Insourcing - move over outsourcing

Fortune 500 companies are creating Global In-house Centers (GIC) in India.

Area - Engineering, R&D, BPM & IT

1150 MNCs have set up centers in India employing 8 lac people.

Technologies - Big data & Analytics, mobility, AI, Machine learning, Internet of Things, Blockchain, Robotics

GIC capital - Bengaluru -

Why? Due to academic & research institute such as IISc, defense research arm, Texas Instruments first set R&D center here in 1985 after that several corporations followed & today its known as silicon valley of India or Tech capital of India.

Few e.g. -

  1. In Financial Services industry - Wells Fargo, Goldman Sachs, JP Morgan have set up Tech arms in Bengaluru for digitalization

  2. In Retail - Walmart, Lowe's, Victoria's Secret, Saks Fifth avenue, Ann Taylor set up centers providing insight & foresight on what customer is going to buy. Walmart's analytics system that ensures Walmart always has lowest price is built here in India.

  3. In Aircraft industry - GE, Honeywell, Airbus, Boeing - to design efficient, bigger & faster aircraft, build better flight simulation systems.

  4. Automobile software platforms for Mercedes, Fiat Chrysler, GM, Volkswagen, Hyundai, Tata Motors are built in India.

  5. Philips Healthcare - Does Big data analysis to determine patient's probability of readmission.

Why Insourcing?

  1. To retain intellectual property

  2. 20% cost benefit (instead of 1000 people which outsourcing companies like TCS, Infy, Wipro keep, the GIC can get things done in 600 people)

  3. 30-50% productivity improvement (outsourcing companies hire freshers from Tier 3 institutes while GICs hire high quality resources)

  4. In GIC, people are passionate & driven by mission to do a job instead of a project.