EPAM Systems Launches Strategic Engineering Hub in Coimbatore to Boost AI Capabilities
In a significant move to strengthen its artificial intelligence offerings, NYSE-listed digital engineering firm EPAM Systems has officially inaugurated a new advanced engineering center in Coimbatore. This expansion is part of EPAM's broader strategy to enhance its service delivery and tap into India's growing talent pool while positioning itself closer to the increasing number of global capability centers (GCCs) in the region.
Strategic Expansion into Coimbatore
The Coimbatore facility spans an impressive 67,500 square feet and currently employs over 250 professionals. According to Srinivas Reddy, Head of the GCC Business Unit and Managing Director of EPAM India, this center will be dedicated to product and platform engineering for international clients. Reddy emphasized that while cost considerations played a role, the primary driver was access to scalable engineering talent.
"The next logical location was Coimbatore," Reddy stated in an interview. "We have been hiring from colleges in Coimbatore for a few years now. The attrition rate will be much lower if you hire in a home city, so it made sense for us to build a facility here."
Talent Development and Training Initiatives
EPAM's approach to talent acquisition in Coimbatore involves hiring both early-career engineers and experienced professionals. The company recruits many engineers directly from colleges and subjects them to a rigorous six-month training program designed to transform them into AI-native developers. This program aligns with EPAM's competency framework and includes global interview rounds and coding challenges.
"We started our first batch this January and there is a dedicated space for junior programmers to learn," Reddy explained. "It is not very different from Chennai in terms of our hiring and training processes."
Growing Importance of Indian Market and GCCs
EPAM serves numerous Fortune 500 companies, including leading technology firms and financial institutions, with a workforce exceeding 60,000 across 50-plus global locations. Reddy highlighted India's evolving role from a pure delivery base to a strategic market where clients and decision-makers are increasingly present.
"India is no longer purely a delivery base; it is becoming an in-market location," he noted. "That requires local business development and eventually local sales capability beyond having engineering capacity."
He also pointed out a significant shift in decision-making dynamics, with Indian leadership gaining more budget ownership, client relationships, and strategic accountability. This trend is reflected in a steady annual increase in INR-to-INR contracts.
AI Adoption and Hiring Amid Industry Concerns
Despite widespread concerns about AI potentially displacing jobs, EPAM is aggressively expanding its workforce in India. The company plans to recruit 2,000 talents nationwide, including 750 junior engineers. Reddy attributed this growth to surging demand for data engineering and AI adoption services.
"As companies are rushing to adopt AI and generative AI, they are quickly discovering that their data, governance and cloud adoption are not ready," he said. "Fixing that foundation has become urgent, and the investment is flowing in."
EPAM aims to become AI-native within two years, with AI tools already being integrated into internal processes such as hiring, upskilling, and human resources. Reddy dismissed the notion that EPAM pursues low-value, body-count contracts, emphasizing the company's focus on high-value engineering services.
Market Outlook and Future Growth
Reddy expressed optimism about technology spending in India, noting healthy demand and a positive start to the year. EPAM's expansion follows significant scaling in Chennai last year, with Coimbatore expected to grow rapidly, albeit from a smaller base.
The company collaborates with approximately 60 GCCs across various locations and anticipates more GCCs relocating or establishing presence in Coimbatore. This trend aligns with EPAM's strategy to prepare for increased local engagement and service delivery.
EPAM's Coimbatore center represents a strategic investment in India's engineering ecosystem, combining talent development, AI innovation, and proximity to global clients to drive future growth in the digital engineering landscape.
