The growing trend of multinationals setting up global capability centers (GCCs) to insource technology services may seem to be a negative for Indian IT companies, but they are turning this to their benefit.
Traditional Indian outsourcing giants, that have thrived on providing IT services to clients in developed markets, are now increasingly entering into business partnerships with MNCs to work with the local GCCs, helping them offset the revenue impact.
“Indian and global IT services firms are viewing GCCs as a new business opportunity. This is a significant shift from their stance before 2020, when they primarily saw GCCs as competitors,” said Everest Group Vice President Hrishi Raj Agarwalla.
Half of the new GCCs established in the past one-two years have leveraged external IT and business process services firms for setup support, as per Everest Group data.
“Within the GCC setup, the build operate transfer (BOT) model has seen significant growth as compared to virtual or assisted GCCs and joint ventures,” Agarwalla said.