The National Association of Software and Services Companies, NASSCOM has released a report titled 'The Captive Landscape in India' in association with Zinnov Consulting. The release pegs the size of the captives sector at USD 11.1 billion, almost 22 per cent of total IT-BPO industry export revenues.
At the launch of the report, Som Mittal, President, NASSCOM said, "Texas Instruments set up the first captive centre and completes 25 years in India. Through this journey, captives have followed an evolution path with different business models, service delivery and leveraging India as an innovation hub for emerging economies."
"Global companies have leveraged value through either monetising these centres or building domain skills, enhancing service delivery through 24x7 operations and faster time to market. However, going forward, it would be important for the parent companies to empower the local management, not only to derive full value, but also to ensure that the captive can exercise sufficient flexibility when required," Mittal said.
The report suggests that global processes must be localised giving more decision making capability to the centre while maintaining global practices. The report also talks about how these captives have been gradually upgrading the value they add to their global businesses while emerging as value players with robust processes and controls.
Best in class captives have 11% higher productivity than parent organisations, provide 100% saving, have minimal attrition and create non linear growth through an innovation friendly environment that encourages reverse innovation, development of IP and platform products. More captives need to adopt these practices for sustainable growth and competitiveness going forward.
Going forward, captives will continue to grow and expand into newer service offerings, engage in M&A activities to acquire capabilities in India along with increased monetisation as they achieve the business goals set by parent organisations.
There will be emergence of new decision making models that continue to drive faster time to market, penetration into new and emerging markets, as the global businesses focus on transformation in their worldwide operations.
Updated Date: Feb 02, 2017 22:39:57 IST