IT Services Companies Set up Dedicated Tech Hubs for Clients Analysts are of the view that top IT services companies are establishing these tech centres in a bid to compete with the GCCs that are being set up by MNCs

Indian IT services companies are increasingly setting up dedicated technology hubs for their clients, in a bid to fend off competition from MNCs establishing global capability centers (GCCs) instead of outsourcing.

Recently, Infosys said it will establish a global technology hub for Swedish electric performance car brand Polestar at its development center in Bengaluru. This hub aims to deliver electric vehicle (EV) software development and validation across many domains including infotainment, Advanced Driver Assistance Systems (ADAS), and telematics.

It also supports Polestar's product management, customer engagement, corporate solutions, and accelerates direct-to-consumer digital services through cloud-native development, testing, and data engineering. Polestar will benefit from leveraging Infosys' strategic assets like engineering labs, design studio, and Infosys Living Labs to enhance innovation.

"We believe that this collaboration will enhance Polestar's digital roadmap by leveraging India's well-regarded software and automotive engineering talent pool. Building on Infosys' extensive experience in automotive engineering, digital transformation, and global delivery leadership, we aim to bring the infrastructure and innovation to co-create next generation EV capabilities. We will work closely with Polestar's global design and development hubs to set new standards in next-gen mobility," said Jasmeet Singh, Executive Vice President and Global Head of Manufacturing, Infosys.

Earlier this year, Greece-based banking group Eurobank signed a multi-year agreement with LTIMindtree to establish a dedicated global delivery center in India aimed at enhancing customer experience by improving banking operations and building innovative IT services for Eurobank and its subsidiaries.

Alongside the recently-established LTIMindtree Greece office, this center will drive technology modernisation, digital innovation as well as enhance and maintain critical banking applications. This initiative will empower Eurobank Group to effectively meet growing customers' demands as it expands its services.

In February this year, Infosys signed a strategic, long-term collaboration with Lufthansa Group (LHG), a global aviation group, and Lufthansa Systems GmbH (LSY), leading airline IT provider, to accelerate digital transformation and drive innovation in the aviation industry.

As part of the engagement, LSY and Infosys will establish a dedicated GCC in Bengaluru aimed at enhancing Lufthansa Group's software and product development as well as increase support for LSY's products for the external airline market customers. The center will develop future-ready and sustainable aviation IT products and data-driven solutions leveraging the capabilities of Infosys Topaz, an AI-first offering using generative AI technologies.

"The GCC will accelerate Lufthansa Group's digital transformation by adopting modern technologies and AI. Working closely with LSY, the GCC will enhance existing solutions across critical functions including finance, flight navigation, network & schedule design, and aircraft & crew operations," Infosys said in a statement.

Thomas Wittmann – CEO, Lufthansa Systems, said, "At Lufthansa Systems, we champion a modular approach to solutions and collaborations, ensuring adaptability and tailoring to the unique needs of each airline. This principle extends perfectly to our collaboration with Infosys. By combining our deep aviation expertise with Infosys's global technology prowess and establishing a dedicated Global Capability Center (GCC), we are not only enhancing our one-stop-shop offerings but also accelerating the pace of digital innovation across the aviation industry. This collaboration empowers us to deliver cutting-edge solutions with greater agility and scale, ultimately benefiting our airline customers with more efficient, innovative, and cost-effective technologies."

Analysts are of the view that top IT services companies are establishing these tech centres in a bid to compete with the GCCs that are being set up by MNCs. "GCCs are taking away a portion of the business from traditional IT services, so building such centers for their clients gives an edge to IT services players. Some of these could be in a BOT or Build Operate Transfer Model," a Bengaluru-based IT analyst said.