GCCs offering up to 20% higher salaries than IT services: TeamLease

Global Capability Centres of foreign companies in India pay up to 20% higher salaries compared to IT services, according to a report by TeamLease Digital.

In GCCs, an artificial intelligence/machine learning engineer job functions have a starting salary of ₹8.2 lakh per annum that can go up to ₹43 lakh at senior levels with over 8 years of experience, the report says.

India’s technology industry is projected to reach $350 billion by 2025 from $254 billion currently, with significant investments in AI, ML, and blockchain. India currently has over 1,600 GCCs employing over 1.66 million professionals.

India is poised to welcome 800 new GCCs in the next 5-6 years, highlighting the country’s growing prominence as a global tech hub, the report says.

There is a growing trend of establishing GCCs in tier-II cities like Ahmedabad and Vadodara, indicating a geographical diversification of tech opportunities across the country, the report adds.

“The Indian tech industry is on track to reach $350 billion in revenue by 2025, with significant investments in AI, machine learning, and blockchain totaling over $9 billion in 2023 alone. This surge is fueled by the rise of remote work and digital-first strategies, which have accelerated cloud computing adoption and are expected to propel the cloud market to grow at a CAGR of 22% over the next five years,” says Neeti Sharma, CEO, TeamLease Digital.

“As the adoption of GenAI expands, we also expect a significant shift towards cybersecurity, with a focus on privacy and data protection. By H1 CY25, approximately 85% of high-tech companies and over 70% of firms in telecom, media, entertainment, BFSI, and energy sectors will dedicate substantial portions of their technology budgets to digital advancements,” says Sharma.

Product management and data science function tend to be the highest paying across most cities, with salary ranges typically spanning from ₹12.8 lakh per annum to ₹22.1 lakh per annum for product management and from ₹12.1 LPA to ₹16.9 LPA for data science, depending on the city and its tech industry presence, the report says.

Metro cities Bengaluru, Gurgaon, Hyderabad, Delhi, Mumbai, and Chennai offer the highest salaries for tech job roles, while Jaipur, Indore and Coimbatore are the upcoming hubs currently in an evolution phase, given these are projected to be GCC and Data Center hubs, the functions of Data Science, Product Management, and Data Engineering are seeing a demand growth, while Cybersecurity and Cloud Computing are still in nascent stages, it says.

The report also reveals significant salary growth across key tech functions, underscoring the increasing demand for specialised skills in the industry. Entry-level data engineering roles are experiencing a robust 12.07% year-on-year salary increase from FY24 to FY25. Product management professionals at the mid-level are looking at a substantial 10.2% rise in compensation, while senior roles in data science are witnessing nearly 11% growth in salaries over the same period.

The report also talks about 20.5 lakh women tech professionals in India. In GCCs, the percentage of women tech professionals is expected to increase from 25% to 35% by 2027. However, the report also reveals a persistent gender pay gap in the tech industry, ranging from 10-17% on average and sometimes reaching 22-30% for roles like data analysis.