BENAGLURU: Infosys Ltd has won a contract worth upwards of $500 million from US-based Truist Financial Corp. to set up and run a global capability centre (GCC) in Hyderabad, making it the largest such engagement where an IT services firm is building and operating a back-office hub for a client.
According to two people with knowledge of the matter, Infosys will set up the GCC for the North Carolina-based bank, extending a two-decade relationship between the two companies. Infosys won the contract in March and is expected to begin work in the coming months.
As part of the deal, the country’s second-largest IT services firm will establish a tech centre expected to employ at least 4,500 people, under a built-operate-transfer (BOT) arrangement in which Infosys will run the facility for five years before transferring operations to the client.
As part of the arrangement, Infosys plans to hire 2,000 people, including senior management, at the centre in the first year itself. The GCC will also handle functions beyond IT, including sales, human resources and finance.
This transaction is significant because Infosys is undertaking complete ownership of the IT work and not just offering staffing for the tech office capabilities.
“This is the single largest GCC setup the company is doing and the focus is on making this centre AI first using Infosys’ Topaz offering wherever possible,” said one of the people with knowledge of the matter, on condition of anonymity.
Mint had first reported the development on 16 September last year, noting that Infosys was among the contenders for the GCC mandate.
Emails sent to Infosys and Truist on Monday went unanswered until press time.
GCC shift
The deal comes as GCCs increasingly shift from being captive support hubs to strategic operating centres, even as concerns grow in parts of the IT industry that such models could displace traditional outsourcing work.
According to the other person cited above, most of the revenue from the bank is new business, despite Truist being an existing client.
Based on the size of the engagement, Infosys is expected to generate at least $100 million in revenue from the arrangement, equivalent to about 0.5% incremental revenue in the current fiscal.
Infosys ended FY26 with $20.16 billion in revenue, up 4.57% year-on-year. It has guided for 1.5-3.5% growth in constant currency terms for the fiscal. Constant currency excludes the impact of exchange-rate movements.
Enterprises are also increasingly insourcing technology work to gain tighter control over core systems and costs. “Enterprises like Truist want tighter control over core capabilities, especially as AI becomes embedded into decision-making and customer-facing processes. But they still need partners like Infosys to build, scale, and continuously run these environments,” said Phil Fersht, chief executive of HFS Research.
Truist generated $20.52 billion in revenue last year, up 52% year-on-year. It is the seventh-largest bank in the US by assets and slightly larger than Infosys by revenue.
For Infosys, the deal comes at a time of mixed demand signals. The company is facing a 0.75-1% revenue decline impact from Daimler. According to a Mint report dated 13 January, Infosys stands to lose about $150 million from Daimler and Mercedes Benz, which are collectively among its five largest clients.
Large banks and financial institutions, including JPMorgan, Citibank and Bank of America, already run some of the biggest GCCs in India, employing more than 10,000 people each, and continue to expand their back-end operations.
India has more than 1,760 GCCs, including 875 in Bengaluru and 355 in Hyderabad, according to industry body Nasscom. It expects the number to rise to 2,200 by March 2030, with the sector reaching a market size of $105 billion.
Hyderabad, which hosts GCCs of companies such as McDonald’s, Warner Bros and Novartis, is increasingly emerging as a preferred hub due to lower congestion compared with Bengaluru and supportive state policy.
