GCCs Lead Hiring Growth, Surpassing IT Firms for Second Consecutive Year

Global Capability Centres (GCCs) in India are set to increase hiring by 27% this year, surpassing traditional IT services firms for the second consecutive year. This growth is fueled by a rising demand for domain experts and specialized skills as global businesses continue to expand their operations in India. HR experts highlight that GCCs are becoming a key driver of the job market, with more companies looking to tap into India’s skilled workforce to meet their evolving needs. As a result, GCCs are expected to play an increasingly prominent role in shaping the future of employment in the country.

Engineering Research and Development (ER&D), a critical component of GCC operations in sectors like automotive, aerospace, and banking, is projected to grow by 31% this year. This growth is significantly higher than the expected hiring pace in non-ER&D functions, which will see slower expansion. As companies increasingly focus on innovation and technology-driven solutions, the demand for specialized ER&D talent is set to surge, further solidifying the importance of GCCs in driving industry advancements.

"In retail, pharma, healthcare, and aerospace, there will be no slowdown in hiring", says Namita Adavi, partner and head of GCC practice at Zinnov, as quoted by Business Standard. She added that concerns about US tariffs and protectionist policies are not expected to affect recruitment plans in these sectors.

The Global Capability Centre (GCC) sector in India is experiencing rapid growth, having added nearly 140,000 jobs in the financial year 2024-25 (FY25), up from 60,000 in FY24. By FY26, this figure is expected to rise to 180,000, with approximately 100 new GCCs slated to begin operations across the country. India currently hosts over 1,760 GCCs, with a growing emphasis on high-value services and Engineering Research and Development (ER&D).

In contrast, India's top five IT services firms are planning to hire around 80,000-84,000 freshers in FY26, a sharp slowdown compared to previous years. These companies have added just 11,000 employees in the first nine months of FY25, compared to 5,190 in the same period last year. The deceleration in IT hiring is largely attributed to sluggish demand, automation in entry-level roles, and the increased use of artificial intelligence (AI) in coding tasks.

"The bulk of IT services hiring is done by the top four players and multinational companies such as Accenture and Cognizant," an industry expert told Business Standard. However, their focus has shifted, with fewer campus hires and a preference for experienced professionals with niche skills.

Several factors are driving the hiring growth in GCCs. Kedar Pathak, a GCC specialist at Xpheno, attributes this surge to increased government incentives, evolving skill requirements, and the emergence of new GCCs in industries such as oil & gas, semiconductors, and pharmaceuticals. These sectors are expanding rapidly, leading to a higher demand for specialized talent. Additionally, as companies shift towards more complex and high-value services, GCCs are increasingly focused on acquiring domain-specific expertise, further fueling recruitment activity.

"The year ahead will be a turning point, with a noticeable shift in the value of talent deployed to GCCs", he says.

There is a particularly high demand for professionals in cybersecurity, AI, data analytics, and data governance within GCCs. Previously, these centres primarily sought engineers with skills in .NET, Python, and Java. However, as they now focus on more specialized and high-end work, they tend to outsource basic roles to IT vendors, concentrating on complex tasks that require niche expertise. This shift has led to a surge in demand for professionals with specialized skills, according to Aveek Mukherjee, managing director and co-founder of Gloplax Solutions.

Additionally, GCCs are offering more competitive salaries compared to traditional IT services firms. Neeti Sharma, CEO of staffing firm TeamLease Digital, notes that these centres often pay 20-25% more for domain expertise and advanced technology skills, making them an attractive option not only for IT professionals but also for talent from other industries. This financial incentive is contributing to the growing appeal of GCCs in the job market. For professionals with experience in banking, healthcare, and high-tech industries, the GCC boom presents a lucrative career opportunity. "Someone with a few years of experience in a BFSI GCC will see their demand and earning potential rise sharply", Sharma added.