GCC hiring outcomes in India are increasingly divided, as industry leaders report sharp retention differences between long-term centres and short-term setups, according to staffing executives, with the trend emerging through 2024 across small engineering teams and niche technology roles.
What changed in the GCC model
Nano GCC operations in India now fall into two clear categories. Some centres launch with long-term roadmaps and defined roles. Others begin as trial-led or contract-driven teams. This structural difference is shaping retention outcomes early.
Industry experts say nano GCCs typically employ between 20 and 150 staff. Centres built for sustained delivery record 12-month retention rates between 80% and 88%. In contrast, short-term setups see faster exits and early delivery risks.
Why retention matters more for small GCCs
In small GCC teams, exits carry operational weight. Even one departure can disrupt timelines. This risk increases when teams handle core intellectual property.
Monica Pirgal, CEO of Bhartiya Converge, said attrition in nano GCCs directly affects product and business outcomes. She noted that a single senior engineer leaving a 20- to 50-person team can delay launches or stall roadmaps.
As a result, retention is no longer viewed as an HR metric alone. It now sits closer to delivery planning and product execution.
Talent supply pressures add to GCC strain
The divide has widened as demand for niche skills rises. According to Kapil Joshi, CEO of IT staffing at Quess Corp, demand for AI and platform engineering talent is growing 40–50% year on year. Yet hands-on specialists form less than 10% of India’s tech workforce.
India also faces a 20–25% shortfall in advanced AI, ML, data engineering, and ML infrastructure roles. This gap raises hiring costs. TeamLease data shows salaries for niche roles rose 18–22%.
Because of this, replacement hiring dominates. Nearly 75% of GCC hiring in the first half of 2024 involved replacements. In smaller GCCs, the figure stood near 60%.
How hiring strategies are Shifting
To respond, nano GCCs are changing sourcing methods. Mass hiring is declining. Targeted recruitment is rising.
Roop Kaistha, regional MD APAC at AMS, said firms now tap senior lateral networks, startup ecosystems, research labs, and deep-tech communities. Data-driven employer branding also plays a role.
Over time, companies committing resources to the GCC model show lower churn. Others face recurring exits and higher replacement costs.
