India’s tech jobs shift to GCCs amid outsourcing slump
MUMBAI, INDIA — Global capability centers (GCCs) in India will likely create 3.6 lakh (360,000) jobs by fiscal 2025, even as top IT services firms see muted hiring over the next 2-3 quarters.
GCCs are stepping up recruitment while outsourcers reduce headcount amid slowing demand. Eighty-one percent of GCCs in India face talent shortages, with under 2% of applicants qualifying for roles. But these centers see strong growth ahead.
“The overall scenario depicts a noteworthy reduction in IT hiring figures, as the decline in volume from IT services entities has not been fully offset by the increasing contribution from GCCs,” Munira Loliwala of recruitment firm Teamlease Digital told NDTV Profit.
But she expects GCCs to “significantly offset” diminished IT hiring demand in coming years.
India produces 65 lakh (6.5 million) graduates annually, but only 44% are employable for tech roles. Still, the country’s working-age demographic dividend and consumption-based economy make it attractive.
TeamLease Digital‘s report projects that GCCs will likely add 40,000 to 50,000 jobs in the typically active second and fourth quarters.
If the second half goes well, hiring could reach 2 lakh (200,000) for the fiscal year ending March 2024. But that comes amid a “perfect storm” of cautious client spending, staff reductions at major IT firms, and halved campus hiring.
Global consultancy firm EY sees India’s GCCs evolving from “cost centers” to “profit centers” that drive innovation and new revenue.
“India has enough tailwinds with political stability, a healthy domestic consumption-based economy, and a robust regulatory system for the financial sector,” said EY India’s partner and GCC lead Arindam Sen.
By 2028, India may host over 2,500 GCCs with $95 billion in revenue and 3.3 million employees, according to TeamLease Digital. The centers are playing a pivotal role as multinationals digitalize.
