Global capability centres boost hiring from IT companies – The Times of India
BENGALURU: Global capability centres are increasingly recruiting talent from IT services companies, with approximately half their workforce now sourced directly from these firms. Data from HR consultancy Xpheno indicates that GCCs have modified their recruitment approach, incorporating both experienced professionals and fresh graduates.
Recent statistics reveal GCCs now source 45-48% of their workforce from IT firms, up from 35% in 2022-23. They offer premium salaries ranging from 20% to 30% higher than IT firms for those working in emerging areas like cloud, data and analytics. In cybersecurity and AI, GCCs maintain a 10% to 15% higher compensation for key positions, compared to IT companies, despite the overall slowdown in the technology hiring segment. “Talent from the tier-1 players dominates the corridor of talent movement from IT services to GCCs. The mid-tier players fared relatively better on ring fencing and retained their talent from getting into corridor absorptions by GCCs. While mid-tier players do lose talent to GCCs, their scale is lower, and the current movement is roughly a 30-70 split between the mid-tier and tier-1 talent absorbed by GCCs,” said Kedar Pathak, GCC specialist at Xpheno.
Both new and expanding GCCs are driving recruitment in India, where 75% of their technology operations are based. These centres are expanding beyond traditional hubs into emerging locations like Coimbatore and Jaipur, according to HR consultancy NLB Services. These cities have developed substantial tech talent pools due to IT services companies’ presence.
ANSR’s cofounder Vikram Ahuja notes that GCCs are increasingly partnering with finishing schools to secure candidates with specific skill sets. He said that campus recruitment isn’t their primary focus. “Over the last two to three years, tapping finishing schools rose from a negligible 5% to about 10% now. In the next two to three years, I feel it will go up to 20%. In the longer run, this segment will contribute a great deal to the talent needs of GCCs as there is a lot of competition in the tech market with product firms, startups, and services cohorts,” Ahuja said.
Senior-level recruitment remains strong, with Xpheno reporting over 100 VPs, AVPs, and SVPs moving from IT services to GCCs within a year. This represents 10% of IT services’ senior workforce, with other senior hires going to product companies and startups, primarily driven by better compensation. According to Quess Corp IT staffing CEO Kapil Joshi, GCC technology leadership positions offer 14% higher compensation than IT peers, whilst CFOs receive 12% more, and HR leaders earn 25% higher packages compared to IT firms.
