 "GE to partner IT firms for core business, too")
GE, which has opened its largest digital hub in Bengaluru, said it would work with Indian information technology service providers who would be a partner in delivering outcomes rather than just being an outsourcing shop.
At the same time, the global manufacturing behemoth that is transforming itself as a digital industrial company and has built its own Predix-based software and solutions, is engaging Indian firms such as Tata Consultancy Services, Wipro and Tech Mahindra as system integrators to deliver solutions for its customers.
“Traditional IT services players or partners who came in just to outsource work are not interesting to CIOs anymore. What I want is to have a partner come in and say ‘Hey Jim, I understand you have got a problem let’s talk about it’,” said James R Fowler, vice-president and chief information officer at GE, in an interview.
In Bengaluru, the firm has 1,500 professionals who will work on solutions for customers, which GE wants to expand by another 1,000 in the coming months.
GE, among the global pioneers to outsource software and back-office work to companies in India for two decades, has been taking back work in-house over the past year or so, realising that some of its core functions are being handled not by its team but vendors. This pull-back has also improved productivity by a factor of three, says Fowler, who sees partnerships with vendors or start-ups would be delivering outcomes than just cutting costs.
Early this month, GE partnered with Reliance Industries to use its Predix platform to improve process and streamline operations, which the Indian industrial giant will also take it to other global customers as a service.
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“They are interested in working with other companies ….you might have 10 different products…So, we think there is a symbiotic relationships with a couple of key partners we will allow them to build solutions (on Predix) which they can take it to their customers,” says Fowler.
Early this month, GE had acquired services firm ServiceMax for $915 million that will help implement and provide services for its industrial internet products. At the same time, it would continue to work with Indian players to partner and implement its solutions.
“We have already signed up with 250 partners across the world. Many of them are system integrators who are working and doing heavy lifting and connecting the enterprise data. We are heavily reliant on a lot of local players like TCS, Wipro or Tech Mahindra which we go to market with a lot of our customers and share the best practices. I think there is a role for them,” said Fowler.