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Diageo opts for additional services centre in Bangalore

Drinks maker Diageo is increasing its footprint in India with a new business services centre in the city of Bangalore.

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Drinks maker Diageo is increasing its operations in Bangalore through a new business services centre that will eventually provide data analytics and business intelligence expertise to the company.

The Diageo Business Services India (DBSI) centre, as it is known, will initially provide finance and accounting services to the company globally but, after professionals in other areas such as business intelligence and analytics are added, it is expected to have 1000 staff by the end of 2017

Tracey Barnes, managing director at DBSI said Diageo wants to grow in an environment where “the best of the company globally meets the best of India”. She also said the company wants the centre to have an “equal balance of female and male employees.”

The creation of centers in India, by multinational companies reflects the strategic view of the opportunities the country offers. Diageo’s announcement is further evidence of this trend.

Over the past decade Bangalore, for example, has seen an enormous inflow in captive centres for research and development and corporate services from across sectors. Today there is a diverse talent pool in the city and other Indian cities, such as Pune and Hyberabad, which attracts multinationals.

For example last month Dutch sat nav maker TomTom opened a global innovation hub in Pune, which will be accessible to all 1000 India-based staff by the end of this year. Through the centre TomTom hopes to stimulate innovation through information sharing and supporting staff in turning ideas into products and services.

A month earlier, German car parts maker ZF Group opened a technology centre in Hyderabad, focused on software and mechanical engineering. It will be fully operational by January 2017 and is expected to have a work force of 2,500 engineers by 2020.

Peter Schumacher, CEO at management consultancy The Value Leadership Group, said while US-based companies started this trend, European firms are increasingly expanding in India, including "many with a heightened sense of urgency."

"Aside from addressing increasing cost pressure, their agenda is focused on taping into the enormous talent and innovation opportunities available in Bangalore for example, which has become one of the world's largest and most vibrant eco-systems for knowledge-based work," added Schumacher.

Read more about global delivery in India

Oil giant Shell is the latest large business to announce plans to insource its IT operations at a delivery centre in Bangalore, India.

Apple announces it will open a development centre in one of India's fastest growing technology hubs, in the city of Hyderabad.

Technological development and changing model for offshore business services and IT could threaten India’s dominance.

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