Building a Robust Future: How GICs Can Build a Scalable & Resilient Talent Pool to Thrive in 2024

India’s Global In-house Centers (GICs) are steering through transformative shifts, evolving from legacy support functions to end-to-end product ownership. Based on Taggd’s annual flagship India Decoding Jobs Report 2024 report, the sector, with 1,580 GICs as of FY23, is projected to reach a market size of $46 billion and employ 1.66 million individuals. 

Despite global uncertainties, GICs remain on a hiring spree, adding 28,000 employees in the first quarter of 2023-24, showcasing resilience amid global economic headwinds. New GICs are also being set up, with 83% of new entrants GICs spanning across the Engineering Research & Development (ER&D), Information Technology (IT), and Business Process Management (BPM) sectors.

In this article, we will explore the transformative hiring trends in this industry, the challenges that lie ahead and how GICs can build a talent pool to overcome these uncertainties and thrive in this fast-evolving landscape. 

In 2023, the GIC job market witnessed diversification into research, development, analytics and innovation roles. The focus on skill-based hiring is gaining prominence, prioritizing skills such as adaptability, critical thinking, and proficiency in emerging technologies, such as AI, ML, and blockchain.

Strategic navigation through the tumult of talent acquisition is imperative for GICs to stay at the forefront of the industry. 

1. Rising Demand Amid Fierce Competition

Within the Global In-house Centre (GIC) landscape, heightened demand for specialized skills is sparking intense competition among organizations. 

This surge not only raises salary expectations but also underscores the pivotal role of fostering a work environment that nurtures professional growth and prioritizes employee well-being. 

2. The Persistent Talent Gap

Despite advancements in aligning education with industry needs, a lingering talent gap, particularly in emerging technologies poses a significant challenge for GICs. 

The industry’s ever-evolving demands necessitate a workforce equipped with skills closely aligned with the latest technological advancements.

3. Addressing Limited Brand Visibility

Limited recognition and awareness continue to impede GICs’ ability to attract top-tier professionals. Surmounting this challenge demands strategic initiatives that transcend conventional recruitment methods.

In the face of challenges, GICs are proactively engineering strategic initiatives, laying the groundwork for a talent pool that not only withstands uncertainties but thrives in a dynamic landscape. Here are a few strategies that India-based GICs can adopt to build a workforce ready for tomorrow:

1. Forming Strategic Partnerships With Educational Institutions

Proactively forming strategic partnerships with educational institutions is gaining renewed importance among GICs. 

By collaborating with universities and training institutes, GICs actively participate in shaping curricula, ensuring that graduates possess the skills required by the industry. 

This forward-looking approach not only addresses the talent gap but also establishes a symbiotic relationship between academia and industry.

2. Empowering the Workforce for Tomorrow

Investing in upskilling and reskilling initiatives is a proactive measure adopted by GICs. These initiatives not only empower the existing workforce but also position GICs as employers of choice in a highly competitive job market. 

The commitment to employee development is exemplified by initiatives like Capgemini’s program to upskill and reskill 100,000 employees in digital technologies by 2025.

As Reetu Raina, VP & Global Head TA, Amdocs, put it, “During this correction phase in the IT/Tech industry, the next year’s focus will be on upskilling for enhanced productivity, incentivizing niche skills, and approaching recruitment with a sales-oriented mindset. Overcoming challenges, the industry is ready for a collective embrace of contextual tech and a strategic move to break down industry-wide business silos, allowing more accurate predictions.”

3. Aligning with Workforce Preferences

The adoption of the hub-and-spoke model emerges as a best practice, offering greater flexibility for employees. This model, featuring a central office hub complemented by smaller satellite offices, aligns with evolving workforce preferences. 

It allows employees to work from offices close to their homes, addressing daily commute challenges while preserving organizational culture. 

TCS’s implementation of satellite offices in Tier-II and Tier-III cities serves as a prime example of adapting to workforce needs.

4. Harnessing Opportunities in Emerging Geographies

The improvement in technology infrastructure in Tier-II and Tier-III cities serves as a driving force behind GICs’ expansion into these locations. 

This best practice ensures that GICs are well-positioned to harness the benefits of technological advancements across diverse geographical landscapes.

Companies like Infosys, Tech Mahindra, and Wipro are implementing cutting-edge technologies to optimize operations and enhance efficiency.

Despite the challenges, the hiring intent for the GIC sector has increased from 29% in 2022-23 to 32% in 2024, underlining India’s capacity to drive innovation. 

Even women’s IT workforce participation is expected to rise from 33% to 36% in 2024, which signals a positive shift towards a more inclusive and resilient labor market.

To ensure continued success, a robust policy framework, skill development programs, infrastructure support, R&D incentives, cross-industry collaboration, curricular alignment with industry needs, and industry-academia partnerships are crucial. 

Strengthening these aspects will cultivate a vibrant GIC ecosystem, positioning India as a hub for technological advancements.

Apart from the previously highlighted observations, the India Decoding Jobs 2024 report presents numerous other substantiated and practical insights for 2024. These insights can empower GIC recruiters to make prompt and informed decisions, facilitating the development of a workforce and organizational culture that is well-prepared for the future.

This extensive report is the result of meticulously conducted surveys and thorough conversations with respected talent acquisition experts in various sectors throughout India. It has evolved into a favored reservoir of data and recommendations, serving as a valuable resource for guiding recruitment decision-making.

To download your exclusive copy of the report, click here or write to us at contact@taggd.in.