Published On: Wed, May 28th, 2025

Mid-tier IT cos expand GCC playbook | Bengaluru News

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Mid-tier IT cos expand GCC playbook

Bengaluru: Mid-tier IT firms are increasing their focus on the global capability centres (GCC) segment as part of a renewed strategic playbook. The shift includes targeting opportunities with enterprises establishing or expanding GCCs, leveraging cost advantages, talent pools, and client proximity. Mid-tier IT firms are intensifying their focus on GCCs, expanding their scope and engagement like their larger peers.Industry experts note that whilst previously they collaborated with global executives of these companies, they now engage directly with local counterparts to accelerate the tech roadmap by captives in India. Several firms strategically positioned unit leaders to provide specialised technical assistance to these captives. “Large clients in the retail or banking sector might have their own GCCs and their own best practices. Our firm can help them with this. We can tell them what their peers are doing and guide them. We can also tie up with consulting firms and provide them with industry-specific guidance. Who is going to get into the rigmarole of understanding legal and real estate requirements? We have a system set up for that. These are some of the pitches we make with captives,” said Maddee Hegde, EVP, head of BPS and GCCat Coforge.These organisations are expanding into recruitment support. Hegde indicates that GCCs are increasingly receptive to recruitment assistance, an area the company is actively pursuing. Some recruits will work on Coforge’s projects, while others will be directly employed by GCCs. “Smart IT services firms know what it takes and that most of these GCCs will achieve an unsustainable cost structure. Eventually, most, not all, GCCs will ‘outsource’ capabilities they need to be cost-effective with. With that in mind, consider a wide portfolio from real estate to regulatory compliance to financial services to tax, and beyond. Those early relationships will pay off with other opportunities,” says Ray Wang, principal analyst and Founder at Constellation Research.Happiest Minds emphasises that skill provision is key to securing additional projects alongside regulatory and logistical support. “We do not want to become a staffing company. So, we will begin by providing skills. Many GCCs do not have a lot of skilled people in AI and data. We can bridge that gap for their immediate needs,” said Joseph Anantharaju, CEO of Happiest Minds. Ashok Soota-led Happiest Minds is focusing on strengthening this vertical this year.According to Rohan Lobo, partner, GCC leader, Deloitte Asia Pacific and South Asia, 30% to 40% of GCCs in India prefer the build-operate-transfer model, creating opportunities for IT service providers. With over 5,000 GCC leaders based in India, dedicated focus on captives becomes essential, explaining the appointment of GCC heads. Lobo provides additional context regarding these partnerships’ growing significance through mid and small-sized GCC statistics. He notes that 30% of last year’s captive establishments were in the sub $1 billion category. “These companies need end-to-end services to stand up their centres quickly and realise their ROI. Such services include registration and legal, real estate, tax and compliance requirements, leadership hiring, relevant talent, infrastructure, etc. IT services providers and consulting firms, together with specialist partners in the ecosystem, work closely with these GCCs and play a vital role. Companies across the world are turning to partners to quickly help navigate complexities and get things done,” Lobo said.





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