Over 78% GCCs to ramp up hiring in India, 8% to double workforce this year: Report

Nearly 78% global capability centres (GCCs) in India will expand their talent pool and of that 8% are likely to double their workforce by 2023, according to a report published on Thursday by staffing firm NLB services.

GCCs are client owned and operated delivery centres providing critical technology for multinational companies. The staffing firm said in an earlier report published in December 2022 that over 1,500 GCCs in the country will create approximately 3.64 lakh new jobs by the end of 2023, which is a 38% rise from 2022.

Some of the most sought-after jobs include that of data scientists, sustainability data analysts, statistical analysts, blockchain experts, artificial intelligence/machine learning (AI/ML) engineers and cybersecurity professionals, among others.

“Despite prevailing challenges in the global economy, India's expanding tech workforce and expertise in cutting-edge technologies like generative AI, quantum computing, robotic process automation, and blockchain, etc., underscore India's remarkable potential as a talent powerhouse to address GCCs growth strategy,” said Sachin Alug, CEO of NLB Services.

Over the past year, industries such as automotive, Banking, Financial Services and Insurance (BFSI), pharma, retail, energy, and telecom have emerged as significant drivers of demand for specialised technology jobs, added Alug.

The demand has also shown a consistent quarter-on-quarter increase of almost 12-15% throughout the previous year, and such momentum is anticipated in the current financial year as well.

This, according the report, is contrasting with Indian IT services firms that are primarily relying on their existing talent pool, as per their Q1FY24 results.

Unlike in the past, multinational corporations (MNCs) have been turning their GCCs into innovation centres, working in areas such as artificial intelligence (AI), natural language processing (NLP), data science, robotics and more, and hence, often end up hiring the same individuals who work at IT services firms in India, believe industry experts.  

Kamal Karanth, Co-Founder, Xpheno, a specialist staffing company, said that the GCCs have emerged as a serious competition for talent as they scout the same talent pool as the IT Services players. Controlling over 25% of the total tech workforce in India, GCCs have emerged a serious influencer of tech talent supply, he said.

Another report published by Quess IT Staffing in April this year further showed that 20% of the lateral movement from IT firms has been absorbed into GCCs and non-tech firms that are going digital. “While hiring requirements will come in as most firms are still in a wait-and-watch mode, GCCs and Indian firms across non-tech industries will continue to add to the numbers,” Vijay Sivaram, CEO, of Quess IT Staffing mentioned in the report.

According to a report published in June by global consulting firm EY titled Future of GCCs in India — Vision 2030, India’s GCC market could reach $110 billion by 2030, up from $46 billion at present. The number of GCCs in India is pegged at 1,580 as of  May 2023, and is anticipated to surpass 1,900 by 2025 and 2,400 by 2030. Depending on India’s capabilities, the maximum number could even reach 2,550, the report said.