GCCs pick up slack as IT slows hiring

Increased hiring, higher pay to offset some of the gloom from IT cutbacks

- Devina Sengupta, Varun Sood

Prospects for the Class of 2024 which had darkened when information technology (IT) services firms cut hiring are brightening again, as global capability centres (GCCs) step into the breach with higher salary offers.

GCCs in India, which were once captive units of foreign companies, have fanned out across technology schools ranging from the top Indian Institutes of Technology (IITs) to smaller colleges in tier-2 and 3 cities.

According to multiple placement officers and industry executives, these centres plan to hire 50-100% more freshers than last year, paying up to 30% more than homegrown IT services firms. Companies such as Tata Consultancy Services Ltd and HCL Technologies Ltd are expected to pay 3.5-4 lakh for engineering graduates with basic skill sets, while Wipro Ltd and Infosys Ltd will not be heading to campuses this year.

Higher joining pay and no delays in starting with a company after accepting an offer have encouraged more students to accept offers from GCCs, placement executives said.