As the IT job market becomes increasingly competitive, Global Capability Centers (GCCs) are emerging as a beacon of opportunity for recent graduates. While higher salaries are a significant draw, it’s the promising learning environment, supportive work culture, and career development prospects that are particularly appealing.
The Shift in GCC Perception
Traditionally, GCCs were viewed as hubs of routine work with modest salaries, often regarded as back-office operations for multinational corporations. However, this perception has shifted dramatically. Today, GCCs in India—numbering over 1,600 and employing 1.66 million people—are recognized as centers for innovation and research. They are now actively hiring fresh talent amid a slowdown in recruitment by traditional IT service firms.
Job Opportunities and Salary Prospects
Hiring Surge: According to Shantanu Rooj, Founder and CEO of TeamLease Edtech, GCCs have recruited around 65,000 to 70,000 freshers in the last six months alone. This surge is partly due to GCCs offering more competitive salaries and better career prospects compared to traditional IT service companies.
- GCC vs. IT Services: Unlike traditional IT firms, GCCs are investing heavily in talent development and career growth opportunities.
Salary Comparison: For internship programs at GCCs, starting salaries range from ₹5-5.5 lakh per year, with potential increases to ₹8-11 lakh upon successful completion. In contrast, entry-level positions at IT service companies typically offer around ₹3-4 lakh annually. GCCs generally provide 25% to 30% higher salaries, making them an attractive option for new graduates.
- Competitive Edge: This salary advantage makes GCCs a preferred choice for freshers looking for better compensation and growth potential.
Growth Projections: By 2025, the number of GCCs in India is expected to reach 1,900, with over 2 million employees. The centers are predicted to increase fresher hiring by 48% in FY25 compared to the previous year.
- Hiring Increase: This growth reflects a strong demand for new talent and a positive outlook for the industry.
The Changing Landscape of Tech Hiring
GCCs vs. IT Services: While IT services companies have reduced their hiring significantly—cutting over 70,000 positions in fiscal 2024—GCCs have continued to expand their workforce. This has made GCCs a preferred choice for freshers seeking stability and growth.
- Stability: The stability offered by GCCs is increasingly attractive compared to the volatility faced by traditional IT firms.
Off-Campus Opportunities: GCCs are increasingly offering off-campus internships and job opportunities. The proportion of off-campus placements has risen to 30%-35% this year, compared to about 20% last year. This increase is attributed to the need for specialized skills and the benefits of reaching a broader talent pool.
- Accessibility: Off-campus internships provide freshers with more diverse opportunities to enter the job market.
Important Information
- Hiring Trends: GCCs are hiring around 80,000 to 100,000 campus recruits annually, representing about 6% of the total tech talent. This is a notable increase compared to IT services companies, which typically hire 400,000 to 500,000 graduates annually.
- Salary Advantage: GCCs offer 25% to 30% higher starting salaries than IT services companies, with internship salaries ranging from ₹5-5.5 lakh, increasing to ₹8-11 lakh post-internship.
- Future Projections: The number of GCCs in India is expected to rise to 1,900 by 2025, with a projected 48% increase in fresher hiring in FY25.
- Leadership Roles: GCCs are expanding leadership opportunities, with the number of such roles expected to reach 30,000 by FY27.
Attracting and Retaining Talent
Diverse Talent Pool: GCCs are not only hiring freshers but also attracting leadership talent from IT services. The net movement of talent from IT sectors to GCCs has grown from 14% to 23% over the past two financial years.
- Leadership Growth: This shift underscores GCCs’ growing prominence as employers of choice for experienced professionals.
Cost Efficiency: GCCs are exploring talent from Tier II and III cities, benefiting from lower costs and reduced attrition rates compared to Tier I cities. They also receive government subsidies and invest in talent development, making them a cost-effective option for many companies.
- Talent Development: GCCs’ investment in talent development and infrastructure supports long-term growth and efficiency.
Work-Life Balance: Post-COVID-19, the emphasis on work-life balance and employee well-being has shifted preferences towards GCCs, which offer better people practices and benefits compared to traditional IT services firms.
- Employee Well-being: GCCs are seen as leaders in promoting a healthy work environment and supporting employee needs.
Looking Ahead
The IT sector remains cautious, but the increase in fresher hiring by GCCs reflects a robust confidence in future growth. With larger IT services companies planning to ramp up recruitment and government support for internships, the tech job market is poised for a positive shift.
As the landscape evolves, GCCs are positioned as a promising destination for freshers seeking stability, growth, and a supportive work environment. The expected 25-30% increase in fresher hiring by GCCs in the latter half of the year highlights their crucial role in shaping the future of tech employment.