Topics In Demand
Notification
New

No notification found.

SIAH - India GCC Trends for 2025

December 11, 2024 141 0 GCC Global Capability Centers

SIAH - India GCC Trends for 2025

India's GCCs are set to undergo strategic transformations in talent management in 2025, with a focus on specialized skills and performance-based compensation. Key trends include a rise in AI-related roles, increased voluntary attrition in high-demand sectors, and a more disciplined hiring approach. Green jobs and next-gen HR and tech roles will also gain prominence. Organizations will need to balance cost optimization with competitive compensation and develop comprehensive employee value propositions to retain talent.

As Global Capability Centers (GCCs) in India approach 2025, a year expected to reshape talent acquisition and retention strategies, organizations are preparing for shifts in salary structures, workforce attrition, and hiring dynamics. This report, based on a survey conducted in September 2024, analyzes the key trends affecting these areas and offers a roadmap for navigating the evolving landscape.

The study’s primary objective is to analyze salary increase, attrition, and hiring trends across job levels in India’s GCC sector for 2024 and 2025. It explores how compensation practices are adapting to new economic realities and talent needs, particularly in the context of specialized skills and evolving workforce expectations.

The research surveyed over 93 GCC units across India, spanning locations from Bengaluru to Pune, and across various sectors like Software & Internet, Telecom & Networking, and BFSI. The participating organizations included a mix of small to large-scale centers, ranging from companies with fewer than 500 employees to those with over 5,000.

Key Insights

  • Salary Increase Trends: Compensation strategies are evolving, with a greater focus on performance differentiation. High-demand sectors such as Software & Internet, Telecom, and BFSI are predicted to offer substantial salary hikes, particularly for AI and specialized digital roles. AI professionals, in particular, are seeing premium compensation packages, which is expected to intensify in the coming years.

  • Attrition Dynamics: While voluntary attrition may slightly increase as market recovery progresses, organizations are focusing more on reducing "infant attrition" — the tendency for new employees to leave early in their tenure. The increasing preference for purpose-driven work among Millennials and Gen Z employees has led organizations to enhance their employee value propositions, offering a balance of financial and non-financial incentives.

  • Hiring Strategies: 2025’s hiring landscape will reflect a more cautious approach, with a strategic focus on recruiting fresher talent in emerging skill areas such as AI/ML, Data Science, and Sustainability. A key trend will be the rise of “green jobs,” with roles dedicated to sustainability, including positions like ESG Accounting Managers and Green Finance Specialists. Companies will prioritize a leaner workforce while bolstering talent pipelines in Tier-II cities.

Macroeconomic and Job-Market Influences

Global economic conditions, including inflation, supply chain disruptions, and geopolitical factors, are impacting salary trends, with organizations aiming to balance cost control with competitive compensation. The "Great Resignation" has led to salary compression, but as the market stabilizes, GCCs will look to correct internal pay imbalances and ensure better retention of top talent.

Reskilling for the Future

As the workforce continues to adapt to technological advancements, especially in AI, reskilling initiatives are gaining momentum. Organizations are investing in developing a robust digital talent pipeline through partnerships with universities and upskilling programs. These initiatives are not only a response to the growing demand for digital roles but also a means to mitigate the talent shortage in areas like AI and machine learning.

Strategic Takeaways for 2025

  • Talent Strategy: GCCs must focus on building competitive compensation packages, particularly for AI and digital skills, while also fostering a positive work environment that aligns with the evolving values of younger generations.
  • Hiring & Attrition Management: A disciplined approach to hiring, combined with a focus on retention, will be crucial. Understanding voluntary and involuntary attrition patterns will help organizations manage talent more effectively.
  • Investment in Reskilling: Preparing for the future means investing in continuous learning and reskilling, particularly in emerging technology domains and sustainability-driven roles.

As 2025 approaches, India’s GCCs will be navigating a landscape defined by economic uncertainty, evolving workforce expectations, and the growing demand for specialized skills. Successful organizations will be those that strategically manage talent, focusing on both compensation and employee satisfaction, while preparing their workforce for the challenges of a rapidly changing digital world.


That the contents of third-party research report/s published here on the website, and the interpretation of all information in the report/s such as data, maps, numbers etc. displayed in the content 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 research report/s published, are provided solely as convenience; and the presence of these research report/s 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 research report/s, you do so at your own risk.


Founded in 2002, Zinnov is a leading global management consulting and strategy advisory firm, with a presence in 10 global locations. Over the last 22 years, Zinnov has partnered with Global Enterprises and Fortune 2000 companies across their value creation journeys to develop actionable insights – across revenue, talent, innovation, scale, and optimization. Zinnov enables companies to develop and optimize a global engineering footprint through center setups, technology and functional Centers of Excellence (COEs), portfolio optimization, partnerships, and real-time data/ insights – through its unique GCC Accelerator Platform (GAP) offering. This multi-lever approach helps Zinnov’s clients achieve higher R&D efficiencies, innovation, and productivity via an immersive and highly networked model. Zinnov’s expertise also includes advising global PE firms in asset shortlisting, target evaluation, due diligence, and value creation for their portfolio companies through a globalization lens.



LATEST REPORTS

© Copyright nasscom. All Rights Reserved.