Attrition rate is the percentage of employees that leave an organization in a specific period, either voluntarily or involuntarily. A high rate leads to a gradual workforce reduction when the roles are not filled on time. Several big MNCs like Apple, Amazon, and Netflix have witnessed this concerning situation and struggled with employee retention. A low rate of up to 10% is a sign of a stable workforce and a healthy company. However, an attrition rate of 20% and more is alarming with disruptions in workflows and reduced productivity. As we move ahead in 2025, retaining employees is a key challenge in certain industries like BFSI, Gaming, Software Development, IT, and Chemical Industries. The situation is anything but optimistic due to changes in the job market, layoffs, and global macroeconomic shifts. However, global capability centers (GCCs) come as a sigh of relief since they play a powerful role in lowering the high attrition trends while propelling innovation like never before. This article gives you a rundown on how these centers of excellence are proactively helping businesses respond to high attrition.
In 2025, JPMorgan Chase, the largest bank in the US, has announced that employees working on hybrid models must return to office for a five day work week. The main reason is that as per the opinion of the upper management, remote work is ineffective. Any petition for continued work from home has been dismissed. Employees unhappy with this policy were asked to leave without a second thought. Situations like these often erode trust and cohesion in the workforce and impact the overall brand image and operations. In Indian GCCs, however, parent organizations never have to face these since they have great employee management policies in place. Strict monitoring and control helps avoid gaps in workflow which, otherwise, would lead to inefficiencies. Further, they also conduct upskilling programs like AI-focused training that help employees to stay relevant and equipped in an era of roles going redundant.
GCCs are offering 15-25% pay raises than IT companies in 2025 which is a part of their long-term talent building strategy. Freshers are also able to land 15-20% higher salaries for specific AI/ML-related roles. Overall, this increment in salary is an accurate reflection of their value in the global market and thus a fabulous way for GCCs to attract talent and retain them over the years. People today are more inclined towards a growing career and compensation and thus moving from traditional IT companies to global capability centers.
GCCs in India is an ever-growing industry and has employed 1.9 million individuals as of FY2024. In the coming years too, they are up for substantial job creation. For instance, a18-20% surge in employment is expected in 2025 with 3,80,000 open positions. Altogether, there are fewer or no chances of laying off employees. Further, GCCs adopt a highly-tailored and multi-generational approach which is extremely necessary since IT companies, in particular, are slowing down fresher recruitments. Indian GCCs on the other hand target both experienced and entry-level professionals for their operations. In fact, they also repurpose their employees to avoid cutting down on the workforce causing process disturbances.
Highly competitive landscapes are making it difficult for companies to retain tech talents. The reason is that certain employees are typically technology-driven and have a constant urge to stay ahead of the latest trends and techniques. This becomes all the more prominent when their competitor brands are investing in the latest and innovative practices. Global capability centers, on the other hand, have evolved over the years due to their adoption of groundbreaking technologies like AI. This has helped them foster innovation with Big Data Analytics, AI, ML, Blockchain, IoT, Cloud Computing, Data Warehousing, and ERP Systems. Further, they heavily invest in automation, orchestration, data encryption, and IAM solutions. Being able to work around these ensure fantastic career growth potential which lowers attrition rates.
More than just talent retention, global capability centers have transformed themselves into hubs of excellence performing better than conventional offshore development centers. They offer operations at 60% lower costs and can be set up within as less as 90 days with zero Capex with the Company Owned Partner Operated (COPO) model invented by Inductus. Further, India’s strong GCC policies and programs are powering flawless operations across these centers. For instance Altogether, India has evolved into a prime destination to set up GCCs allowing companies to stay competitive in a rapidly evolving business landscape and drive operational excellence.
The idea of talent retention in GCCs hinges on a culture of innovation, continuous learning, employee comfort and engagement, career progress, agile work environment, and fat paychecks. Therefore, investing in building a global capability center in India with a trusted enabler like Inductus GCC is a smart way to compete on a global scale without having to worry about employee attrition rates or disruptive workflows. Your business will be able to maximize the benefits of a future-ready workforce and stand tall in the crowd of competitors.
Hybrid Work Model
Better Pay Scale
Zero Layoffs
Tech-Advancements
Further, they are limited around backdated tools and technologies causing mental burnouts at the workplace. Therefore, organizations who do not invest in tech advancements or onboard interesting projects are likely to make their employees feel stagnant in their careers who ultimately switch for better opportunities.
Beyond Talent Retention
Conclusion