Rackspace doubles India revenues, to increase headcount

A large part of its global research is driven out of India, with 2,500 of its 7,000 employees located here.

“We see more digital natives are moving to more data adoption and cloud native development in India and that has become an important area for us,” said Amar Maletira, who took charge as CEO a few months ago. “India has become the most important cloud innovation centre for us, and we have nearly doubled the number of employees in the last 12 to 18 months,” Maletira, who was earlier the chief financial officer at the Texas-based firm, added.

The company will also continue to add more development centres in the country as demand for cloud-led solutions remains high, he said.
“Many companies across multiple industries are in different stages of the cloud journey. And as more demand comes in, we do have plans to continue growing our presence in India,” Maletira said.

In India, the company is focussed on the technology sector, as well as manufacturing and Banking, Financial Services and Insurance (BFSI).

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It also works closely with digital native firms, small and medium enterprises, and with hyper-scalers such as Amazon Web Services (AWS) and Microsoft Azure.

Rackspace reported global revenue of $3.01 billion in 2021, an increase of 11%, on the back of new customer acquisitions and growing spends on multi-cloud services, apps and cross-platform segments.

Maletira said he expects cloud adoption to accelerate going forward.

He said both large as well as mid-size enterprises are looking to cut costs and avoid large capital investments, a shift that is gaining pace given the bleak broader macroeconomic environment.

“We believe a recessionary period will in fact accelerate more and more workloads into a cloud environment, whether it’s public or private,” he said.

At the same time, the company was also working to develop service solutions that will help customers save costs and generate a return on investment with a fast payback period, he said.