Indian IT giants pursue GCC buyouts to offset slowing organic growth and AI pressures

Facing weak organic expansion and mounting AI-related challenges, Indian IT service providers are turning to acquisitions of global capability centres (GCCs) for growth. This year TCS purchased Best Buy’s GCC unit for roughly ₹2,000 crore, HCLTech acquired Guardian Life’s centre, and Wipro secured Mindsprint from Olam with a deal expected to generate about $1 billion over eight years. The transactions are typically structured as five-year agreements, offering predictable revenue while adding specialised skills and client knowledge.

Industry observers note that many GCCs have stalled, with about 30 % of those launched since 2021 failing to reach full potential, making them ripe for buyouts. Experts view the strategy as a consolidation effort that can boost productivity and client mining, though past deals have sometimes seen steep revenue declines over time. Companies such as Infosys and Cognizant are also expanding AI-focused GCC models, but greenfield builds remain a smaller share of the market.