Tech support

Indian tech firms face talent shortage as Gcc hires: report

Facing fierce competition from Global Capability Centers (GCCs), Indian tech majors like Infosys, TCS and Wipro are seeing a limited talent pool which is becoming a major challenge in the recruitment process. The GCCs, which provide IT support, back-office and support functions to multinational companies, are hiring the same talent pool from the country as India’s information technology (IT) companies, resulting in a crisis in local IT service companies, Mint reported.

“Although IT services companies have loosened their purse strings, GCCs have better brand image, in addition to pay power,” Mint said quoting Kamal Karanth, co-founder of recruiting firm Xpheno.

Hiring in IT companies has not been discouraged even after the resurgence of COVID-19 infections carried by the Omicron variant. The sector posted more than 70,000 active job openings in the first week of 2022, The Economic Times reported citing LinkedIn data collated by Xpheno.
According to Xpheno estimates, if the trend continues for the rest of the month, the number of vacancies in January should exceed the figure of 253,000 from the previous month.

“Given the January-March quarter is typically a strong quarter for employment, the IT hiring action may not slow sooner,” Karanth told ET.

In the third quarter, TCS, Infosys and Wipro hired 51,000 employees, according to the Mint report.

By 2025, as many as 500 GCCs are expected to start operations in India and hire about three million out of the existing 1.38 million employees, which will lead to a new talent shortage. An Xpheno report said tech start-ups would also see a threefold increase in the number of employees.

The IT sector will grow to about five million in the near term due to increased hiring at all levels, Mint said quoting Sunil C of staffing firm TeamLease Digital.

The expansion of GCCs in the country has opened up opportunities for software professionals, he said, adding that GCCs and start-ups are poaching the pool of skilled talent available among system integrators.

While US companies account for 65% of GCCs in India, there has been a 7% increase in Europe, the Middle East and Africa supporting centers nationwide over the past two years, according to the Xpheno report. .

Currently, India has 350-400 GCCs operational in EMEA, almost 30% of the total installed base of GCCs.

(Edited by : Thomas Abraham)