A recent article posted on The Economic Times talks about the GCCs a clear edge in wooing top leadership talent vis-à-vis the others in the tech cohort. At GCCs, professionals with 18-25 years of experience get Rs 1.6-2.0 crore for the CTO role, Rs 1.5-2.0 crore for the CFO and Rs 1.5-1.8 crore for the chief HR officer. Packages vary based on the pedigree of talent, size and stage of the company and the criticality of the role.
Salaries of CXOs and other senior executives at global capability centres (GCCs) in India have seen an upsurge in the past one year, as these captive offshore units grew up the value chain for multinational corporations, executive search firms and industry experts said.
The MNCs are also moving an increasing number of global and senior-level roles to the GCCs in India. This is prompting them to woo top talent by paying higher than the compensation offered by many in the technology industry including products, services and tech-enabled startups (barring a handful of large IT firms), they said.Taking a benchmark at the 75th percentile of the talent pool, technology leadership roles such as (chief technology officer) are rewarded about 14% better in GCCs on an average compared with IT services companies, according to data from specialist staffing firm Xpheno, shared exclusively with ET. Chief financial officers get around 12% higher, while for the HR head, it could be 25% higher.Based on skill and fitment level, professionals and senior executives on the 75th percentile are the ones who are in the top bracket.This is giving the GCCs a clear edge in wooing top leadership talent vis-à-vis the others in the tech cohort.At GCCs, professionals with 18-25 years of experience get Rs 16-2.0 crore for the CTO role, Rs 1.5-2.0 crore for the CFO and Rs 15-1.8 crore for the chief HR officer. Packages vary based on the pedigree of talent, size and stage of the company and the criticality of the role."Keeping the scale of IT services and the advantage of well-known large employer brands aside, it has been observed that GCCs are offering a more compelling proposition for C-suite to talent," said Siddharth Verma, business head - Xpheno Executive Search."As an observation of leadership roles, it was found that the executive compensation across the number one roles in mainstream functions is sometimes better than the rest of the technology pack of firms," he added.As the CXO packages (CTC) are at the higher end of the compensation grid, even a 10% difference provides a competitive lead for GCCs in attracting talent."The difference in compensation for senior roles arises from three key factors: the nature of work, talent availability, and the cost-of-living index," said Mohammed Faraz Khan, partner, Zinnov Management Consulting.
"GCCs play a pivotal role in core business functions (of MNCs), involving IP-protected work with significant impact and growth potential. Consequently, senior leaders at GCCs command higher compensation, which is tied to restricted stock units (RSUs), incentivising them to contribute critical value to the business actively," he added.One of the reasons for the higher compensation is the fact that GCCs look at the top talent from IT services, mature startups and IT product cohorts.
"Factors of stability, longer horizon, international access, and brand attractiveness continue to operate in favour of GCCs desirability being higher," said Verma.The shift is also happening in the overall demographics, or nature of the GCC job roles in India, with several global roles now being based in India. From primarily an operations centre, the GCCs transitioned into offshore units for analytics and reporting and then to being a market expansion centre to a business driver for the MNCs.
Experts said there is also a trend of lowering the compensation differential of senior executives at GCCs in India vis-à-vis their global counterparts.Senior specialist roles such as chief architects, vice-presidents, etc., at GAFAM (Google [Alphabet], Apple, Facebook (Meta], Amazon and Microsoft) organisations are compensated with minimal difference with even their global counterparts - at most 20% difference in India, said Khan.
"Recent years have underscored the equal productivity of GCCs compared to headquarters, particularly as they engage in higher-order work This trend positions GCCs to command premium compensation, leading to a reduction in the compensation differential," added Khan.An estimated 300,000-400,000 jobs are likely to be created in the GCC sector in the next 2-3 years, according to Deloitte's estimates. There is a 40-50% increase in the number of global and senior-level roles based out of India in the last five years, Vamsi Karavadi, director at Deloitte India, told ET.
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