In a recent interaction with CRN India, Manoj Nagpal, Managing Director, OpenText India, shares insights on the company’s significant growth and strategic direction over the past year. He discusses OpenText’s expansion, both as a talent hub and a key player in India’s domestic market, highlighting their growth in engineering, R&D, and professional services.
Please talk about how the business has been in India in the last one year.
Our business in India has seen significant growth over the past year, and I would break it down into two parts. First, OpenText India as a talent hub, and second, OpenText India as a domestic market. On the talent front, especially in Bangalore, we’ve experienced nearly 2300% growth since the post-COVID period. Initially, there were concerns about employees returning to the office, but we overcame this by offering solutions like complimentary transportation and meals. We’ve also adopted hybrid work policies, where employees come in three days a week, and work from home on Mondays and Fridays.
This growth is driven by the increasing demand for talent, particularly in engineering and R&D, where we’ve seen development around platforms like Titanium X. Professional services and our customer success group have also grown significantly, proving that remote work, which became viable during COVID, has led to greater openness in outsourcing work to India.
On the domestic front, our business in India has expanded, especially after an acquisition two years ago. Previously, India wasn’t a significant market, but it has now become a key part of our APJ region. Specifically, we’ve seen strong demand in areas like application development management (ADM), IT operations management (ITOM), cybersecurity, and content management. This growth is fuelled by sectors like government, defence, banking, automotive, and others, which have contributed to substantial progress over the last two years.
Do you have any unique offerings particularly for the Indian market?
All our production solutions are available for India, and we offer what I’d call special packages, including IP and solution packages. These are designed to make our services easier for customers to implement, reducing the labour-intensive aspects. For instance, if we identify that a supply chain industry process meets 80% of most customers’ needs, we create a solution package around it. This package comes at a fixed price and can be customised for the remaining 20% based on individual requirements. These quick-start packages, which are particularly appealing for cloud or software subscriptions, have been very successful in India and other emerging markets like the Middle East and Asia.
What challenges do you see in scaling OpenText’s AI and cloud solutions in India, and what opportunities excite you the most?
The key challenge in scaling OpenText’s AI and cloud solutions in India is the highly competitive talent market. There are always other companies offering higher compensation, so retaining skilled employees is tough. However, we’ve addressed this through a comprehensive employee engagement model that goes beyond salary wars. We focus on career building and offer internal job opportunities, enabling employees to move between different business functions, such as from business networks to cybersecurity, or from product sales to professional services. This dynamic approach ensures that employees are constantly learning and growing, reducing the temptation to leave for other companies. Additionally, we prioritise employee well-being, offering programs for mental health, work-life balance, and benefits to keep engagement high.
On the commercial side, a major challenge is pricing. Many customers in India demand heavy discounts, which affects profitability. To tackle this, we’ve introduced innovative pricing models, such as offering services in packages rather than a traditional cost-plus approach. While not fully successful yet, we are making progress by emphasising the value we bring to the table and encouraging customers to look beyond price and focus on the long-term value OpenText offers.
How do you collaborate with Indian partners like MSPs and ISVs to drive innovation and growth?
We have a significant partnership with SAP, which drives a large portion of both our domestic and global business. We also collaborate with Microsoft and Oracle, with discussions ongoing with other companies as well. We have a dedicated global team focused solely on partnerships, and growing our business through partner channels is a key priority for us.
Could you talk about how the AI Bill of Rights is impacting your business?
At OpenText, ethical AI is a core principle for us. We’re committed to ensuring that AI is always used in an ethical manner, which is why we became one of the first signatories to the AI Bill of Rights in Canada. As a company focused on information management, data security, and privacy, we prioritise these aspects heavily.
In the context of AI, we don’t require businesses to bring their data to us or move it into our cloud. Instead, we bring AI to them, enabling them to work securely within their existing cloud environments, whether that’s Salesforce, SAP, or others. This approach ensures a secure, multi-cloud setup where businesses maintain control over their data while still leveraging AI.
Do you have customers in the SMBs as well, because pricing can sometimes be a major issue for them?
Currently, we operate in the SMB space only in the area of cybersecurity. Our portfolios, such as content, business network, ADM, and ITOM, are focused on the enterprise segment, and there’s no SMB component for those. In some cases, offering an SMB component might not even make sense. However, for cybersecurity, it does. We acquired a company called Webroot specifically for endpoint security, and we’ve developed a solid business in that space.
What’s next we can expect from OpenText?
The next big thing from OpenText is agentic AI, which is focused on AI making human-like decisions across various processes. Currently, AI helps generate insights by connecting to data lakes, but the future is in automating multi-step decision-making. For example, in the insurance industry, a human typically reviews a claim and uses AI to assist in the decision-making process. With agentic AI, the system will be able to make the final decision independently, such as approving or rejecting a claim.
This shift could reduce some manpower, but rather than eliminating jobs, it will create roles where humans oversee AI-driven processes. I envision a future with AI command centres, where AI systems handle tasks while humans supervise and ensure everything runs smoothly. While AI may replace some operational roles, it will never fully replace humans. Instead, people will need to reskill and adapt to new jobs, as lifelong learning becomes essential in this evolving landscape.
