IT firms tap GCC consulting route to win tech contracts

Mid-sized information technology (IT) services companies like Mphasis and Hexaware Technologies are investing in advisory firms that help large corporations set up back-end technology hubs or global capability centres (GCCs) in India, in their bid to win substantial tech and engineering contracts later.

- Jas Bardia

This strategy, analysts say, enables IT services firms to get faster access to new clients and an easier entry into the country’s $68 billion global capability centre market, which is expected to swell to $105 billion by 2030.

Picking up a stake in these consulting firms makes business sense for the homegrown IT outsourcers, as they can start providing tech services, and secure support and maintenance deals as soon as the big foreign firms set up their GCCs in India, the analysts said.