Mumbai: Rapidly expanding global capability centres of banking, financial services and insurance (BFSI) sector has led to an acute shortage of talent, widening skill gap and higher workforce expense for enterprises, a report said on Thursday.
India's BFSI GCC sector was valued at USD 40-41 billion in 2023 and is projected to touch USD 125-135 billion by 2032, which reflects a CAGR of 12-13 per cent, according to ' BFSI GCC Talent Report 2025' by staffing and workforce solutions provider Quess Corp.
However, the acute shortage of AI and data talent is evident with a 42 per cent skill gap, which is resulting in a strong pressure for higher salary packages, it said.
India is home to nearly 190 BFSI GCCs which employ nearly 540,000 professionals, accounting for one-fourth of the total GCC workforce, said the report.
"We have noticed that the BFSI GCC sector has moved beyond its traditional role to a new decisive phase of growth. These units are no longer back-office extensions but have transformed into the heart of innovation, compliance and resilience for the world's financial ecosystem.
"AI, cloud and payments are no longer experimental skills but are core business functions that are being executed at scale by GCCs in India," Quess Corp CEO - IT Staffing, Kapil Joshi said, adding that these roles are critical in the functioning of global finance.
However, shortage in skills in AI and platform engineering has exceeded by 40 per cent and companies must rethink their workforce strategies, he suggested.
"Though tier I cities are leading in high-value innovation, tier II cities are the new flavour of the season and are emerging as credible sites with the support of improved infrastructure and cost-savings," Joshi said.
The future of the BFSI GCC sector depends on how swiftly enterprises will build resilient and capability driven teams who can deliver on innovation, leadership and cost advantage, he added.
The report by Quess Corp, which is based on secondary research, further said that BFSI GCCs are beginning to invest significantly in zero-trust architectures, advanced cryptography and regulatory technology.
With cyberthreats and regulatory scrutiny intensifying, AI-based fraud analytics, identity governance and compliance monitoring are among the fastest growing areas of demand, it said.
Skilled professionals in this space are commanding premium salaries of 1.5x to 4x times over conventional IT roles, which underscored the importance of cybersecurity talent currently in India, it added.
The report also revealed that tier II cities are changing the way hiring is viewed by companies as these regions are showing a 42 per cent year on year growth in job postings.
Even though tier I hubs contribute to 88 per cent of total demand, Jaipur, Vizag and Kochi have emerged as strong hubs for hiring while cities such as Indore and Coimbatore are steadily gaining momentum, it stated.
The compensation gap in tier II cities, which is 12-15 per cent lower than tier I regions, is making the former attractive for scaling operations as they offer cost advantages and access to untapped talent, the report added.
India's BFSI GCC sector was valued at USD 40-41 billion in 2023 and is projected to touch USD 125-135 billion by 2032, which reflects a CAGR of 12-13 per cent, according to ' BFSI GCC Talent Report 2025' by staffing and workforce solutions provider Quess Corp.
However, the acute shortage of AI and data talent is evident with a 42 per cent skill gap, which is resulting in a strong pressure for higher salary packages, it said.
India is home to nearly 190 BFSI GCCs which employ nearly 540,000 professionals, accounting for one-fourth of the total GCC workforce, said the report.
"We have noticed that the BFSI GCC sector has moved beyond its traditional role to a new decisive phase of growth. These units are no longer back-office extensions but have transformed into the heart of innovation, compliance and resilience for the world's financial ecosystem.
"AI, cloud and payments are no longer experimental skills but are core business functions that are being executed at scale by GCCs in India," Quess Corp CEO - IT Staffing, Kapil Joshi said, adding that these roles are critical in the functioning of global finance.
However, shortage in skills in AI and platform engineering has exceeded by 40 per cent and companies must rethink their workforce strategies, he suggested.
"Though tier I cities are leading in high-value innovation, tier II cities are the new flavour of the season and are emerging as credible sites with the support of improved infrastructure and cost-savings," Joshi said.
The future of the BFSI GCC sector depends on how swiftly enterprises will build resilient and capability driven teams who can deliver on innovation, leadership and cost advantage, he added.
The report by Quess Corp, which is based on secondary research, further said that BFSI GCCs are beginning to invest significantly in zero-trust architectures, advanced cryptography and regulatory technology.
With cyberthreats and regulatory scrutiny intensifying, AI-based fraud analytics, identity governance and compliance monitoring are among the fastest growing areas of demand, it said.
Skilled professionals in this space are commanding premium salaries of 1.5x to 4x times over conventional IT roles, which underscored the importance of cybersecurity talent currently in India, it added.
The report also revealed that tier II cities are changing the way hiring is viewed by companies as these regions are showing a 42 per cent year on year growth in job postings.
Even though tier I hubs contribute to 88 per cent of total demand, Jaipur, Vizag and Kochi have emerged as strong hubs for hiring while cities such as Indore and Coimbatore are steadily gaining momentum, it stated.
The compensation gap in tier II cities, which is 12-15 per cent lower than tier I regions, is making the former attractive for scaling operations as they offer cost advantages and access to untapped talent, the report added.
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