Wipro is looking to set up a dedicated global capability centre (GCC) service line following in the footsteps of Infosys and Cognizant, as it aims to capture a slice of a segment that has caught the attention of all IT services players, according to people familiar with the matter.
Wipro will help multinational companies set up GCCs in India, operate and then transfer the entity back to the parent company -- popularly known as the BOT model -- after a few years.Indian IT services companies set up GCCs for their clients by providing them with employees and helping them run the centres.
The GCCs in turn pay the IT companies for the employees or give them a share of the revenue.
The move is the latest by CEO Srini Palia to boost slowing revenue in India's fourth largest IT services company as he looks to fix multiple issues that have stymied steady growth over the years.
Palia, who recently completed a year in office, realigned the company's global business lines to match clients' evolving business needs and bank more on emerging technology opportunities such as AI, cloud, and digital transformation.
GCCs are the technology centres of foreign companies in India. They used to be called captive centres but many in the industry now prefer the term GCC given their growing maturity and the greater autonomy they enjoy from their headquarters. Over the past decade, many of these centres have insourced a large slice of the technology work that was usually outsourced to IT companies.
Wipro's plan comes on the heels of larger rival Cognizant appointing Sailaja Josyula to lead the Nasdaq-listed company's GCC business. Cognizant, which has also fallen behind its peers, is looking to position itself among the top four IT companies by 2027 by setting up new GCCs and transforming existing GCCs.
Avik Das, Business Standard
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