Multinational companies operating captive centers –also known as Global Capability Centers (GCCs)– in India are engaging in a fierce talent war, offering skyrocketing wages to secure the best minds.
Some tech executives in these captives are earning up to 14% more than their counterparts in established IT services firms like TCS and Infosys, according to The Economic Times, citing data from staffing firm Xpheno.
This talent war is fueled by the rapid expansion of GCCs in India. Despite the rising wages, multinationals like SAP and JP Morgan are doubling down on their Indian operations.
Over 22% of Fortune 500 companies have established captives in India, drawn by the country’s strong pool of skilled and cost-competitive tech talent. ANSR, which helps multinationals set up GCCs, cites this as a key reason for the trend.
These centers are not just back-office operations; many serve as R&D hubs, driving innovation and generating substantial revenue for multinationals and the Indian economy through wages and taxes.
For example, JP Morgan’s Indian captive employs over 50,000 people, surpassing the headcount of mid-sized IT firms like Persistent Systems (23,000).
India’s GCC market is projected to surge over 140% within the next six years, reaching a staggering US$110 billion, according to EY.