The nation’s fifth-largest data expertise (IT) companies firm began its consulting enterprise arm known as ‘TechM Consulting’ on 4 November final yr, and a world functionality centre (GCC) providing known as ‘SST Subsequent-Gen GCC Providing’ on 1 April 2025, in accordance with two inside memos shared with workers and accessed by Mint.
GCCs are offshore centres owned by multinational firms to run back-end work like IT infrastructure, human sources, provide chain and gross sales administration.
Which means that the Pune-based firm, which ended the 12 months by way of March 2024 with $6.3 billion in income, is seeking to develop its choices to clients and develop its income streams beneath Joshi, who got here on board in December 2023.
Hiring picks up close to shopper websites
Tech Mahindra’s consulting enterprise was earlier part of its Enterprise Excellence (BE) division. This has now been made into a selected providing to purchasers.
“Throughout my conversations with purchasers, I see a continuing battle to understand enterprise worth whereas managing the expertise disruption. They consistently look to grasp the artwork of envisioning, responding, adapting, and sustaining change momentum. It’s necessitating our purchasers to hunt companions, who can add vital insights and capabilities to assist them drive the change and ship sustained success,” stated Joshi, as a part of the memo despatched to workers in November 2024.
An electronic mail despatched to Tech Mahindra on Saturday remained unanswered.
Mint couldn’t independently confirm the top of the consulting enterprise unit however has gathered from the memo that the consulting arm would run horizontally throughout Tech Mahindra’s verticals together with monetary companies, communications, manufacturing, and healthcare. This arm would even be supported by its service supply, knowledge and synthetic intelligence groups.
The corporate can be hiring expertise near shopper places.
“We proceed to enhance consulting expertise near the shopper. Current additions have joined us from organisations like EY, KPMG, PWC, Bosch and many others,” stated Joshi as a part of the interior communication.
Consulting key to driving growth
Mint had reported on the significance of getting a secure consulting enterprise to get extra income from purchasers.
Accenture Plc, the world’s largest IT companies firm by income, is an effective instance. The Dublin-headquartered firm acquired half, or $8.3 billion, of its $16.7 billion income from its consulting enterprise within the quarter ended February 2025. To make sure, not one of the homegrown IT companies firms present income from their consulting companies.
Having a powerful consulting enterprise may also help drive extra income as IT service suppliers get publicity to a bigger scope of labor they will do for purchasers, particularly within the time of GenAI as consulting companies assist purchasers realise the worth of GenAI and its broader affect.
To make sure, Accenture is greater than ten occasions the scale of Tech Mahindra. Homegrown IT outsourcers have their very own consulting enterprise.
India’s second-largest IT companies agency Infosys began a consulting follow known as Infosys Consulting in 2004, whereas Wipro Ltd runs its consulting arm known as Wipro Consulting. Lower than 4 months after Tech Mahindra launched its consulting providing, Wipro introduced former Accenture Consulting managing director, Amit Kumar, as the top of its consulting enterprise on 14 February.
New GCC mannequin goals for big offers
Lower than six months after asserting a consulting unit, Tech Mahindra flagged off a GCC providing beneath its ‘Strategic Solutioning and Transformation’ (SST) group known as the ‘SST Subsequent-Gen GCC Providing.’
Joshi introduced the SST group when he outlined an formidable three-year roadmap to extend the corporate’s working margins to fifteen% and obtain greater income growth than the nation’s high seven IT outsourcing firms by March 2027. The SST group would focus on giant offers and have a presence throughout all of Tech Mahindra’s industries.
“Everyone seems to be hopping on the GCC bandwagon now. What Tech Mahindra is doing is what is required by IT companies firms on this AI age. IT companies firms want to have a look at rising their income streams and rising their focus on consulting, and working with GCCs is geared toward simply that,” stated a Mumbai-based analyst working at a home brokerage.
To make sure, Tech Mahindra already has a GCC providing. As a part of this, the corporate gives workforce to purchasers on a month-to-month foundation for features ranging from AI companies to buyer help and cloud help. Tech Mahindra works with about 70 GCCs and payments purchasers on a month-to-month foundation for the workforce it supplies.
The new providing is part of the massive offers group of Tech Mahindra.
“On the coronary heart of the providing is a hub-and-spoke mannequin with India as a central hub, amplifying the nation’s strategic significance within the international GCC ecosystem. The playbook integrates business views and TechM’s confirmed strengths to help cross-vertical, scalable GCC engagements,” stated Joshi in an inside electronic mail despatched to workers on 1 April and accessed by Mint.
A hub-and-spoke mannequin refers to at least one central workplace serving as a big nerve centre and linked with smaller distribution centres.
India provides a GCC each third day
Tech Mahindra is likely one of the firms in talks with Ohio-based Goodyear Tire & Rubber Co. to set-up a 300-member GCC in Hyderabad. The IT outsourcer would take care of the tyre firm’s IT operations and analysis and growth (R&D) enterprise wings.
India had 1,700 GCCs in FY24, up 32% from March 2019, which interprets to 500 new GCCs in nearly 1,500 days, in accordance with IT business foyer Nasscom. This suggests {that a} GCC is being arrange within the nation each third day. GCCs generated about $64.6 billion in income in FY24. To make sure, the nation’s IT business was price $269 billion the identical yr.
Nasscom estimates the variety of Indian GCCs to the touch 2,200 by March 2030, with a market dimension of $105 billion.
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