Global Captives: The Shining Story of India

India has emerged as a key destination for Global Capability Centers (GCCs), with over 1500 GCCs accounting for 40% of the global market, generating $36 billion in revenue, according to a report by NASSCOM.

GCCs previously viewed India as a hub for back-office operations due to affordable talent and infrastructure, but the situation has changed with a focus on talent for innovation centers working in areas such as Artificial Intelligence (AI), Data Science, NLP, web3, and robotics. Hence, there has been a rise in demand for fresh talent and upskilling platforms in the past two years.

 

Ankur Mittal, Lowe’s India’s managing director, said covid-19 accelerated the pace of innovation. “Today, our teams are doing work on data engineering, data science, AI/ML, robotics process automation (RPA), and cloud engineering to build platforms for complex business problems”.

Talent Outlook for Global Giants in FY'24

According to a report by NASSCOM and NLB GCCs are likely to create 3.64 lakh jobs in the next 12 months, with an employment growth rate of 10.8% CAGR. The demand for service from key global markets is driving a positive hiring outlook of 34% of GCCs.

They focus on building a talent pool of skills such as Python, Java, C++, Excel tools for data analysis, and SQL for retrieving large databases. Behavioral skills such as Communication, Critical Thinking, Interpersonal Skills, Planning, and Coordination, Complex Problem Solving, and Cross-Functional Collaboration are also focus areas for GCCs.

GCCs typically hire through five models: Direct Hiring, Contractual Recruitment, Recruitment Process Outsourcing, Build-Operate-Transfer, and Hire-Train-Deploy. There is an increasingly higher focus on hiring and training resources internally as the GCCs gear up to increase the efficiency of captives in the longer run.

Kamal Karanth, Co-founder of Xpheno, a specialist staffing company, believes that the GCCs have emerged as a serious competition for talent as they vie for the same talent pool as IT services firms.

In fact, GCCs have come up as very serious contenders to hire great talent as they eye for exactly the same talent pool as IT services companies.

Global Capability Centers are going the full mile to win over talent. The employees prefer to join the GCCs not only because of the outstanding compensation benefits and brand reputation but because of the exposure to the global market. The focus of GCCs is also on promoting work-life balance and career development.

 

Hiring Trends in GCCs in 2023

Several new trends in hiring are emerging in this space. Here are some of the latest hiring trends in GCCs in India:

1. Hybrid work models: Post-COVID-19 pandemic, the traditional work model has significantly changed. GCCs in India have adopted a hybrid work model that allows employees to work remotely or from the office, depending on their preferences and job requirements. This approach allows companies to expand their hiring pool beyond their immediate geography and attract talent nationwide.
2. Increased focus on diversity and inclusion: Companies are putting more of an emphasis on developing inclusive and diverse workplaces, and GCCs in India are no exception. They are actively seeking to hire individuals from different backgrounds, cultures, and geographies to bring diverse perspectives and experiences to the workplace.
3. Focus on Campus Hiring: One of the most effective methods of accessing talent pools in the near future is through campus hiring, which is not limited to just IT or technology anymore. In 2023, many GCCs, especially in the BFSI sector, have changed their talent acquisition strategies to hire more from campuses and get great talent onboard. Another increasingly popular trend is to focus on optimizing hiring costs by looking beyond tier 1 and 2 colleges. However, to accomplish this, efficient tools are required to effectively sort through a diverse pool of candidates and identify the right ones.
4. Technology to hire talent to work with Global teams: When it comes to hiring talent to work with global teams, communication skills are just as crucial as technical skills, especially for GCCs. However, technological advancements, such as generative AI and ML-powered tools, can potentially revolutionize the hiring landscape. These tools can assess candidates' speaking abilities using standardized language proficiency tests such as IELTS, TOEFL, or CEFR. Additionally, they can evaluate candidates' writing skills, which is particularly useful for GCCs with the help of GPT-4 enabled tools; real-time issue resolution capabilities can be assessed during the hiring process.
5. Greater use of data and analytics: The prevalence of big data and analytics has led to companies using data-driven insights to guide their hiring decisions. In India, GCCs adopt this approach to identify the most promising candidates, decrease recruitment expenditures, and enhance the hiring process. The focus is on leveraging data and analytics to create a talent intelligence framework that can be used to guide hiring efforts.

New Way for Hiring:

The evolving nature of work and business landscapes necessitates that companies adapt to new hiring trends to entice, keep, and develop outstanding talent for business growth. One such trend in GCCs is the use of modern talent assessment tools.

Unberry being a prime example of a Talent Mapping and Assessment Tool. This unbiased, tech-first AI-based tool engages candidates in a unique way to evaluate cognitive, social, and behavioral traits.

 

By analyzing this information, the best candidates can be identified for any open positions. This is especially beneficial for GCCs in India that are seeking high-potential candidates for dynamic workstreams. Leveraging assessment-based screening processes can help these companies manage the hiring potential that comes with high growth in this sector.

Your Next Step

Global Capability Centers (GCCs) are becoming crucial for businesses as they seek to expand and tap into the vast pool of talent available in emerging markets. However, with the growing demand for talent acquisition, GCC companies face stiff competition in attracting and retaining the best talent. To optimize the talent pool effectively, GCC companies need to focus on building a strong employer brand, investing in employee training and development, and adopting a data-driven approach to talent acquisition and management.

Building a positive employer brand involves creating a positive image of the company and promoting it as a desirable place to work. Companies can also invest in employee training and development to improve retention rates and ensure they have a highly skilled workforce.

Finally, by using data to identify top talent, assess skills and experience, and track employee performance, companies can make informed decisions about hiring and retention. Overall, GCC companies need to adopt new strategies to optimize their talent pool and attract the best people for the job to drive business success in the long term.