Battle for brains: The rising warfare for talent in India's GCC sector

There is no hiding the fact that most of the most Global Capability Centers (GCCs) in India face significant challenges in recruitment due to shifts in the talent landscape. Over the past decade, the demand for specialized skills in areas such as artificial intelligence (AI), machine learning (ML), data analytics, digital transformation, and cybersecurity has surged. However, the supply of professionals with these expertise levels has not kept pace, leading to a talent gap. India produces a large number of graduates, there is often a gap between industry needs and workforce skills, especially in emerging tech areas like AI, cloud computing, and cybersecurity. As a result, GCCs struggle to attract and retain skilled individuals, making hiring a critical challenge in today’s competitive job market.

Changing Landscapes
One of the most pressing challenges faced by Global Capability Centers (GCCs) in India today is the increasing fluidity and mobility of talent. A key factor contributing to the growing difficulty in hiring is the constant movement of professionals from long-established GCCs to newly launched centers that often present more attractive compensation packages, enhanced employee benefits, and the promise of faster career progression. This dynamic has intensified competition in the talent market, particularly as newer GCCs aim to establish their credibility and deliver quick wins during their formative years.

For any newly established GCC in India, the first year of operations is critical. It serves as a proving ground to win the confidence of global stakeholders and justify the decision to set up operations in the region. To achieve this, these centers frequently prioritize aggressive hiring strategies, which often involve paying a premium for top-tier talent. This enables them to ramp up operations swiftly, demonstrate early success, and accelerate the transition of critical workstreams to India. However, this approach has placed considerable pressure on existing GCCs, which are increasingly witnessing a migration of their experienced and skilled professionals toward these newer entrants.

Adding to this complexity is a noticeable shift in the preferences and expectations of the younger Indian workforce. Today’s professionals, especially millennials and Gen Z, are becoming more discerning about their choice of employers. Beyond compensation, they seek purposeful work, dynamic environments, and the opportunity to innovate. Many are gravitating toward start-ups and companies rooted in India’s fast-evolving entrepreneurial ecosystem, which offer more creative, agile, and vibrant cultures as opposed to traditional, hierarchical corporate setups.

This evolving landscape poses a significant challenge for GCCs—especially those operating with legacy structures or rigid organizational hierarchies. The modern workforce expects transparency, inclusivity, and empowerment, and GCCs that are slower to adapt may find themselves struggling to attract and retain high-quality talent. According to the latest Global Culture Survey, 70% of organizations now rank talent acquisition and retention among their top strategic priorities. This underscores the urgency for GCCs to re-evaluate their value propositions and align their people strategies with the evolving aspirations of today’s workforce.

Recovering from the Pandemic
The COVID-19 pandemic has also had a lasting impact on the hiring landscape. Remote work has become increasingly popular, with 40% of employees preferring it for a better work-life balance. This shift has resulted in a growing pool of skilled professionals who remain untapped by emerging GCCs in India. Remote work during the pandemic caused a significant increase of talent movement to their hometowns with favourable living conditions and closer to families.

GCCs lately have gone beyond metros and have been establishing in Cities like Ahmedabad, Mysuru, Vadodara, Nashik, Tirunelveli, Bhubaneswar, and Coimbatore which have emerged as key hubs. As of 2024, approximately 8% of Global Capability Centers (GCCs) in India are located in Tier-II and Tier-III cities, up from 5% in FY2019.

Winning the Talent War: Strategies for GCCs in India
Considering these obstacles, GCCs should reconsider their approaches regarding talent retention and acquisition. At a minimum, they need to take several steps starting with strengthening the employer branding to attract talent. These include fostering career growth, enabling a work-life balance, and new technology. GCCs in India must put in place a culture that is inclusively innovative and attractive to younger workers who seek purpose and meaning in what they do. Also, the recruitment approach has to change, avoiding lengthy hiring processes, rigid hiring criteria’s and looking for candidates from less popular places and organizations, or even consider skilled workforce with unconventional education background.

In conclusion, the war for talent in India's GCC sector requires a shift in mind-set, a deeper understanding of market dynamics, and a commitment to creating work environments that inspire and retain top talent. The war for talent in India’s GCC sector will only intensify. Companies that embrace agility, innovation, and employee-centric strategies will not just survive but thrive. The future belongs to GCCs that treat talent as their greatest asset.

The author is Director - Strategic Alliances & Growth India & UAE, Reed & Willow


(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)