Staffing firms prefer placing staff in GCCs than IT firms

A GCC placement earns more commission for manpower firms than an IT services firm fresher

- Jas Bardia

Staffing firms and job search platforms such as Quess Corp Ltd, TeamLease Services Ltd and Info Edge (India) Ltd are finding it more profitable to help place experienced professionals at tech centres of the world's biggest companies than pure-play information technology (IT) outsourcers that typically hire freshers in bulk.

Better profitability and revenue from global capability centres (GCCs) have helped the staffing firms offset slowdown in their income from the country's $283 billion IT sector, which has gone slow on hiring engineers in the past couple of years.

GCCs contributed about 4.2%, or ₹153 crore, of Quess's January-March revenue. TeamLease, on the other hand, got ₹195 crore, or about 3% of its revenue from GCCs, according to its press release.

For job platform Naukri's parent company Info Edge, most of the growth of its job-hunting platforms came from GCCs. This business, known as 'Recruitment Solutions,' makes up almost three-fourths, or ₹542 crore, of its overall quarterly revenue.

Staffing firms recruit employees for GCCs and get a commission for each person onboarded in the captive centre. Quess and TeamLease mentioned that they get more money from placing candidates in GCCs.