Indian IT Cos Cash In On GCC Boom

We are working with GCCs, when they do a BOT and we participate in it with the build, operate and transfer model. We help them scale and recruit. And we are also working, with clients when they are exiting from GCCs - Salil Parekh, CEO, Infosys

Bengaluru: Indian IT and engineering services companies’ engagement with Global Capability Centres (GCCs) is on a rise as indicated in the second quarter performance of current financial year.

Many companies adopted a build-operate-transfer (BOT) model, where they help clients set up and operate GCCs, after which they transfer ownership back to the clients. In many instances, companies are simply providing skilled human resources to man GCC operations. In most cases, GCCs are outsourcing tasks like automation, testing and related jobs to IT services companies. All these cases show growing engagement of Indian IT industry with GCCs in the country.

Management of several firms have highlighted this aspect in the post results interactions. “We are working with them (GCCs) when they do a BOT and we participate in it with the build, operate and then transfer. We are working with GCCs in India to help scale them, to help with recruiting. And we are also working, in some instances, with clients when they are exiting from GCCs, when we have programs where we take them and they become a part of us, so a very strong connect with GCCs across India,” Salil Parekh, CEO of Infosys, said during the post results media interaction.

Similarly, Wipro management has said that the company is partnering with GCCs to cash in on the substantial growth in India.

“It’s our strategy to partner with GCCs. We know that GCCs are growing significantly in India at this point in time,” Srinivas Pallia, CEO of Wipro, said.

Not only IT biggies, mid-tier IT companies have also highlighted their engagement levels with GCCs.

“When we talk of setting up centres, these are offshore development centres, people may call it, global technology centres and so on. These are basically things where we are scaling teams in our parlance, even managing the end-deliverables out of that in conjunction. It’s a co-engineering that we do on behalf of our customers,” said Sandeep Karla, CEO of Persistent Systems.

Similarly, Coforge’s CEO, Sudhir Singh has said that the company is helping global firms manage their technology work in India. As per reports, he has said that the new wave of GCCs should be welcomed by the industry players. Sources in the know said that IT firms’ engagement levels with GCCs are rising in recent quarters.

“Technology insourcing by global firms is a fact and it is better to engage with these clients for sourcing projects. This understanding is driving deeper engagement with gobal tech firms,” the person said.