India’s Global Capability Centre (GCC) ecosystem recorded a strong recovery in hiring during Q4 FY26, with growth of 12–14% quarter-on-quarter, reflecting a shift from cautious optimisation in Q3 to expansion-led momentum, according to a report by Quess Corp.
A key trend highlighted in the report is the sharp rise in replacement hiring, which now accounts for 40% of total recruitment activity. This surge is largely driven by shorter tenure expectations among Gen Z employees, now averaging under 24 months.
These changing workforce dynamics are pushing GCCs to balance rapid expansion with the need to maintain organisational continuity. “As GCCs evolve into strategic global hubs, the focus must shift toward balancing rapid scale with long-term capability building to ensure sustained growth,” said Kapil Joshi, CEO of IT Staffing.
Demand continues to be led by AI-driven roles, platform engineering, and infrastructure modernisation. However, talent shortages remain a major challenge. The BFSI sector is facing a 42% skill gap in AI and data roles, forcing companies to offer salary premiums ranging from 1.5x to 2.5x to attract specialised talent.
Shortages are also visible in platform engineering (32–36%) and cloud infrastructure (28–32%). The report noted that the issue is not a lack of job openings but a shortage of specialised expertise, especially in areas like AI/ML Ops, leading companies to invest in internal upskilling.
The hiring surge is supported by an expanding GCC footprint, indicating renewed enterprise confidence. After a slow start, hiring momentum picked up significantly toward the end of the fiscal year.
Geographically, recruitment remains heavily concentrated in Tier-1 cities, which account for 88–90% of GCC hiring, led by Bengaluru and Hyderabad. Tier-2 cities have increased their share to 10–12%, although nearly half of complex technical roles are still based in Tier-1 hubs.
“This reinforces a “hub-and-spoke” model, where Tier-1 locations drive innovation while Tier-2 cities focus on execution and operational scale,” the report said.
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