Tech Mahindra to Set Up 300-Employee GCC for Goodyear in Hyderabad
Tech Mahindra is in advanced discussions to establish a global capability centre (GCC) for Ohio-based Goodyear Tire & Rubber Co in Hyderabad, Mint reported, citing sources familiar with the matter. The proposed centre, expected to employ 300 people, will manage Goodyear’s research and development (R&D) and IT operations. However, Tech Mahindra did not confirm if the firm is setting up a GCC for Goodyear. The move aligns with Tech Mahindra’s broader strategy under CEO Mohit Joshi, who took over in December 2023 after the retirement of CP Gurnani. As part of its three-year turnaround plan, Project Fortius, the company aims to boost operating margins, accelerate revenue growth, and eliminate unprofitable tail accounts. Tech Mahindra, which reported $6.3 billion in revenue for FY24, will allocate about 0.2% of its 150,488 employees to manage Goodyear’s GCC. It reported a 92.6% year-on-year (YoY) increase in net profit for the third quarter ended December 31, 2024, reaching $115 million, with a total revenue of revenue for the quarter rising to $1.56 billion. Meanwhile, Goodyear closed 2023 with $20 billion in revenue. Indian IT firms like Tech Mahindra often facilitate GCC setups by staffing and managing these centres, receiving payments either for the workforce supplied or as a share of revenue. In recent news, Infosys is establishing a GCC in India for Lufthansa as part of a renewed IT contract valued at nearly $300 million, according to reports. This initiative underscores the growing adoption of build-operate-transfer (BOT) models in major contract renewals. Read: Telangana and Andhra Pradesh, the New Hotspot for IT and GCCs IT firms typically transition GCC operations back to the parent company after a few years, but it remains unclear whether Tech Mahindra and Goodyear have similar plans. An earlier version of this article said the GCC would employ 3,000 people. The figure has now been updated, based on the original source.
Tech Mahindra, which reported $6.3 billion in revenue for FY24, will allocate about 0.2% of its 150,488 employees to manage Goodyear’s GCC.
Tech Mahindra, which reported $6.3 billion in revenue for FY24, will allocate about 0.2% of its 150,488 employees to manage Goodyear’s GCC.
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Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.