GICs To Expand As Companies Look At Minimising Risk

Global in-house centres or GICs are looking at broadening and expanding into different geographies as firms reduce risks and proceed to recruit critical talent based on the requirement amid the COVID-19 crisis. Companies are focusing on reducing risk by having several GICs in different markets instead of placing all their resources in one country, particularly with borders being locked down due to the ongoing pandemic.

GICs, usually referred to as contact centres or captives, are offshore units which emerged in the 1990s as large firms such as Texas Instruments, GE, American Express, and Citigroup began to embrace the model for carrying out defined operations, mainly related to technology. 

India continues to be a hot spot for the establishment of new GICs. Indian GICs are expected to benefit from the COVID-19 crisis as companies that historically assumed that some research could not be done remotely have now realised otherwise.

Sun Life Asia Service Centre (ASC) India, Canada’s Sun Life Financial GIC based in Gurugram with 1,800 employees, intends to hire more than 200 employees in the following six months. The GIC centre in India, together with its counterpart in the Philippines, is working together to support Sun Life’s clients in Canada, Asia and the United States.

Also Read: Will the Need for Commercial Office Space Decline Post-COVID-19?

The Chief Human Resources Officer at Sun Life ASC India mentioned that they would be hiring professionals related to skills such as data analytics and product development to sharpen their parent organisation’s offerings. He also added that digital, mobile architecture, data, artificial intelligence, and machine learning are still some of the hot skills in the industry, and there is a shortage of people.

A prominent Australian bank wants to set up a GIC in India with around 5,000 employees within three years, mentioned a person who is familiar with the development. The person also said that a location has already been identified and 40% of the talent is anticipated to be procured from IT services firms. 

Experts believe that GICs and IT services firms will persist in coexisting despite competing with each other.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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