TeamLease Digital’s CEO Neeti Sharma has revealed that Global Capability Centres (GCCs) are now accounting for more than 60% of the company’s net revenue. In an exclusive interview, Sharma discussed how the evolution of GCCs is reshaping hiring trends in India and fueling significant revenue growth for staffing firms.
GCCs: A Key Revenue Driver
According to Sharma, GCCs have emerged as a major force in the digital staffing landscape, contributing over 60% to TeamLease Digital’s net revenue. This impressive performance is attributed to the higher revenue per associate generated by GCCs compared to traditional IT hiring. With over 2.1 million professionals employed in GCCs across India, the shift towards these centres represents a strategic opportunity for firms looking to enhance profitability and capture a larger share of the staffing market.
Shifting Hiring Trends and Higher Salaries
Sharma explained that the hiring trend in India has shifted significantly from conventional IT services to GCCs. “GCCs are hiring software professionals at much higher salaries,” she noted. This change is not only driving improved margins but also prompting staffing companies to rethink their talent acquisition strategies. The demand for specialized skills—particularly in domains like data science, product management, and engineering—is on the rise. Staffing firms like TeamLease Digital are capitalizing on this trend by offering integrated workforce solutions that extend beyond mere recruitment.
Expansion into Tier II Cities
The company also highlighted the growing importance of Tier II cities in the GCC ecosystem. Cities such as Ahmedabad, Indore, Mysuru, and Coimbatore are increasingly becoming pivotal hubs for GCC expansion. These cities offer significant cost advantages, access to an emerging talent pool, and improved infrastructure, making them attractive for companies looking to set up new operations. Although Tier III cities have not yet seen the same level of activity, the current focus on Tier II locations is expected to drive further long-term growth in the sector.
Overcoming Talent and Infrastructure Challenges
While the prospects are promising, Sharma acknowledged that there are challenges ahead. One of the key issues faced by staffing companies is the scarcity of candidates with a robust combination of domain and technical skills. “We have a robust pipeline of candidates with either domain or tech skills, but many lack the depth of expertise required,” Sharma stated. Additionally, as GCCs extend their reach into smaller cities, infrastructural challenges such as connectivity and access to international travel can pose operational difficulties.
The Future of GCC Staffing
Looking ahead, Sharma envisions a dynamic evolution of the GCC staffing landscape in India. Over the next 5 to 10 years, she expects a continued rise in the number of GCCs, accompanied by a shift towards advanced digital roles, research, and engineering positions. The trend toward hiring in Tier II cities is likely to intensify, with staffing companies playing an increasingly crucial role in helping companies build their organisational structures and maintain compliance with India’s labour policies.
Sharma also emphasized the importance of integrated workforce solutions in moving up the value chain. By leveraging bot engagements and innovative HR tech solutions, TeamLease Digital aims to further improve margins and offer enhanced value to GCC clients.
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