GCCs Drive Higher Salaries Amid Tech Boom in India, Says Report

Global Capability Centers (GCCs) are boosting salaries by up to 20% over traditional IT services due to investments in AI, ML, and cybersecurity. The report by TeamLease Digital highlights growth in tier-II cities, the economic impact of the IT sector, and ongoing gender pay gaps despite increasing female representation.

Global Capability Centers (GCCs) are opting for up to 20% higher salaries than traditional IT services, driven by investments in Artificial Intelligence (AI), Machine Learning (ML), and cybersecurity, according to TeamLease Digital's latest report 'Digital Skills & Salary Primer for FY 2025'. India, which currently hosts over 1,600 GCCs employing 1.66 million professionals, is projected to welcome 800 new GCCs in the next 5-6 years, further solidifying the country's role as a global tech hub.

The report identifies a rising trend of GCCs emerging in tier-II cities like Kolkata, Ahmedabad, and Vadodara, signaling a spread of tech opportunities across the country. In the IT Products & Services sector, cloud investment is set to increase by 25-30% over the next five years. This sector is expected to contribute 8% to India's GDP by 2026 and create 14 million jobs, underscoring its significant economic impact.

In particular, over 70% of companies in Telecom, Media and Entertainment, BFSI, and Energy and Utilities sectors are allocating more than 20% of their technology budgets to digital advancements. As these sectors integrate technology into operations, the tech talent pool is expanding at a CAGR of 7.86%, expected to grow from 7.65 lakh in FY22 to 11.15 lakh by FY27. Salaries for roles such as AI/ML Engineers in GCCs range from Rs 8.2 LPA to Rs 43 LPA for senior positions, and for Big Data Developers in IT Products & Services from Rs 9.7 LPA to Rs 20.7 LPA. In non-tech sectors, SAP ABAP Consultant roles start at Rs 7.2 LPA, rising with experience to Rs 31 LPA.

A comparative multi-city salary analysis shows Product Management and Data Science roles consistently offering the highest salaries across cities. Salaries for Product Management roles range from Rs 12.8 LPA to Rs 22.1 LPA, and for Data Science from Rs 12.1 LPA to Rs 16.9 LPA. Metro cities including Bengaluru, Gurgaon, Hyderabad, Delhi, Mumbai, and Chennai offer the highest tech role salaries, while emerging hubs like Jaipur, Indore, and Coimbatore are evolving, especially in fields like Data Science, Product Management, and Data Engineering.

Neeti Sharma, CEO, TeamLease Digital, commented, "As we navigate the future, the Indian technology sector is poised for exponential growth, driven by relentless innovation and strategic investments in cutting-edge technologies. The Indian Tech industry is on track to reach USD 350 billion in revenue by 2025, with significant investments in AI, ML, and blockchain exceeding USD 9 billion in 2023 alone." She added, "Remote work and digital-first strategies are driving cloud computing adoption, expected to propel the cloud market to grow at a CAGR of 22% over the next five years. Emerging technologies like 5G and IoT will further redefine India's tech landscape, ensuring the nation remains at the forefront of global technological advancements."

The report highlights notable growth in salaries across key tech functions, driven by increasing demand for specialized skills. Entry-level Data Engineering roles are experiencing a robust 12.07% year-on-year salary increase from FY24 to FY25. Mid-level Product Management professionals are seeing a substantial 10.2% rise in compensation, while senior roles in Data Science and DevOps witness nearly 11% growth over the same period.

The report also addresses gender representation in the tech workforce. Currently, India has 20.5 lakh women tech professionals, with the percentage of women in GCCs expected to rise from 25% to 35% by 2027. However, a persistent gender pay gap remains in the tech industry, ranging from 10-17% on average and sometimes reaching 22-30% in roles like Data Analysis. (ANI)

(With inputs from agencies.)