GCC boom: IT firms build dedicated units to tap captive work

Indian IT services firms are capitalizing on the GCC boom by setting up dedicated units to serve global capability centres. According to Everest Group CEO Jimit Arora, while GCCs redirect some demand away from traditional IT outsourcing, they create a substantial services market around the GCC lifecycle—strategy, setup, talent, technology, transition, and operations. Large and mid-sized providers have established dedicated GCC businesses in the past two years, with top practices generating hundreds of millions in annual revenue. Recent deals illustrate this trend: TCS's acquisition of Porsche's MHP for $373 million, Wipro's purchase of Mindsprint from Olam for $320 million, and HCLTech's acquisition of Guardian Life's IT unit for $10.5 million, each tied to multi-year outsourcing contracts. Key signal: India hosts 2,117 GCCs, expected to reach 3,000, with IT firms like TCS, Wipro, and HCLTech acquiring captives to win large deals. For hiring leaders, this matters because for CHROs and TA leaders, this signals a structural shift in the talent market: GCCs are not just competitors for talent but also clients for IT services firms. The rise of dedicated GCC practices means new demand for professionals skilled in GCC setup, transition, and operations—roles that blend consulting, project management, and domain expertise. As IT firms acquire captives, they inherit existing teams, altering hiring strategies and creating opportunities for talent movement. Leaders should watch how this reshapes the competitive landscape for tech talent, especially in cities like Bengaluru, and consider upskilling their workforce to serve this growing segment. Teksands view: The GCC boom is a double-edged sword: it pulls work in-house but also creates a lucrative services ecosystem. IT firms that treat GCCs as a client segment rather than a threat are winning big—TCS, Wipro, and HCLTech are literally buying their way into these relationships. For hiring leaders, this means a new talent category: professionals who can navigate the GCC lifecycle, from strategy to operations. If you're not building a dedicated GCC practice, you're leaving money on the table. And if you're a GCC leader, expect more poaching from IT services firms that now understand your world better than ever.