India’s Hiring Could Get a GCC Boost

While the economists are debating around further rate hikes amidst a declining inflation rate in the United States, the one industry that seems to have emerged with a clear direction are the global capability centers (GCC) of large companies located in India. Reports suggest that these entities have already revived their talent search and could hire up to half-a-million in FY24. 

These capability centers largely provide fulfillment across the banking, financial services and insurance (BFSI), retail industry, energy, auto industry, telecom and pharma. A report published by the ET quoting data from staffing firm Xpheno, says these centers could hire up to half-a-million resources that includes backfills. 

Growing skill sets to bolster resource demand

The report quotes officials from the industry to suggest that most of these capability centers were seeking to fulfill the growing talent demand from both expansion of existing units as well as some new ones. It says net headcount growth for FY24 could cross 200,000 as against 150,000 net additions each over the past two fiscal years. 

Xpheno co-founder Kamal Karanth is quoted by the article as saying that recruitment discussion is back on track with GCCs as they are looking to hire big and quickly as well. Given that the predicted attrition rates hover between 18-22%, replacement hiring would also remain on peak as the year progresses. 

GCC headcount to touch 4.5 billion by 2030

Meanwhile, a report prepared by EY estimates the current GCC headcount to be in the range of about 2 million with the number slated to touch 4.5 million over the next seven years. The ET report quoted Arindam Sen of EY India to suggest that the talent pool for skill sets in capability centers is larger in India than any other country. 

This is largely a result of the entire GCC ecosystem in the country having developed and matured over the years that ensures the availability of large talent pools. Government incentives towards building infrastructure in cities, including tier-2 locations, is further attracting large MNCs into creating their capability centers in the country, the official said. 

In addition to these factors, there is a broader set of skills that are currently available in the country. This includes areas such as technology, digital, analytics and AI with costs that make India a favorable destination. According to Xpheno data, the BFSI segment would continue to lead hiring and contribute more than a quarter of the net additions.

Citigroup, PwC among those expanding GCCs

Citigroup, which exited consumer banking business in India, is among those seeking fresh talent for their capability centers and could possibly hire more than 5000 resources over the next couple of years. The skill sets being sought include engineering, technology, analytics, AI, cloud and risk management. 

Others seeking to expand their capability centers include PwC, which plans to double its headcount over the next two to three years, with emphasis on innovation and cost-effectiveness among others. The company’s delivery center headcount accounts for 10% of their total strength with digital transformation, cyber, forensics, generative AI and analytics being key focus areas.