Are GCCs facing a talent crisis with rising attrition? New report reveals interesting data

The report notes that with a rising demand for niche skills like AI, Machine Learning, and Cloud Computing necessitating specialised talent, organisations are facing intense competition to attract and retain top professionals

Banking and financial services companies in the US are the major client of Indian IT firms | Reuters (Photo used for representation only) Indian IT firms | Reuters

Are Global Capability Centres (GCCs) in India—that play a key role in supporting global digital transformation and innovation—facing a talent crisis with increasing attrition? 

This is leading to a need for higher retention policies by GCCs and is becoming a major challenge for scores of GCCs operating in India. 

A recent study by CIEL HR, an end-to-end HR solutions provider, titled 'CIEL Works: GCC - Talent Trends and Insights', reveals that 51 per cent of GCCs in India cite talent retention as their top challenge, amid a sharp rise in attrition, job-switching intent, and employee disengagement. 

Analysing 76,000 executive profiles, the findings also highlight that 52 per cent of the GCC workforce are actively considering new job opportunities, signalling a seismic shift in employee expectations.

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The report notes that with the demand for niche skills like AI, Machine Learning, and Cloud Computing creating a surge in the need for specialised talent, organisations are facing intense competition to attract and retain top professionals, making it increasingly difficult for GCCs to hold on to their best talent. 

The talent war is especially fierce among tech-forward enterprises, where deep digital expertise is non-negotiable, and professionals with such skills often have multiple opportunities, leading to high mobility and mounting retention challenges.

The study further reveals that 55 per cent of product development professionals and 45 per cent of IT professionals are currently exploring new job opportunities, while 28 per cent of executives across IT, financial services, and manufacturing have already changed jobs in the past year. 

The churn is most acute among younger professionals.

Early-career professionals (0–5 years) have shown the highest mobility at 47.6 per cent, driven by the pursuit of diverse experiences and rapid growth, followed by mid-level professionals (6–15 years) exhibiting a 42.9 per cent turnover—motivated by aspirations for leadership and greater responsibility—while senior executives (16+ years) demonstrate the lowest mobility at 9.4 per cent, valuing stability and long-term impact.

India hosts over 1,700 GCCs (nearly 50 per cent of all GCCs worldwide), highlighting the country’s pivotal role in global innovation and high-value delivery. 

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Over time, GCCs have transformed from cost-efficiency centres into strategic engines for their respective parent entities, and at the same time drive economic growth and job creation. 

However, rising attrition and talent mobility demand a decisive shift from transactional approaches to holistic employee engagement. 

“Today’s workforce seeks more than pay: they want career progression, flexibility, inclusivity, and purpose. To stay ahead, GCCs must invest deeply in career development, strengthen employer branding, and build workplace cultures that foster trust, growth, and belonging,” remarks Aditya Narayan Mishra, Managing Director and CEO of CIEL HR. 

As per the CIEL HR report, there is a shift towards experienced hires, and the talent mix within GCCs is evolving. 

Entry-level roles have declined from 32 to 22 per cent, while mid-senior roles have surged to 77 per cent (a 14-point increase). This shift points to an increased demand for professionals with "ready-now" capabilities to lead digital innovation in AI, ML, and cloud technologies. 

The report also observes that GCCs are offering significantly higher compensation, ranging from 12-20 per cent above traditional IT services, especially in high-demand domains such as generative AI, data analytics, cybersecurity, and cloud computing. This reflects the premium placed on digital expertise and the sector’s race to attract top talent.

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With nearly 90 per cent of the GCC workforce comprising Millennials and Gen Z, organisations are pivoting to total rewards strategies that emphasise flexibility, rapid career progression, and continuous learning over traditional perks. The report further points out that while women account for 30 per cent of entry-level roles, their representation drops to just 9 per cent at senior executive levels (15+ years experience).

Interestingly, the companies undertaken for the study belong to Software and Internet, Engineering, Automotive, Data and AI categories, all of which have set up GCCs in the last 3 years.

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