 "India GCCs emerge as proof-of-concept hub for GenAI apps")
Illustration: Binay Sinha
The expansion of global capability centres (GCCs) by international corporations in India, coupled with the growing need for technology professionals, is causing a widening salary gap compared to IT services firms.
According to a recent TeamLease Digital report as mentioned by Moneycontrol, GCCs are offering salaries that are 12-20 per cent higher than those of IT services and other non-tech industries for similar tech positions.
For instance, GCCs are providing between Rs 9.7 lakh per annum and Rs 43 lakh per annum for software developers, depending on experience. In contrast, the IT products and services sector offers around Rs 5.7 lakh per annum for entry-level positions, with salaries reaching up to Rs 17.9 lakh per annum for those with over eight years of experience.
The report also notes that the 1,600 GCCs currently operating in India have employed over 1.66 million people. With an additional 800 GCCs expected to be established in the next five to six years, India’s role as a global tech hub is set to grow.
Many of these new GCCs are expected to be located in Tier-II cities such as Kolkata, Ahmedabad, and Vadodara, promoting geographical diversification and boosting local employment.
Skills experiencing increased demand include PyTorch, AWS, DevOps, NLP, Kubernetes, Hyperledger Fabric, Blockchain, Tableau, SQL, and ServiceNow.
Tech skill gap
In FY24, the size of India’s technology market reached $254 billion, reflecting a 3.8 per cent increase from last year and supported by a tech workforce of 5.6 million.
Between 2020 and 2024, India made significant advances in technologies such as artificial intelligence (AI), machine learning (ML), blockchain, IoT, robotic process automation (RPA), edge computing, and quantum computing. Key tools in these areas include Python, R, TensorFlow, and PyTorch. However, this rapid progress has led to a notable skills gap, with only 2.5 per cent of engineers in India proficient in AI and just 5.5 per cent with fundamental programming skills.
The report said, “In response to this growing tech skills gap, 86 per cent of Indian businesses are actively reskilling their IT workers.”
The IT services industry is also set for expansion in the upcoming years, with cloud investments projected to increase by 25-30 per cent over the next five years.
Gender pay
Moneycontrol cited TeamLease Digital’s report highlighting the presence of women in the tech sector, noting that there are currently 2.05 million women tech professionals in India. It predicts that by 2027, the proportion of women in tech roles within GCCs will rise from 25-35 per cent. Despite this positive trend, the industry continues to grapple with a significant gender pay gap, which averages between 10-17 per cent and can escalate to 22-30 per cent for positions such as Data Analysts.
It attributes this pay gap to structural inequalities, uneven role distribution, barriers to career progression, and gaps in negotiation. Disparities are particularly pronounced in technical and leadership roles.
To combat the gender pay gap, the report suggests implementing clear pay policies, creating mentorship opportunities, offering training on unconscious bias, and providing flexible work arrangements to enhance work-life balance.
First Published: Aug 27 2024 | 4:04 PM IST
