Innovation transform captive services space

While cost and labour arbitrage had driven the captive services in the last decade, innovation and value addition-driven allied services such as HR, marketing, Finance and accounting (F&A) etc have been gradually moving to the country, the study by management consulting firm Zinnov has found.

“Disruptive technologies would decide the way business would operate, which obviously make India the choice for several non-technology firms looking to outsource their operations,” said Zinnov’s director for market expansion Karthik Anand.

According to the study, India has most number of shared services centres in the world. Hundred and fifteen companies out of global 2,000 companies have set up their captive centres here for sourcing IT and ITES in addition to others who source R&D and software development.

It was revealed 73 of them are global 500 companies. The study says Retail and Healthcare (Providers/Drugs/Bio-Tech/Pharma) are likely to be the areas where global companies would come to India for captive services.