GCCs Shift Recruitment Focus to IT Talent
In a significant shift, Global Capability Centres (GCCs) are increasingly sourcing their workforce from IT services companies, with nearly half of their employees now coming from these firms. According to recent data from HR consultancy Xpheno, this trend marks a rise from 35% in 2022-23 to approximately 45-48% in the current year. GCCs are not only attracting experienced professionals but also fresh graduates, offering competitive salaries that are 20% to 30% higher than those in traditional IT roles, particularly in emerging fields such as cloud computing, data analytics, cybersecurity, and artificial intelligence.
Competitive Salaries Drive Talent Movement
The salary packages offered by GCCs are a key factor in this recruitment trend. In specialized areas like cybersecurity and AI, GCCs provide compensation that is 10% to 15% higher than their IT counterparts. Despite a general slowdown in technology hiring, the demand for skilled professionals remains robust. Kedar Pathak, a GCC specialist at Xpheno, noted that while tier-1 IT firms are the primary source of talent for GCCs, mid-tier companies are also experiencing some talent loss, albeit at a lower scale. The current talent movement is estimated to be a 30-70 split between mid-tier and tier-1 talent.
Expansion Beyond Traditional Hubs
GCCs are not only focusing on established tech hubs but are also expanding into emerging cities such as Coimbatore and Jaipur. These locations have developed significant tech talent pools due to the presence of IT services companies. According to NLB Services, 75% of GCC technology operations are now based in India, highlighting the country’s pivotal role in the global tech landscape. This expansion reflects a strategic move to tap into diverse talent sources and meet the growing demands of the technology sector.
Senior-Level Recruitment Remains Strong
The recruitment of senior-level professionals continues to thrive, with over 100 Vice Presidents, Assistant Vice Presidents, and Senior Vice Presidents transitioning from IT services to GCCs in the past year. This represents about 10% of the senior workforce in IT services. Many of these senior hires are also moving to product companies and startups, driven by the lure of better compensation packages. According to Kapil Joshi, CEO of Quess Corp IT staffing, GCCs offer technology leadership positions with salaries that are 14% higher than those in IT firms, while CFOs and HR leaders enjoy even greater compensation advantages of 12% and 25%, respectively.
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