There's a renewed focus on GCCs with tech emphasis: KPMG India CEO

This report has been updated

KPMG is ramping up its capacity by about 20 per cent annually, focusing on its technology division while also reviewing the effectiveness of its well-being policies, says YEZDI NAGPOREWALLA, chief executive officer of KPMG India, in an interview with Ruchika Chitravanshi in New Delhi. Edited excerpts:

Your latest study on the technology, media and telecommunications (TMT) sector highlighted the rapid adoption of artificial intelligence (AI). Can you share some insights?

We interviewed over 120 chief experience officers (CXOs), including chief technology officers, chief information officers, and chief digital officers within the TMT industry. There has been considerable discussion around AI, with nearly 55 per cent of the executives we spoke to demonstrating a high level of maturity in this area. Around 5 per cent reported seeing some returns from AI. AI is now more central to discussions than a few years ago.

Do you see employment growth being negatively impacted by AI?

There will always be a human interface. AI will be more effective with humans who know AI. So, there will be elements of both learning and unlearning.

KPMG had started working with the government on AI adoption. What are the areas you are involved in?

It’s largely centred on Bhashini — the language translation mission where we are leveraging more than 300 AI models. The goal is to provide interoperability across 22 Indian languages. We are collaborating with sectors such as agriculture and water policy, along with tourism ministries and the Department for Promotion of Industry and Internal Trade. We’re also involved in various missions, including Swachh Bharat, Jal Jeevan, and Startup India.

What are the key growth areas for you in India?

For us, it’s all about technology. There is a renewed focus on global capability centres, with particular emphasis on technology and risk advisory.

Are you ramping up your capacities?

Most of our hiring is happening within advisory, especially in technology. Currently, we have 22,000 employees, and we are increasing that by 15-20 per cent each year, with most of the growth occurring in the technology space.

The recent death of a 26-year-old chartered accountant, allegedly due to work pressure, has brought a lot of focus on work-life balance. How has KPMG responded to this?

We have a multi-generational workforce, with over 50 per cent being Generation Z, who place significant emphasis on work-life balance. Therefore, well-being is integral to our people strategy. As a firm, we are committed to creating an environment where every employee can thrive.

We have a multifaceted council that is currently assessing the effectiveness of all our well-being initiatives and will make recommendations if we have to do things differently.

What is the progress on Project Himalaya, which aims to establish a unified delivery capability for the US, the UK, and India?

Project Himalaya is on track and heading in the right direction. We are seeing momentum, and as we optimise its structure, we expect things to move even faster.

Will it change your position in the pecking order of the Big Four?

It will bring us closer to our clients, providing the leverage we need. It will make us more relevant within our network.

The National Financial Reporting Authority (NFRA) wants to introduce the revised International Standard on Auditing 600 in India. What do you think?

We believe that aligning with global standards is a step in the right direction for audit quality. Any changes should allow for adequate education and a smooth transition for the audit profession.

NFRA made several suggestions after its first inspection, and its second report will be out soon. What changes have you made based on their first report?

We implemented all the suggestions made by NFRA, including the recommendation to separate non-audit work.

Do you have any suggestions for the government as it pursues the path to making India a developed country by 2047?

Healthcare and education are equally important areas that we should not overlook. The foundation laid by the Swachh Bharat Mission is critical to a future where sanitation, hygiene, sustainability, and circularity play pivotal roles in our development. We continue to provide our suggestions to government authorities on an ongoing basis to help make an impact.

How concerned are you about geopolitical factors, including the West Asia crisis, affecting growth in India?

Geopolitical risk is perhaps the single largest concern for global CXOs. If tensions in West Asia escalate, it could impact India as well, especially because we depend on imported oil, some of which comes from those routes. The government is fully seized of this issue.