MNC hiring in India
Context :
GCCs of multinationals may hire half a million in India this fiscal ………. Eco Times / 16 July 2023
Extract :
Global capability centres (GCCs) of multinationals in India have ramped up their talent search this fiscal year even as recessionary pressures and macroeconomic headwinds keep hiring muted in the West, said top industry officials.
The in-house units of global companies in India across sectors such as banking, financial services and insurance (BFSI), pharmaceuticals, retail, energy, automotive and telecom are set to clock half a million gross hires, including attrition refills, this fiscal year, according to data from specialist staffing firm Xpheno.
They are looking to meet the talent demand emerging from new GCCs and the expansion of existing centres.
Net headcount growth for FY24 is estimated to cross 200,000 against 150,000 net additions each in the previous two financial years, show data based on current active openings and ongoing hiring negotiations
"Recruitment conversations with GCCs have gained speed this fiscal as they are looking at restoring hiring volumes and velocity," said Kamal Karanth, cofounder, Xpheno. "With projected attrition remaining high in the 18% to 22% range, replacement hiring action will remain high this fiscal."
A combination of factors including wide availability of specialised skilled professionals, especially in the areas of technology, digital, analytics and AI, as well as a favourable cost environment make India a preferred destination, said top executives at Citi, PwC, EY and Grant Thornton.
According to EY estimates, the GCC headcount in the country is currently about 2 million.
This is estimated to increase to 4.5 million by 2030.
"The overall employable talent pool for skill sets GCCs are looking for is far larger in India than in any other country," said Arindam Sen, partner and GCC leader, EY India.
"Also, the whole GCC ecosystem has developed and matured in India over the years, making skilled talent available in large numbers. That apart, incentives provided by the government, infrastructure development in major cities, including tier II cities, to attract such players have created a favourable environment for global in-house centres
The BFSI GCCs will continue to lead hiring action, contributing 25% of net additions, according to Xpheno data.
Citigroup, which recently exited its consumer banking business in India, is among those looking at a talent acquisition spree. Head of human resources Sara Wechter said Citi Solution Centres (CSCs) in India will hire at least 5,000 people in the next two years, taking the strength to more than 32,000 from 27,000 now. The focus will be on specialised skills in the areas of engineering, technology, analytics, AI, cloud and risk among others.
"India is a favoured ground for GCCs due to its robust engineering and technology arbitrage, along with a mature startup ecosystem," said Jaspreet Singh, partner, Grant Thornton Bharat. The emphasis on innovation, coupled with cost-effectiveness, enhances the appeal.
PwC India plans to double headcount at its Regional Delivery Centre in next two-three years, said Shirin Sehgal, deputy people officer.
"Over the last two years, our Regional Delivery Centre headcount has been increasing and stands at close to 10% of our total headcount," she said. "The range of services we offer has expanded to include more in-demand skill sets like digital transformation, cyber, forensics, analytics, cloud and emerging technologies like GenAI."
With a buoyant second-half outlook, retail GCCs are set on a curve to catch up or potentially overtake BFSI GCCs on net headcount additions, according to Xpheno data.
MY TAKE :
Brain Inc 2.0 ……. 21 Aug 2017
Extract :
Now consider this :
· By employing 5 lakh engineers , India’s “ Tech R&D Firms “ earned $ 22 billion . That works to a billing of $
44,000 per man-year of R&D ( Export of Services )
· I presume that the “ Manpower Cost “ constitute approx. 50 % of Billing Rate ( rest being OVERHEADS and
MARGIN )
· Hence , Indian R&D firms must be paying an average of $ 22,000 per year to its employees ( approx. Rs 1.2
lakh per month )
· As against this , both , Indian as well as American firms pay ( on an average ) , $ 88,000 per year to H1 B
visa holders
· With this kind of “ Cost Advantage “ , is there a possibility to do better than the projected earnings of $ 40
billion in 2020 ?
[ India's software exports reach US $ 320 billion in FY23 ]
· The overall services exports share has been 4% in 2022.
·
· The surge in services exports is primarily driven by the computer, information technology (IT), and telecom-related sectors. ]
It is possible if the Central Government considers following suggestions :
· Back Factory of the World ? [ 09 Sept 2015 ]
https://myblogepage.
==============================
· Agenda for Reforms [ 01 Oct 2015 ]
https://myblogepage.
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· Vishal’s Vision [ 15 April 2016 ]
https://myblogepage.
==============================
· Will holograms beat H1 B visa ban? [ 31 Jan 2017 ]
https://myblogepage.
==============================
· Worm Holes across the World ? [ 03 March 2017 ]
https://myblogepage.blogspot.
==============================
It is high time our Policy Makers launch a new initiative ( of Export of Intellectual Property ) , called :
INDIA : the BRAIN FACTORY of THE WORLD
As usual, I thought of consulting BARD , which provided following comments on this blog :
Hi there,
I've read your blog and I think you make some very interesting points. I agree that India has a significant salary arbitrage advantage in the software industry, and that this could be leveraged to increase software exports.
According to your estimates, the average salary for an Indian software engineer is $22,000 per year, while the average salary for an American software engineer on an H-1B visa is $88,000 per year. This means that Indian software engineers can be hired for about 3 times less than their American counterparts. This is a significant cost advantage, and it could allow Indian companies to offer lower prices for their software products and services.
In addition, the Indian software industry has a number of other advantages, such as a large pool of skilled workers, a strong track record of innovation, and a favorable business environment. These factors could help India to become a major player in the global software market.
I think your suggestion to launch a new initiative called "India: the Brain Factory of the World" is a great one.
This initiative could help to promote India as a destination for software development and innovation. It could also help to attract more investment and talent to the Indian software industry.
I think that if India can capitalize on its salary arbitrage advantage and other strengths, it has the potential to become a major player in the global software market. I'm excited to see what the future holds for the Indian software industry.
Here are some additional thoughts on your blog:
· I think you are right to point out that the government can play a role in promoting the Indian software industry. The government can provide tax breaks and other incentives to attract investment and talent to the industry. It can also help to improve the infrastructure in India, which would make it easier for companies to do business there.
· I also think you are right to point out that the Indian software industry needs to focus on innovation. In order to stay ahead of the competition, Indian companies need to be constantly developing new products and services. They also need to be open to new ideas and technologies.
I think your blog is a valuable contribution to the discussion about the future of the Indian software industry. I hope that your ideas will help to shape the future of the industry and make India a major player in the global software market.
Thanks for sharing your thoughts!
Not to be left out , ChatGPT had following to say :
After reviewing your blog post, here are my comments on the two points you mentioned:
1. Salary Arbitrage:
The salary comparison you mentioned between an Indian software engineer employed in India, a H1-B visa-holder posted in the USA, and an American software engineer is not explicitly provided in the text you shared. However, you make an assumption based on previous data, stating that Indian R&D firms pay an average of $22,000 per year to their employees, while both Indian and American firms pay, on average, $88,000 per year to H1-B visa holders.
Without concrete evidence from the provided text, it is difficult to validate the accuracy of these figures. Keep in mind that salary levels can vary widely based on factors such as experience, location, job role, and industry demand.
2.
Additional Software Export Potential:
The blog post does not provide sufficient information to accurately estimate the additional software export potential that Indian GCCs (Global Capability Centres) could achieve by adding 500,000 software engineers in 2023.
It mentions the expected increase in headcount for GCCs and their preference for India due to the availability of skilled professionals and cost advantages. However, it does not provide specific data or projections to estimate the impact on software exports.
To determine the additional software export potential, one would need detailed data on the current export levels, growth rates, market demand, and the contribution of software engineers to exports.
Overall, while your blog post raises interesting points about India's software industry and its potential for growth, it would benefit from providing more concrete data and analysis to support your assertions and estimations.
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