Topics In Demand
Notification
New

No notification found.

Sustaining the war for talent
Sustaining the war for talent

559

0

How are GCCs sustaining the war for talent

If you have been following the news in the recent times, you would have come to believe that we are living in this world where technology talent is ruling the roost, and tech companies are at their wits end coming up with innovative strategies which will help them curtail the attrition during the phase now colloquially termed as the great resignation. Business leaders across organizations are extremely vocal about the fact that organizations trying to outbid each other to attract talent is unsustainable, but we are not witnessing a change in the talent outlook. The war for talent continues with the same intensity as before.

There are multiple drivers for the same. The emergence of the vibrant startup ecosystem , where addition of the right talent is absolutely critical to drive business growth , Ever increasing number of new GCCs that are being setup in the country where global organizations are prioritizing speed and are willing to premium so that they can add value to their parent organization, and literally every industry undergoing a digital transformation which is leading to demand for the technology talent coming in from nontraditional sources as well.

GCCs are facing a unique conundrum. On one side there is an increasing focus on the value being delivered and the centers in India are being saddled with more high value services and responsibilities, and on the other hand the focus on cost is not reducing. The core value proposition for GCCs is deep domain expertise and that adds to complexity of talent management challenge. The GCC demand for talent across segments has increased on an average by 27-30%. This growth is also mostly in the experienced contributor segment of talent. BFSI, Retail, and Engineering and design captives have experienced the maximum growth in the past 12 months. This surge in demand is expected to last for another 8-12 months basis headwinds being witnessed in form of new GCCs that are entering the Indian market.

The war for talent in GCCs has led to organizations fundamentally challenging their existing rewards paradigms. The average compensation increases in the past 12 months has been at 9.2-9.6%. GCCs were forced to take evasive action to respond to the growing pressure from the talent market, with more than 40% GCCs providing midyear increments, 35% or more have introduced some form of long-term rewards program. Organizations are taking a more critical view of the benefits portfolio and studying the employee preferences to provide most customized and relevant benefits for their employees.

While early-stage organizations and commercial facing businesses have enticed GCC talent to shift their allegiances, GCCs have started heavily leveraging the global exposure and careers as the key differentiators. While the above were efforts focused on attracting and retaining the right talent in the industry, GCCs have also realized that the continuous war for the limited talent and throwing money at the problem was not sustainable. Organizations have started making a serious investment in reexamining their talent models. Some GCCs have started expanding their available talent pools, with tie-ups with academic institutes to help train and upskills their current employees and provide a consistent pipeline of fresh talent which are aligned to their business requirements. Aided by the government incentives and tax breaks, Organizations are also started moving in to tier 2 and tier 3 cities which are a proven catchment areas for some key skills.

Over the years GCCs have faced such challenging situations multiple times, and every time they have come up with innovative solutions to not only tide over the situation but also emerge strong and more resilient. They have weathered many a storm from a talent standpoint. We anticipate that the current situation will be no different.

About the author:

1

Vamsi Karavadi Director

| Human Capital Consulting Deloitte India


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


© Copyright nasscom. All Rights Reserved.