Tech Mahindra’s Thrilling Collaboration: Revolutionizing the Future with Goodyear’s 3,000-Member GCC
Tech Mahindra Ltd is reportedly negotiating to establish a Global Capability Centre (GCC) in Hyderabad for Ohio-based Goodyear Tire & Rubber Co., according to two informed sources. The center is slated to employ 3,000 individuals and will manage Goodyear’s research and development (R&D) and IT operations. GCCs serve as internal tech hubs for major Fortune 500 companies, opting to hire employees directly rather than outsourcing to IT service providers.
Tech Mahindra is bolstering its GCC partnerships as part of its strategic initiative, Project Fortius, which aims to enhance operating margins, boost revenue growth, and eliminate less profitable accounts. This move is spearheaded by the company’s new CEO, Mohit Joshi, who took over in December 2023.
Pune-based Tech Mahindra, which reported $6.3 billion in revenue for FY24, will allocate roughly 2% of its workforce to the Goodyear GCC. Goodyear had ended 2023 with $20 billion in revenue. Typically, IT service companies transfer GCC management back to the parent firm after several years. However, the future arrangements between Tech Mahindra and Goodyear remain undisclosed.
Ramkumar Ramamoorthy of Catalincs noted that IT service employees managing a GCC are usually given the choice to stay with their original employer or transition to the GCC’s parent company once the initial contract concludes.
Tech Mahindra already manages a GCC for Cisco in India. Meanwhile, the GCC landscape in India is expanding, with over 1,700 centers generating $64.6 billion in revenue in FY24. Hyderabad, where Goodyear’s center is planned, hosts about 355 of these centers. Nasscom predicts that the number of GCCs in India will grow to 2,200 by 2030, reaching a market value of $105 billion.
Partnering with technology leaders in cost-effective markets like India can yield significant financial savings through operational efficiencies, as highlighted by a Nasscom and Zinnov report.
Original Source: https://www.livemint.com/companies/tech-mahindra-goodyear-gcc-it-services-company-it-outsource-zooplus-11739072758432.html
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Publish Date: 2025-02-10 05:30:00
