Despite global economic concerns, the NLB Services report said only 5% of the 211 GCC companies across various sectors surveyed seemed to be cautious and not keen on hiring. A spurt in service demand from key global markets (34%) is the key reason driving the demand for talent.
GCCs are client owned and operated delivery centres providing critical technology for multinational companies.
“From the current 1% contribution to the GDP, GCCs will contribute up to about 2% in the next three years. We also see that the companies were earlier coming to India because of cost advantage and cost arbitrage, but now it has shifted to a demand for value creation,” said Varun Sachdeva, APAC Recruitment & Business Leader, NLB Services.
India currently accounts for 45% of the global GCCs in operation and this share is expected to grow further. The report found that GCCs are setting up operations to create a superior talent pool (78% of the respondent), to assist the global demand for radical innovation (55%), to create business optimization strategies (49%) and not only for labour arbitrage. The sector is expected to see a 10.8% CAGR growth in employment in 2023 alone.
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“Yes, there is a softening of the global market. But when we talk about investment and digital transformation and IT, none of the customers are talking about reducing the budget. It looks like the first half of the year 2023 might be a cautious approach towards investment rather than a recessionary approach,” said Sachin Alug, CEO, NLB Services.
About 30% of the 3.6 million estimated new jobs will go to freshers, he added.
From a sub-sector perspective, the report found that companies from IT software & consulting, BFSI and internet and telecom services were most keen on ramping up talent supply. Amongst cities, Bengaluru leads in terms of job creation.
“We see that trend might change, once the organisation is stable, and they have built their capability, then they would like to explore tier 2 or tier 3 work locations as well. But for now, I think about 99% of the organisations are focusing on the top cities only,” said Sachin Alug, CEO, NLB Services.