Tech Mahindra to Set Up 3,000-Employee GCC for Goodyear in Hyderabad

Tech Mahindra is in advanced discussions to establish a global capability center (GCC) for Ohio-based Goodyear Tire & Rubber Co in Hyderabad, sources familiar with the matter said. The proposed center, expected to employ 3,000 people, will manage Goodyear’s research and development (R&D) and IT operations.

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 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.