Indian IT services majors emerge as key bidders for US Bancorp's GCCs

Indian IT majors vie for mandate as American bank plans insourcing rampup

Information technology (IT) services majors Tata Consultancy Services (TCS), Wipro, Cognizant, and ANSR have emerged as key bidders for a mandate from US Bancorp, which is looking to set up two global capability centres (GCCs) in India, according to people familiar with the development. 

The fifth-largest US bank plans to insource a large portion of its technology (tech) work and is evaluating partnerships to build centres in Hyderabad and Chennai. While the Hyderabad unit is likely to be a wholly owned centre, the Chennai facility is expected to be operated under a build-operate-transfer (BOT) model. 

US Bancorp joins its larger peers in establishing a base in India, which already houses tech centres of several global financial services firms. 

One source said US Bancorp is looking to hire between 3,000 and 5,000 employees in India over the next five years to manage its tech operations, placing the contract value at roughly $250 million. 

The bank did not respond to Business Standard’s request for comment. Emails to TCS, Wipro, Cognizant, and ANSR also remained unanswered until the time of going to press. 

No timeline has been firmed up yet, and it may take another six to eight months for the contract to materialise, as banks navigate macroeconomic headwinds and tariff impacts. 

While most major US banks have a presence in Bengaluru and Hyderabad, US Bancorp is a relatively late entrant into India’s crowded GCC landscape. This comes amid reports that Truist Financial Corporation — formed through the merger of BB&T and SunTrust in 2019 — is also exploring a tech centre in Hyderabad. 

Prominent US banks with existing tech centres in India include JPMorgan, Goldman Sachs, Morgan Stanley, Citi, Northern Trust, and State Street. Among European lenders, Deutsche Bank and Société Générale have established centres. Other names that have set up, or are expected to set up, capability centres include FirstCitizensBank, PNC Financial, and Fifth Third Bank from the US; Natixis, Crédit Agricole, and Santander Bank from France; UniCredit from Italy; and Revolut and Monzo Bank from the UK. 

The banking, financial services and insurance GCC segment is the largest in India by revenue, operations, and headcount. A study by Wizmatic and EY found that the segment’s revenue grew to around $21 billion in 2023 from $13.4 billion in 2020, and was projected to reach $25 billion in 2024. The sector currently employs about 540,000 people. 

Most of these banks focus on functions such as Big Data and analytics, IT infrastructure and Cloud, application development and maintenance, and cybersecurity. 

Bengaluru remains a key hub for banking GCCs, with a strong presence of global financial institutions and steady growth in centres and headcount. Hyderabad is rapidly emerging as a major hub as well, driven by a large pool of skilled professionals in IT, finance, and analytics.