Tech Mahindra to build 3,000-member GCC for Goodyear
PUNE, INDIA — Tech Mahindra, one of India’s leading IT services companies, is finalizing plans to establish a global capability center (GCC) for Ohio-based Goodyear Tire & Rubber Co. in Hyderabad.
The center, expected to employ 3,000 professionals, will focus on managing Goodyear’s research and development (R&D) and IT operations. This move underscores Tech Mahindra’s commitment to expanding its footprint in the growing GCC market.
The partnership aligns with Tech Mahindra’s strategic roadmap, Project Fortius, which aims to boost operating margins and revenue growth while optimizing costs. Under the leadership of CEO Mohit Joshi, the company has been actively pursuing collaborations with Fortune 500 companies to build such centers.
Hyderabad emerges as a key GCC destination in India
Hyderabad continues to solidify its position as a hub for global capability centers. With 355 GCCs already established in the city, it is a preferred destination for multinational corporations seeking skilled talent and cost-effective solutions.
Across India, the number of GCCs has grown to over 1,700 as of FY24, employing 1.9 million people and generating $64.6 billion in revenue.
By setting up Goodyear’s GCC in Hyderabad, Tech Mahindra is tapping into this thriving ecosystem while contributing to the city’s growing prominence in the IT sector.
Mohit Joshi drives Tech Mahindra’s GCC growth strategy
Since taking over as CEO in December 2023, Mohit Joshi has emphasized expanding Tech Mahindra’s presence in the GCC space as part of a three-year turnaround plan.
“Since Mohit joined, he has brought a rigor to the whole GCC process, and he has encouraged us to engage more with GCCs,” said an executive familiar with the developments.
The Goodyear partnership will see Tech Mahindra allocate approximately 2% of its workforce—around 3,000 employees—to operate the center. While IT service providers typically transfer such operations back to parent companies after a few years, details about long-term plans remain undisclosed.
India’s GCC ecosystem: A growing opportunity for IT providers
India’s IT service providers are increasingly collaborating with global corporations to establish GCCs as an alternative to traditional outsourcing models. These centers offer significant cost savings—up to 70%—through streamlined processes and efficient resource management, according to Nasscom reports.
Tech Mahindra’s move mirrors similar initiatives by competitors like Infosys, which recently announced a GCC for German e-commerce firm Zooplus in Bengaluru. With this new partnership, Tech Mahindra aims to strengthen its position within India’s burgeoning $254 billion IT industry while driving operational efficiency and long-term growth opportunities.
