Deloitte’s focus on Bharat pivots its India strategy, bets on space, semi-conductors

Deloitte is hiring aggressively, about 1000 people a month. It is also focusing on new, cutting-edge sectors like semi-conductors, space, agri-tech. Interestingly, this traditionally big city-focused firm is expanding its offices to tier 2 and tier 3 cities.

It’s not everyday that one is greeted by a smiling robot on walking into an office. At an innovation centre spanning 19,000 sq ft set up by Deloitte in Bengaluru, a robot, named Omega, with a wide smile greets you and asks you to pick your destination in the centre and offers to be your guide through the innovations that Deloitte is building or testing here.

The innovation centre is part of Deloitte’s larger strategy in India –“the thought process is to build something world class,” says Romal Shetty, CEO, Deloitte South Asia.

Shetty has worked across forty countries and has chosen to make Bengaluru, Deloitte’s hub for driving innovation for the firm. The innovation will be made in India for the world, he tells Moneycontrol in an exclusive interview.

“Bangalore has real cosmopolitan talent, not only from India but from the world..in the past India was doing for India. But now what’s changed is that a lot of transformation work is being driven by India for the firm.”

THE BHARAT EFFECT

India has always been a significant market for Deloitte. It is the fastest- growing member firm for Deloitte worldwide with a growth of over 30 percent. The company is hiring aggressively, about 1000 people a month. It is also focusing on new, cutting-edge sectors like semi-conductors, space, agri-tech. Interestingly, this traditionally big city-focused firm is expanding its offices to tier 2 and tier 3 cities.

“Traditionally we have been largely in Kolkata, Delhi, Mumbai, Bangalore, Chennai. That has changed now dramatically, 20-25 per cent of hiring is coming from tier 2, 3 cities. There are large centres now in Coimbatore, Bhubhaneswar, Lucknow, Jaipur. The mix has changed dramatically,” says Shetty.

There is a change also in the kind of people the firm is hiring, besides the MBAs from top schools, the company is shifting its focus to young Indians from smaller towns and cities. “They come with a fire in their belly to get things done,” says Shetty. There is also now emphasis on hiring more engineers to cater to a varied client base.

The India model for Deloitte also includes services for clients from the government sector and medium and small businesses. Deloitte is working with the UP government on its goals of increasing farm productivity and becoming a one trillion dollar economy. Deloitte also worked with Haryana government to reduce stubble burning. For MSMEs, their solutions typically include greater integration of technology to bring in efficiencies and cost rationalisation.

“Tier 2 and 3 is an important part of our strategy because that’s where the next round of growth will come from. In India to succeed, scale is important and that will come from going to Tier 2 and Tier 3 cities.”

AI, INDIA AND JOBS

As Shetty showcases the innovations that are being driven out of India-whether it’s smart cart, or AI-enabled jewellery design, or contact-free shopping experience or an automatically operated forklift or use of AI in manufacturing processes, it becomes apparent that innovations necessarily mean reduced human interface. Jobs that have traditionally been done by humans will be automated. When asked about the impact of such innovations on employment, especially in a country like India with its massive demographic dividend-he adds: “With AI normal nature of jobs will be lost. Tedious jobs will be lost but other jobs will be created. People will have to re-skill”.

AI’s impact will be all pervasive from content creation to manufacturing, it will bring in cost and time efficiencies and create other kind of jobs.

“AI, Gen AI is among my top five pillars. Semi-conductors and space are other sectors, the benefits of India Stack are enormous..we have barely scratched the surface there.”

On the first 100-day agenda of the new government, while many have said that this is India’s moment not all businesses are looking at moving to India as they explore other destinations besides China. “For India to be in top ten, ease of doing business important. Land acquisition, plug and play, enforceability of contracts are crucial.”

“Government should not be in the business of running businesses,” Shetty adds as he walks over to Omega with a command.

Watch the entire interview and walkthrough at the innovation centre here: