellon relies on the expertise of our people to develop our core IP, rather than outsourcing it to external vendors. That’s the trend that I see the industry is moving towards, and it allows us to keep that knowledge in-house,” Nitin Chandel, MD and head of technology for BNY Mellon in India recently told ET. Indian IT firms have seen global clients take back outsourced work to own centres as they see technology impacting their business. Global firms also want to keep data of customers in-house, since they view it as central to their business strategy.