India-based captive units of multinational companies are set to increase their employee count by 180,000-200,000 by the end of this fiscal as per an estimate based on hiring plans of existing and upcoming global capability centres (GCCs).
With several new captives in the making and over 500 new GCCs to set up their captive tech centres by 2025, the total headcount is set to double to 3.0-3.2 million by FY25 from 1.5 million now as the market size is estimated to increase to $60 billion from $36 billion, according to data put together for ET by staffing solutions firm Xpheno.
There are currently about 1,500 GCCs in India across sectors such as banking, financial services and insurance (BFSI), IT software, automotive, pharmaceuticals, retail and oil and gas.
This cohort of companies together net added about 170,000 jobs in India in 2021-22, while gross hiring stood at around 350,000, according to Xpheno data.
The growth of GCCs in India accelerated since the outbreak of Covid-19, which led to an increasing number of organisations opening up to the idea of remote working. As a result, locations like India that have the talent pool – especially in the field of technology – and cost advantages are increasingly turning into a strategic hotspot for multinationals, top industry officials said.
“India has a very deep talent pool and a large number of resources from across engineering and finance backgrounds,” said Dilipkumar Khandelwal, CEO of Deutsche India, which will hire 3,000 people this year mainly in its technology and operations teams. “India is a very important location in terms of Deutsche Bank’s overall footprint outside of Germany.”
He said the startup landscape in India is getting bigger by the day and banks and financial services companies are collaborating with the fintechs on specific areas, integrating those services within the technology stack, making India a preferred destination for talent.
Anil Ethanur, cofounder at Xpheno, said, “The pickup in hiring post-pandemic is powered by a release of pent-up demand and expansion hiring by active GCCs. Further, the hiring action by and for new captives in the making has added to the funnel of hiring action.”
Top recruiters among GCCs in India are BFSI companies. In FY22, the BFSI GCC cluster net-added more than 60,000 jobs, accounting for nearly one-third of the total net additions during the fiscal. Other top sectors include software, automotive, pharma, retail, and oil and gas.
Companies on top of the hiring action include Amex, Bank of America, Wells Fargo, Citi, Barclays, Morgan Stanley, HSBC, Standard Chartered, Goldman Sachs, Amazon, Target, Walmart, Shell, GSK, Abbott, Pfizer, J&J, Novartis, and AstraZeneca, among others, according to Xpheno data.
“India as a market is very attractive from a commercial perspective. It also has one of the largest university systems with both quality and quantity of talent,” Mohit Kapoor, global chief technology officer at consumer researcher Nielsen IQ, had told ET in a recent interview.
Nielsen is planning to hire over 5,000 people in the country at its three global hubs in Chennai, Vadodara and Pune by the end of 2023. “Our India hubs will be of strategic advantage for us going ahead,” Kapoor said.
The roles in demand are across the spectrum. However, with an enhanced focus on digital transformation post-pandemic, top talent and roles in demand are in the tech and digital space. Roles in solutioning, core development, DevOps, cloud and cyber security, virtualisation, data analytics, and enterprise mobility are in demand. That apart, roles in artificial intelligence/machine learning, internet of things (IoT), robotic process automation (RPA), and blockchain continue to be in demand.