complex software projects.
The global delivery model innovation has quickly become an industry
best practice among all global IT services companies as well as enterprises. Large enterprises have anchored
on the global delivery model to set up
their own IT and R&D centers in India
to drive IT and product innovation.
Today, over 500 global companies
have their second largest development centers based in India. Not just
American and European countries,
but also companies from Asian locations including China, Indonesia,
South Korea, and Japan have established a presence in India. Companies such as IBM and Accenture have
increased their headcounts to around
100,000 in India, due to their ability to
use a global delivery model to execute
complex projects for customers.
Global innovation and digital
transformation. Large global companies have realized the capability
of Indian talent and started focusing
on driving core innovation from the
country. In fact, several companies
have started filling global patents for
ideas that were conceptualized and
productized from their India centers.
Between 2015 and 2018, more than
4,300 patents were filed by India-based
companies/offices in the U.S. Patent
and Trademark Office. Companies
have also expanded the roles at their
India centers to include product management, customer success, sales, and
marketing. Some companies, including Cisco and Samsung, consider their
India centers as second headquarters.
Also, India is rapidly rising as a hub of
global Centers of Excellence (COEs)
for modern technologies such as artificial intelligence/machine learning,
Internet of Things, robotic process
automation, and others.
The Indian software industry was
quick to realize the changing needs
of customers and started supporting
global digital transformation initiatives of several legacy companies in
the retail, manufacturing, energy, and
The large Indian IT companies
are now multinationals in their own
right—the top companies operate in
over 50 countries, where they have
substantial offices. Many have significant development centers in other
Rising from a position where it was
almost impossible for a poor and impoverished country like India to create
capabilities around software technology, India has emerged as a software
powerhouse serving the world.
The IT sector has helped global corporations optimize their cost, improve
quality, create jobs and capabilities
worldwide, and drive global business
models and technology innovations.
Cost optimization and quality.
India’s high quality and relatively lower
cost engineering, IT, and BPM talent
has helped corporations gain huge
cost savings that have allowed them to
increase their shareholder returns and
invest in growth and transformational
initiatives. Assuming a cost difference of over 50% between developed
locations and India, the Indian IT
industry has helped global enterprises
save over US$500 billion in the last five
It was important for the Indian IT
companies to ensure that they could
deliver high quality software. In fact,
they were among the first to adopt the
software development process standard called Capability Maturity Model
(CMM), launched by the Software
Engineering Institute at Carnegie
Mellon University in 1987. By 1998,
half of all global companies assessed
at CMM level 4 or 5 were from India.
Companies from across the world,
and even countries wanting to develop their own ITsectors, turned to India’s experience of rigorous software
development process and the use of
quantitative techniques to manage
them. Indian companies shared what
they learned at software-related conferences, workshops, seminars, and
so forth. Delegations from various
countries visited India to learn from
its experiences, and case studies were
also developed. There were books like
CMM in Practice (Addison-Wesley,
2000), and Software Project Management in Practice, (Addison-Wesley,
2002), which were translated into
other languages including Chinese,
Japanese, Korean, and French.
Global delivery model. Riding on its
CMM capabilities, Indian IT companies have pioneered the global delivery
model where distributed teams can
seamlessly work together to deliver
IT sector is in
a unique position
to lead global
the next decade.