India's GCCs to grow workforce by 25% or more by 2030: Survey

Honoured to be quoted in #ETGCCWorld on how India’s GCC ecosystem is gearing up. Many GCCs are shifting from cost centres to innovation centres, driving AI, product engineering, and digital transformation. The link to the article, authored by Bhuvana Kamath and Debroop Roy is here: https://lnkd.in/gxTiFKDQ #GCC #India #GlobalCapabilityCenters #AI #DigitalTransformation #HealthcareIT #Leadership

IT’s Coming Home: H-1B Headwinds Fuel GCC Growth Explosion The latest surge in U.S. H-1B visa fees and tightening immigration policies is creating a tectonic shift in global talent strategies. As multinational enterprises grapple with rising costs and uncertainty, India’s Global Capability Centers (GCCs) are poised to capture the upside. Key Insights: H-1B Fee Hike Impact: A 40–50% increase in visa fees is squeezing margins for U.S. on-site projects and driving firms to rethink their sourcing models. Offshore Momentum: With on-shore talent becoming pricier, GCC hiring is set to accelerate—FY25 GCC growth is tracking at 45%, outpacing traditional IT services by 4–5×. Talent Migration Reversal: Domestic IT services have seen H-1B reliance shrink by 30% over five years, while GCC headcounts swell—1.9 million professionals today, with 2.2 million projected by 2026. Cost & Agility: Even after accounting for tax and infrastructure outlays, India’s GCC cost-per-engineer remains 25–30% lower than on-shore alternatives. Strategic Levers for GCC Excellence: Hyper-Localization: Build Tier-II hubs—cities like Mysuru and Indore—to tap emerging pools of AI/ML and semiconductor talent. Platformization: Deploy unified delivery platforms for DevSecOps, GenAI development, and IoT-driven R&D, enabling rapid global rollouts. Talent Branding: Launch “Reverse Tech Migration” campaigns showcasing India as a destination for world-class innovation, not just cost arbitrage. Flexible Commercial Models: Offer outcome-based pricing and IP co-development partnerships to enhance joint ownership and value creation. The Moment Is Now As geopolitical headwinds elevate U.S. labor costs, India’s GCCs can transform from service delivery arms into profit & innovation centers. Organizations that accelerate offshore-first strategies will secure cost advantages, deeper technical expertise, and resilience against future shocks. What bold moves is your team making to harness this seismic shift in talent economics? #GCC #GlobalCapabilityCenters #H1B #TalentStrategy #Offshoring #DigitalTransformation #AI #GenAI #MachineLearning #Semiconductors #TierII #ReverseMigration #IPCoDevelopment #TechInnovation #FutureOfWork #CostOptimization #DevSecOps #IoT #BusinessResilience #IndiaIT #TechLeadership #GlobalDelivery #WorkforceEvolution #Upskilling #InnovationHubs #GCCGrowth #TechTalent #BusinessStrategy #GCC2025

🚀 India’s GCC Boom: Growth Engine or Zero-Sum Game with IT & ITES? India is home to 1,900+ Global Capability Centres (GCCs)—powering global product development, digital transformation, and contributing nearly 40% of India’s services exports. Once IT-focused, GCCs now span banking, life sciences, R&D, e-commerce, and manufacturing, making India the world’s preferred hub for enterprise services. But with growth comes overlap—and trade-offs with the traditional IT and IT-enabled services (ITES) sector: 🔹 Competition for Talent & Business: GCCs and IT/ITES firms increasingly do similar “outsourceable” work, driving intense competition. 🔹 Zero-Sum Dynamics: In-house GCC operations may undercut revenue streams of domestic IT players. 🔹 Nature of Work: Many GCCs still focus on process-heavy roles, with limited IP creation or CTO-level mandates anchored in India. 🔹 Talent Trends: Some GCCs hire science graduates at lower salaries, sparking concerns about skill dilution. ⚠️ Key Challenges 💥 Innovation gap vs. true technology ownership 💥 Automation risk in lower-skill roles (AI/GenAI accelerating disruption) 💥 High attrition in Tier-1 cities, infra gaps in Tier-2 💥 Policy dilemmas: boost GCCs or protect IT/ITES job quality? 💥 Regulatory hurdles in setup and expansion 🌍 The Road Ahead For India to sustain leadership, the GCC ecosystem must shift from cost & scale → innovation & IP ownership. Collaboration between global firms, domestic IT providers, and policymakers is vital to balance growth, protect job quality, and unlock long-term strategic value. India’s enterprise services future isn’t just GCC vs IT—it’s about building a harmonized ecosystem where both thrive. #GCC #IndiaTech #ITservices #ITES #DigitalTransformation #FutureofWork #Innovation

US Firms Power India’s GCC Expansion, 350 Centres By 2030 India’s talent strength fuels massive #GCC growth, with American multinationals set to create jobs and #innovation hubs https://lnkd.in/g_5VDJ8Q Annurag Batra | Noor Fathima Warsia | Bilquis Naqvee | Ashish Kumar | MEHA MATHUR | Abdulla M. M.| Tanvie Ahuja | Shibul Pavithran #bwpeople #hrvoices #businessworld #businessworldlive #people #hr

Why are global capability centers (GCCs) and IT services getting closer than ever? Because the rules of the game have changed. Companies are no longer looking at India just for cost savings. They are looking at it for talent, strategy and culture. Here is what is driving the bond forward: → Best-Sourcing: Firms are building GCCs with managed service providers. This enhances efficiency, accelerates time-to-market and ensures the right talent fits the right culture. It is no longer about outsourcing - it is about best-sourcing. → Strategy First: Starting a GCC without aligning it to enterprise strategy is a mistake. Digital reinvention and transformation should be the core. Labour arbitrage is inevitable, but intellectual arbitrage is the real edge. → Talent Attraction: The next generation of workers wants purpose. They want to see the impact of their work. Companies need to give them aspirational work, not just routine tasks. A career roadmap is as important as a paycheck. → Building Global Culture: Culture cannot be stamped from one region to another. Global teams must blend the best of local strengths with global practices. That means India is not just following the US playbook - it is shaping it. The bond between IT services and GCCs is strengthening because the focus has shifted. From cost arbitrage → to intellectual arbitrage. From outsourcing → to culture-building. From labor pools → to purpose-driven talent ecosystems. This is why GCCs in India are no longer back offices. They are the engines of global transformation. #GlobalCapabilityCenters #EnterpriseStrategy #DigitalTransformation #InnovationEcosystem #BestSourcing #IntellectualArbitrage #ScalableGrowth #TechnologyLeadership #FutureReadyEnterprises #GlobalBusinessStrategy #FutureOfWork #CareerGrowth #WorkforceTransformation #PurposeDrivenWork #GlobalCulture #DigitalCareers #TalentStrategy #NextGenWorkforce #InnovationOpportunities #BuildTheFuture

The global talent landscape has shifted overnight! With changes in H-1B, we will be witnessing a significant acceleration in a trend that has been underway for years - the rise of India as a hub for #DeepTech and product innovation. This The Times Of India story today speaks of this perspective - the "squeeze" on traditional hiring models isn't a roadblock, but a catalyst. It will drive more global companies to expand their Global Capability Centers (GCCs) in India, which offers a powerful trifecta of highly-skilled talent, cost efficiency, and strategic resilience. This isn't just about outsourcing / offshoring anymore - it is about shifting core innovation and value creation. Exactly the ethos with which we have been building The Media GCC Companies that strategically invest in their Indian GCCs will be the ones leading the next wave of technological advancement. The focus is no longer just on operational tasks, but on building foundational product and engineering capabilities right here in India. This is a pivotal moment for both global enterprises and India's tech ecosystem. #TechInnovation #IndiaTech #GCCs #FutureOfWork #H1B

So the US is bringing in something called the HIRE Act. In simple words – if American companies outsource work abroad (mostly India), they’ll have to pay a huge 25% extra tax. Now, we all know how much our IT sector depends on the US. It’s a $300B industry here, giving jobs to 50+ lakh people. If outsourcing suddenly becomes expensive, obviously it’s going to hit revenues, projects, and yes… jobs. And not just IT – the effect can spill over to real estate, shopping, startups, basically the whole urban economy. But here’s the bigger point -> this shows how risky it is to depend too much on one market and on outsourcing alone. For years we have been happy being the “back office of the world”. Not enough focus on R&D, innovation, or building global tech products of our own. Maybe this is the wake-up call we needed. Time to diversify, time to build, time to move up the value chain. India's IT finally should shift gears from services to innovation... #HIREAct #IndiaIT #Outsourcing #FutureOfWork #TechPolicy #IndianEconomy #DigitalIndia #Innovation #ResearchAndDevelopment #GlobalMarkets #JobsInIndia #TechLeadership #ITSector #MakeInIndia #Diversification

Potential Shifts in IT Outsourcing if U.S. Policy Limits India Context India has long been the backbone of global IT outsourcing, driven by cost competitiveness, large talent pools, and widespread English fluency. If U.S. policy were to restrict outsourcing to India, the impact on American corporations would be significant and immediate. Key Impacts • Rising Costs: Companies would face higher expenses without access to India’s low-cost, high-scale IT workforce. • Talent Gaps: Domestic supply of skilled IT professionals may not fully meet demand in the short term. • Operational Risk: Transitioning away from India could disrupt service continuity. Likely Corporate Responses 1. Domestic Hiring: Expand U.S. recruitment and invest in reskilling programs. 2. Nearshoring: Leverage Latin American markets (Colombia, Costa Rica, Uruguay, Suriname) for cultural and time-zone advantages. 3. Diversification: Explore Eastern Europe (Poland, Romania, Ukraine), South Asia (Bangladesh, Pakistan), and Africa (Kenya, Nigeria, South Africa) to spread dependency across multiple regions. 4. Automation: Accelerate adoption of AI, cloud platforms, and low-code technologies to reduce reliance on human labor. Risks & Constraints • English Proficiency: India’s dominance is tied to large-scale English fluency, which few alternatives can replicate. • Scalability: Talent depth in emerging markets is promising but not yet comparable to India’s scale. • Service Maturity: Delivery speed, infrastructure, and process standardization may lag in new outsourcing destinations. Outlook A policy shift limiting outsourcing to India would not result in a single replacement hub. Instead, U.S. corporations would adopt a hybrid strategy: expanding domestic hiring, accelerating automation, and distributing outsourcing across multiple smaller hubs. While this would reduce dependency on India, the country’s unique blend of scale, cost efficiency, and language advantage will remain difficult to fully replace. #IT_Outsourcing #Industry

Is Indian Domestic Staffing Less Glorous Than US Staffing? The perception of "glamour" in the staffing industry often varies dramatically by geography. While US staffing is frequently associated with high-tech placements, Silicon Valley, and sprawling corporate campuses, Indian domestic staffing operates in a different, yet equally critical, ecosystem. The US model thrives on high-value, specialized roles, often with a focus on innovation and disruptive technologies. The scale of deals and the media coverage surrounding them create a certain allure. The Indian domestic staffing landscape, however, is a powerhouse of volume, diversity, and immense growth potential. It's the engine room of the world's fastest-growing major economy, connecting talent from metro hubs to emerging tier-2 and tier-3 cities. The complexity lies in navigating a vast and varied talent pool, understanding nuanced regional markets, and fulfilling roles that are fundamental to India's economic infrastructure. So, is it less glamorous? Perhaps by the traditional, flashy definition. But true professionals know that glamour isn't the benchmark for impact. The real value lies in: · Scale & Depth: Managing immense volume and a incredibly diverse range of roles and industries. · Economic Catalyst: Playing a direct role in empowering India's workforce and fueling its economic ascent. · Relationship Complexity: Building deep, trust-based networks in a relationship-driven market. · Problem-Solving: Mastering the unique challenges and opportunities of the Indian employment landscape. Glamour is subjective. Impact is not. The Indian staffing industry is a dynamic, challenging, and ultimately rewarding field where professionals make a tangible difference on a massive scale. #IndianStaffing #DomesticStaffing #USStaffing #HRTech #TalentAcquisition #Recruitment #HumanResources #HRIndustry #IndiaEconomy #JobMarket #FutureOfWork #StaffingSolutions #RecruitmentAgency #TalentManagement #HRLeadership #BusinessInIndia #StaffingAndRecruitment

#GCCs To Anchor India’s Innovation And Employment Boom: #Sitharaman Finance Minister highlights GCCs as catalysts for R&D, skill growth, and high-value jobs, positioning India as global #innovation hub https://lnkd.in/gE3V42Xg Annurag Batra | Noor Fathima Warsia | Bilquis Naqvee | Ashish Kumar | MEHA MATHUR | Abdulla M. M.| Tanvie Ahuja | Shibul Pavithran #bwpeople #hrvoices #businessworld #businessworldlive #people #hr