Hiring at GCCs in India holds steam for now
However, it’s subject to the influence of global slowdown on parent MNCs; Downward trend in startups already visible
- India hot spot for MNCs to set up tech centres
- India has 1,500 Global Capability Centres (GCCs)
- GCCs employ over 1.5 mn people and it's likely to double by FY25
- Number of GCCs may also increase to 2,000 from current 1,500
- Nasscom, Zinnov pegged market size of Indian GCC at $35.9 bn
Bengaluru: Hiring momentum in Indian technology captives of multinational corporations (MNCs) remains sound despite fall in hiring in startup ecosystem. According to HR managers, in case of a slowdown, hiring by these captives will also get affected if their parent entities get impacted.
"Currently, hiring by GCCs (Global Capability Centres) remains strong. Though we have seen a downward trend in startups, MNCs are adding people. This is because, the headcount addition was not that high by GCCs as compared to startups and IT companies," said Supaul Chanda, vice-president of technology recruitment firm Experis of Manpower Group.
"It is to be seen how hiring by GCCs pans out if slowdown impacts growth of MNCs having captive centres here," he added.
India has been one of the favourite destinations for MNCs to set up technology captives, which are called GCCs in industry parlance. The country is home to about 1,500 GCCs across sectors such as banking, financial services and insurance (BFSI), IT software, automotive, pharmaceuticals, retail and oil and gas among others. Some estimates suggest that this segment employs more than 1.5 million people, which is likely to double by FY25. The number of GCCs may also increase to 2,000 from current 1,500 during this period. A combined report by Nasscom and Zinnov has pegged the market size of Indian GCCs at $35.9 billion. As per the report, US-headquartered MNCs are the biggest contributors to opening of new captives during the first quarter of 2022. Indian IT industry is facing record employee attrition numbers in recent quarters owing to high demand environment. Especially, most IT firms are clocking 20 per cent plus attrition rate as talent is aggressively chased by startups and GCCs. While Infosys reported an attrition rate of close to 28 per cent in the March quarter of FY22, Wipro reported an attrition rate of 23.8 per cent during this period. It was upwards of 20 per cent for most mid-tier IT services companies.
However, things are rapidly changing in the talent front as many startups have started laying off employees in anticipation of funding crunch in coming months. This has led to an environment where hiring in startups has cooled down in the last two months. Even rate of growth in hiring by Indian IT firms have also slowed down as employees are shying away from joining startups due to current uncertain environment and concerns over job stability.
It is to be seen how hiring by GCCs pans out if slowdown impacts growth of MNCs having captive centres here. Currently, hiring by GCCs remains strong. Though we have seen a downward trend in startups, MNCs are adding people
- Supaul Chanda, V-P, Experis of Manpower Group