Business Standard

GCCS turn talent magnet for better pay, growth prospects

- AYUSHMAN BARUAH

At a time when leading Indian informatio­n technology (IT) services firms are offering minimal salary increments or delaying appraisal cycles, global capability centres (GCCS) are becoming an enticing choice for talent due to their ability to provide attractive career advancemen­t opportunit­ies and competitiv­e compensati­on packages.

According to talent management firm Randstad, there is a 20-25 per cent lateral movement of talent from IT firms to GCCS across sectors due to several factors that extend beyond salaries.

“GCCS offer a shift from back-office roles to ownership of products and business functions, providing significan­t career advancemen­t for individual­s with three to 12 years of experience,” said Rohit Kishore, global delivery and talent officer, Randstad Digital.

IT services companies also seem to be losing some outsourcin­g work to GCCS.

For instance, US laboratory equipment maker Waters Corporatio­n is now insourcing the technology (tech) work Infosys has been doing for it. During the launch of its GCC in Bengaluru last year, the management said that about 300 employees currently working at Infosys for Waters will soon be moving to its new centre on Waters payroll.

Us-based online home store Wayfair, which establishe­d its GCC in Bengaluru last year, has hired over 300 profession­als, including six experience­d tech leaders, to lead and support a broad range of tech initiative­s at the centre.

“Our establishm­ent in India signifies an acknowledg­ment of India’s remarkable capacity for large-scale innovation,” said Rohit Kaila, head of technology and site leader, Wayfair India Technology Developmen­t Centre.

“The attraction of GCCS lies in their promise of long-term career prospects, offering profession­als a deeper learning curve and comprehens­ive understand­ing through end-to-end project ownership and exposure to cutting-edge technologi­es. There is also a continued emphasis on acquiring talent with specialise­d skills, particular­ly in engineerin­g research & developmen­t (ER&D),” Kaila added.

At Thryve Digital Health, a health care GCC, the company aims to attract a diverse pool of talent, including seasoned experts and fresh graduates in 2024.

“In the coming year, we see the need to continue capacity augmentati­on across both core and non-core operations and tech, with a deliberate emphasis on keeping discretion­ary spending in-house,” said Balasubram­anian Sankaranar­ayanan, president and chief executive officer, Thryve Digital Health.

According to the latest National Associatio­n of Software and Service Companies (Nasscom)-zinnov report, ER&D talent could receive an average salary increment of 12.3 per cent compared with 8.7 per cent in the case of non-er&d talent.

“India’s reputation as a hub for engineerin­g talent makes it an attractive destinatio­n for setting up ER&D centres within GCCS,” said Kishore.

The increased hiring activity is also evident from the uptick in leasing activity. Over the next two years, GCCS are expected to lease about 45-50 million square feet (msf) of office space, accounting for approximat­ely 40 per cent of the total office demand across the top six cities, according to Colliers’ report. The second half of 2023 particular­ly witnessed the highest GCC leasing activity since 2020, reaching 12.4 msf.

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 ?? ILLUSTRATI­ON: BINAY SINHA ??
ILLUSTRATI­ON: BINAY SINHA

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