As legacy IT giants deepen their collaborations with global capability centres (GCCs), mid-tier IT firms are seizing a timely opportunity. Mid-market GCCs, often focused on niche domains and run by lean teams, are increasingly turning to these agile IT players for support in scaling operations.
A NASSCOM-Zinnov report noted that, although mid-tier GCCs accounted for nearly 35% of total GCCs, they faced significant challenges. These pertained to attracting early-career talent, the lack of standardised operating procedures, their struggle to establish innovation partnerships, and their minimal brand presence in local ecosystems.
These factors make it clear that mid-tier GCCs require a different kind of support model than what traditional IT giants typically provide.
Where Large IT Falls Short, Mid-IT Steps In
Mid-IT is not just an alternative to legacy IT but the need of the hour. Legacy IT is usually caught in multi-year contracts with big-ticket clients for constant revenue streams. Smaller GCCs, due to their size, might receive less attention and dedicated resources.
“Large IT companies often have extensive internal procedures that can create friction when dealing with these nimbler entities,” said Praveen RP, chief operating officer of the GBS Business Unit at Happiest Minds Technologies. “Large IT services companies, with their inherent multi-layered structures, can struggle to match this pace, leading to slower response times and potentially hindering the goals of smaller GCCs.”
Cost Arbitration is No Longer the Moat
Enterprises are moving beyond cost savings to seek deeper value from their GCCs through greater ownership and integration.
“The optimal model for GCCs—one that delivers the greatest value to enterprises beyond just cost arbitrage—is where applications and processes are fully owned within the GCC,” said Rohit Jayachandran, head of banking & financial services at Mphasis. “Few organisations have reached this level of maturity; most are still in the early stages of this often costly journey.”
For smaller or newer GCCs still building this maturity, shared services can offer a practical path forward. “Shared services for support functions like HR, payroll, talent acquisition, compliance, and legal can be leveraged instead of investing in CapEx, helping optimise OpEx,” Praveen noted. These services are especially useful for firms that lack the internal capacity to fully staff such functions.
Sustainable Growth Requires Flexibility
Much like startups, GCCs rely on the ability to pivot and adapt quickly. Flexibility has become a key driver of sustainable growth, and mid-sized IT firms are well-positioned to deliver on this need.
“Flexibility is perhaps the biggest differentiator,” noted Srinivas Chamarthy, SVP, engineering, and country head, Diligent India. “Mid-sized firms can tailor delivery models, team structures, and even technology stacks to align with a GCC’s specific goals. They’re not constrained by legacy contracts or rigid SLAs, which makes them more adaptive.”
Mid-sized IT firms are increasingly offering ‘GCC as a service’, giving companies the flexibility to choose the service model that best fits their needs. “The biggest benefit of this model is that it reduces setup time and effort, allowing GCCs to start operations and realise value faster,” said Vybhava Srinivasan, managing director at Availity India.
Employment Generation
As delivery models evolve, mid-sized IT firms are expected to play a key role in job creation within the GCC ecosystem. Srinivasan believes that shorter delivery cycles will, in the near term, boost employment and offer better compensation for skilled talent. However, he pointed out that the long-term impact will depend on how well these delivery models create lasting value for GCC headquarters.
Sustained value, he noted, must go beyond cost arbitrage. “More value creation beyond the expected cost arbitrage will eventually create a virtuous cycle of growth of existing GCCs and more new GCCs flowing, resulting in increased employment.” At the same time, he warned that “if the delivery is suboptimal and there is no value creation, this could lead to reduced employment.”
Cultural Alignment
Small and Micro GCCs setting up in India for the first time are looking for trusted partners and prioritise business continuity, cultural alignment and operational resilience.
“Mid-size IT firms or GCC ecosystem partners are not just vendors to these GCCs, but they become strategic partners for their success and growth in India, especially now since the geopolitical uncertainties such as visa restrictions, trade tensions, and data localisation laws are at the forefront currently,” Neeti Sharma, CEO of Teamlease, stated.
Mid-sized IT firms are set to drive the next phase of GCC growth in India. By supporting faster scale, stronger integration, and greater agility, they have the potential to transform how global enterprises build and expand their India operations, creating lasting value beyond just cost savings.
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