Biocomputers, Trade Wars, GCC Boom - Disruption Ahead

Mar 12, 2025

Hello and Welcome to this week's edition of "The Gradient".

🔥Hot News

Cortical Labs Unveils First Evern Living Biocomputer

Cortical Labs has introduced CL1, the first-ever living biocomputer that integrates human neurons with silicon chip. This breakthrough signals a potential revolution in AI and computing power, offering unprecedented energy efficiency and cognitive capabilities. For IT leaders, it marks the dawn of a new computing paradigm that could reshape AI-driven decision-making and automation.

Why This Matters

Rethinking AI & Edge Computing – Biocomputing could disrupt traditional chip-based AI, offering more energy-efficient and adaptable machine learning models.
Early Investment in Emerging Tech – Enterprises should explore partnerships and research in bio-computing to stay ahead of future AI advancements.

The CL1 isn’t just a breakthrough—it’s a warning shot for IT leaders to rethink the unprecedented rate at which the future of AI and computing is unfolding.

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Rising Tide Raises All Ships

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🏭INDUSTRY NEWS

US GCCs Dominate, Non-US Firms Lagging

India is synonymous with the word GCC. The decades long dominance of US-based Global Capability Centers (GCCs) is being challenged as non-US firms accelerate their GCC expansions. Some examples of the key US-based GCCs in Bangalore are Lowes, Kimberly-Clark, and Wells Fargo, among hundreds of others.

However, there is an anticipated 15-20% growth in non-US GCCs in India in the next 12-18 months. This surge is due to arrive from locations including Japan, Germany, and even the EU.

This trend reflects a shift toward globalized IT service delivery, with increased investments in digital transformation and AI capabilities. Enterprises must reassess their GCC strategies to stay competitive.

GCC Expansion as a Growth Strategy – Establishing or enhancing GCCs can provide cost efficiency and tech expertise.
AI & Digital-First GCCs – Future-ready GCCs are focusing on AI-driven solutions rather than just traditional IT services.

The future of IT services is global as much as it’s about AI-powered operational excellence.

EPAM’s AI Strategy During Great Relocation

EPAM Systems is integrating AI at scale to enhance IT services, particularly as talent distribution shifts globally due to the ‘Great Relocation.’ Some of the new destinations for EPAM’s relocation include Montenegro, Armenia, Portugal, and Poland.

With AI-literate hiring as a priority, the firm is positioning itself as a future-proof IT powerhouse. Leaders must take note—AI integration in workforce strategy is now non-negotiable.

AI-Centric Workforce Planning – Hiring AI-skilled talent will define competitiveness in IT services.
Geographic Workforce Diversification – Companies must rethink hiring strategies as remote work transforms global talent pools.

AI literacy is no longer optional—it’s the baseline for IT talent in 2025.

Accenture Tops Rankings, Hexaware Joins Top 25

Accenture has once again secured the top spot in Brand Finance’s IT Services 25 rankings for 2025, ahead of India’s TCS and Infosys. Notably, Hexaware has entered the top 25, signaling a shift in market dynamics as mid-tier firms gain traction. IT leaders must assess these rankings to understand competitive shifts and market positioning in the IT services landscape.

Reevaluating Vendor Partnerships – Businesses may pivot existing alignment with top-ranked IT service providers for future-proof digital transformation.
Growth of Mid-Tier IT Players – Emerging firms like Hexaware are proving that innovation and niche expertise can challenge industry giants.

Market players are shifting; businesses must rethink IT partnerships to stay ahead of the curve.

GCCs Hiring Surge to Outpace IT Firms in 2025

Global Capability Centers (GCCs) in India are set to outpace traditional IT services firms in hiring for the second consecutive year. This trend underscores a strategic shift toward in-house digital transformation and AI-driven service models. IT leaders must evaluate how this shift impacts their talent acquisition strategies and operational models.

In-House Tech Talent Expansion – Enterprises are shifting towards building internal GCCs rather than relying solely on IT service providers.
AI & Automation-Driven Hiring – The demand for AI-savvy professionals is reshaping hiring priorities in both GCCs and IT firms.

The war for AI talent is heating up—firms that fail to adapt will face a talent crisis.

📰 QUICK TAKES

Tech Mahindra Expands US Presence with Texas HQ

Tech Mahindra has established a new US headquarters in Plano, Texas, reinforcing its commitment to North American expansion. This move signals a strategic push to strengthen client proximity, workforce expansion, and AI-driven digital services in the US market. IT leaders should take note of shifting global IT footprints when planning partnerships.

Deloitte Named Global SI Partner of the Year

Deloitte Digital has been recognized as the Global Systems Integrator Partner of the Year by Genesys, underscoring its leadership in enterprise digital transformation.

The award highlights Deloitte’s strength in AI, cloud, and analytics integration, reinforcing its position as a go-to partner for Fortune 500 firms. Enterprises should consider Deloitte’s expertise when planning large-scale IT modernization.

Atos Secures UK Gov Deal Amid Financial Struggles

French outsourcing giant Atos has landed a major UK government contract, a critical lifeline amid ongoing financial struggles. This deal signals both opportunity and caution for enterprises engaging with distressed IT service providers. Decision-makers must assess vendor stability alongside service capabilities when selecting outsourcing partners.

Happiest Minds Seen as Innovator in Banking Services

Happiest Minds has been named a key innovator in NelsonHall’s Core Banking Services NEAT Report, highlighting its growing influence in digital banking transformations. This recognition underscores the importance of fintech-focused IT service providers in reshaping banking operations. Leaders in BFSI must explore such partnerships for competitive advantage.

Chile & Colombia Lead Latam Hiring Boom

Remote hiring in Latin America has reached record highs, with Chile and Colombia emerging as hotspots for nearshore IT talent. US firms are increasingly tapping into this talent pool for cost efficiency and skilled workforce access. IT leaders should rethink global hiring strategies to leverage this growing nearshore advantage.

Worried about customer churn? Use the free Churn Calculator to predict and reduce churn—try it now!

🍵COFFEE BREAK

Davos 2025: CIOs’ Critical Priorities Unveiled

The World Economic Forum’s Davos 2025 has outlined key CIO priorities, including cybersecurity, AI ethics, and sustainability in tech. With digital resilience and AI-driven decision-making taking center stage, CIOs are expected to navigate rapid technological shifts while ensuring regulatory compliance. This global consensus is a wake-up call for IT leaders to future-proof their digital strategies.

Amazon Unveils AI-Powered Alexa Upgrade

Amazon has introduced a next-gen AI-powered Alexa, leveraging generative AI to provide more intuitive, human-like interactions. This upgrade positions Alexa as a serious competitor in enterprise AI applications beyond consumer use.

T-Mobile Parent Unveils AI Phone With Perplexity AI

T-Mobile’s parent company, Deutsche Telekom, has introduced an AI-powered smartphone leveraging Perplexity AI. This marks a major shift in mobile technology, integrating generative AI for real-time assistance, search, and personalized automation.

Google Unveils SpeciesNet: AI for Wildlife Identification

Google has launched SpeciesNet, an AI model designed to identify wildlife species with high accuracy. This initiative supports conservation efforts, scientific research, and biodiversity tracking, reinforcing AI’s role in environmental sustainability.

Climate Change Drives Up Coffee & Food Prices

Your daily fix of morning joe is getting costlier. A new report highlights that climate change is significantly driving up food prices, with coffee, eggs, and staple commodities seeing sharp inflation. Supply chain disruptions and extreme weather events are exacerbating global food insecurity.

🏆LEADERSHIP CORNER

Thriving Turbulence: Navigating AI, Trade Wars, and Geopolitics in IT Outsourcing

IT outsourcing executives face a complex landscape of the rising anxiety of Agentic AI, trade wars, tariff fears, and geopolitical instability. To succeed, they must leverage AI for efficiency, diversify operations to mitigate trade risks, and ensure regulatory compliance amidst geopolitical shifts.

Key Insights

Agentic AI Integration: Leveraging AI can enhance efficiency and productivity but requires significant investment in training and infrastructure.
Trade War Mitigation: Diversifying operations across multiple regions can reduce dependence on any single market.
Geopolitical Risk Management: Continuous monitoring of global events and regulatory changes is crucial for maintaining operational resilience in the face of geopolitical instability.

Leadership Takeaways

Accelerate Strategic AI Adoption: Leaders should prioritize upskilling and reskilling to complement AI capabilities, ensuring a workforce that can innovate alongside AI systems.
Operational Flexibility: Building adaptable supply chains and diversifying operations can help mitigate risks associated with trade wars and tariffs.
Proactive Risk Management: Implementing robust risk management and scenario planning strategies and maintaining regulatory compliance are essential for navigating geopolitical instability effectively.

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