French IT major Capgemini in a bid to achieve scale in the India market aims to increase its focus on the public sector vertical. It is also seeing an opportunity for growth with the rise of Global Capability Centres (GCCs) in the region, said Ananth Chandramouli, Managing Director, India Business Unit, Capgemini.
Public sector in India is increasingly embracing technology, with procurement processes becoming more transparent and players taking more accountability of the programme. “We need to take certain calculated bets on where the volume is — public sector, where we are not there yet, but will eventually get towards, as there is a lot of professionalism coming in the vertical, with companies getting listed,” Chandramouli said.
Room for growth
Capgemini is also seeing opportunity for growth in India’s growing GCC market, even as the industry at large has been on a constant discourse over the effect of GCCs on IT service providers. The French major said that there is headroom for growth as multiple firms in Europe, its strongest market, are yet to set up GCCs in India and the company can co-host them in the region.
Chandramouli said, “GCCs are not cannibalising our offshore revenues, the pie is actually getting enlarged. Even if we end up losing 20 of 100 clients, we will still have 80 new clients, who I have not worked with in the headquarters, and could start working from here. GCCs are becoming an integral part, although not all of them are at the same maturity level, it is a continuum and provides another entry point for us into the enterprise.”
Commenting on the demand environment, Chandramouli said some tightness was seen towards the end of 2023, but the company expects demand to rebound post second quarter of 2024. The improvement will put the company in a good position for FY25. Capgemini anticipates for the Technology, Media and Telecommunications (TMT), and Financial Services verticals to rebound in 2024.