Hyderabad (Telangana): Global Capability Center is a hot topic in the Indian IT sector. Telangana, Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra, Gujarat, and Delhi are offering exciting concessions to attract them, popularly known as GCCs. Hyderabad has been aggressively attracting investments for GCCs for four years, surpassing Bengaluru. More than 20 per cent of the GCCs across the country are set up in Hyderabad due to its world-class infrastructure, availability of skilled human resources, low cost of living, and favourable government policies.
Why So Much Competition?
There were 700 GCCs in India in 2010 with a capacity of 4 lakh software engineers. By 2023, 1,600 GCCs were established and the number of employees reached 16.59 lakh.
By 2028, this number will increase to 2,100 and it is predicted that they will provide jobs to nearly 34 lakh people. Industry sources say GCCs will lease 60 million square feet (sqft) of office space in six IT cities in the next two years.
What Are The Salaries?
The average annual salary for an entry-level software engineer in a traditional IT products and services firm is Rs.5.7 lakhs per annum. Those with three-year experience earn Rs. 11.7 lakhs. Artificial Intelligence (AI), and Machine Learning (ML) engineers with three-year experience are drawing up to Rs. 8.2 lakh. 21.8 lakhs respectively.
GCCs are international corporate organizations from countries like America, Britain, France, and Germany, set up in other countries where cheap human resources are available, along with expertise in providing process services to their headquarters. These organizations are transforming into Centers of Excellence providing multiple services like IT, R&D, finance, telecom, banking, and customer support.
In addition to new technology development, new products are being developed in partnership with local startups and IT companies. For this, the use of AI, ML, Generative AI, Blockchain, IoT, Cloud, Augmented Reality (AR), and Virtual Reality (VR) is increasing on a large scale.
Corporates are eyeing India as their preferred GCC destination due to ample availability of cheap and expert human resources, 24% of whom are in the 20-34 years age bracket and proficient in English.
About 24% of the total graduates are from Science, Technology, Engineering, Mathematics (STEM)backgrounds, 57% belong to banks and financial institutions, 29% are from technology, media, and telecom sectors.
Between October 2023 and January 2024, 14 new GCCs were set up in India and among those Evernorth, Lloyd’s Banking Group, and Warner Brothers came to Telangana.
Read More
- Tech Sector Salary To Rise By Max 15% In 2024; GCC Pays Premium, To Grow Further: Report
- Long Exposure To Smartphones, Laptops Cause Irreversible Eye Disorder In Children, Shows Study
