GCCs in India likely to give 10% salary increase this year: Report

The global capability centres (GCC) in India are projected to give a 9.9% increase in salary in 2025 as they continue to finetune strategies that aim to attract and retain high caliber talent, according to a report.

Talent500, part of ANSR in a report “Increment & Compensation Trends in GCCs,” noted that the high demand for skilled professionals within GCCs continues to drive salary increases. Organisations need to develop robust talent acquisition and retention strategies, including competitive compensation packages and opportunities for upskilling in areas like Gen AI, cybersecurity, and cloud engineering, the report said.

According to Talent500, the key trends observed in 2024 are expected to persist, with India’s GDP demonstrating relative stability and consistency. GCCs continue to provide higher hikes, reinforcing that investment in talent development and retention is a strategic priority.

ANSR Co-founder and 1Wrk CEO Vikram Ahuja said, “In a world shaped by AI, shifting expectations, and rapid change, the GCCs that succeed will be the ones that treat talent as a true strategic advantage — combining agility, purpose, and a focus on future-ready leadership.”

India today has the presence of more than 1800 GCCs which are employing around 2.1 million people.

In today’s competitive talent landscape, where retaining skilled professionals is critical, organizations are recognizing that a paycheck alone is no longer enough to attract and retain top talent. To stay ahead, many are turning to Long-Term Incentive (LTI) plans as a strategic tool that helps strike a balance between talent retention, performance alignment, and wealth creation.

As GCCs prepare for 2025, they must adapt to changing talent expectations, business priorities, and market dynamics. Key strategies include Holistic Total Rewards: Moving beyond conventional pay structures to embrace comprehensive, forward-thinking total rewards strategies with benefits as a key differentiator.

​To attract suitable talent, rewards and benefits now emphasize emotional quotient and match global standards. GCCs are crafting competitive and appealing rewards structures, prioritizing modern benefits like ESOPs, staggered bonuses, and flexible options to align with employees’ diverse needs.

At the same time, the overall attrition has declined to 16.9%, with voluntary attrition at a record low of 12.6% in 2024, reflecting greater investment in career growth, culture, and employee experience.