India is no longer an offshore centre, it’s an innovation centre: Pankaj Vyas, Siemens Technology and Services 

In an exclusive interaction with Express Computer, Pankaj Vyas, CEO and Managing Director, Siemens Technology and Services Pvt. Ltd. (STSPL), reflects on India’s growing stature as a global digital engineering hub. Vyas discusses the strategic evolution of STSPL, from a traditional support centre to a key driver of Siemens’ global digitalisation journey, and the broader trends shaping Global Capability Centres (GCCs) in India. He shares insights on emerging technologies, talent transformation, collaborative innovation, and how GCCs are redefining workplace culture and leadership.

In the past five to six years, we have seen a significant increase in the number of GCCs establishing operations in India. Currently, there are over 1,500 GCCs employing more than 1.5 million professionals. What are the key driving forces behind this surge? What factors make India an attractive destination for GCCs?

There are a few clear reasons driving the surge in GCCs setting up operations in India. First is the sheer availability of talent at scale. With over 2 million English-speaking STEM graduates coming out every year, India offers a talent pool that no other country can match. Yes, there’s a spectrum when it comes to industry readiness, but the numbers and potential are unparalleled.

Second is the agility and ability to learn that Indian professionals bring to the table. Many GCCs—including ours at SDSPL, which has been around for 25 years—have evolved significantly in the kind of work they do. This evolution demands continuous learning, upskilling, unlearning, and relearning, and the workforce here has consistently stepped up to that.

Third, the overall ecosystem—academia, government, and industry—has matured in a way that supports and accelerates this growth. And finally, the resilience shown by leadership in India’s tech industry through challenges like Y2K, the 2008 financial crisis, and most recently, the COVID-19 pandemic, has proven our capability to navigate disruption effectively. All of these factors together make India a very attractive destination for GCCs.

Could you provide an overview of the journey of Siemens Technology and Services within the global ecosystem? What role does it currently play, and how does it fit into Siemens’ broader international operations?

We’ve been around for 25 years—STSPL started like many other GCCs, as a cost and capability experiment. But over the past five to seven years, our role has significantly evolved, especially with Siemens’ increasing focus on digitalisation.

Siemens operates across three key verticals: Digital Industries (which includes factory and process automation), Smart Infrastructure (including building and electrification infrastructure), and Mobility (mainly rail infrastructure and rolling stock). Each of these areas is now racing to integrate cutting-edge digital technologies—AI, edge, cloud—as Siemens transforms from a closed to an open systems company. The aim is to connect systems to the cloud, extract data, and build new value-added services for customers.

STSPL plays a central role in this transformation, serving as a major digitalisation hub for Siemens globally. Many digitisation projects across Siemens AG either involve our teams or are entirely developed out of India. Another significant initiative is the Siemens Xcelerator platform, which focuses on enhancing products and technologies, building ecosystems, and offering a digital marketplace. STSPL contributes heavily to the product and technology pillar of this platform—creating connected systems, devices, and digital value layers.

In short, beyond supporting Siemens’ legacy products and solutions, we are now at the forefront of shaping its digital future.

Emerging technologies such as AI, digital connectivity, and edge computing are transforming industries at a rapid pace. Could you share a recent innovation or use case from your organisation that highlights how these technologies are being leveraged?

If you look at our recent innovations, they span across edge compute, cloud, AI, and analytics—technologies that are transforming how we manage infrastructure.

One example is Portfolio Manager, a solution fully developed in India. It connects all your building infrastructure—whether campuses, commercial spaces, or educational institutes—and gives you a cloud-based digital twin. This provides a real-time view of energy consumption and enables predictive analytics to suggest preventive measures.

The second is ElectrificationX, which connects your entire electrical infrastructure—from substations to grid-level devices—and puts it all on the cloud. It enables proactive monitoring of emissions, fault prediction, and helps minimise unplanned shutdowns.

The third is from the industrial side. Traditionally, plants relied heavily on manual intervention, which later evolved to human-machine interfaces and touchscreens. Now, with GenAI, we’re moving towards Industrial Co-Pilot—an AI assistant for plant operators. It responds to commands, supports less-trained workers on the shop floor, accelerates onboarding, and acts as a real-time AI guide.

These examples reflect how we’re leveraging emerging tech to drive transformation across buildings, electrification, and industrial systems.

With India emerging as a global digital engineering powerhouse, what unique advantages or challenges do you see in scaling R&D talent and capabilities here—especially with rising competition among GCCs?

When we look for talent in India, we’re really seeking a unique combination of domain expertise and technological capability. Given the industries we work in, it’s crucial that our people not only understand the tech but also grasp the context—so learning the domain is just as important as knowing the technology.

One major advantage we have when attracting talent is the story we bring to the table: it’s about technology with purpose. Whether it’s sustainability, healthcare, or mobility solutions like railways, everything we do is aimed at helping the planet. That sense of purpose really resonates with people and helps us draw in the right talent.

On the flip side, the challenge—which I think most of us face—is the rising demand for digital skills. The pace at which new-age skills are needed far outstrips the current supply. To address this, we’re focused on upskilling our existing teams while also hiring externally where needed.

Two decades ago, India was primarily recognised as the world’s BPO hub. However, today, it has evolved into a thriving centre for innovation, driven by a vast talent pool and supportive policies. Given this shift, do you collaborate with academic institutions or industry partners to nurture and develop talent, ensuring they are industry-ready? If so, could you share insights into these initiatives?

We actively collaborate with various industry partners and academic institutions. For example, we work closely with NASSCOM and have ongoing partnerships with top universities like IISc and IITs. We also have a program with BITS Pilani that enables our employees to pursue an M.Tech while working—offered in software engineering and AI/ML tracks.

In addition, we regularly conduct hackathons in collaboration with universities. These not only foster innovation but also help us identify and nurture emerging talent. So yes, such collaborations are very much a part of our ongoing efforts to ensure industry readiness.

With the rapid advancement of emerging technologies, the skills gap is becoming increasingly evident. Many professionals struggle to keep pace with evolving skill requirements. In your view, what are the most effective strategies to bridge this gap and ensure a workforce that remains agile and industry-ready?

It’s an ongoing journey. We approach it in a structured way, recognising that there’s always a gap between what students learn on campus and what the industry actually needs. For that, we have a dedicated program called Focus to upskill freshers. For more experienced professionals who have worked on legacy technologies, we run tailored reskilling programs to help them transition to newer technologies. There are also pathways for roles like architects and product managers, ensuring people grow into leadership and specialised positions.

At STSPL, we follow a clear learning philosophy. We recommend that about 60–70% of an individual’s annual learning time be focused on improving current skills and productivity, while the remaining 30–40% is geared toward future-readiness—getting familiar with emerging technologies.

We’ve also built communities of experts in key emerging areas such as edge computing, cloud, AI/ML, UX, and cybersecurity. Employees can join these based on their interests, and they’re mentored by senior professionals. We also bring in external experts whenever needed.

This structured and community-driven approach has yielded strong results. In the past five years, we’ve created close to 200 global digital roles out of India. Around five years ago, we had just one globally recognised senior software architect—today, we have eight. This growth reflects our strong focus on continuous learning and upskilling.

GCCs are playing a significant role in driving cultural change within India’s corporate landscape. Do you agree with this assessment? If so, what key factors do you believe are contributing to this shift? How are GCCs influencing workplace dynamics, leadership approaches, and innovation mindsets?

I believe GCCs are playing a major role in driving cultural change within India’s corporate landscape, and this shift is happening for two key reasons.

First, there’s a growing realisation across the board that what made companies successful in the past won’t necessarily ensure success going forward. Second, decades of investment in talent—particularly in organisations like STSPL—combined with strong leadership, have created an environment that encourages proactive thinking. It’s no longer just about following instructions from headquarters; it’s about earning a seat at the table and playing a strategic role.

At STSPL, we’ve seen this transformation firsthand. It started with building strong technical know-how. From there, we moved into developing product knowledge, then domain expertise, and now we’re seeing a growing emphasis on business understanding—knowing the bigger picture and how each function adds value.

This progression is powering a major cultural shift. We’ve evolved from offshore development centres to global capability centres, and now increasingly, innovation centres. In the last five to six years, our innovations have multiplied—not just in number but in mindset. The journey has moved from “What is innovation?” to “Can I innovate?” to “I am innovating”.

This transformation reflects not just competency, but also the courage to speak up, share ideas, and influence technological direction. That’s the cultural impact GCCs are driving today.

⁠Are there any new partnerships, co-innovation labs, or upskilling initiatives on the horizon that you believe will define the next wave of growth of Siemens Technology and Services in India?

Our ongoing focus is on strengthening our existing initiatives rather than launching entirely new ones. The priority right now is to scale and deepen what we’re already doing. It’s less about adding more and more about putting greater force and depth behind current efforts.

Our key focus areas are ownership and innovation. By ownership, I mean building three core capabilities: first, having top-quality architects; second, world-class product managers with strong business acumen who can truly connect the dots; and third, strong technology leadership—not just operational, but thought leadership that can provide clear direction.

On the innovation side, we want to see more breakthroughs like the ones I mentioned earlier—whether it’s Electrification X or Portfolio Manager. The goal is to drive more such innovations and inventions out of India.