Tech Mahindra targets double-digit growth from India global capability centers
PUNE, INDIA — Tech Mahindra, a prominent IT services provider, is forecasting substantial growth from global capability centers (GCCs) in India. The company expects to achieve double-digit growth as multinational corporations increasingly outsource skilled talent and engineering research and development (ER&D).
Additionally, these corporations are partnering with Tech Mahindra to develop innovative solutions, particularly in artificial intelligence (AI) and generative AI (GenAI).
Restructuring GCCs for strategic growth
Currently, Tech Mahindra serves 60 to 70 GCC customers and is undergoing a strategic restructuring to enhance its margins.
This initiative is led by CEO and Managing Director Mohit Joshi, who took on the role last year. The company has adopted a selective approach in acquiring clients, focusing on maintaining operating margins as part of a three-year business recovery plan.
Ram Ramachandran, Senior Vice President for India, Middle East, and Africa at Tech Mahindra, emphasized the unexpected demand from GCCs. Contrary to the belief that these centers would compete with Indian IT firms, they have instead become significant growth drivers.
“We are definitely talking about crossing the teens very soon in terms of growth in GCC requirements on an annualized basis,” Ramachandran stated.
Focused GCC strategy
Tech Mahindra is not pursuing all-encompassing GCC services but is instead targeting specific areas where it can deliver substantial value.
“Our approach is a value-based GCC strategy typically suited for larger organizations or pure-play companies on a heavy tech journey,” Ramachandran explained. This strategy focuses on tech-heavy product companies requiring technology refreshes.
India is poised to welcome 800 new GCCs over the next five to six years, with states competing to attract these investments through new policies. Currently, India hosts over 1,600 GCCs employing more than 1.66 million professionals.
Expanding AI and SaaS capabilities
Tech Mahindra’s growth strategy also emphasizes AI, cloud enablement, and security as core areas of demand from GCCs. The company is actively involved in modernizing legacy systems through cloud solutions and exploring agentless BPO services powered by AI.
“We have inquiries and opportunities around that from the GCC perspective,” Ramachandran noted.
The company is intensifying its focus on sectors such as BFSI (banking, financial services, and insurance), high-tech industries, and ER&D. Additionally, life sciences and healthcare present substantial opportunities for GCC services, alongside retail, consumer packaged goods, telecom, and OEM vendor ecosystems.
As Tech Mahindra navigates this transformative phase, its strategic focus on high-value partnerships and technological innovation positions it well to capitalize on the burgeoning demand from GCCs in India.
