Toyo Japan and MODEC open GCC centre in Bengaluru; to hire 750 employees
The centre will focus on high-value services including Front-End Engineering Design (FEED), Procurement, and FPSO Project Support.
Officials said they are planning to increase the workforce from 200 professionals currently to 750 employees over the next three years.
Hirohiko Miyata, President and CEO, MODEC, said, "Establishing a GCC in Bengaluru enables us to deliver smarter, more efficient solutions at scale, aligned with the increasingly complex demands of global FPSO projects."
Nakane Tsutomu, Consul General of Japan in Bengaluru, said Bengaluru continues to be a strategic hub for Japanese GCCs, driven by its digital excellence and engineering talent.
With this GCC, the company aims to enhance operational agility and execution quality across global projects. Though GCCs are creating several job opportunities, attrition is also a growing concern currently.
Recently in its study, HR solutions provider CIEL HR revealed that 51% of GCCs in India cite talent retention as their top challenge, amid a sharp rise in attrition, job-switching intent, and employee disengagement.
With demand for niche skills like AI, Machine Learning, and Cloud Computing creating a surge in the need for specialised talent, organisations are facing intense competition to attract and retain top professionals, making it increasingly difficult for GCCs to hold on to their talent.
Aditya Narayan Mishra, Managing Director and CEO of CIEL HR, said, "India hosts over 1,700 GCCs, nearly 50% of all GCCs worldwide, highlighting the country's pivotal role in global innovation and high-value delivery. Over time, GCCs have transformed from cost-efficiency centres into strategic engines for their respective parent entities, and at the same time, they drive economic growth, job creation, and regional development for India."
However, he added rising attrition and talent mobility demand a decisive shift from transactional approaches to holistic employee engagement.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
8 minutes ago
- Economic Times
OMC Power to invest Rs 4,000 cr to build 1k MW clean energy portfolio in 3-5 years
TIL Creatives Renewable energy production OMC Power is looking to build up a renewable energy portfolio of 1,000 MWp with an investment of Rs 4,000 crore across various locations in the country, the company's MD & CEO Rohit Chandra said. The homegrown entity which is backed by Japanese like Mitsui & Co. and Chubu Electric Power, aims to set up these capacities across four business verticals over the next 3 to 5 years. In an interaction with PTI, Chandra said, "OMC Power scaling rapidly with the ambition to build a 1 GWp clean energy portfolio spanning north and central India." When asked about investments, he said the company's ambitious plan will involve around Rs 4,000 crore investment. It will be a 10 times rise in capacity from 100 MWp (mega watt peak) operated at present, over the next three to five years, the CEO said. Sharing a break-up of the planned 1 GWp (gigawatt peak) or 1,000 MWp capacity, Chandra said around 600 MWp will be achieved from rooftop solarization for customers in healthcare space where it has a capacity of 75 MWp. Around 200 MWp will be added in its green energy for telecom vertical where the company supplies power to tower companies from 15 MWp capacity. To serve rural areas, the company plans to add another 100 MWp in smart grids where it has 10 MWp of operational capacity. OMC Power will add 100 MWp in solar EPC space for MSME and C&I (Commercial and Industrial customers) customers from 5MWp. All these projects will be worked out in Uttar Pradesh, Uttarkhand, Madhya Pradesh, Bihar, Jharkhand, Assam, and northeastern states. When asked about source of investments, Chandra said, "We have decided to move ahead with the plan as OMC Power has turned profitable. The capacity addition plan will be funded through internal accruals, some portion will come from existing Japanese investors and through debt from financial institutions." As per company information, OMC Power has reported a Profit After Tax (PAT) of Rs 0.48 crore in Q1 FY26, marking a positive turnaround after several consecutive quarters of losses.
The Hindu
8 minutes ago
- The Hindu
IT Minister Lokesh seeks establishment of Microsoft Experience Zone in Andhra Pradesh
Andhra Pradesh Minister for HRD, IT, Electronics, and RTG Nara Lokesh visited the Microsoft Experience Center in Singapore on Wednesday, and held discussions with Microsoft's Head of Government Affairs Markus Loh, SELA Head Jasmin Begum, and CTO Mark Saus. During the meeting, Mr. Lokesh proposed the establishment of a Microsoft Experience Zone, or Technology Station, in Andhra Pradesh to foster and incorporate Generative AI-based solutions. Hackathon Mr. Lokesh invited Microsoft to organise a hackathon in 2026 at Amaravati's Quantum Valley Tech Park, utilising Azure OpenAI services and Microsoft Copilot. He assured full support from the State Government for necessary infrastructure. He also suggested harnessing the State's talent pool to develop a skilled workforce in Generative AI, Hybrid Cloud, and Microsoft technologies, in partnership with the Microsoft Experience Centre. Microsoft representatives explained the visiting delegation that the experience centre was designed to support businesses, consumers, and observers in the areas such as retail and education. The centre offered executive briefings, innovation workshops, hands-on labs, and demonstrations of digital transformation solutions. It was widely used by major clients such as IBM, Dell, and public sector organisations. They also highlighted the IBM-Microsoft Experience Zone, which showcases AI-based business solutions. The delegation observed how Artificial Intelligence (AI) was transforming sectors such as healthcare, financial services, manufacturing, and consumer industries at the AI-powered GoStore. Chip design facility In his meeting with IVP Semi founder Raja Manickam, Mr. Lokesh discussed semiconductor investment opportunities in the State and invited the company to establish a chip design, or semiconductor equipment manufacturing facility. He proposed leveraging IVP's expertise to support local MSMEs and build a robust semiconductor ecosystem. Responding to it, Mr. Raja Manickam assured that his executive team would seriously evaluate the proposals. In his meeting held with DTDS Group CEO B.S. Chakravarthy, Mr. Lokesh urged collaboration with A.P.-based MSMEs in the semiconductor sector, and expressed confidence in the State's potential to become a vital player in India's growing semiconductor landscape, alongside Tamil Nadu. GCC in Vizag Mr. Lokesh also met Yano Tomokazu, Managing Director of ABeam Consulting, and invited it to establish a Global Capability Centre (GCC) in Visakhapatnam, highlighting its growing reputation as an emerging IT and digital services hub. Mr. Tomokazu, while noting ABeam's expertise in digital transformation, AI, cloud, and cybersecurity, with over 1,200 consultants across Southeast Asia, said the company was focusing on SAP-based services in India, and assured that the proposal would be seriously evaluated. Mr. Lokesh later met Infineon President and MD C.S. Chua, wherein he proposed the setting up of semiconductor packaging and testing units in Andhra Pradesh's Electronics Manufacturing Clusters (EMCs) and industrial parks. He also highlighted opportunities for collaboration with the State's growing EV ecosystem, particularly in the regions such as Tirupati Sri City, Anantapur, and Krishna district, encouraging joint efforts in producing power modules, inverters, and Battery Management Systems (BMS). Software parks During a meeting with CapitaLand Investments CEO Sanjiv Das Gupta, he invited the firm to develop IT and software parks in Visakhapatnam and Vijayawada, citing the trend of software companies moving to Tier-2 cities. Mr. Das Gupta responded positively and assured that the proposals would be evaluated internally.
Economic Times
23 minutes ago
- Economic Times
Rapid GCC growth reshapes India's outsourcing industry
ETtech Recent exponential growth of global capability centres (GCC) in India may have come at the expense of the people-led tech outsourcing industry – the country's biggest services exports over the past three decades and unquestionable change agents for once-sleepy towns such as Bengaluru, Pune, and which are setting up these GCCs or expanding existing facilities, are also the top spenders of tech for the $280-billion listed Indian pureplay. The increasing insourcing of core tech tasks – especially the top end, high-value work - may be leading to one of reasons for the current rot in the outsourcing industry, marked by a protracted slowdown and now mass-layoffs. For FY24, GCCs' grew at a rate of 40% even as the top five Indian IT companies posted negative to sub-5% growth for the same period and reported similar numbers for fiscal 2025, as per estimates by Nasscom and the industry. For the IT industry the subdued numbers continued in FY25. While the official numbers are yet to be out for GCCs, the growth is expected to be in double Indian technology services industry which operates in a pyramid structure by hiring more entry-level coders is now witnessing a foundational shift with AI, experts said. 'The pyramid is collapsing. GCCs are rising. AI is automating the middle. Pricing is shifting from effort to outcomes, and that means a full-stack transformation—not just of how services are delivered, but how they're sold, priced, and measured,' said Saurabh Gupta, president at US-based technology research and consultancy firm HFS Research. TCS Jobs Earlier this week, India's largest software exporter Tata Consultancy Services (TCS) announced that it is going to lay off around 2% or 12,200 people in the current fiscal as it grapples with low growth amid a challenging macro situation and AI-led disruption, sending shockwaves in the industry. According to an HFS data survey with 200-plus enterprises, over 65% enterprises expect to relocate at least 10% FTEs (full-time equivalent - which measures the work based on employees work hours) from third parties to have seen tremendous growth in the past few years as multinationals sought to leverage India's skilled talent and cost advantages. Estimates suggest that two new GCCs opened every week last year, increasing the total to 1,700 centres employing nearly 2 million Joshi, partner at another US-based Everest Group, said that the accelerating pace of GCCs in India is having an impact on the net demand for service providers, specifically in segments such as banking, financial services and insurance (BFSI) where these clients have scaled their GCCs in India. As per data by ANSR, over 50 banking GCCs run more than 90 centers in India employing over 180,000 professionals. Incidentally, BFSI contributes around anywhere between 30% and 50% of the revenue share for most Indian IT companies. Almost all large multinational banks and financial services firms have huge GCCs in India. In fact, firms like JPMorgan Chase, Wells Fargo have more employees in India than a mid-tier IT firm, with 50,000 people, representing roughly 20% of its global workforce. The IT industry employed around 5.4 million professionals as of FY24, while GCCs employed nearly 1.9 million people. Net addition of talent by GCCs in FY24 stood at 90,000 and surpassed 100,000 in year, GCCs hired a total of around 110,000 people, while India's top IT companies grew their headcount by a mere 13,500 in FY25, after a reduction of 64,000 in which typically function as back office operations for large overseas companies, established their presence more firmly in India post COVID. According to Ramkumar Ramamoorthy, partner at Catalincs, a tech growth advisory firm, GCCs have publicly stated that their focus will largely be on driving innovation using digital technologies, as they believe they are core to their business and they should own these capabilities. 'IT services companies which were once in denial about the impact of GCCs are today proactively forming crack teams to work alongside them to jointly shape and participate in their transformation and innovation agenda,' he says alluding to the investments and acquisitions by IT firms in the GCC space.'Large IT services companies have been stuck in a low single-digit, organic revenue growth cycle for three years in a row, " he said. Prominent companies collectively generated approximately $20 billion in free cash flow last year. 'The real question we should be asking is, are these companies reinvesting enough back into the business to rewire their business, operating and financial models for accelerated growth?''With a significant portion of the revenue coming from 'run the business' as opposed to 'change the business', from time-and-material (T&M) contracts as opposed to outcome or risk-reward based contracts, from pass-through revenue from product license sale as opposed to newer service opportunities such as cyber security, interactive and platforms, companies need to take bold, unconventional decisions to force-cannibalize revenue, where appropriate, and invest their way out. If they don't act now, we risk looking back in regret for having missed a generational opportunity,' Ramamoorthy added. The GCC Tilt As per government data, the industry had estimated revenues of $254 billion, marking a 3.8% YoY growth in FY24 (excluding e-commerce). Of this, GCCs contributed to $64.6 billion in the same period, industry body Nasscom numbers year, the government's Economic Survey also pointed out that the share of IT in India's services exports fell two percentage points over three years, while indicating an expansion of "other business services" which include GCCs of the growth has fastened at a time when the AI-led disruption is aiding more innovation and R&D work by multinationals based out of India as GCCs, which are no longer just back-office factories. Key leadership of many of these centres is based out of India making them key decision making destinations say, the 12,000 workforce layoffs announced by the largest Indian IT major TCS on Sunday is just the beginning as the Indian players are yet to get return on investments from the large AI investments made. With AI, many companies including GCCs and smaller tech firms are getting higher output with the same people. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Jane St: How an options trader smelt a rat when others raised a toast Why India's power market giant is bracing for a regulatory shock TCS job cuts may not stop at 12,000; its bench policy threatens more From near bankruptcy to blockbuster drug: How Khorakiwala turned around Wockhardt Stock Radar: SBI Life rebounds after testing 50-DEMA; could hit fresh record highs above Rs 2,000 – check target & stop loss These 10 banking stocks can give more than 25% returns in 1 year, according to analysts Two Trades for Today: A metals stock for an over 6% gain, a large-cap chemicals maker for about 7% upmove F&O Radar| Deploy Broken Wing in LIC Housing Finance to benefit from bearish outlook
