GCCs face talent exodus amid rising competition

livemint.com:

BENGALURU/MUMBAI : Global capability centers (GCCs), which have outpaced IT services companies in talent acquisition both from campuses and the job market, are now grappling with attrition due to rising competition among themselves. The skilled workforce at GCCs, accustomed to serving US and European clients, are prime targets for competing GCCs seeking to onboard personnel without delay, as they enter or expand operations in India. "GCCs, too, are susceptible to attrition risk, in view of rising demand for talent across GCCs, particularly with a growing number of GCCs getting established.

It is imperative for a GCC to be right on the top of their talent proposition and workforce strategy," said Shalini Pillay, India leader for GCCs, KPMG in India. According to Pillay, talent is attracted by a compelling narrative, detailing the purpose, vision, and future roadmap, and an exciting array of new roles. "GCCs are working to move up the value chain, adopting new emerging technologies and driving innovation and transformation.

Hence, if your GCC is not keeping pace (with competition), you run the risk of losing talent to the many others who are progressing along these lines," she added. According to IT industry body Nasscom, GCCs account for 50-70% of global tech and operations headcounts. Around 1,500 GCCs and their 1.66 million employees, contribute to a market size of $46 billion.

GCCs emerged as bastions of stability and hiring, with IT service firms downsizing their workforce following a hiring spree through 2021 and the first half of 2022. Offering 1x-2x higher compensation than their services counterparts helped GCCs to attract top talent. But now, GCCs must remain vigilant.