New Delhi, April 21 -- Cognizant Technology Solutions Corp.'s annual report describes global captive centres (GCC) operated by its clients as a potential risk, making the Nasdaq-listed company the first large IT firm to cite the GCC shadow over outsourcing.

Though a Cognizant spokesperson said the New Jersey-based company's position has since "evolved", the development raises the question of whether more IT services firms would acknowledge the rising competition from these in-house technology centres. Technology analysts have previously pointed to the risk from GCCs, though IT companies themselves have dismissed it so far.

"Additionally, we face competition from clients' in-house technology resources, such as GCCs, which may provide a l...