The GCCs will lead growth across the broader tech domain in India

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Companies that would not have thought of a technology unit earlier, are now turning to India for their needs as the pandemic has fuelled digital transformation initiatives across sectors, said KS Viswanathan, vice president, industry initiatives, Nasscom.

“Every business is a tech business today. Nearly 40% of the new centres are being set up by unicorns or soon-icorns, and even the others are all creating product capabilities here,” Viswanathan said.
 
Unicorns are startups with valuations of $1 billion or more, while soon-icorns are on their way to get there.

In the last few months, companies like Coinbase have announced technology centres in India.


Some of the companies that have recently set up, or are setting up operations here include Castlight Health, Chubb, GSK, Lulu Lemon, Delta and Giant Eagle.

At present, about 1,600 global firms have captive units in India, with several having more than one centre.

Captives employ over 1.3 million people of the 4.6 million technology workforce in India.

Following a slowdown in 2020, hiring is now in double digits for both existing as well as new centres, said industry watchers.

“There is a marked increase in the healthcare space, as well as enterprise software. In addition to shared services and business processes work, there is also a lot more demand for deep tech work moving to India,” said Mohammed Faraz Khan, principal and delivery head of the GCoE Accelerator Platform at consulting firm Zinnov.

Existing GCCs are also hiring for new profiles, in line with the shift in the kind of work that is happening here.

“The new jobs being created here are more high-end and focused on new tech like data science, artificial intelligence and machine learning,” said Vinu Nair, managing partner, Antal India, which helps in recruitments for GCCs.

Many tech workers from eastern Europe who used to work in the UK and continental Europe have moved back home and are unlikely to return, causing a supply gap in those countries, said Nair. This is another factor propelling demand in India and has prompted those companies to turn to the country, he added.

Many of the upcoming units are relatively smaller, with under 500 people.

Since technology has emerged as a key differentiator, companies do not want to outsource technology development, said Vikram Ahuja, co-founder of Bengaluru-based recruitment startup Talent 500.

“Our belief is that this trend of building remote teams by global companies will add another 1-1.2 million to the workforce in the next three-five years,” Ahuja said.

The GCC segment will lead growth across the broader tech domain in India in the next few years, he added.

As more companies compete for a limited supply of niche technology talent in markets like the United States and UK, they will have to look at India, where these skills are readily available.

However, with IT services companies too ramping up their hiring plans for the year, the battle for top tech talent is likely to continue.

Related Article  Global retailers expand digital channels as pandemic hits physical stores

Title image: freepik.com

(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.xtechalpha.com.)

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The GCCs will lead growth across the broader tech domain in India

by Hemanth Reddy Sudini Time to Read: 2 min
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