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Rise of GCCs: From Call Centers to Cutting-Edge Tech

Initially, Global Capability Centers (GCC) were mostly handling operations of call centers, data processing, document management, and customer care. However, today, they work on cutting-edge and niche technologies. 

More multinational companies (MNCs) are reducing their dependence on Indian IT services companies by building their in-house tech centers. GCCs are undoubtedly eating into the outsourcing and offshoring cake of Indian IT services providers by setting up in-house development teams. In a GCC-less world, most of this work would have been captured by them.

Table of Contents

India, a preferred destination for GCCs

India is a favored ground for GCCs due to its robust engineering and technology arbitrage, along with a mature startup ecosystem. The focus on innovation, along with cost-effectiveness, enhances the appeal. 

According to EY estimates, the GCC headcount in the country is currently about 2 million, which is estimated to increase to 4.5 million by 2030. The overall employable talent pool for the skill sets they are looking for is far larger in India than in any other country. 

The whole GCC ecosystem has developed and matured in India over the years, making skilled talent available in large numbers. The focus is on specialized skills in engineering, technology, analytics, AI, cloud, and risk, among others. 

Additionally, incentives provided by the government and infrastructure development in major and even tier II cities to attract such players have created a favorable environment for GCCs.

Other factors, including the wide availability of specialized skilled professionals, especially in technology, digital, analytics, and AI, and a favorable cost environment, make India a preferred destination for it.

GCC hiring in India

Despite economic challenges, the Global Capability Centres (GCCs) of multinationals in India are actively searching for talent this fiscal year. In sectors like BFSI, pharmaceuticals, automotive, and more, they aim to hire half a million employees, including attrition refills. Data from Xpheno indicates that net headcount growth for FY24 is estimated to cross 200,000, showing increased hiring speed as GCCs seek to restore volumes and velocity.

GCCs are techies' top choice over IT services firms

Tech folks today prefer working in Global Capability Centres (GCC) over traditional IT services firms. While we can only speculate about them wanting to work for a Walmart in India, these might be the reasons:

1. Learning opportunities
They are looking for long-term projects that they get in GCC rather than in IT services companies. At GCCs, employees work on products for internal usage, so they get to take full ownership of the project from conception to execution. They also know all aspects of the project, like development (front end), DevOps, etc., inside out. That gives them a lot of exposure. GCCs offer them many opportunities to work on new-age and niche technologies such as artificial intelligence (AI), blockchain, and more.

2. Work flexibility
GCCs are also more open to flexibility, like work-from-home and flexible working hours than IT services firms. In addition, their campuses offer some of the best facilities for employees, from ample food options to creatively themed offices.

3. Foreign travels
Long stints in onsite locations were a big attraction in IT services companies for many years. However, this appeal is also fading, with countries like the United States of America (USA), which is where most techies went on L-1 visas or H-1B, tightening their borders. Also, major IT companies are localizing their talent in other geographies. That is why the influx of people in the IT services companies is less now even though they offer good salaries.

4. Higher salary & increments
Salary alone is never among the top priorities for those desiring to work at GCCs. However, Zinnov data from previous years have displayed that average annual salary increments at GCCs are higher than at IT services companies. Staffing firm Xpheno also states that GCCs offer significantly higher salary jumps, such as up to 80%, to new recruits, while services companies do not exceed 50%.

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Noopur Choubey

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