Closing of IT Captive centres amid COVID-19 crisis
In the wake of the Covid-19 pandemic, businesses across the globe are more likely to shut-down or carve-out their small IT captives. Captive IT centres, that are facing cannibalization due to a surge in IT outsourcing will be primary targets for companies to carve-out.
Tata Consultancy Services (TCS) acquired Citibank’s captive for $505M and Cognizant bought UBS’ India in-house center for $75M. Technology service providers are proactively identifying such smaller captives to win these carve-out deals.