Multinational corporations (MNCs) are increasingly offering lucrative salary packages to attract employees to their Global Capability Centres (GCCs) in India.
Once seen as back-office operations, GCCs have now evolved into critical components of MNCs, handling strategic roles and significantly contributing to global operations.
India has become a prime destination for GCCs, with over 1,580 centers employing more than 1.66 million professionals. The growing importance of these centers has spurred a demand for high-caliber leadership, prompting MNCs to offer top-notch salaries to secure the best talent.
Approximately 16-18% of large GCCs now offer these high salary packages, up from less than 10% two years ago. Some managing directors or country heads of larger GCCs now earn around USD 1 million (approximately Rs 8.3 crore), with compensation nearly doubling over the past three to four years.
One major reason for the sharp increase in compensation levels at GCCs is their growing trend of hiring talent from IT product companies, Big Four consultancies, startups, and large conglomerates. This trend includes more senior leadership and specialized technology roles emerging in India. Industry insiders indicate that senior talent with expertise in artificial intelligence (AI), machine learning (ML), and other emerging technologies is highly sought after. Companies are also trying to attract talent from Indians in the US and Europe who may be willing to relocate.
Meenakshi Thakar, a partner at Transearch India, mentioned that GCCs are now prioritizing professionals with skills in AI and ML, which have become essential for many CXO roles. They are also considering the returning Indian talent pool for these positions.
Outlook for 2024
As 2024 approaches, enterprises are expected to adopt prudent strategies that align budgets with macroeconomic realities. Key dimensions shaping compensation structures, workforce composition, and recruitment decisions include:
Salary Increase Trends : Organizations are likely to de-emphasize substantial salary hikes, focusing instead on technological advancements and skill development to retain talent.
Attrition Trends : Prudent recruitment strategies, especially among Indian start-ups and IT firms, are expected to yield fewer job opportunities and decreased migration from GCCs. Generative AI may lead to job redundancies but also enhance human capabilities and create new opportunities.
Hiring Trends : Differentiated hiring strategies will prioritize specific business needs, with a slight reduction in junior-level hiring due to budget constraints. Senior-level roles will focus on internal talent development, and there will be an increased demand for green skills driven by eco-friendly objectives.
The Evident Shift
The strategic importance of GCCs is more apparent than ever. As these centers scale and take on more critical roles within MNCs, the demand for both seasoned professionals and fresh talent will continue to grow. The substantial salary packages offered to leadership roles underscore the value these professionals bring in driving GCCs towards success.
The shift towards GCCs among fresh graduates highlights the evolving employment landscape in India. With competitive salaries, better career growth prospects, and engaging work environments, GCCs are becoming the preferred choice for many.
Looking ahead, GCCs are poised to expand further, driven by technological advancements and strategic initiatives. Investing in top talent, both seasoned professionals and fresh graduates, will be crucial in maintaining their position at the forefront of innovation and business excellence.