Capgemini expansion boosts Indian outsourcing industry

Outsourcing firm Capgemini will soon have more staff in India than in its home country of France

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Outsourcing

Outsourcing firm Capgemini will soon have more staff in India than in its home country of France with the opening of a new business information unit in Bangalore.

The new unit is expected to boost Capgemini's staff in India to more than 21,000, at least 1,000 more than its headcount in France.

Capgemini said it chose Bangalore because of the abundant application and technical skills in information management in the region.

The move is an indication of the growing power of India in the outsourcing industry, according to the Financial Times.

Capgemini's investment also shows that India's computer services and business process outsourcing industry is recovering from losses due to the global economic downturn.

Accenture and controversially IBM are following a similar course of increasing their workforces in India to take advantage of the good supply of relatively low-cost IT skills.

Capgemini plans to start with a workforce of 1,000 for the new Bangalore unit, increasing to around 3,000 in 18 months.

The firm is aiming at establishing a business information management centre of excellence to help companies to improve their collection, use and analysis of data.

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