Developing information technology services in India

Information Technology (IT) service companies such as Capgemini went through a difficult patch after the Internet bubble burst and prices subsequently collapsed. Gilles Taldu was recruited by Capgemini because of his industrial experience in improving productivity and production relocation. He implemented a strategy based on two principles : ‘distributed delivery’ (distributing production between front and back office sites), and ‘rightshore’ (finding the optimal location for production teams in order to meet client needs). Capgemini subsidiaries have been established in various countries, but it is the Indian subsidiary which is the leader in this development, with a year-on-year increase of 80 % in employee numbers over the past three years. Today, the Capgemini management intends to change this so that the Indian employees are no longer regarded simply as subcontractors, but can take full advantage of the potential synergies between the Indian and Western teams.