Global in-house centers (GICs) are integral parts of company value chains that leverage diverse talent across geographies. India has emerged as a leader in the GIC industry, with approximately $20 billion in revenue, due to its large talent pool of skilled, educated, and cost-effective workers. The Indian GIC industry employs many flexi or contract workers, with entry-level jobs requiring secondary education or medium skills, and growth in flexi jobs projected to continue. To effectively manage growing contingent workforces while ensuring compliance, cost control, and talent quality, organizations are partnering with managed service providers who can deliver process efficiencies, technology expertise, and end-to-end talent lifecycle management.

1. Overview of GIC and Staffing in India
By Arkaprava Ojha

2. What is GIC:
 Global In-house centers (GICs) are redefining the way businesses leverage diverse talent pools and skill sets
distributed across geographies. GICs were initially set up with the objective of accessing new talent pools,
but over the years GICs have brought in other ecosystem and value-added benefits.
 Today, the contributions of a GIC are an integral part of an organization’s overall value chain. It is no surprise
that global players all over the world are now making astute investments to build strategically strong and
well positioned GICs in regions best served for rapid growth. Currently, the GIC model accounts for 25
percent (US$38–42 billion) of the global offshore services market.

3. GICs in India: A ~USD 20 billion industry

5. WHY INDIA?
Global CXOs expect Indian GICs to play a more active role in driving
top-of-mind investment priorities in the coming years. Approximately
70% of CXOs believe that the Indian GICs will play a more active role
and approximately 50% of enterprises already have, or expect to have,
leaders two levels below CEO positions based out of their Indian GICs.
Despite a global slowdown, India has still been performing when it
comes on the IT and services related industry. Amongst the various
reasons, a primary reason ins the quality of the talent pool in the
country.
• Up to 15 years tax holiday scheme for SEZ units.
• Up to 84% of cost of computer and software depreciable within 2 years.
• EOU/STP can import all goods including capital goods without any
duties.
• Depreciation of 100% can be availed over 5 years for computer and
peripherals in EOUs, SEZ, EHTOPs.
• Overseas offices of Indian IT companies are not allowed
to create liabilities for their Indian HO.
• To build delivery centers outside India, Indian providers
are allowed to make outbound investments to the tune of
200% of their net worth.30% of value of onsite contracts
and 100% value of offshore contracts needs to be
repatriated to India
Existing companies with GICs in India are having an amazing
experience. The figure below shows how CXOs with GICs in
the country view the Indian talent employed.
The key words here are talented, efficient, dedicated, cost
saving,agile, innovative thereby proving the expertise of the
talent pool in
India.

6. India, the second largest in the world in availability of emerging skills

7. Availability of digital talent is enabling digital initiatives to be
driven from GICs

8. GICs predominantly based out of six top locations with
Bengaluru having the largest share

9. Opportunities for flexi staff
Flexi to Perm
opportunity
conversion for flexi
workers?
8%
Share of flexi
worker under an
open-ended
contract?
15%
Share of flexi
workers working on
a full-time basis?
95%
Average number of
hours which flexi
workers on
assignment work
during one week?
48
hrs/week
Percentage of all
flexi staff trained?
49%
Satisfied flexi staff
with their
employment
situation
67%
Flexi staff that are
open to working
again as flexi
worker
65%

12. Entry Level Flexi Jobs: required Skills &
education
Share of students among all Flexi Workers?
Initial level of education of Flexi workers? (%) Level of skills required to execute flexi work assignments? (%)
Requirement
for entry level
Flexi jobs:
Education and
skills
• Average of 5% student join flexi jobs in India
• Entry level flexi jobs
• 47% flexi jobs are attained with high level of education
that be cover Graduates and above
• A close 40% are flexi jobs held by medium level which is
secondary education
• While only 13% flexi jobs are held with below secondary
education
• 46% jobs require medium skills to accomplish the work
of a flexi worker
• While 29% jobs are with high skills

13. Employment creation & continuity
flexi staffing industry
Share of flexi work in the last 12 months? (%) Labour market situation for workers before and 12
months after working as flexi staff? %
Flexi Industry
Growth, &
Labour Market
situation for
flexi staff pre
post 12 months
• Average growth rate of flexi jobs in 2019 is 20%
• Labour Market changes for Flexi worker 2019 vs 2020:
• Labour market preference changed by +4% to have
36% prefer a flexi job
• The rate of unemployed Flexi worker reduced 2% in
2020
• 14% students entered flexi jobs in 2020 which is
+6% change to 2019

14. What is MSP staffing?
 A managed services program is a highly
effective way for employers to manage their
contingent workforces. An MSP provider can
deliver a host of benefits, including:
 market expertise
 process efficiencies
 technology expertise
 program scalability
 compliant practices
 spend visibility and cost savings
 The MSP can act as an integral part of a
company’s procurement, HR or other human
capital function. It will manage the entire
contingent talent life cycle from requisition
through invoicing and payment. Using a vendor
management system (VMS), the managed
service program gives a complete visibility into
the status of each contingent worker of any
organization.
 With a rigorously designed and consistent
process, an MSP can also help you stay
compliant with all labor regulations and
governance requirements. Through talent
analytics, your program can also drive
improved decision-making around your
contingent workforce.

15. Why MSP?
Today India has 2.1 million contract workers and it is projected that by 2025 this number will grow upto 9 million. As
per Indian Staffing Federation, India will have 6.1 million contract employees by 2021 making it the third largest
country to employ contract workers. Industry verticals like Telecom, Retail, IT, Manufacturing, Pharmaceutical &
Hospitality are increasingly investing in contract staffing and with growth of start-up community in India, number of
flexi workers will only increase in near future. Now the big question is that in country like India which has stringent
compliance laws, multiple vendor relationships, still in a phase of adopting newer technologies how will organizations
manage their growing flexi workers base without compromising on talent quality, keeping cost under control & being
100% compliant? The solution is partner with a right staffing “Managed Service Provider (MSP)”