Article: India’s GCCs are thriving—But is their talent strategy ready for the next leap?

Talent Management

India’s GCCs are thriving—But is their talent strategy ready for the next leap?

India’s GCC ecosystem stands at the brink of unparalleled growth, yet its success depends on the ability to attract, nurture, and retain top-tier talent—an insight echoed by industry leaders.
India’s GCCs are thriving—But is their talent strategy ready for the next leap?

Global Capability Centers (GCCs) are at the forefront of driving strategic value, evolving beyond their traditional roles to become key players in enterprise decision-making. Their growth trajectory has been remarkable, with India emerging as the 'GCC Capital of the World'—home to 17% of global technology capability centers and employing approximately 1.9 million professionals, as per a Zinnov-Nasscom report.

As these centers continue to expand, the challenge lies in ensuring that talent strategies align with India's ambitious growth plans. Are we equipping our teams with the right skills, leadership, and adaptability to meet future demands?

Over the past decade, GCCs in India have undergone a significant transformation. Initially established as cost-efficient service providers, these centers have rapidly evolved into innovation hubs, driving strategic decision-making for global enterprises. Today, they contribute not only to process optimisation but also to research and development, digital transformation, and customer experience enhancements.

According to industry experts, the next phase of GCC evolution will see these centers playing an even more integral role in corporate strategy, influencing high-level decisions across finance, technology, marketing, and HR. As a result, talent development has become a critical focus, ensuring that the workforce is equipped to support this transition.

Bridging the skills gap: The urgent need for future-ready talent

A major hurdle for GCCs today is the widening skills gap in both technical expertise and leadership capabilities. According to Ritu Rakhra, Head of Human Resources at Broadridge India, “The biggest skill gaps in the GCC talent market today include expertise in AI, data analytics, cloud computing, and cybersecurity, alongside leadership, strategic thinking, and problem-solving abilities. While technical proficiency is crucial, soft skills such as adaptability and communication are equally in demand.”

Broadridge India addresses this challenge by mandating 80 hours of value-added learning per associate annually, ensuring continuous skill development. Mansee Singhal, Careers Leader at Mercer India, reinforces the need for forward-thinking talent, stating, “GCCs need leaders who can drive value beyond execution, influencing enterprise strategy and innovation.”

A recent study of over 200 GCCs in India by NLB Services CEO Sachin Alug identified significant skill shortages across financial services, marketing, engineering, human resources, and supply chain management. The need for a structured approach to upskilling and reskilling has never been more pressing.

Engaging and nurturing top talent

While acquiring talent remains a priority, retaining high-performing professionals is an equally formidable challenge. High attrition rates—exceeding 20% in some organisations—can disrupt workflows and lower productivity. Ritu Rakhra emphasises the importance of a strong retention strategy: “Providing clear career progression, personalised learning paths, industry certifications, and mentoring programs ensures employees remain engaged and committed.”

Beyond career growth, modern employees seek purpose and inclusivity. Mansee Singhal notes, “Flexibility, inclusivity, and well-being are dealbreakers for many employees today. Organisations must create environments where professionals feel empowered and valued.”

Strong leadership plays a crucial role in talent retention. Effective leaders cultivate an environment where employees feel valued and inspired. They foster open communication, provide constructive feedback, and create opportunities for professional growth. A survey by McKinsey found that employees who feel supported by their managers are 67% more likely to stay with their organizations long-term.

Organisations that invest in leadership development programs, mentorship initiatives, and executive coaching are more likely to retain top talent. GCCs must prioritise leadership training at all levels to build a resilient and motivated workforce.

Enhancing employee engagement: A strategic imperative

A proactive approach to employee engagement can significantly impact retention and performance. Ritu Rakhra suggests that engagement begins before an employee’s first day: “A well-structured onboarding process helps employees feel aligned with the organisation’s mission. Programs like buddy systems and student ambassador initiatives create a sense of belonging from the outset.”

Mansee Singhal echoes this sentiment, stating, “In the competitive GCC market, engagement is driven by purpose, growth opportunities, and consistent recognition. Organisations that prioritise learning and development not only attract but also retain top talent.”

Fostering a culture of continuous learning

Engagement is deeply connected to learning and development. Employees who see clear growth pathways within their organisations are more likely to remain committed. Companies like Google and Microsoft have successfully implemented continuous learning ecosystems where employees are encouraged to take on new challenges, upskill through internal programs, and explore cross-functional roles.

GCCs can leverage similar strategies by offering:

  • Microlearning modules that provide bite-sized, on-demand training.

  • Gamified learning platforms that make upskilling interactive and enjoyable.

  • Cross-functional training programs that allow employees to gain experience in multiple domains.

  • Industry partnerships that provide access to specialized certifications and mentorship opportunities.

Wage inflation: A key factor in talent management

Rising salaries in India’s GCC sector are another pressing issue. Mercer India’s Total Remuneration Survey (TRS) forecasts a 9.4% salary increase in 2025. While this growth signals strong industry momentum, it also intensifies competition for skilled professionals.

“The competition for top talent is intense,” says Mansee Singhal. “Many GCCs rely on tech-led solutions, making technology talent highly sought after. While salary hikes create hiring challenges, companies that offer strategic roles and growth opportunities differentiate themselves.”

To navigate rising salary expectations, organisations must offer more than just financial incentives. Mansee Singhal advises, “Employees seek holistic value—career growth, workplace culture, and a sense of belonging. Organizations must strengthen employer branding, optimize workforce planning, and invest in productivity-enhancing initiatives.”

The future of GCCs: A roadmap for sustainable growth

As GCCs continue to expand, their long-term success will depend on the ability to attract, retain, and develop world-class talent. This requires a multi-faceted strategy that includes:

  1. Strengthening University Partnerships – Collaborating with academic institutions to build industry-relevant curricula and create a steady pipeline of skilled graduates.

  2. Investing in Leadership Development – Equipping mid-level and senior managers with the skills to inspire and guide teams effectively.

  3. Emphasizing Employee Well-Being – Offering mental health support, work-life balance initiatives, and flexible work arrangements.

  4. Leveraging Technology for Workforce Planning – Using AI-driven analytics to predict workforce needs and optimize hiring strategies.

  5. Encouraging Internal Mobility – Creating opportunities for employees to transition into new roles within the organization, reducing turnover and increasing engagement.

India’s GCC ecosystem is on the cusp of unprecedented growth, but its success hinges on the ability to build, develop, and retain world-class talent. Addressing skills shortages, fostering leadership pipelines, and creating engaging work environments will be key to maintaining competitive advantage.

While wage inflation and talent churn present challenges, organizations that emphasize continuous learning, career progression, and purpose-driven cultures will lead the way. As GCCs redefine their role in global business strategy, a commitment to innovation and people-centric workforce planning will determine India’s standing as the premier global hub for GCCs.

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Topics: Talent Management, Talent Acquisition, #Retention, #HRTech, #HRCommunity

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