“I don’t see a dramatic change in the growth of captives, but I see investments will continue to happen. We have a strong captive and we don’t see any shift in that strategy. The outsourcing trend is expected to continue to grow in India,” says Shrinath Bolloju, MD and COO India, Deutsche Bank.

Nasscom president Som Mittal says, “Captives will increase their investment here. We always think that it is the US which outsources. But for global companies like JP Morgan and General Electric, the decision-making, though done in the US, would be for work for Asia Pacific or China here.”

Though, at the same time, there is also a move by certain captives to exit from the operations in the process monetising the situation. “Some nine captives are planning to exit and some of them have already exited this year,” said Siddharth Pai, partner, TPI. He felt that many more European firms would now look at setting up their captives in India. Recently, Citi hived off its captive centre in India with the BPO part being bought over by TCS and the IT services taken over by Wipro. Similarly, Aviva sold its BPO unit to WNS.

The recent statement by US President Barack Obama ending the tax incentives on the overseas income of US corporations has seen some of the industry players predicting further exits of captives from India. According to Partha De Sarkar, CEO, Hinduja Global Solutions, more number of captives would exit from their operations in India if this regulation comes into effect.