Global MNCs plan to hire nearly 500 C-suite professionals in India
The next one year seems promising for C-suite in India as global corporations plan to recruit nearly 500 senior executives to lead shared services in the country, as per a recent study by search firm Xpheno.
The estimated compensation packages for potential hires is expected to be in the range of Rs.80lacs to Rs.1.5Cr, suggests data. Speaking of cost benefits for MNC’s in setting up facilities in India, Kamal Karanth, cofounder of Xpheno said, “India offers the best of high skilled, technology and leadership talent at the right price.” He further added that this is courtesy cost arbitrage, even at high-skilled senior level. “Companies can easily save up to 60-70% per hire in India, while at the 2-3 years’ experience level the cost arbitrage is one-fourth.”
The study also reveals that for an organization to set up a technology/service center, the annual cost to company is estimated at a whooping $14Mn in San Francisco, $11 million in London and $9million in Atlanta compared to $2.5Mn in Bengaluru and $2Mn in Chennai.
Currently there are close to 1,250 shared services facilities in India spread across Chennai, Gurgaon, Bengaluru, Pune and Mumbai. In the light of the rising demand for knowledge of latest technologies like Machine Learning, AI, cloud computing, and data science, India is the new hub to enable tech-driven transformation for organizations across the globe. The availability of highly-skilled and affordable talent in the country makes it an ideal destination for global corporations to set up tech/service facilities.
There has been a visible shift from setting up call centres to setting up creative tech ideation labs. One such example is Walmart Labs in Bengaluru, technology arm of the US-based retail giant Walmart.
Speaking of the Indian talent pool, Hari Vasudev, country head, Walmart Labs said, “India’s talent market across a variety of technology areas is very advanced and we want to aggressively tap into this talent pool. We have been consistently building our leadership team in India.”
Bengaluru is also home to shared service facilities of several other established brands in the likes of Royal Bank of Scotland, Target and Citigroup. Target Corp’s Bengaluru office boasts of a 3000 member strong workforce including technologists, software developers, engineers and marketing professionals focused on innovation. This unit has been instrumental in enabling the company’s expansion plans with the launch of 30 new stores in the US. Another such example is Citigroup. Citi India increased its employee headcount from 8,700 to 11,800 in the last two years and recently launched an Innovation Lab in Bengaluru. The company currently runs service centres based out of Bengaluru, Gurgaon, Chennai, Pune and Mumbai.
Contrary to common belief of technologies threatening the future of jobs, today technology and skills are generating new opportunities. A wise man once said, “Where there is a problem, there is an opportunity”. Identify the problem, identify the opportunity, create a possibility!