India’s Global Capability Centers (GCCs) are expected to see a hiring increase of 20-25 per cent in the next six months, with sectors like Banking, Financial Services, and Insurance (BFSI), manufacturing, and healthcare leading the charge, predict hiring experts.
According to executives from talent firms, this robust recruitment drive is fueled by heightened demand for skilled talent and supportive government initiatives. However, challenges such as high inflation, geopolitical tensions, and changing consumer spending patterns could impact hiring strategies, they said.
Experts opine that companies must adapt by focusing on innovation and talent development to successfully navigate this evolving landscape.
Growth in GCCs: A Catalyst for Employment
Nagesh Bailur, Chief Financial Officer at Randstad India, projects a hiring increase of approximately 20-25 per cent in GCCs over the next six months. This surge is fueled by companies seeking scalable workforce solutions that are both cost-effective and adaptable to changing market conditions.
The demand for skilled talent in sectors like IT, engineering, and manufacturing is rising as companies expand their operations to tap into global marketsNagesh Bailur, CFO, Randstad India
Lohit Bhatia, President of Workforce Management at Quess Corp, concurs, noting the substantial growth of GCCs in India, expected to rise from 1,800 to 2,500 centers in the coming years.
GCCs are not just growing in numbers; they are expanding in their capabilities, adapting to diverse global client needs and creating substantial employment opportunitiesLohit Bhatia, President of Workforce Management, Quess Corp,
Key Sectors Driving Recruitment
Several sectors in India are poised for robust hiring activity in the coming months, each driven by distinct market dynamics and evolving consumer demands.
The BFSI sector is experiencing a notable surge in demand for experienced middle-level managers. As financial institutions expand their operations, there is a strong emphasis on diversity hiring. Sanjeev Jha, CFO of PERSOLKELLY India, highlights this trend, stating, “The demand for skilled professionals in the BFSI sector reflects the critical value employers place on talent amidst a competitive landscape.” This focus not only addresses operational needs but also fosters an inclusive workplace culture.
In the Manufacturing and Automotive sector, particularly within electronics, unprecedented growth is underway. Companies are hiring thousands to meet the demands of new plants, with electric vehicles (EVs) and renewable energy leading the charge. Kartik Narayan, CEO of Staffing at TeamLease Services, points out that “sectors like EVs and renewable energy are witnessing robust demand, driven by government initiatives like the PLI scheme, which is crucial for incremental job creation.” This growth underscores the importance of manufacturing in India’s economic landscape.
The Healthcare and Pharmaceuticals sector continues to thrive, driven by ongoing innovations and a sustained demand for healthcare services. Increased investments and government support are further bolstering recruitment efforts in this field. Jha emphasizes, “Healthcare continues to thrive, driven by ongoing demand for services and pharmaceutical innovations.” This sector’s resilience illustrates its critical role in addressing public health needs.
The E-commerce and Retail sector, especially quick commerce, is generating significant job opportunities in logistics and customer service. As consumer demand for fast delivery services escalates, the industry is rapidly expanding. Nagesh Bailur from Randstad India notes, “The rapid growth in e-commerce is creating numerous opportunities, particularly in logistics and digital marketing roles.” This trend reflects the shifting preferences of consumers and the need for businesses to adapt accordingly.
Finally, the emphasis on Artificial Intelligence and Digital Transformation is reshaping the workforce landscape. As companies prioritize digital initiatives, the demand for talent in AI and related technologies is skyrocketing.
The surge in AI talent is particularly evident in digital transformation roles, which are critical for business growth.” This focus on technology underscores the importance of innovation in driving recruitment strategies across industriesSanjeev Jha, CFO, PERSOLKELLY India
Caution Amid Global Economic Challenges
Despite the optimistic hiring forecasts, several economic challenges could impact recruitment strategies. High inflation, particularly in essential sectors like food and fuel, is reducing consumers’ purchasing power, which may lead to slower growth in discretionary spending. This has implications for hiring in sectors heavily reliant on consumer demand.
Nagesh Bailur notes that the global macroeconomic situation may lead to cautious spending by businesses, affecting their willingness to hire new employees. He emphasizes the need for companies to remain agile and adapt their recruitment strategies based on market conditions.
Lohit Bhatia also highlights the impact of geopolitical tensions on global markets, stating, “Ongoing conflicts and supply chain disruptions are significant hurdles. Companies must navigate these uncertainties while striving to meet their hiring goals.” He adds that traditional industries that have not fully embraced digital transformation may struggle compared to tech-driven sectors.
Sanjeev Jha identifies inflation as a key concern, explaining that while it poses challenges, companies are innovating to manage costs effectively. “Despite these hurdles, businesses remain cautiously optimistic, focusing on roles that enhance productivity and efficiency,” he asserts. He also mentions that global trends, including changes in interest rates, could recalibrate hiring priorities across sectors.
Kartik Narayan underscores the importance of government policies in shaping the hiring landscape, noting that elevated interest rates and inflation could significantly impact disposable income among lower-income households.
The K-shaped recovery trend shows that while high-income segments are recovering well, mass-market segments are lagging behind, which will influence workforce expansion, particularly in consumer-facing sectorsKartik Narayan, CEO of Staffing at TeamLease Services
Innovative Recruitment Strategies
In light of these challenges, companies are refining their recruitment strategies. Bailur emphasizes the importance of targeted skill development programs and partnerships with educational institutions to bridge the skills gap. “We need to focus on training and upskilling to ensure a workforce that meets the evolving demands of the market,” he stresses.
Bhatia highlights the introduction of “job spots” that facilitate easier access for candidates to explore job opportunities and connect with recruiters directly, enhancing the recruitment process.
