Aim to have workforce of 500-700 at each tier 2, 3 center: GlobalLogic's Piyush Jha

Product engineering firm GlobalLogic is adopting a hub-and-spoke model to establish itself in more tier-2, and -3 cities in India, said managing director, and head of India and APAC operations, Piyush Jha. The firm is present in ten locations, including cities like Bengaluru, Chennai, Hyderabad, Noida, Gurugram, Mahabubnagar, and Nagpur, among others. 

“This year, we began operations in Mahabubnagar, located approximately 100 km from Hyderabad. We are also actively working from Ahmedabad and expanding our office in Nagpur. Our focus is on investing in Tier 2 and Tier 3 cities to enable talent to thrive locally without the need to migrate to major urban hubs,” said Jha at a media roundtable in Bengaluru on Thursday. The Hitachi company currently has close to 16,000 employees in the country. 

About 90% of the workforce at the spoke centers are local talent, which according to Jha has helped in reducing attrition at the company. In some cases, GlobalLogic has acquired talent through M&A deals. For example, GlobalLogic’s 2023 acquisition of automation firm Katzion helped in building its team at Kochi. Jha says that talent building through acquisition will continue to be a strategy for the firm. 

“Our goal is to grow each of these regional hubs to a workforce of 500-700. We are actively pursuing mergers and acquisitions, having completed two this year, with several more under discussion. Our focus is on opportunities that align with or complement our expertise. While we have a strong foundation in digital skills, we are keen on acquiring deep domain knowledge to enhance our offerings in key sectors such as automotive, medtech, and BFSI,” he said.

Further, GlobalLogic is working with several GCCs, providing them with end-to-end product engineering-related consulting. The boom in the Indian GCC landscape has benefited the company too, with its GCC clientele growing from 23 two years back to 45 now. Jha said that GCCs benefit from product engineering expertise and proprietary innovation. 

“India's success in establishing and operating GCCs is crucial in driving innovation and economic growth given the opportunities and the evolving ecosystem. We have actively partnered in this effort, clearly exemplified by the 60% growth for us over the last year in the GCC space.”