India’s Global Capability Centres (GCCs) have surpassed traditional IT services firms in net hiring for the 3rd consecutive year, signaling a major transformation in the country’s technology employment market. Data shared by staffing firm Xpheno showed that GCCs added nearly 200,000 employees in FY26, while the IT services sector recorded around 110,000 net hires.
The gap between the 2 sectors widened considerably in FY26 after relatively close hiring numbers in previous years. GCCs added nearly 110,000 employees compared to 100,000 by IT firms in FY25. In FY24, the figures stood at 60,000 and 50,000 respectively.
Industry experts believe the trend reflects the stronger long-term growth outlook of GCCs, alongside slower momentum in the IT services sector due to macroeconomic challenges and evolving business models. GCCs are increasingly strengthening in-house technology operations while expanding capabilities across AI, digital engineering, analytics, data centers, and next-generation computing.
India’s GCC ecosystem has now crossed 2,000 centres and generates nearly $98.4 billion in cumulative revenue, rising sharply from around $65 billion recorded 2 years ago. The expansion has also increased demand for specialized engineering talent and domain experts across industries.
Kamal Karanth said GCC hiring remains strong because these organizations typically operate on longer-term expansion strategies, unlike IT services firms that often adjust hiring plans quarterly. He also noted that growing AI adoption is reshaping hiring priorities across the sector.
At the same time, leading IT companies have maintained a cautious hiring strategy amid weaker demand visibility and increasing focus on AI-driven productivity. Reports indicate that several top Indian IT firms reduced workforce numbers in FY26 while prioritizing hiring in AI, cloud, cybersecurity, and digital transformation roles.
The continued expansion of GCCs is strengthening India’s position as a global technology and innovation destination, with multinational companies steadily increasing their engineering, digital, and strategic operations across the country.
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