EPAM Systems' AI-Driven Growth in India's GCC Landscape

EPAM Systems, a NYSE-listed digital engineering company, is experiencing significant growth from its global capability centers (GCCs) in India. The company is focusing heavily on leveraging technology solutions, particularly in the areas of data and cloud, to support the increasing number of GCCs in the country.

• EPAM's India operations contribute significantly to its overall business, with about half of its revenue coming from GCCs.
• The company offers high-end engineering and cloud-native services to clients, who are willing to pay a premium for these specialized capabilities.

India's Thriving GCC Ecosystem

The number of GCCs established in India has surged to 1,700 in fiscal year 2024, resulting in $64.6 billion in export revenue and employing over 1.9 million people. This robust growth presents a substantial business opportunity for IT firms like EPAM.

• EPAM plays a crucial role in supporting GCCs by helping them adopt AI and other emerging technologies.
• The company enables GCCs to keep pace with the dynamic business environment while maintaining quality standards.

EPAM's India Talent Pool

India serves as a key talent hub for EPAM Systems, with approximately 9,000 engineers based in the country out of a total workforce of 50,000.

• EPAM is actively expanding its workforce in India, aiming to reach 10,000 engineers in the next few months and 15,000 in the coming years.
• The company faces strong demand for its services in India, leading to a slight supply constraint in the current market.

Harnessing AI and Generative AI

EPAM is utilizing artificial intelligence (AI) and generative AI (GenAI) to assist clients in their product and engineering roadmaps. The company's upskilling programs equip engineers with the knowledge and skills to effectively leverage AI tools like ChatGPT and Copilot.

• Over 4,000 EPAM engineers in India have received training in prompt foundation for AI applications.
• More than 2,500 engineers have acquired skills in AI-integrated SDLC (Software Development Life Cycle).
• Over 1,000 engineers are actively engaged in AI-related projects.

Expansion Plans

EPAM currently operates from five major cities in India: Hyderabad, Pune, Bengaluru, Gurugram, and Chennai.

• The company is exploring opportunities to expand its operations to tier-2 cities in the near future.

EPAM's Financial Performance

EPAM Systems, listed on the NYSE, reported revenues of US$4.7 billion in FY23, experiencing a slight decline of 2.8% from the previous year.

• The company's revenue decrease can be attributed to an uncertain economic environment and disruptions caused by the war in Ukraine and the exit from operations in Russia.