Salaries in this sector have doubled in the last two years, contrary to trends of layoffs and dry promotions

Updated May 24, 2024, 07:08 CEST

The percentage of GCC countries offering niche leadership talent salaries ranging from Rs 3 to Rs 6 crore per annum has increased significantly over the last two years.

Salaries in this sector have doubled in the last two years, contrary to trends in layoffs and dry promotions (image source: Times Now Digital)

Salaries: : Sometimes, when IT and other major industries ruthlessly reduce the number of jobs in various departments. Multinational corporations are increasingly offering lucrative compensation packages to attract experienced specialists to their global competence centers (GCC) in India. Industry executives note that these competitive salaries reflect strategic change and the increased role that GCCs now play in global operations.

An increase in the number of well-paid management positions

The percentage of GCC countries offering niche leadership talent salaries ranging from Rs 3 to Rs 6 crore per annum has increased significantly over the last two years. According to data from executive search and corporate executive search firms, about 16-18 percent of large GCC countries now offer their top managers salaries in this range, up from less than 10 percent two years ago, ET reported.

Siddharth Verma, head of executive search at Xpheno, highlights that the remuneration of managing directors or country heads in some of the larger GCC countries has reached the level of $1 million (about Rs 8.3 crore). This increase correlates with the maturity and increased potential of these centers. “Salary packages in some corner offices have almost doubled in the last three to four years,” adds Verma.

Transition from Back Office to business drivers

Historically seen as back-office operations, GCCs in India have become key business enablers for multinational companies. “An increasing number of strategic management positions are working in India,” says Verma. “To attract the best talent across industry sectors, companies must offer competitive salaries.”

The leaders of this trend are the most mature GCC, especially in the banking and financial sector, employing over 20,000. employees. These centers have achieved compensation levels of $1 million for their top leaders, reflecting their significant contributions to the global business.

Expanding roles and responsibilities

Puneet Pratap Singh, country director at Heidrick & Struggles and an expert in global internal centers (GICs), explains that many senior executives in large GICs now oversee more than just managing local teams and business operations. “They have become global owners of business lines and functions, delivering advanced technologies, operations and functional solutions. They drive business growth within highly integrated global structures,” says Singh.

This expanded responsibilities require hiring leaders with deep industry knowledge and a global presence. “Understanding regulatory nuances and having global experience has led to GIC CEO remuneration being comparable to front-office CEOs,” explains Singh. “Over the past four years, salaries for the heads of some of the largest GICs have doubled from $500,000 to more than $1 million.”

Increasing complexity and dynamics

The nature of business in the GCC has become more complex and dynamic, requiring senior leadership to meet these challenges. Dinkar Pawan, Director, Deloitte India, emphasizes that the GCCs must continue to attract high-quality leaders to maintain their strategic relevance in global corporations.