In the last fifteen days, at least four Global Capability Centres (GCCs) are on a hiring spree and having hired about 28,000 employees during the April-June, and according to analysts’ estimates are set to hire around 150,000 employees this fiscal.
However, since IT firms are expected to hire less during the year, the overall hiring in the sector, is estimated to still fall short by around 50%.
Sunil C, CEO of TeamLease Digital, said, “While we have seen large number of GCCs are coming to India and hiring, their numbers are still lower compared to mass hiring that is usually being done by IT service companies”. According to him, the trend till last year, 70% of overall hiring was being done by IT services companies and 30% by GCCs. “However, the trend is shifting more towards GCCs because of two reasons – IT services hiring has dropped to almost 5% and GCCs contribution has increased to around 45%. Overall, we still see a 50% drop in the IT hiring numbers as the volume drop from IT services could never be compensated by GCCs,” he added.
Sunil said that as per their survey, GCCs will add 40,000-50,000 in Q2 and Q4 since these period see more hiring. If the second half plays out well, the number can reach even 200,000 this fiscal.
As per a report by Xpheno – a specialist staffing company — the gross hiring numbers, as a sum of replacement hiring and net additions were – 130,000, 360,000 and 440,000 for fiscal 2021, 2022, 2023.
Kamal Karanth, co-founder, Xpheno, said, “The April-June quarter saw IT services headcount remaining largely stagnant due to the degrowth among the bellwethers, while the net additions by GCCs were around 25,000- 28,000″. According to him, the talent action among GCCs has been positive in comparison to the IT services cohort. However, net addition remains below the projected growth trajectory for the GCCs cohort. The projected net headcount addition of GCCs for FY24 is Rs 150,000 – 200,000. The slightly lower than projected net addition in Q1 during April-June has added pressure on the remaining quarters to compensate.
Saurabh Mathur, partner, Deloitte Touche Tohmatsu India LLP, said, “The GCC sector currently contributes a revenue of $60 billion, which is expected to reach $75-80 billion within 4-5 years. India is expected to have over 1,900 GCCs, employing 2 million people and earning $60 billion”.