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Indian tech firms face talent crunch as GCCs up hiring: Report

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Global capability centres or GCCs, which offer IT support, back-office and support functions to multinational companies, are hiring the same set of talent from the country as Indian information technology (IT) firms, leading to a talent crunch in homegrown IT services companies.

Indian tech firms face talent crunch as GCCs up hiring: Report
Faced with stiff competition from global capability centres (GCC), Indian tech majors like Infosys, TCS and Wipro are seeing a limited talent pool which is becoming a major challenge in the hiring process. GCCs, which offer IT support, back-office and support functions to multinational companies, are hiring the same set of talent from the country as Indian information technology (IT) firms, leading to the crunch in homegrown IT services companies, reported Mint.
“Though IT services companies have loosened their purse strings, GCCs have a better brand pull, besides pay power," Mint quoted Kamal Karanth, co-founder of staffing company Xpheno, as saying.
Hiring in IT companies has been undeterred even after the resurgence of the COVID-19 infections led by the Omicron variant. The sector posted over 70,000 active job openings in the first week of 2022, The Economic Times reported quoting LinkedIn data put together by Xpheno.
According to Xpheno estimates, if the trend continues in the rest of the month, then the number of open job positions in January is likely to cross the previous month’s figure of 253,000.
“Considering the January-March quarter is generally a buoyant quarter for jobs, the action in IT hiring may not slow down any sooner,” Karanth told ET.
In the third quarter, TCS, Infosys, and Wipro hired 51,000 employees, the Mint report said.
By 2025, as many as 500 GCCs are expected to start operations in India and hire about three million from the existing 1.38 million employees, which will lead to a further crunch in the talent pool. An Xpheno report said that tech start-ups will also see a three-fold growth in employee count.
The IT sector is going to grow to about five million in the near term as a result of increased hiring in all levels, Mint quoted Sunil C of staffing firm TeamLease Digital as saying.
The expansion of GCCs in the country has opened up opportunities for software professionals, he said, adding GCCs and start-ups are poaching skilled talent pool available in system integrators.
While American companies account for 65 percent of GCCs in India, there has been a 7 percent rise in Europe, Middle East and African companies taking support from centres in the country over the last two years, the Xpheno report said.
At present, India has 350-400 EMEA operational GCCs, which is close to 30 percent of the total installed GCC base.
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