By Puneet Pratap Singh
India has the potential to be the next global talent hub as the market moves from cost arbitrage to providing value for MNCs
Businesses today are facing a war for top talent. Candidates now not only need to be well-versed in hard skills, but also conversant in East and West customs and business practices. Hybrid working norms have also welcomed a new mobile talent pool that multinational businesses can tap on to find right fit across borders. With these factors in play, it is unsurprising that India, as one of the largest and most diverse countries, continues to be a powerhouse for talent.
More than an IT hub
India has long been known as a hub for IT services, with our market contributing one-fifth of the global IT talent pool. However, the true value of India’s talent extends beyond this single sector as India has now proven itself to be more than just a cost arbitrage market with the potential to become the next global talent hub for different functions.
IT industry association Nasscom revealed that over 500 global capability centres (GCCs) are expected to be added in India by 2026, increasing its existing tally by 1,500 GCCs. Th upcoming generation of GCCs will focus on transformation work for middle and front offices, which is vastly different from its previous iterations that focused on productivity and building enterprise capabilities. As such, this presents an opportunity to shift the perception of India as a captive site for multinationals, highlighting the potential value that India brings to the global stage.
To further leverage this opportunity, talent should also adopt best practices from the East and West to ensure India can perform on the international stage. If we can do so, a future where we see more global leaders from India may be realised sooner rather than later, and these are some leadership lessons to set us up for success.
Breaking structure with agility
Agility is becoming only more important as leaders, teams, and organizations focus on thriving in the still-forming new world of work. Heidrick & Struggles research found that 93% of executives said that agility is critical to business strategy, and 94% to new ways of working. We define agility through three traits – foresight, learning and adaptability. These are equally important in India, and in particular, leaders in India must take into consideration various constraints such as antiquated infrastructure, which is not often experienced in other developed countries.
Building potential with diversity
The VUCA business environment means that access to varied skills, knowledge, and experience is extremely crucial to a company’s survival and success. Homogeneity can lead to issues like groupthink and with the gloomy economic outlook creating new risks and uncertainties, different perspectives across gender, generation, experience, and more can make a company more resilient to external circumstances.
In fact, research from Heidrick & Struggles has found that companies which include inclusion into their strategies usually see a strong link to business results (compared to those who do not). India is known to be one of the most diverse in the world, boasting 780 languages which places it second highest in the world. Growing up around diversity has given Indian leaders a natural edge over others in intercultural sensitivity – a skill easily applicable in a global setting when working in multinational companies across different markets. It has also given them the ability to understand differences and unique challenges in today’s disruptive and uncertain environment.
Empowering collaboration with empathy
Empathy is an instrumental element that enables diversity, especially in light of the challenges faced during the past few years. India’s cultural emphasis on family values and societal bonds translates to compassionate and empathetic leadership.
This human element helps to build high-quality relationships grounded on authenticity and vulnerability, and further enables the creation of supportive networks and collaboration within teams, contributing to a healthier workforce in the long-term as employees trust that leaders have their best interests in mind.
However, to create such a positive culture, leaders must rely on influence rather than authority, the leadership approach in India often follows a top-down approach. In contrast, leadership through influence ensures that leaders connect people to the purpose of the company and make them feel part of something bigger.
Research by Heidrick & Struggles found that 73% of employees who say they work at a purpose-driven company feel engaged, compared with just 23% of those who do not. This is especially critical as according to the World Economic Forum, millennials will comprise 75% of the global workforce by 2025. These individuals have indicated different priorities from the previous generations, and this includes greater interest in companies with a sense of purpose beyond making money.
Moving forward with opportunity
India’s strength in the number of and diversity of people, as well as exciting developments in the horizon places it in prime position to be the next global talent hub. Key to this will be strong leadership centered around agility, diversity and empathy.
(The author is Puneet Pratap Singh, Partner-in-charge, Heidrick & Struggles India, and the views expressed in this article are his own)
