How GCCs Are Sustaining Indias Tech Jobs While IT Services Hit Pause

India’s tech job market in 2025 has seen a stark divergence in hiring trends: while the traditional IT services industry has slowed hiring significantly, Global Capability Centres (GCCs)  strategic offshore units of multinational corporations  have emerged as a key driver of growth, keeping demand for tech talent alive amidst uncertainty.

Even as legacy IT services firms adopt hiring moratoriums or maintain highly cautious talent strategies due to macroeconomic headwinds, corporations are increasing recruitment through their GCCs in India  fuelling opportunities in AI, analytics, cybersecurity, cloud computing, and product engineering. This shift not only underscores a broader transformation in how tech roles are created in India, but also highlights the evolving role of GCCs in the digital age.

Global Capability Centres (GCCs) are offshore subsidiaries of global corporations that handle a range of functions for their parent organisations  from back‑office support to high‑value strategic roles such as software development, R&D, data analytics, and digital transformation initiatives. Initially viewed largely as cost‑efficient outsourcing hubs, GCCs have evolved into global innovation centres that undertake complex, mission‑critical work. 

Although the Indian IT services sector  led by firms like TCS, Infosys, and Wipro  continues to employ a large workforce, growth in net new jobs has significantly slowed in 2025. Factors such as automation, weak large deal closures, and an emphasis on productivity and operational efficiency are contributing to the stagnation. Meanwhile, GCCs are growing at a much faster pace, absorbing talent that might otherwise have gone into traditional IT services. 

Data from staffing firms and industry reports show a sharp contrast between hiring rates of GCCs and IT services companies:

These figures illustrate a tectonic shift in India’s employment landscape within the tech sector  one where GCCs are assuming the role of primary job creators, especially in advanced tech areas.

Several structural and strategic factors explain why GCCs are hiring even as IT services pare back:

GCCs are increasingly entrusted with strategic technology functions by their parent companies, including artificial intelligence, machine learning, cloud engineering, data science, cybersecurity, and digital product development. These advanced areas demand highly skilled talent and offer better growth prospects, attracting both experienced professionals and fresh graduates. 

Multinational corporations are consolidating key technology functions in India to leverage its deep talent pool and cost efficiencies. GCCs serve as innovation hubs where products are not just supported but developed for global markets. This elevates the importance of GCCs beyond routine operational tasks. 

GCCs often offer competitive salaries  typically 15–30% higher than legacy IT services firms for equivalent roles  particularly in emerging tech domains like AI, data analytics, and cloud security. This salary advantage, along with exposure to global projects and modern work environments, helps GCCs 

Unlike many IT services companies that adjust hiring frequently based on quarterly performance, GCCs tend to have longer‑term hiring plans, often spanning three to five years. This gives them visibility and confidence to recruit steadily even in uncertain economic cycles. 

The shift toward GCC‑led hiring has several important implications for India’s tech workforce:

In a year where traditional IT services  once the dominant source of technology jobs  have slowed or paused hiring, GCCs have become a key stabilising force. This has helped sustain tech employment levels and mitigate the impact of broader market softness. 

With GCCs focusing on AI, cybersecurity, cloud, and advanced analytics, there is now greater demand for professionals with specialised skills rather than generalist software engineering profiles. This invites both upskilling and reskilling among the workforce.

Although traditional tech hubs like Bengaluru, Hyderabad, Chennai, and Pune continue to dominate GCC presence, the trend is pushing talent demand into tier‑II cities as well. This broader geographical diversification could further expand job opportunities across India.

Industry experts suggest that if current trends continue, GCCs could eventually outpace traditional IT services as the primary source of tech hiring in India. This would mark a long‑term structural change in the industry’s employment landscape  one that aligns with global digitisation strategies and the shift toward high‑value technological work. 

At the same time, challenges such as automation’s impact on certain roles and fluctuating global demand continue to shape the market. But for now, Global Capability Centres stand out as a lifeline  preserving tech talent demand, fostering specialised skills, and offering career pathways even as legacy hiring approaches evolve.