Global capability centres (GCCs), or captives of large multinational firms, are expanding in the country, and chipping away at the market share and talent held by domestic IT services firms.
Traditionally referred to as captives or contact centres, GCCs are offshore units of large multinationals that perform designated technology operations. They emerged during the 1990s as large companies such as GE, Texas Instruments, Citigroup, and American Express began embracing this model.
IT services providers commanded approximately 75 per cent of the market during 2012-13 with the rest held by GCCs, according to Nitish Mittal, partner, technology, at global research firm Everest Group. “Now it has gone down to approximately 65 per cent, but the overall market has grown at 8-10 per cent