A structural transformation is underway in India’s Global Capability Centers (GCCs), as artificial intelligence begins to redefine workforce demand, hiring patterns, and job roles across sectors.
Despite strong hiring momentum, there have been recent layoffs across GCCs in India. Companies such as Oracle and a German automotive firm cut thousands of jobs, while data showed that up to 6,000 employees were laid off last year across sectors including engineering, automotive, aerospace, and retail. This comes even as GCCs added over 1,50,000 jobs during the same period.
Experts say these layoffs reflect a broader shift rather than a decline in India’s importance. “AI is compressing the amount of human effort needed for many engineering and support activities, and that’s starting to show up in workforce decisions. For GCCs, this absolutely has impact, but not in the way people fear. It’s not about mass job loss, it’s about role reconfiguration. The GCC model is evolving from labor arbitrage to capability hubs that own products, platforms, and increasingly AI-driven operations,” said Phil Fersht.
A study found that 55% of GCC portfolios in India face displacement pressure, especially in execution-heavy roles. Analysts emphasised that the focus is shifting towards AI-led products and strategic decision-making. “AI-led code generation is already enabling companies to build more software with smaller teams… The implication is not a collapse in demand, but a repricing of routine work,” said Karthik Padmanabhan, adding that the shift is towards “different India” with more focus on innovation and product thinking.
Productivity gains of 30–40% due to AI tools have also slowed hiring demand. There has been a 16% drop in demand for coding roles, along with reduced hiring for L1 and L2 support roles. At the same time, demand for AI, data, cloud, and cybersecurity roles has risen from 30% to nearly 60% of total demand.
While entry-level hiring is declining, mid-management and specialised roles are seeing increased demand. Experts noted that roles in system design, architecture, and research will remain resilient, as GCCs shift towards more focused and skill-driven hiring strategies.
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