AI Boosts India Centers: More In-House Work for Global Firms

Global companies are increasingly bringing core functions in-house at their India centers, driven by AI's productivity gains. This trend represents a significant shift in how multinationals leverage their India operations, moving from basic support to owning critical areas such as engineering, product development, and analytics. Daimler Truck, for example, is internalizing the development of crucial software and algorithms to maintain a competitive edge.

Companies like Target already rely heavily on internal tech teams, with external partners primarily offering flexibility. IBM notes that automation allows them to achieve more with existing staff. Novo Nordisk's India center is also playing a larger role in global drug launches, demonstrating the growing importance of these hubs. Workday's Indian teams are increasingly responsible for end-to-end product delivery, moving away from fragmented outsourcing models.

Investments in in-house talent are rising across the board. While outsourcing will continue, the focus is shifting. Vendors are now more frequently engaged for specialized skills or faster execution, with strategic ownership remaining internal. AI is a key enabler, allowing firms to do significantly more with the same workforce, emphasizing speed, control, and integration.