Hiring by GCCs likely to grow nearly 27% in FY26, to outpace IT again

Demand for domain experts, specialised skillsets the trigger

Global capability centres (GCCs) are set to ramp up hiring by about 27 per cent, driven by a growing demand for domain experts and specialised skillsets, even as traditional information technology (IT) services firms remain cautious in an uncertain market, say HR experts.

 

For the second consecutive year, GCCs are expected to surpass IT services firms in net hiring, underscoring their expanding footprint in India.

 

According to data sourced by Business Standard from consulting firm Zinnov, overall hiring in the sector is projected to rise by 27 per cent, with engineering research and development (ER&D) leading the way. ER&D, which forms the backbone of GCC operations across automotive, aerospace, and BFSI (banking, financial services, and insurance) industries, is set to grow by 31 per cent, while hiring in non-ER&D functions is expected to lag.

 

“In retail, pharma, healthcare, and aerospace, there will be no dampening in hiring,” Namita Adavi, partner and head of GCC practice for Zinnov, said, when asked if companies will go slow on hiring or on their GCC expansion plans because of tariff threats and other US protectionist policies.

 

The capability centres added nearly 140,000 people in the financial year 2024-25 (FY25), up from about 60,000 in FY24. For FY 26, it is expected to touch 180,000, with about 100 new GCCs set to start operations in India, as per data from specialised staffing firm Xpheno. The country currently has more than 1,760 GCCs, with increased focus on high value services and ER&D.

 

In stark contrast, the top five IT companies have so far announced their fresher hiring to be around 80,000-84,000 for FY26. These firms hired just 11,000 people in the first nine months of FY25. A year before, they added just 5,190 people. Sluggish demand, automation at the entry level, and increased use of artificial intelligence (AI) for coding have contributed to this slowdown.

 

It is important to note that the bulk of hiring in the IT services segment is done by the top four players along with multi-national companies (MNCs) such as Accenture and Cognizant. And the above numbers are just the campus hiring numbers.

 

Kedar Pathak, GCC specialist at Xpheno, attributes the positive sentiment to a host of factors. He said that increasing sops and incentives provided by states, moving skillset requirements up the value chain, and higher number of greenfields from oil & gas, semiconductor, and pharma & life sciences sectors have led to these companies continuing to hire in large numbers.

 

“The year ahead will be a threshold year when a conscious and visible shift in the value of talent deployed to GCCs can be experienced,” he added.

 

Demand is high for domain experts, especially in areas such as cybersecurity, AI, data analytics, and data governance. "The older capability centres used to look out for Net, Python and Java engineers before moving up the value chain. Now they want to leave those jobs with their vendors and focus on high-end work, which demands very specialised skills. That often leads to a disproportionate surge in demand," said Aveek Mukherjee, managing director and co-founder of Gloplax Solutions.

 

GCCs also offer significantly higher salaries than IT services firms. “These centres pay for domain expertise and advanced technology skills, often offering 20-25 per cent more than IT services firms. That is why a lot of talent is getting hired not only from IT but also from outside,” Neeti Sharma, chief executive of staffing firm TeamLease Digital, said.

 

For professionals with experience in BFSI, healthcare, and high-tech industries, the GCC boom presents a lucrative opportunity. “Someone with a few years of experience in a BFSI GCC will see their demand — and earning potential — skyrocket,” Sharma added.