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Once seen as rivals, Indian IT services firms and GCCs are now forming strong partnerships focused on innovation, speed, and value creation. These partnerships go beyond traditional outsourcing, involving joint development of new technologies, shared platforms, and business-focused outcomes. With over 70% of new GCC projects now involving collaboration with IT service providers, this trend is transforming India’s $245 billion IT industry and reinforcing its role as a global hub for advanced technology and digital innovation.
During the company’s 44th Annual General Meeting, Infosys Chairman Nandan Nilekani emphasised that GCCs are no longer viewed as competitors, but have emerged as important clients for the company.
Madhusudan Hegde, EVP and Business Unit Head – Business Process Services and GCCs at Coforge, shared that the company has been supporting global capability centers for several years. Its industry focus across banking, financial services, insurance, travel, healthcare, and the public sector has played a key role in shaping its GCC strategy and offerings.
“Companies must approach GCCs from the standpoint of coexistence, collaboration, and co-creation. GCCs as a mandate have shifted from operational efficiencies to value creation and innovation. What earlier used to be just a captive centre is now a capability center, now shifting towards an innovation center,” he said, adding that service providers like Coforge, among others, are still relevant to GCC heads.
“We see if we can bring accelerators, frameworks, and differentiators to the GCC as Coforge. We evaluate their goals and see whether it’s AI, cloud modernization, product engineering, or other emerging technologies. Aspirations have changed for GCC heads from the headquarters standpoint. We’re seeing a cultural shift in client organizations where they no longer view GCCs as separate entities but as integral parts of their core business. Service providers are increasingly seen as part of this connected ecosystem,” he said, adding clients find value in having service partners work alongside their GCCs.
While core functions like product design and engineering may sit within the GCC, they still rely on IT service providers for flexible capacity, access to emerging tech, and the speed required to execute specific projects.
Mohit Sood, Regional Managing Principal at ZS, a global management consulting and technology firm, explained that a common and effective model for this kind of partnership is the Build-Operate-Transfer (BOT) approach. Since starting from scratch is not advisable for most GCCs — there is no need to reinvent the wheel when service providers have already navigated that path. A BOT model creates a win-win scenario — the service provider helps build and run the capability initially, then transitions it to the GCC to own and scale.
Given the rapid growth and expanding scope of GCCs, there is a significant opportunity. Service providers can ride multiple waves of this model — setting up one capability or service line, transferring it, and then moving on to build the next.
This collaboration is driven by three main factors — access to talent at scale, especially in digital and domain-specific skills, the need to innovate rapidly, and mutual value creation. Rohan Lobo, Partner, Deloitte India, noted that over 60% of GCCs have established innovation hubs to co-create with IT partners, often using hybrid “pod” models that blend speed with strategic control.
On the other hand, these partnerships enable IT services firms to build critical capabilities and work on advanced challenges across sectors.
“There was always a perception that GCCs and IT services companies co-exist but the relationship is now fundamentally shifting toward partnership and co-creation. IT firms increasingly see GCCs as strategic collaborators, especially around joint IP development and digital innovation. Shared talent pools and platforms are creating mutual value, rather than direct competition. We’re seeing new joint go-to-market models, where products built in GCCs become revenue generators for parent companies. The future will likely feature more integrated teams and shared digital labs, marking a new era of collaboration,” Lobo said.
The partnership between IT firms and GCCs is driving the shift toward more innovation-led growth. By working together on R&D and IP creation, India is emerging as a global digital hub. These partnerships are also helping Indian IT firms enter new industries. More global product mandates and Indian-origin tech leaders are likely if investments in talent and digital infrastructure continue, he shared.
Published on June 29, 2025
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