India’s Tech Workforce Shifts as GCCs Outpace Traditional IT Firms

The Indian technology industry has made a structural transformation in its hiring patterns, driven by changing business models, the rise of Global Capability Centers (GCCs), and the increasing influence of artificial intelligence (AI).

While the IT industry is poised to reach US$300 billion in revenue by financial year 2026-27, employment trends indicate a significant shift in workforce distribution and employer preferences.

India’s technology sector is undergoing a fundamental shift in its hiring practices, influenced by new business models, the expansion of Global Capability Centers (GCCs), and the growing impact of AI. In FY2024–25, the tech sector added approximately 126,000 net new jobs, pushing the total workforce to 5.8 million. According to media reports published in March 2025, GCCs contributed over 100,000 of these new positions—an increase from 90,000 hires in the previous year. In contrast, leading IT service firms added only 11,000 employees in the first nine months of the same fiscal year.

For the second consecutive year, GCCs have surpassed traditional IT companies in net hiring. This trend highlights a strategic move by multinational corporations to scale their captive centers in India for enhanced innovation and cost efficiency. According to NASSCOM’s Annual Strategic Review released on February 24, 2025, export revenue contributions from Indian IT firms and MNCs, including GCCs, are now evenly split at US$112 billion each.

Shift in workforce preferences and employment trends

As per NASSCOM’s Future of Work report published on December 6, 2024, millennials and Gen Z employees cite higher financial rewards and access to learning opportunities as primary motivators for switching jobs. Traditionally, the Indian IT services sector has absorbed a major share of the tech workforce, however, post-pandemic hiring momentum has shifted strongly toward GCCs.

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Industry watchers note a growing preference for mid-level talent across both IT and GCC sectors in 2024. Metropolitan cities like Bangalore, Mumbai, and Chennai have become focal points for hiring professionals with leadership and technical expertise. Experts have emphasized this shift toward experienced roles over freshers.

GCCs accelerating growth and hiring

In India, over 1,700 GCCs employ around 1.9 million professionals, compared to 5.4 million in the IT/ITES sector. Although IT firms have resumed hiring after a prolonged slowdown, credit rating agency ICRA and other experts, predict a significant recovery only in the latter half of FY2025-26. Conversely, GCC hiring is expected to remain robust in 2025, with market experts forecasting an 18–20 percent growth—translating to around 380,000 new jobs. IT companies, by comparison, are projected to increase hiring by just 8–10 percent.

To stay competitive, IT companies in India are offering career growth opportunities in high-demand areas such as cloud computing, AI, and cybersecurity. On the other hand, GCCs are drawing professionals by providing international exposure, better work-life balance, and attractive compensation packages.

Growing role of GCCs in the Indian tech ecosystem

Although there is intense competition for skilled talent, IT services firms are evolving by developing specialized GCC practices within their organizations. This hybrid approach enables them to collaborate with multinational clients while continuing to offer their core consulting and outsourcing services. NASSCOM reports that such models are gaining momentum as companies adapt to the shifting dynamics of the tech landscape.

Changing employee preferences in India

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In India, professionals—such as those at mid and senior levels—are increasingly leaning toward GCCs due to their focus on employee well-being and flexible work environments. Several research reports have noted that the opportunity to engage in global projects and multicultural teams adds significant value to career and personal development.

GCCs are adopting advanced recruitment practices to meet evolving talent demands. They are leveraging data-driven hiring processes, using metrics like time-to-hire and quality-of-hire. They have also incorporated AI/machine learning (ML) tools to streamline sourcing and reduce bias. These approaches help build diverse and inclusive talent pools aligned with modern business needs.

Outlook

India’s tech hiring trends in 2025 reflect a broader movement toward efficiency, innovation, and strategic workforce planning. With AI-driven automation reshaping business models, companies must prioritize digital transformation, employee upskilling, and advanced hiring strategies. As GCCs continue to grow and redefine talent acquisition, traditional IT services firms must evolve or risk falling behind in an increasingly competitive environment.

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