A seismic shift is reshaping India's technology employment landscape. Global Capability Centres (GCCs) are now recruiting technology professionals at a pace four times faster than traditional IT services companies, marking the most significant transformation in the sector in a decade.
The Great Hiring Divergence: GCCs Surge Ahead
According to data from TeamLease Digital cited by the Economic Times, GCCs are expanding their workforce by a staggering 18-27% annually. In stark contrast, the growth rate for IT services companies languishes at a mere 4-6%. This explosive growth has propelled the combined GCC workforce in India to nearly 2 million professionals, a sharp rise from 1.2 million in 2022. This expansion is generating roughly 300,000 new positions each year.
"This is the sharpest divergence we have seen. There is over a 20% difference in hiring growth," stated Neeti Sharma, CEO of TeamLease Digital. During the same period, the net job creation in the IT services sector has been limited to just 25,000 to 40,000 roles per year.
From Cost Centers to Innovation Hubs
The acceleration is driven by a fundamental change in strategy among international organisations. They are increasingly internalising critical operations through their India-based GCCs, work that previously fuelled the country's outsourcing industry. Over 90 new companies established GCCs in India this year alone, while more than 150 existing centres expanded their operations, noted Vikram Ahuja, cofounder of ANSR.
"Companies are prioritising in-house, high-skill, multi-disciplinary teams inside GCCs. Work that requires IP ownership, speed, security and domain depth is increasingly being internalised rather than outsourced," Ahuja explained. This shift positions GCCs as core innovation and product engineering centres, moving far beyond their earlier roles as support units.
The domains witnessing concentrated demand include Artificial Intelligence (AI), cloud computing, cybersecurity, and product engineering – all areas requiring deep domain expertise.
Salary Premiums and Shifting Talent Dynamics
The battle for high-skill talent is reflected clearly in compensation trends. GCCs typically offer 15-25% higher salaries for standard engineering roles compared to IT services firms. For niche positions in AI, Generative AI, and advanced Machine Learning, the premium jumps to 30-40%. This attractive compensation leads to better offer acceptance rates of 60-70% for GCCs, while IT services companies face more rejections.
"The talent market is signalling where the next decade of high-value digital work will be built, and that is inside India's GCCs," observed Jaspreet Singh, partner at GT Bharat. He added that GCCs are achieving double-digit revenue growth of 10-12%, while major IT services firms remain stagnant, focused on optimisation.
Projections and the Contrast with Traditional IT
The gap is expected to widen further. Vikram Ahuja forecasts around 160,000 new GCC jobs in FY25, with FY26 projected to cross 200,000. Meanwhile, India's top five IT services firms added a net of barely 11,000 employees in the first nine months of FY25.
Kapil Joshi, CEO of Quess Corp, highlighted that GCCs generated over 100,000 of the 120,000 new technology positions created in FY24 and FY25, with IT services contributing minimally. While IT services firms still employ twice the number of people as GCCs, that gap is closing rapidly.
In a telling move, Tata Consultancy Services (TCS), India's largest IT services company, plans to reduce its workforce by about 2%, affecting over 12,000 positions globally as part of a restructuring. Other traditional firms are also conducting unofficial layoffs, with actual departures exceeding reported numbers.
The Road Ahead: Graduates and Tier-2 Expansion
Looking forward, GCCs plan to ramp up graduate recruitment and expand their footprint into smaller Indian cities, tapping into a broader talent pool. This strategic expansion contrasts with the slower growth trajectory of traditional IT services.
Despite challenges in securing top-tier AI and cybersecurity talent and developing product leadership, the direction is unmistakable. As global companies transition from cost-based outsourcing to capability-driven internal teams, Indian GCCs are cementing their position as the principal global hub for future engineering and AI expertise.
