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In today’s newsletter:

• Sam Altman not final word on AI, says Rajeev Chandrasekhar 
• Captives give Indian IT run for their money
• PhonePe dominates utility bill payments

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OpenAI CEO Sam Altman may have left India, but the dust has yet to settle around the Silicon Valley mogul's visit.

Union Minister Rajeev Chandrasekhar has said that Altman is not the last word on India's artificial intelligence aspirations, and that they could disagree in many areas.

• This came after Altman commented that it was "hopeless" for an Indian startup with $10 million to try and build a foundational large language model of AI

• Tech Mahindra CEO CP Gurnani also waded into the controversy, declaring a challenge to build such a model

Over the weekend, Altman, however, clarified that his remark was taken out of context, and he meant that $10 million was too small an amount for such an endeavour.

In an exclusive interview with us,  Chandrasekhar said that Prime Minister Narendra Modi aims to achieve in 10 years what China accomplished in 30 years in electronics manufacturing.

• He also said that apart from large multinational companies like Dell and HP, small domestic companies are also showing interest in participating in a new incentive scheme for tech hardware

Meanwhile, at the Global DPI Summit today, Chandrasekhar said that India is working on creating multiple frameworks for a global standard cyber law, as part of ongoing deliberations with G20 countries.

• This comes at a time when cybercrime is on the rise, and territorial and jurisdictional problems have emerged in existing laws that deal with such crimes

IT services have always been the crown jewel when it comes to hiring, as these companies hired the maximum number of people, particularly from campuses. But that is no longer the case.

As their fortunes have turned, it is now the time for global capability centres (GCCs), also known as captives, to shine.

There are 1,580 GCCs in India, according to a recent Nasscom report. However, some estimates peg this number to be as high as 1,700. 

• Nasscom expects this number to cross 2,000 by 2026-2027. However, that milestone may be reached even earlier

There are several factors that have contributed to the recent surge in companies seeking to set up captives in India, but one of the main reasons is the abundant talent available in the country.

• Given their pace of growth, GCCs could even be adding more net headcount than traditional IT companies this year
  
  
• India offers GCCs the right skillsets, as the captives act as core technology hubs for their HQs

The numbers reflect this trend. Nasscom says that 16 lakh people are currently working in captives, a number that is expected to increase significantly. 

• Meanwhile, EY expects 45 lakh people to be working in captives by 2030

Cost was one of the main factors that previously attracted captives to set up shop in India, industry stakeholders say. However, this is no longer the case.

Why?

• They say that talent access, market potential, regulatory changes, and neutrality from a geopolitical perspective have all helped.

Additionally, GCCs in India have evolved, and they have the right leaders in the country to build and lead these centres.

Go deeper

In the realm of the Bharat Bill Payment System (BBPS) platform, PhonePe emerges as the dominant player, commanding a 46% market share in terms of the number of bills paid. Meanwhile, Google Pay and Paytm trail behind as distant second and third, respectively.

• BBPS is a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), which also runs the popular mobile payments technology, Unified Payments Interface (UPI).

The number of bills paid on the BBPS platform has tripled in the last two years, from May 2021 to May 2023. 

• The value of the bills paid has increased by nearly four times during the same period

The growth of online bill payments is closely correlated with the growth of UPI apps, which have become the default platforms for customers to pay their utility bills.

Before BBPS, only 20% of utility bills were paid online. Today, that number has increased to 70%. 

BBPS is now looking to enter the enterprise utility bill payments space, which is currently done through RTGS and NEFT. While the volume of bills in this segment is lower, at around 12-15%, the value of these bills is much higher, at around 35%.

Go deeper

On June 12, 1979, the Gossamer Albatross, piloted by Bryan Allen, achieved a remarkable feat as the first human-powered aircraft to successfully fly across the English Channel. 

The aircraft, designed by Dr Paul MacCready, completed the flight in 2 hours and 49 minutes, covering a distance of 36.2 kilometres between Folkestone, England, and Cap Gris Nez, France.

• Andreessen Horowitz, a major crypto investor, is set to open its first international office in London. The office will be led by Sriram Krishnan and is set to open later this year.

• Hong Kong is enticing crypto industry players amidst increased regulatory scrutiny in the US. Legislative Council member Johnny Ng urged Coinbase and other global virtual asset trading operators to obtain operating licenses in the region.

In a groundbreaking scientific breakthrough, the realm of robotics has reached an astonishing milestone: the birth of a robot that sweats, shivers, walks, and even breathes.

Introducing ANDI, a "thermal mannequin" developed by Thermetrics and Arizona State University. 

The robot has been developed to explore the profound effects of heat and extreme temperatures on the human body. It is equipped with an intricate network of 35 autonomously-controlled surfaces that mimic the pores found in our own skin.

Find out more

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