Continued from Page 1
The MNC IDCs: Ramping Up
Dataquest has been doing an estimation of the size of the India-based
software development centers or subsidiaries of MNC companies for the last two
years. Though most of these work as cost centers, the revenues attributed to
them are either reported revenues by the IDCs themselves (based on internal
billing to their parents) or a DQ-estimated "development cost" based
on developer numbers.
We now estimate that the MNC centers account for about Rs 6,684 crore in
revenues, or about 19% of total software services exports. As a proportion, this
is marginally down from 2001-02, largely because while MNCs did hire, they didn’t
quite keep pace with the sheer numbers that Indian services companies added to
their rolls in 2002-03. The MNC captive centers now employ just over 40,000
people. This is up from Rs 5,982 crore in revenues in the previous year and
about 33,000 developers.
MNC development centers have been ramping up their presence in India over the
past few years as the concept of offshoring has become more and more acceptable.
Some like IBM and CSC offer the same kind of services that Indian companies like
TCS, Infosys and Wipro do. Others like Texas Instruments, Intel, Cisco, Lucent
and Philips do more cutting-edge IP and engineering work.
Fiscal 2003 saw many of these ramp up their presence in India, and among the
top 10 alone, hiring was up from anywhere between 8% at Oracle to over 51% at
IBM Global Services.
- DQ estimates based on development costs of Rs 15 lakh per developer
- Development costs include salaries, plus overheads, infrastructure and
development expenses
| 
