IT Services Companies Set up Dedicated Tech Hubs for Clients
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
US retail giant Costco to set up global capability centre in India, to employ 1000 people, sources say
By Rishika Sadam and Sai Ishwarbharath B HYDERABAD/BENGALURU (Reuters) -U.S. retailer Costco Wholesale Corp will open its first global capability centre (GCC) in India in Hyderabad, two people familiar with the plans told Reuters. The centre will initially employ 1,000 people and scale up eventually, sources said. Costco did not immediately respond to Reuters request for a comment. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
JLR postpones new electric models
Tata-owned Jaguar Land Rover (JLR) has postponed the launch of its new electric Range Rover and Jaguar models, extending the timeline for additional testing and to allow for an increase in market demand, reported The Guardian. The delay impacts customers awaiting the electric Range Rover, with deliveries now commencing next year instead of late 2025. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service Production for the inaugural electric Jaguar since the rebrand, currently known as the Type 00, is slated for August 2026. The subsequent Jaguar model may not launch until December 2027, the report added. Also, an electric Range Rover Velar is anticipated to enter production in April 2026, with the possibility of further delays, and an electric model under the Defender sub-brand could begin production in early 2027. Additionally, two new Jaguar models might also face a delay of 'several months' from the original schedule, two individuals familiar with the company's plans told The Guardian. JLR's sales have recently suffered, experiencing a 15.1% decline in the quarter ending June, partly due to a halt in US exports influenced by President Donald Trump's tariffs. The company has also introduced a voluntary redundancy programme targeting up to 500 managerial positions in the UK. Despite these challenges, JLR claims to have maintained profitability for ten consecutive quarters, bolstered by a UK-US trade deal that reduces tariffs on the initial 100,000 vehicle exports. The carmaker's approach to electric vehicle technology is said to have been more conservative than its competitors, which previously risked incurring fines for not meeting UK electric vehicle sales targets. However, the UK's relaxation of the zero-emission vehicle (ZEV) mandate has alleviated some of this pressure. A company spokesperson said: 'By 2030, JLR will sell electric versions of all its luxury brands. Our plans and vehicle architectures are flexible, so we can adapt to different market and client demands.' "JLR postpones new electric models – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Managed Services Market to Reach USD 990,611.47 Million by 2032, Growing at a CAGR of 14.5%: Credence Research
PUNE, India, July 21, 2025 /PRNewswire/ -- The Managed Services Market is poised for substantial growth, with its value projected to increase from USD 335,320 million in 2024 to USD 990,611.47 million by 2032, registering a CAGR of 14.5%. This robust expansion is driven by the growing need for businesses to optimize IT operations, reduce operational costs, and enhance cybersecurity resilience. As digital transformation accelerates across industries, organizations are increasingly outsourcing IT infrastructure, cloud management, network monitoring, and security services to managed service providers (MSPs) to focus on core business functions while ensuring scalability and operational efficiency. The surge in remote work models, cloud adoption, and complex IT environments further amplifies demand for managed services that offer 24/7 monitoring, compliance management, and disaster recovery solutions. Enterprises are also leveraging MSPs to bridge the IT skills gap and gain access to cutting-edge technologies like AI, automation, and analytics. The market outlook remains favorable, with rising investments in managed security services, data center outsourcing, and hybrid cloud management expected to create new growth opportunities through 2032. Browse the report and understand how it can benefit your business strategy - Key Growth Determinants – Managed Services Market The global managed services market is witnessing robust expansion, projected to reach substantial figures in the coming years. This growth is primarily fueled by the evolving technological landscape, increasing operational complexities, and a strategic shift in business priorities. Increasing Complexity of IT Infrastructure and Operations: As businesses adopt advanced technologies like cloud computing (multi-cloud and hybrid cloud environments), Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT), their IT environments become increasingly complex. Managing these intricate systems, ensuring seamless integration, and maintaining optimal performance requires specialized expertise that many organizations lack in-house. Managed Service Providers (MSPs) offer this specialized knowledge, making them indispensable for effective IT infrastructure management. Growing Demand for Cost Optimization and Operational Efficiency: Organizations are constantly under pressure to reduce operational expenditures while maintaining high service quality and scalability. Outsourcing IT operations to MSPs allows businesses to convert capital expenditures (CapEx) into predictable operational expenditures (OpEx), leading to significant cost savings. MSPs help streamline processes, reduce downtime, and improve overall operational efficiency, enabling businesses to allocate their internal resources more strategically. Heightened Cybersecurity Threats and Regulatory Pressures: The escalating sophistication and frequency of cyber threats (e.g., phishing, ransomware, data breaches) necessitate robust and proactive cybersecurity measures. Simultaneously, stringent data privacy regulations (e.g., GDPR, HIPAA) impose significant compliance burdens on businesses. Managed Security Services (MSSs) offered by MSPs provide end-to-end protection, including threat intelligence, incident response, firewall management, and compliance adherence, mitigating risks and ensuring data security. Shortage of Skilled IT Professionals: There is a persistent global shortage of skilled IT professionals, particularly in specialized areas like cybersecurity, cloud management, and AI. This talent gap makes it challenging for organizations to build and maintain in-house teams capable of managing modern IT infrastructures. MSPs bridge this gap by providing access to a pool of certified experts, allowing businesses to leverage high-level technical skills without the overhead of hiring and training. Focus on Core Business Functions: By offloading non-core IT operations to MSPs, businesses can redirect their internal teams and resources to focus on strategic initiatives, innovation, and core business objectives. This allows companies to enhance their competitive advantage and drive growth in their primary domains. Key Growth Barriers – Managed Services Market 1. Cybersecurity and Evolving Threats: The constant evolution of cyber threats (ransomware, phishing, DDoS, APTs) poses a significant challenge. MSPs must continuously update their security measures and knowledge to protect client data and systems, which can be resource-intensive. MSPs are high-value targets for cybercriminals as a breach of an MSP can grant access to multiple client networks. This puts immense pressure on MSPs regarding liability and reputational damage in case of a breach. Some MSPs may offer inadequate security services or operate with fragmented security tools and siloed data, leading to vulnerabilities and inefficiencies. 2. Talent Shortages and Skill Gaps: There's a persistent shortage of skilled IT professionals, especially in specialized areas like cybersecurity and AI. This makes it difficult for MSPs to attract, hire, and retain top talent, impacting their ability to handle complex IT infrastructures and scale operations. Many MSPs experience employee churn, losing skilled technicians to in-house IT departments of end-user organizations. 3. Maintaining Profit Margins and Pricing Pressures: The MSP market is increasingly saturated, with many providers offering similar services. This intensifies competition and leads to price pressure, making it challenging for MSPs to maintain profitability while offering competitive pricing. In the quest to win contracts, some MSPs may undervalue their services or construct pricing models that don't drive maximum profit, making it difficult to raise prices later. Unexpected costs like cyber insurance premiums, compliance requirements, and the need for additional services or hardware upgrades can impact margins. 4. Scalability and Resource Management: Smaller MSPs, in particular, struggle to expand services without overwhelming resources or compromising service quality. Rapid client growth can strain MSP resources. Managing a variety of solutions across different clients increases complexity. Integrating new IT services with existing legacy systems can lead to compatibility issues, disruptions, and additional expenses. Failure to effectively forecast demand and allocate resources can lead to being swamped, delayed responses, and a decline in service quality. 5. Regulatory Compliance and Data Sovereignty: Compliance with various data privacy regulations (GDPR, CCPA, HIPAA) is non-negotiable and constantly evolving. MSPs face a continuous challenge to ensure client compliance, which can be resource-intensive and incur hefty fines for non-compliance. Mandates requiring localized data processing can force providers to duplicate infrastructure in each jurisdiction, reducing economies of scale and complicating global service delivery. Key Market Opportunities – Managed Services (IBC) Market 1. Cybersecurity and Evolving Threats: The constant evolution of cyber threats (ransomware, phishing, DDoS, APTs) poses a significant challenge. MSPs must continuously update their security measures and knowledge to protect client data and systems, which can be resource-intensive. MSPs are high-value targets for cybercriminals as a breach of an MSP can grant access to multiple client networks. This puts immense pressure on MSPs regarding liability and reputational damage in case of a breach. Some MSPs may offer inadequate security services or operate with fragmented security tools and siloed data, leading to vulnerabilities and inefficiencies. 2. Talent Shortages and Skill Gaps: There's a persistent shortage of skilled IT professionals, especially in specialized areas like cybersecurity and AI. This makes it difficult for MSPs to attract, hire, and retain top talent, impacting their ability to handle complex IT infrastructures and scale operations. Many MSPs experience employee churn, losing skilled technicians to in-house IT departments of end-user organizations. 3. Maintaining Profit Margins and Pricing Pressures: The MSP market is increasingly saturated, with many providers offering similar services. This intensifies competition and leads to price pressure, making it challenging for MSPs to maintain profitability while offering competitive pricing. In the quest to win contracts, some MSPs may undervalue their services or construct pricing models that don't drive maximum profit, making it difficult to raise prices later. Unexpected costs like cyber insurance premiums, compliance requirements, and the need for additional services or hardware upgrades can impact margins. 4. Scalability and Resource Management: Smaller MSPs, in particular, struggle to expand services without overwhelming resources or compromising service quality. Rapid client growth can strain MSP resources. Managing a variety of solutions across different clients increases complexity. Integrating new IT services with existing legacy systems can lead to compatibility issues, disruptions, and additional expenses. Failure to effectively forecast demand and allocate resources can lead to being swamped, delayed responses, and a decline in service quality. Segmentation By Service Type Managed Network Services Managed Security Services Managed Data Center Services Managed Infrastructure Services Managed Mobility Services Managed Communication and Collaboration Services Managed IT Support Services Managed Cloud Services Managed Application Services Managed Backup and Disaster Recovery Services By Deployment Model On-Premise Cloud-Based By Organization Size Small and Medium-Sized Enterprises (SMEs) Large Enterprises By End-User Industry BFSI (Banking, Financial Services, and Insurance) IT and Telecom Healthcare Manufacturing Retail and E-commerce Government and Public Sector Energy and Utilities Education Media and Entertainment Transportation and Logistics By Region North America Europe Asia Pacific Latin America Middle East & Africa Preview the report with a detailed sample and understand how it can benefit your business strategy. Request a free sample today - Regional Analysis – Managed Services Market 1. North America Market Dominance: North America currently holds the largest share of the global managed services market in terms of revenue. This dominance is attributed to the early adoption of cloud computing, robust IT infrastructure, and high IT spending by enterprises. Key Drivers: Trends: A shift towards more specialized and outcome-based services, with a focus on delivering measurable business results. 2. Asia Pacific (APAC) Fastest Growing Market: APAC is projected to be the fastest-growing region in the managed services market, exhibiting a high Compound Annual Growth Rate (CAGR). Key Drivers: Trends: Significant opportunities in managed data center and IT infrastructure services, as well as managed security services. India and China are key growth markets within the region. 3. Europe Significant Market Share: Europe holds a substantial share of the global managed services market. Key Drivers: Trends: Managed security is a highly lucrative and fast-growing segment. Countries like Germany, the UK, and France are expected to show strong growth. There's also a growing interest in nearshore services for cost efficiency and collaboration. 4. Middle East & Africa (MEA) Considerable Growth Rate: The MEA region is estimated to grow at a considerable rate in the managed services market. Key Drivers: Trends: Managed data center and hosting services hold a significant share, while managed security services are experiencing rapid growth due to heightened attack frequencies. 5. Latin America High Growth Potential: Latin America is also expected to exhibit a strong CAGR in the managed services market. Key Drivers: Trends: Managed security services are a fast-growing segment, and Brazil is expected to be a key growth country within the region. Credence Research's Competitive Landscape Analysis – Managed Services Market Credence Research's Competitive Landscape Analysis of the Managed Services Market highlights the dominance of global IT and cloud leaders such as IBM, Microsoft, Cisco, and Google Cloud, who command significant market share due to their extensive service portfolios, technological expertise, and global delivery capabilities. These players offer a comprehensive range of managed services including infrastructure management, cloud migration, cybersecurity, and application support. Strategic partnerships, AI integration, and end-to-end digital transformation services further strengthen their competitive positions in both mature and emerging markets. Alongside global leaders, the market features strong competition from specialized and regional players like Secureworks, Lumen Technologies, and MetTel, who focus on niche segments such as cybersecurity, network services, and industry-specific solutions. These firms differentiate through deep customer engagement, localized service delivery, and tailored offerings that meet regulatory and operational requirements. According to Credence Research, competition in the managed services market is shaped by the ability to deliver scalable, secure, and cost-effective solutions while adapting quickly to evolving technology demands and client expectations. Tailor the report to align with your specific business needs and gain targeted insights. Request Key Player Analysis Accenture ARYAKA NETWORKS, INC. AT&T Inc. Atera Networks Ltd. BMC Software, Inc. Broadcom Cisco Systems, Inc. DXC Technology Company Fujitsu HCL Technologies Limited HP Development Company, L.P. International Business Machines Corporation Lenovo Recent Industry Developments April 2025: Accenture Federal Services secured a USD 1.6 billion task order to enhance the U.S. Air Force Cloud One environment, focusing on automation and financial governance. March 2025: Arrow Electronics introduced an AI platform for North American channel partners, expanding its portfolio with managed AI deployments across security and cloud services. December 2024: Accenture reported USD 17.7 billion in Q1 FY2025 revenue, with managed services contributing USD 8.6 billion, reflecting 11% growth. November 2024: Dell broadened its edge and 5G ecosystem through expanded collaborations with Ericsson and Nokia to strengthen its edge-management capabilities. September 2024: IBM unveiled new services integrating generative AI and Oracle cloud applications to support Oracle clients' digital transformation. September 2024: IBM and NTT DATA launched SimpliZCloud, a fully managed cloud platform for financial institutions built on IBM LinuxONE, enabling AI/ML adoption and improved infrastructure performance through a subscription-based model. September 2024: TCS introduced two AI-powered cybersecurity offerings—Managed Detection and Response (MDR) and Secure Cloud Foundation—in partnership with Google Cloud to improve hybrid cloud security posture. June 2024: DXC Technology and Dell launched Enterprise Intelligence Services (EIS), combining AI, data analytics, and cloud to deliver advanced multi-cloud managed services for operational optimization. June 2024: Telefónica Tech partnered with IBM to advance enterprise-level AI, data analytics, and data management solutions. May 2024: Lenovo collaborated with Cisco to offer integrated infrastructure and networking solutions aimed at accelerating enterprise digital transformation. May 2024: Elitery, an Indonesian cloud services provider, was recognized as a Google Cloud Managed Services Provider, enabling it to deliver generative AI solutions to local governments. May 2024: Dell Technologies and CrowdStrike expanded their partnership to deliver Managed Detection and Response (MDR) services using the CrowdStrike Falcon XDR platform. March 2024: Cognizant extended its partnership with Pon IT to continue delivering cloud managed services and optimizing cloud platforms across Pon Holdings' subsidiaries. January 2024: Accenture acquired NaviSite to bolster its managed services capabilities in application and infrastructure management for North American clients. January 2024: Kyndryl and Cisco collaborated on a new security edge service designed to strengthen customers' cybersecurity posture and response capabilities. January 2024: GTT partnered with JOVO to provide inspection, maintenance, repair, and engineering consultancy through two new technical services. October 2023: Logicalis introduced its Intelligent Connectivity suite—featuring SASE, SSE, SD-WAN, and Private 5G—powered by Cisco and supported by the Logicalis Digital Fabric Platform. September 2023: Cloud5 Communications launched a managed services division targeting IT needs across hospitality, student housing, and senior living sectors. May 2023: Alfar Capital and Walter Capital Partners acquired MSP Corp in Canada and merged it with Groupe Access to enhance IT and cybersecurity offerings. January 2023: Rackspace Technology launched Modern Operations, a managed public cloud service for Azure, AWS, and GCP, offering 24/7 support and cloud optimization capabilities. Reasons to Purchase this Report: Gain a comprehensive understanding of the market through qualitative and quantitative analyses, considering both economic and non-economic factors, with segmentation and sub-segmentation details provided in terms of market value (USD Billion). Identify regions and segments expected to experience the fastest growth or dominate the market, with a detailed analysis of geographic consumption patterns and the factors driving or hindering market performance in each region. Stay informed about the competitive environment, with rankings of major players, recent product and service launches, partnerships, business expansions, and acquisitions from the past five years. Access detailed profiles of major market players, including company overviews, insights, product benchmarking, and SWOT analysis, to understand competitive advantages and market positioning. Explore the present and forecasted market landscape, with insights into growth opportunities, market drivers, challenges, and constraints for both developed and emerging regions. Benefit from Porter's Five Forces analysis and Value Chain insights to evaluate various market perspectives and competitive dynamics. Understand the evolving market scenario, including potential growth opportunities and trends expected in the coming years. Browse the report and understand how it can benefit your business strategy - Discover additional reports tailored to your industry needs Managed Printing Services (MPS) Market - Managed Pressure Drilling Market - Managed Blockchain Services Market - Managed Workplace Services Market- Managed Database Services Market - Full Body Scanners Market - Satellite Dish Market - Digital Mining Market - Follow Us: About Us: Credence Research is a viable intelligence and market research platform that provides quantitative B2B research to more than 2000 clients worldwide and is built on the Give principle. The company is a market research and consulting firm serving governments, non-legislative associations, non-profit organizations, and various organizations worldwide. We help our clients improve their execution in a lasting way and understand their most imperative objectives. Contact Us Mitul DeanTower C-1105 , S 25, Akash Tower,Vishal Nahar, Pimple Nilakh, Haveli,Pune – 411027, Indiasales@ Logo - View original content to download multimedia: SOURCE Credence Research Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
