The GCC Phenomenon: Reshaping India’s IT Staffing Landscape

Multinational companies these days, are jumping into the bandwagon of a new growing trend establishing their own back offices in India. This move is fuelled by the desire to develop in-house technology, triggering a significant “war for talent” with traditional IT service providers. The focal point of this transition is the rise of Global Capability Centres (GCCs), which are becoming the driving force behind the technology revolution in India.

Historically, India has been a software services export powerhouse, particularly in areas such as data, cloud, and analytics support. However, multinational corporations are now establishing GCCs to accelerate their technology development processes. These centres, designed to handle a spectrum of tasks including cyber security systems, and artificial intelligence, offer a cost-effective alternative to developing these capabilities in other countries. The lower labour costs in India, especially while partnering with dedicated IT staffing firms, make these GCCs an attractive proposition for companies seeking to streamline their operations while maintaining control over critical aspects of their technology projects.

NASSCOM, India’s IT industry trade body, notes that the proliferation of GCCs has been remarkable, growing at an annual rate of 11% since 2015. The industry has burgeoned into a $46 billion powerhouse, employing 1.7 million people in India, many of whom are consultants hired through strategic staffing services. The industry predicts a doubling of the number of GCCs in India from 1,026 in 2015 to an estimated 2,000 by 2026. This meteoric rise underscores the increasing importance of GCCs as a strategic choice for companies looking to harness the vast pool of talent and resources in India.

One of the key drivers behind this surge in GCCs is the offshoring of work that was traditionally considered core and never outsourced before. According to NASSCOM, tasks related to intellectual property, customer data, and other sensitive projects are now being handled by GCCs. Teams operating in conjunction with IT staffing firms act as extensions of the in-house teams at these centres, and are directly managed by the parent company, ensuring greater control and oversight over crucial aspects of technology development.

Instead of offering higher compensation packages to onboard top talent individually, GCCs are finding it beneficial to partner with traditional IT staffing providers. This provides them with a flexible staffing model, administratively managed completely from the staffing company if needed, doing away with the hassles of attracting and retaining talent individually. The allure of working directly for a global corporation, coupled with the opportunity to contribute to cutting-edge technology projects, has positioned GCCs as highly desirable workplaces for experienced consultants aligned with IT staff augmentation companies too.

Global banks are at the forefront of this trend, rapidly expanding their Indian offices, with Bengaluru, Hyderabad, Pune and Noida emerging as prominent tech hubs. JPMorgan Chase, for instance, opened its first Indian GCC in 2002 with 75 people and has since grown to employ over 50,000 staff across the country. Other financial giants like Goldman Sachs and Wells Fargo are not far behind either, signalling a broader industry shift towards adopting IT staffing services for critical technology functions.

A recent study highlighted that major tech stack upgrades, such as the transition to cloud computing, are driving companies to expand their GCC teams. This shift is particularly evident in projects involving intellectual property and customer data, where the need for control and security takes precedence, making trustworthy and strategic IT staffing partnerships an absolute necessity. Additionally, cost-cutting pressures in projects that cannot be outsourced, such as core product engineering, are contributing to the increasing demand for skilled professionals within GCCs.

About Taashee’s Staff Augmentation Capabilities

Taashee Linux Services (CMMI-SVC Maturity Level 3 Appraised and ISO 9001:2015 | ISO 27001:2013 Certified) focuses on becoming a strategic partner for organizations with diverse needs, ranging from occasional ad-hoc assignments to ongoing multiple projects. We have designed adaptable staffing models tailored for Global Capability Centers (GCCs) and Offshore Development Centers (ODCs). These models involve dedicated teams with specialized expertise in advanced implementation and 24/7 support across various domains, including Application Development, DevSecOps, Cloud Services, Containerization, Database Management, Middleware Management, and other cutting-edge technologies.

Our team of experts is proficient in the latest technical skillsets within these domains, enabling them to provide seamless assistance and coordination with onshore teams. With years of experience in handling outsourced projects, Taashee meticulously selects the most suitable staffing model for client organizations, aligning with their specific requirements. This approach ensures that our clients receive optimal support and expertise tailored to their unique needs.

For more information on our staffing and ODC models, write to us at sales@taashee.com and we will get in touch with you right away!

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