GCCs offer 30% higher salaries to fresh grads in India
MUMBAI, INDIA — Global capability centers (GCCs) in India are attracting fresh talent by offering entry-level salaries up to 30% higher than industry norms.
According to a report by TeamLease Digital, this trend is expected to continue, with a projected 40% increase in the recruitment of fresh graduates in GCCs year over year.
Rising demand for tech talent
Historically seen as back-office support, GCCs have evolved into key players in research and development, attracting fresh graduates with competitive salaries and career opportunities.
According to Krishna Vij, TeamLease Digital’s Business Head, companies like Cisco and JP Morgan lead this shift, offering starting salaries between ₹5-5.5 lakh (US$5,900 to US$6,500) annually for internships, increasing to ₹8-11 lakh (US$9,500 to US$13,000) upon completion. In contrast, IT services firms typically offer ₹3-4 lakh (US$3,500 to US$4,700).
Strategic hiring and upskilling
GCCs are not just about higher pay; they offer robust upskilling opportunities. Neeti Sharma, CEO of TeamLease Digital, emphasizes the necessity of aligning talent strategies with technological advancements in AI and cloud computing.
“Investing in upskilling programs is not just an option but a necessity, enabling professionals to remain competitive in this dynamic environment. This alignment will be crucial for driving sustainable growth and innovation in the coming years,” she stated.
Despite this, 63% of tech employees did not upskill last year, citing time constraints and lack of managerial support.
Expanding opportunities and stability
With over 1,600 GCCs employing 1.66 million people, these centers are expected to grow to 1,900 by 2025.
Vij added that these centers are expected to increase their fresher hiring by 48% in FY25 compared to last year.
GCCs are also focusing on leadership roles, with a projected increase from 5,000 to 30,000 positions by FY27. The movement of lateral talent from IT sectors to GCCs has grown from 14% to 23%, driven by the appeal of better work-life balance and career development opportunities.
“There is a strong inclination towards GCCs. Candidates are willing to accept the same salary for the chance to work at a GCC, valuing the opportunity to be part of these organizations,” Vij stated.
Impact on the IT services sector
Aside from GCCs, the IT services sector is experiencing growth, with an anticipated 20-25% rise in fresher recruitment. This surge highlights the demand for skills in software development, data engineering, and cloud technologies.
While entry-level salaries rise, mid-level roles show stability with consistent demand for project managers, data scientists, and cybersecurity experts. Salaries in these positions have increased by 7.89% to 10.2% compared to FY 2024, reflecting the need for experienced professionals.
Demand for senior management roles has also risen 21% since last year due to the strategic importance of expertise in data engineering and DevOps. Salaries for these roles have increased between 6.54% and 10.8%.
A promising future for India’s fresh grads
As GCCs continue to expand and innovate, they offer a stable and attractive alternative for fresh graduates seeking growth and development in the tech industry.
With strategic hiring plans and a focus on upskilling, GCCs are poised to remain a dominant force in India’s employment landscape.
