GCCs Project Salary Hike of 9.9% in 2025, Attrition Hits Record Low Last Year GCCs are increasingly leveraging AI and analytics to personalize rewards, conduct real-time pay equity audits, optimize benefits, and build agile, future-ready talent strategies.

By Ayushman Baruah

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

Global capability centers (GCCs) in India are projecting an average salary hike of 9.9 per cent, signalling continued focus on talent retention and capability building despite economic uncertainties, according to the latest report on "Increment & Compensation Trends in GCCs by ANSR-owned Talent500.

At the same time, the sector is seeing a decline in attrition rates. The overall attrition has declined to 16.9 per cent, with voluntary attrition at a record low of 12.6 per cent in 2024, reflecting greater investment in career growth, culture, and employee experience.

As organizations embrace people-centric growth models, India's GCCs are emerging as employers of choice, with a strong focus on career and leadership development, workplace culture, and personalized employee experiences.

Organizations are also moving beyond traditional merit-based hikes, introducing special salary adjustments for in-demand skills, market alignment, and equity improvements. There has been a trend of rise in long-term incentives to boost retention and loyalty, wherein 71 per cent of GCCs now offer Employee Stock Options (ESOPs), Restricted Stock Units (RSUs), and Stock Appreciation Rights (SARs), emphasizing long-term wealth creation for employees.

Compensation models are undergoing a transformation to offer more personalized rewards, that combines competitive pay with flexible benefits, career growth opportunities, and employee wellness programs. GCCs are increasingly leveraging AI and analytics to personalize rewards, conduct real-time pay equity audits, optimize benefits, and build agile, future-ready talent strategies.

"As GCCs become core to enterprise strategy, the way they think about talent is continuously evolving — adapting to new business needs, technologies, and expectations. This year's Compensation and Benefits Survey goes beyond the numbers to explore how GCCs are rethinking their people strategies — building teams that are ready for today and prepared for what's ahead. In a world shaped by AI, shifting expectations, and rapid change, the GCCs that succeed will be the ones that treat talent as a true strategic advantage — combining agility, purpose, and a focus on future-ready leadership," said Vikram Ahuja, Co-Founder ANSR and CEO 1Wrk.

As GCCs in India accelerate their evolution from operational back-offices to global innovation powerhouses, Talent500's report highlights how organizations are building resilient, people-centric workplaces that prioritize agility, personalization, and long-term value creation.

With India projected to house over 2,400 GCCs and 4.5 million professionals by 2030, the survey aims to offer a roadmap for GCCs to redefine their approach to human capital, ensuring they remain at the forefront of the global business ecosystem and attract top talent.

The Talent500 report is in line with an earlier report by Zinnov that also predicted that salary hikes in GCCs are projected to see a slight rise to 9.8 per cent in 2025.

"Salary hikes in GCCs outpacing IT services reflect their shift from support functions to high-value, innovation-driven roles, demanding niche talent in AI, cloud, and cybersecurity. Attrition is lower because GCCs are investing deeply in career development, long-term incentives, and a differentiated employee experience that fosters loyalty," said industry expert Rituparna Chakraborty.

The head of a Bengaluru-based GCC said the company's attrition is around 3 per cent and the average salary hike is 9 per cent. "The reasons for low attrition are impactful work, holistic focus on employee engagement, experience and wellness, and quarterly pulse and engagement surveys and suitable tangible actions taken to address any policy, and work environment," he said on condition of anonymity.

Ayushman Baruah

Entrepreneur Staff

Regional Bureau Head

Ayushman Baruah is the Regional Bureau Head at Entrepreneur India. With over 15 years of experience in technology journalism, Ayushman writes on the intersection of business and technology. He takes special interest in areas like the artificial intelligence (AI) and global capability centres (GCCs). He is also the recipient of the 15th Annual PoleStar Awards in jury's category for excellence in technology journalism.     
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

India Unveils a New Simplified Two-Tier GST Regime: Check What Gets Cheaper and Expensive

The new regime now includes a simplified two slabs at 5% and 18%.

News and Trends

How Lab-Grown Diamonds are Reshaping Jewellery Market

As sustainability takes the centre stage shaping the luxury market, lab grown diamonds (LGDs) are leading the way and not merely following the latest trends, says Ishendra Agarwal, Founder, Giva

Starting a Business

The Hardest Parts of Being a Solopreneur (and How I've Learned to Handle Them)

Solopreneurship is on the rise, offering us freedom and independence — but lasting success depends on tackling its unique challenges with strategy.

News and Trends

From Humble Beginnings to the AI Frontier: An Exceptional Entrepreneurial Journey

Singh's entrepreneurial career was influenced by his time at Flipkart, which he joined as a software development engineer in 2012. He credits the experience with teaching him how to handle failure and iterate quickly.