Global Capability Centres (GCCs) are rapidly reshaping India’s technology employment landscape, outpacing traditional IT services companies in recruitment. According to recent statistics from TeamLease Digital, GCCs are expanding their workforce at an impressive rate of 18-27% annually, while IT services are growing at a much slower pace of 4-6%. This shift marks a significant transformation in the IT sector, with GCCs creating approximately 300,000 new jobs each year, compared to just 25,000-40,000 jobs generated by IT services. As the demand for specialized skills in areas like AI, cloud computing, and cybersecurity rises, GCCs are becoming the primary drivers of tech hiring in India.
GCCs Outpace IT Services in Job Creation
The employment growth within GCCs is striking, with their workforce swelling from 1.2 million in 2022 to nearly 2 million today. This surge translates to a net increase of around 300,000 jobs annually, highlighting a stark contrast to the IT services sector, which has seen minimal job growth. Neeti Sharma, CEO of TeamLease Digital, noted that the hiring growth between GCCs and IT services shows a divergence of over 20%. The demand for talent in GCCs is particularly concentrated in high-skill areas such as artificial intelligence, cloud technologies, and cybersecurity, which require specialized expertise. This trend indicates a shift in focus from outsourcing to in-house capabilities, as companies seek to enhance their operational efficiency and security.
Multinational Firms Drive GCC Expansion
The rise of GCCs is largely driven by multinational corporations that are internalizing critical operations that were once outsourced. Vikram Ahuja, co-founder of ANSR, emphasized that companies are increasingly prioritizing high-skill, multi-disciplinary teams within GCCs. This shift is evident as over 90 new GCCs have been established in India this year alone, with more than 150 existing centres expanding their operations. Ahuja predicts that this growth will lead to approximately 160,000 new jobs in FY25, with projections for FY26 exceeding 200,000. While IT services firms still employ a larger workforce overall, the gap is narrowing as GCCs emerge as a dominant force in technology employment.
Salary Trends and Recruitment Strategies
GCCs are not only leading in job creation but also in compensation packages. They typically offer salaries that are 15-25% higher for standard engineering roles and 30-40% more for positions in AI and advanced machine learning compared to IT services. This competitive edge has resulted in higher offer acceptance rates for GCCs, ranging from 60-70%, while IT services face a growing number of declined offers. As GCCs continue to expand their recruitment efforts, they are also looking to tap into talent from smaller cities, further broadening their reach. In contrast, traditional IT services companies are experiencing slower growth and are even implementing workforce reductions, with TCS planning to cut approximately 2% of its global workforce.
The Future of Technology Employment in India
The landscape of technology employment in India is shifting dramatically, with GCCs emerging as the primary hubs for innovation and high-value digital work. As international companies transition from cost-based outsourcing to capability-driven internal teams, GCCs are positioned to become the epicenters of engineering and AI expertise. Despite facing challenges in attracting talent for AI and cybersecurity roles, the trajectory is clear. Industry experts, including Jaspreet Singh from GT Bharat, assert that the talent market is signaling a new era of digital work that will be centered within India’s GCCs, marking a significant evolution in the country’s IT sector.
Digihunt is not a financial advisor and this is not investment advice.