India’s GCC Boom Encounters Talent Challenges: Insights on What Companies Seek Next
Talent shortages are posing a significant risk to India’s global capability centre (GCC) sector. A recent PwC India-FICCI study reveals that 11% of GCC leaders report their global headquarters are considering relocating mandates to competing regions. The survey, which included 200 senior executives across eight industries, indicates that skill gaps are already impacting business operations, as GCCs take on more strategic roles within their organizations.
Nearly 60% of GCCs have experienced delays in product launches and project timelines due to these talent shortages. Additionally, 54% of respondents noted that the lack of skilled workers is hindering their ability to scale artificial intelligence and digital transformation initiatives.
Rising Costs, Employee Pressure Add to GCC Talent Challenge
The talent shortage is also driving up operating costs and increasing pressure on existing employees. Approximately 56% of GCCs reported a greater reliance on external vendors or contractors, which comes at a higher cost. Furthermore, 49% of GCCs indicated that skilled employees are leaving at higher rates due to increased workloads. Wage inflation is also a concern, with 45% of GCCs stating that it has significantly exceeded their budget projections.
As India’s GCCs evolve beyond traditional execution roles, over 85% expect their operating mandates to expand by 2030. This includes a focus on technology leadership and strategic ownership, with one in five aiming for global profit-and-loss responsibility. The report warns that India’s leadership in the GCC landscape is at risk, as other countries enhance their talent ecosystems to compete for high-value mandates.
GCCs Seek Bigger Investment in AI-Ready Talent
The study highlights an urgent need for action, with 80% of GCCs believing decisive measures must be taken within the next year to bolster workforce capabilities. Talent investment budgets, typically around 3% of operating budgets, may need to increase to at least 6% to prepare for the demands of the AI era. Notably, 94% of GCC leaders advocate for this increased investment, with 27% expecting it to exceed 8%.
The report identifies industry-designed GCC-ready certification standards as the most supported intervention, with 53% of respondents in favor. Other recommended initiatives include AI centres of excellence and AI-powered learning platforms, supported by 51% and 48% of respondents, respectively. The findings suggest that GCCs capable of developing AI-ready leaders and skilled workforces could transition from execution centres to influential players in innovation and global business strategy.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
