GCCs Struggle with Talent Retention as Workforce Demands Evolve
Wooing Talent: GCCs offer 12% to 20% higher salaries compared to traditional IT-services employers.
6 JUNE 2025 / 2 min read
Global capability centres (GCCs) are grappling with a significant talent retention challenge, as employee expectations and hiring trends undergo a seismic shift, a recent study by CIEL HR reveals. About 52% of the GCC workforce is actively considering new job opportunities, driven by a desire for career progression, flexibility, inclusivity, and purpose. This trend is forcing GCCs to rethink their strategies for attracting and retaining top talent in a highly competitive market.
The study highlights that 51% of GCCs in India cite talent retention as their top challenge, amid rising attrition and job-switching intent. Despite the challenges, GCCs are offering significantly higher compensation, ranging from 12% to 20% above traditional IT services, to attract and retain top professionals in high-demand domains such as AI, machine learning, and cloud computing. The talent war is particularly intense among tech-forward enterprises, where deep digital expertise is non-negotiable.
According to the study, 55% of product development professionals and 45% of IT employees are currently exploring new job opportunities, while 28% of executives across IT, financial services, and manufacturing havealready changed jobs in the past year. This trend underscores the need for GCCs to adopt a more nuanced approach to talent management, one that goes beyond mere compensation and benefits.
Aditya Narayan Mishra, Managing Director & CEO of CIEL HR, notes that India's pivotal role in global innovation and high-value delivery is underscored by the presence of over 1,700 GCCs in the country. However, he emphasises the need for a decisive shift from transactional approaches to holistic employee engagement.
"To stay ahead, GCCs must invest deeply in career development, strengthen employer branding, and build workplace cultures that foster trust, growth, and belonging," Mishra said. "Talent is the cornerstone of GCC success, and the future will favour organisations that invest not just in technology, but in their people."
The study's findings suggest that GCCs must prioritise employee engagement and development to retain top talent. This includes providing opportunities for career growth, fostering a culture of inclusivity and purpose, and offering flexible work arrangements. By adopting a more holistic approach to talent management, GCCs can reduce turnover rates and improve employee satisfaction, ultimately driving business success in a rapidly evolving market.
