Leg-up for Tech Mahindra, TCS from group companies

TCS, TechM are turning to peers in their respective conglomerates to grow business pipeline

- Jas Bardia

GCCs are hubs that manage hiring, compliance, infrastructure and operations.

(MINT)

Two of India's largest information technology services firms, Tata Consultancy Services (TCS) Ltd and Tech Mahindra Ltd, are turning to peer companies in their conglomerate groups to grow business pipelines.

This push comes in the backdrop of tariff-related uncertainties in the US, which are forcing companies to pull back IT spending. The spectre of AI is adding further uncertainty.

While TCS is directly getting business from Tata Group companies such as Jaguar Land Rover and Tejas Networks by handling their IT infrastructure, Tech Mahindra is relying on Mahindra group companies for real estate, finance, and energy synergies to set up back-end tech centres for clients.

TCS and Tech Mahindra are the only two of the country’s Big Five IT services companies that are part of large conglomerates. (Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd make for the other members of the Big Five.)

Tech Mahindra offers “an integrated value proposition to global enterprises” as they expand their so-called global capability centres, or GCCs, in India, Mohit Joshi, chief executive of Tech Mahindra, said on the company’s post-earnings analyst call on 14 October.