A recent study by IT industry body Nasscom and Bain & Company says there are about 1,100 GICs in India employing more than 8 lakh individuals and generating approximately $23 billion in revenue annually.
Software services exporters in India may be employing fewer people each passing year because of growing automation, but hiring is on full steam by global majors like Standard Chartered, Barclays, Shell, etc, who are increasingly either setting up or expanding their captive centres — global in-house centres (GICs) — in India.
Some perspective comes from figures. As per Nasscom, the Indian IT-BPM industry created around 1.7 lakh new jobs in FY17, which went down to 1.5 lakh in FY18. The projection for FY19 is down to 1 lakh. Contrast this with the hiring trend in the GICs. As per industry estimates, the GICs in India added around 110,000-140,000 employees in FY18 against around 60,000-80,000 in FY17.
A recent study by IT industry body Nasscom and Bain & Company says there are about 1,100 GICs in India employing more than 8 lakh individuals and generating approximately $23 billion in revenue annually. Recently, Standard Chartered, which employs over 3,300 people in its GIC in India, announced plans to increase the strength to 6,000. Banking major Barclays is also expanding its GIC presence in Pune by opening a new centre with capacity for 8,000 people. Similarly, US-based home improvement chain Lowe’s, oil major Shell are some companies that have already announced plans for increasing the employee strength at their centres.
“On the hiring front, we are seeing an uptick across our GIC customers by about 20-25% in 2018. We are also seeing hiring amongst our financial shared services customers rise by about 20%,” said Thammaiah B, managing director at Kelly Services India. “In the early days of outsourcing, it was just the cost arbitrage that companies were looking for. Now, they are looking for more value. The growing talent base is the major reason for global majors wanting their technology and R&D centres to be set up in India,” he added.
As per Zinnov, one of the many reasons for this trend is the growth in setting up of ‘centers of excellence (CoE)’, as well as increased number of newer functions out of India. Many GICs are using Indian R&D centres for niche activities and also use of new technology like AI and VR. “Another reason is that as now technology is getting more complex, MNCs want their critical functions to stay in-house rather than outsource them,” said Preeti Anand, director & practice head, engineering excellence, Zinnov.
By: Pradeesh Chandran