Whalesbook
Companies in India are increasingly turning to apprenticeships to recruit engineering graduates, especially for roles in Global Capability Centres (GCCs). This trend, accelerated by the pandemic, offers a cost-effective and low-risk talent acquisition strategy for firms like SA Technologies, LatentView Analytics, and Hexagon R&D India. Apprenticeships provide graduates with on-the-job training and a chance to secure full-time roles, with many companies reporting high conversion rates.
Companies are adopting a more cautious hiring approach, making apprenticeships a significant pathway for young engineering graduates seeking to enter multinational corporations (MNCs) in India.
This trend, which gained momentum during the pandemic, allows firms to explore talent beyond traditional campus recruitment pools. Apprenticeships target graduates who have completed their degrees but are yet to secure their first job, differentiating them from internships.
Global Capability Centres (GCCs), which usually recruit for specialized tech skills, are now assigning a growing portion of engineering and tech work to apprentices. SA Technologies, a provider of workforce and business solutions for GCCs, views hiring BTech graduates as apprentices as both cost-efficient and low-risk. "Instead of hiring and training, we get the opportunity to train and hire them, with no obligation to retain. This lets us mould them the way we want," stated Aditya Joshi, its COO. Apprentices at SA Technologies earn between Rs 20,000 and Rs 35,000 per month, which is considerably lower than the salaries offered to graduates from premier institutes.
A report by TeamLease Apprenticeship indicates the national average stipend for apprentices is approximately Rs 20,000 per month.
Deloitte India's partner, Vikas Birla, noted that clients are increasingly recruiting from smaller towns, offering remote roles or relocation support. The trend is not solely cost-driven, as apprentices typically earn well above the mandated minimum stipend of Rs 12,300.
LatentView Analytics has expanded this model to include statistics graduates, offering a year-long program combining theoretical modules with practical "sandbox projects." The company recruits about 50 apprentices annually, aiming to tap into candidates often overlooked due to limited access or communication challenges. LatentView specifically targets students from Tier-II and Tier-III colleges, using online assessments to select candidates based on performance, similar to regular campus hiring.
Hexagon R&D India assigns apprentices directly to live projects, providing hands-on experience under mentors. "They gain hands-on experience on real deliverables under experienced mentors. When they convert to full-time roles, the same teams typically absorb them," said HR Director Krupali Ravali. All three companies also offer structured soft-skills training programs.
According to Nipun Sharma, CEO of TeamLease Apprenticeship, approximately 75% of companies hiring apprentices achieve a conversion rate of at least 40%. "GCCs and MNCs also tap this pool to meet their diversity commitments," he added.
Impact
This news significantly impacts the Indian job market by highlighting a new, viable entry route for graduates and a strategic talent acquisition method for companies, potentially influencing hiring costs and talent pipeline development. Its direct impact on stock market indices might be limited but reflects broader economic and corporate strategy shifts. Rating: 6/10.
Difficult Terms Explained:
Global Capability Centres (GCCs): These are typically offshore or nearshore facilities set up by multinational companies to perform various business functions, often IT, research, and development, in a lower-cost location.
Niche Tech Skills: Highly specialized technical abilities or expertise in a particular area of technology.
Sandbox Projects: Small, isolated development or testing environments where individuals can experiment with new technologies or ideas without affecting live systems.
Tier-II and Tier-III colleges: Educational institutions located in smaller cities and towns, as opposed to major metropolitan areas (Tier-I cities).
Data Engineering: The process of designing, building, and maintaining systems and infrastructure for collecting, storing, processing, and analyzing large volumes of data.
Soft-Skills: Personal attributes that enable better interaction and performance in the workplace, such as communication, teamwork, problem-solving, and adaptability.
