Tech Mahindra in advanced talks to set-up 3,000-member GCC for Goodyear

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Subscribe to enjoy similar stories. Tech Mahindra Ltd is in talks to build a global capability centre (GCC) for Ohio-based Goodyear Tire & Rubber Co.in Hyderabad, two people aware of the matter said. The centre, which will employ 3,000, will house the research and development (R&D) and IT operations of the US company.

GCCs are in-house technology centres of large Fortune 500 companies, which are traditionally clients of Indian IT outsourcers. Instead of outsourcing tech work to software service providers, GCCs hire employees to handle the same work in-house. Also Read | Fatter pay checks coming for Tech Mahindra employees as co rolls out increments Indian IT service providers set up GCCs for their clients by providing them with employees and running their centres.

GCCs can pay IT outsourcers for the employees they get or a share of revenue. One of the two people cited above attributed Tech Mahindra's GCC push to its new CEO Mohit Joshi, who succeeded veteran C.P. Gurnani as the head of India's fifth-largest information technology (IT) services company in December 2023.

Also Read | Why Tech Mahindra’s turnaround is still a distant dream Tech Mahindra’s push to partner with GCCs is in line with the company’s bid to increase its operating margins, focus on improving revenue growth in line with industry peers, and do away with tail accounts as part of its three-year roadmap called Project Fortius. “Since Mohit joined, he has brought a rigour to the whole GCC process, and he has encouraged us to engage more with GCCs," the executive cited above said on the condition of anonymity. Also Read | Wipro, Tech Mahindra revenue shrinks in Q3 Pune-based Tech Mahindra, which ended FY24 with $6.3 billion in revenue, will deploy about 2%