Global Capability Centers Accelerate Hiring in 2024 Amidst Shifting Job Ideals Among Gen Z
In a remarkable display of resilience and growth, Global Capability Centers (GCCs) in India have demonstrated significant hiring momentum in the first half of 2024, according to a survey by specialist staffing firm Xpheno. These centers, integral parts of large multinational corporations, have added approximately 152,000 new roles during this period, showcasing a 14% increase from the latter half of the previous year, albeit a 9% decrease year-on-year.
The survey sheds light on an interesting trend within GCCs: a substantial portion of hires, over 75%, were made to fill the vacancies left by departing employees, culminating in a net addition of 34,000 roles. This pattern underscores the dual challenge GCCs face in retaining talent while continually expanding their workforce.
Leading the charge in net employment growth are sectors such as semiconductor manufacturing, oil & gas, and food & beverage services. Despite the shadow of global economic uncertainties, these industries have demonstrated robust growth, fueling optimism for a continued hiring uptick in the latter half of 2024.
Kedar Pathak from Xpheno, with his expertise in GCC operations, anticipates a growth of 10-15% in net headcount by the end of 2024, compared to the previous year. This optimism is largely rooted in India’s rich tech talent pool and cutting-edge technological capabilities, continuing to attract global businesses to establish and expand their GCC footprints in the country.
Key to this growth are the efforts of states like Karnataka, Andhra Pradesh, Tamil Nadu, and Telangana, which are aggressively promoting themselves as prime destinations for GCC investment. For instance, Karnataka aims to host over 15% of Forbes 2000 enterprises by 2030 through its ambitious GCC policy. Companies like Amgen, Adidas, Comcast, UPS, HCA Healthcare, and Bridgewest are echoing this sentiment, either by setting up new GCCs or by broadening their existing operations in India, underscoring the nation’s escalating role as a global tech and innovation hub.
The transition of GCCs from mere back-office functions to pivotal tech hubs is notable. Siemens Healthineers’ plan to hire 700-900 new roles in its Development Centre in India for the upcoming fiscal year epitomizes this shift. From Texas Instruments establishing R&D operations in Bengaluru nearly 40 years ago to today’s GCCs serving as strategic partners to their headquarters, the journey has been transformative.
Today, India hosts around 1,600 GCCs, a number predicted to rise to 1,900 by next year. A Nasscom-KPMG report highlights the leap in market size for GCCs from $19.6 billion in 2014-15 to a staggering $60 billion. The future seems even brighter with a forecasted $121 billion revenue by 2030, marking a substantial contribution to India’s GDP.
Companies like JPMorgan Chase and Goldman Sachs have significantly ramped up their employee count in India, showcasing the GCCs’ transition into multi-functional, innovation-driven hubs. Texas Instruments and GE Aerospace are among those leading the charge in cutting-edge technology development and manufacturing within the country, further solidifying India’s position on the global map of technological excellence and innovation.
Yet, as GCCs in India forge ahead, the concept of the “dream job” seems to be evolving, particularly among Gen Z. The allure of working with global tech giants is fading, as job market realities set in. The massive layoffs in the tech industry and a more pragmatic approach towards career choices mark a significant shift in job seekers’ aspirations.
Gen Z is increasingly valuing adaptability, security, and personal fulfillment over the prestige of working with big tech firms. This generation is more willing to explore a variety of career paths, including startups, smaller tech firms, or even ventures into new-age fields like content creation and artificial intelligence. The change is also reflected in their job selection criteria, with a focus on roles offering rapid career growth, work-life balance, and opportunities for strategic leadership and meaningful impact.
Industry leaders and companies are adapting to this change by integrating social impact, diversity, and flexibility into their work cultures to attract and retain this new generation of talent. Meanwhile, top firms still remain competitive by redefining what an ideal job looks like to match the evolving expectations of young professionals.
As the landscape of career aspirations shifts, so does the nature of work itself. With Gen Z entering the workforce, their distinct priorities and values are reshaping the traditional notion of a “dream job,” signifying a new era of employment goals and workplace dynamics in India and beyond.
