Captive service units, GCC, of multinational companies in India have been quietly reshaping the employment vertical.
These centers, known as Global Capability Centres (GCCs), are strategic hubs that handle critical functions such as technology development, research, analytics, and shared services for their parent organizations.
A recent survey conducted by Xpheno sheds light on their hiring trends and the factors driving their growth.
GCC Hiring Trends in H1 2024
In the first half of 2024, GCCs in India collectively employed approximately 152,000 professionals—an impressive 14% increase compared to the previous six months.
However, this figure remained 9% below the corresponding period in the previous year. Notably, more than 75% of these hires were replacements for employees who had left their positions.
The sectors witnessing the highest net additions were semiconductor manufacturing, oil & gas, and food & beverage services.
“The outlook is for 10-15% net headcount growth in the current calendar year compared to previous year, and the trajectory is for an uptick in July-December 2024,” Kedar Pathak, Xpheno’s GCC specialist.
“Most global organisations are looking at Indian GCCs as a strategic partner to the headquarters. Indian GCCs are impacting their HQs with efficiency, innovation and digital transformation capability. There’s a significant technology depth getting built here,” added Kedar.
Southern States as GCC Hubs
The survey highlights the pivotal role played by southern states, particularly Karnataka, in bolstering GCC growth. These states have actively promoted themselves as attractive destinations for global capability centers.
Their tech-savvy workforce, robust infrastructure, and favorable business environment have made them magnets. This is for multinational enterprises seeking to establish or expand their GCCs.
Outlook for H2 2024
Despite global economic uncertainties impacting hiring decisions, experts remain optimistic. Here’s why:
India’s Tech Talent Pool: India boasts a vast pool of skilled professionals proficient in cutting-edge technologies. As companies increasingly focus on digital transformation, they turn to GCCs to tap into this talent reservoir.
Expertise in Emerging Technologies: GCCs in India are not merely cost centers; they are innovation hubs. Their expertise spans artificial intelligence, machine learning, cloud computing, and cybersecurity. As organizations prioritize these areas, GCCs are poised to play a pivotal role.
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Net Headcount Growth: According to Kedar Pathak, Xpheno’s GCC specialist, the outlook for the second half of 2024 is promising. He anticipates a net headcount growth of 10-15% compared to the previous year. The trajectory suggests an uptick from July to December 2024.
“This hiring initiative reflects our commitment to strengthening our global development capabilities and underscores the critical role that India plays in our overall growth strategy,” Urmi Chatterjee, head of human resources, Asia Pacific Japan and India, Siemens Healthineers.
Urmi added, “By expanding our team in India, we aim to enhance our capacity for innovation, accelerate the development of cutting-edge healthcare technologies, and support the increasing demand for our solutions worldwide, leveraging the talent and expertise available in India.”
For Target Corp, the American discount department store chain, India with 4,800 employees plays as a second headquarter, said vice-president-HR Arun Kulkarni.
Target in India will continue to build new capabilities and identify opportunities to drive greater value, he said, adding, “…in 2024 (we) will continue to focus on building key capabilities that will potentially result in 10% growth in headcount”.
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