Navigating India’s GCC boom: Insights from Randstad India’s CFO Nagesh Bailur on company’s expansion strategy

Below are the edited excerpts:

Q. One of the key areas where Randstad seems to have focused its attention is the burgeoning Global Capability Centres (GCCs) in India. With numerous GCCs being established across the country, how does Randstad plan to leverage this growth to expand its market presence in India?

Nagesh: Absolutely, GCCs are a huge story for India, especially in the southern regions and Mumbai. Currently, we have over 1,600 GCCs in the country employing around 1.5 to 1.6 million people. This sector has seen exponential growth in the last decade, nearly doubling its size. Our estimate is that we’re adding about 500,000 employees annually, and in the next few years, this number will likely grow to 2.2 million.

From our perspective in the staffing industry, GCCs primarily hire people on permanent contracts, which aligns with 70-80% of our business. However, non-IT sectors are also adopting flexible staffing models, which play into Randstad’s strengths. Our global footprint also gives us an edge, as many of our group companies already have relationships with the parent companies of these GCCs, opening doors for us to further build and strengthen those connections.

Q. Flexi staffing is quite a unique model. In the context of IT and GCCs, where do you see this being most effective?

Nagesh: In IT and GCCs, flexi staffing is often project-dependent. While the “feet on the street” model—popular in sectors like FMCG and banking —still exists, in the IT sector, companies prefer having a flexible workforce to adapt to specific project demands. This flexibility is particularly crucial as companies balance the costs associated with contract staffing. We are seeing more non-IT companies open to flexi staffing as well, particularly for seasonal or short-term projects.

Randstad itself has its own GCCs in Hyderabad, Chennai, and Bangalore, which deliver global services to our group companies, especially in Europe and the US. Our digital vertical plays a significant role in supporting both local and global clients through these centers.

Q. With automation accelerating across industries, how are GCCs adapting, especially in roles related to transaction processing?

Nagesh: Automation and AI are rapidly changing the landscape, creating a significant skills mismatch. While some traditional roles in GCCs may become redundant due to automation, this shift also presents new opportunities for more complex roles requiring advanced technical skills. The key challenge is reskilling the workforce to bridge this gap. Randstad has a dedicated Skilling Academy, and we collaborate with clients to reskill talent, ensuring they are ready to transition into roles that demand these newer technologies.

Q. The pandemic has transformed working models, with hybrid and remote work becoming more common. How are companies balancing this shift with the need for office-based productivity?

Nagesh: Hybrid work is here to stay. Most companies have realized it’s a win-win situation for both talent and employers. While sectors like manufacturing need employees on-site, industries like IT and services are moving towards two to three days in the office each week. At Randstad, we follow a similar approach, with employees coming in at least two days a week to foster collaboration and maintain engagement.

The pandemic has given companies a greater appreciation for flexibility, and this is particularly true for women who often prefer remote working options. Talent now seeks more than just financial incentives—they want a company culture that values their contributions and offers them a sense of belonging.

Q. In terms of staffing, what are the trends you see in the workforce, and what skills are companies prioritizing today?

Nagesh: Across industries, there’s a strong emphasis on technical skills over experience or qualifications. Companies are increasingly focused on talent’s ability to handle the technical demands of a role, rather than how many years they’ve been in the workforce. Diversity and inclusion are also becoming top priorities, with companies actively seeking advice on how to create more inclusive work environments.

We are also seeing a shift towards mental health and wellness being more openly discussed, as talent looks for companies that prioritise a healthy work culture. The recruitment cycle itself is evolving, with AI playing a significant role in scanning resumes and engaging with talent.

Q. The Indian government has introduced various initiatives to address the country’s skill development challenges. In your view, are these initiatives making a significant impact?

Nagesh: The skills mismatch in India is a real issue, with many graduates not being industry-ready. The government’s recent push for internships in top companies is a welcome move, but we still need to see how companies will absorb these interns after their placements. The private sector also plays a role here, with many companies setting up their own training academies. However, the challenge is volume—the number of graduates far exceeds the positions available, and this gap needs to be addressed.

Q. We’re seeing a shift in employee expectations, especially with younger generations prioritising experiences over material ownership. How can companies attract and retain this talent?

Nagesh: For Gen Z, flexibility and culture are often more important than compensation. This generation values instant gratification and isn’t willing to wait for years to achieve their goals. At Randstad, we focus on offering a flexible work environment and creating a culture where talent feels valued and engaged. The days of working at one company for decades are behind us—today’s workforce seeks meaningful experiences and opportunities for growth.

Technology, particularly AI, will continue to transform the staffing industry. It’s not just about finding the right talent anymore; it’s about using advanced tools to engage and onboard talent efficiently. Companies that adapt to these changes and offer a culture of flexibility and inclusivity will be the ones to succeed in the future.