Staff costs hurt India's global capability centres as maturity curve lags

Experts warn current trajectory could make several centres unsustainable

Inflated payrolls and top-heavy teams are putting pressure on India’s global capability centres (GCCs), even as many struggle to deliver strategic value or scale innovation. 

Experts warn that the current trajectory could make several centres unsustainable. The trend is visible not only in small and new GCCs, centres that have been set up in the last seven-eight years, but even in big and old ones, which have been operating for more than a decade. 

Sector experts warn that if employee costs continue to soar without adequate and productive returns, such centres may become unsustainable in the long run. 

Average employee