ET Graphics: IT Hiring Rebounds in 2025, Thanks to India’s GCC Boom

After a period of recalibration, India's IT hiring landscape is experiencing a rebound in 2025, primarily fueled by the aggressive expansion of Global Capability Centers (GCCs). These centers, which are wholly-owned offshore units of multinational corporations handling tasks like IT, R&D, finance, and customer service, are increasingly viewing India as a strategic hub for innovation and core functions, rather than just a cost-saving destination. This shift has led to a surge in demand for tech professionals, especially in niche areas such as AI/ML, data engineering, cybersecurity, and cloud computing.

GCCs Lead the Charge

GCCs are driving technology hiring in India at a rate four times faster than traditional IT service companies. In fiscal years 2024 and 2025, GCCs generated over 100,000 of the 120,000 new technology positions. This stark contrast highlights a significant transformation in India's IT sector, with GCCs emerging as the primary source of technology employment. It’s expected that this disparity between GCCs and IT services will continue to widen.

This year, over 90 new companies have established GCCs in India, and more than 150 existing centers have expanded their operations. This translates to approximately 160,000 new GCC jobs in FY25, with projections exceeding 200,000 in FY26. In comparison, the top five Indian IT services firms added a mere 11,000 net employees in the first nine months of FY25. While IT services organizations still employ twice the workforce of GCCs, this difference is rapidly diminishing.

Focus on Specialized Skills

The hiring philosophy within GCCs is also evolving. Companies are moving away from volume-based hiring towards strategic, role-specific recruitment, emphasizing long-term potential and cultural fit. There's a renewed focus on fresh talent in critical, high-impact areas like Generative AI, platform engineering, data security, and core engineering roles, with a significant emphasis on campus recruitment. Traditional degree requirements are being supplemented or replaced by competency-based assessments, portfolio reviews, and practical problem-solving evaluations.

The demand is particularly strong for professionals with expertise in AI, cloud computing (especially Azure), cybersecurity, full-stack development, product and platform engineering, data analytics, and machine learning. As companies integrate GenAI into workflows, productivity, code generation, testing, and decision-making, employees need to adapt and acquire these new skills.

Beyond Metropolitan Cities

The growth of GCCs is not limited to traditional IT hubs like Bengaluru, Hyderabad, and Pune. Tier-2 cities such as Coimbatore, Kochi, Indore, Jaipur, and Ahmedabad are emerging as attractive destinations due to talent availability, lower attrition rates, affordable real estate, and supportive government policies. The expansion into these cities is leading to increased leasing of Grade-A offices, infrastructure development, and the creation of new business districts.

Attractive Compensation and Benefits

GCCs typically offer 15-25% higher compensation for standard engineering roles and 30-40% more for AI, GenAI, and advanced ML positions compared to IT services companies. They also experience better offer acceptance rates, ranging from 60-70%, compared to IT services firms.

India: A Hub for Global Innovation

With over 1,700 active GCCs, India hosts more than 53% of the world's GCC footprint. These centers are projected to generate value at a compound annual growth rate (CAGR) of 11-12% between fiscal years 2025 and 2029. This growth is fueled by digital transformation, advanced talent ecosystems, and the increasing demand for sector-specific innovation. By 2030, India's GCC count is expected to surpass 2,500, generating over $100 billion in annual revenue.

The Indian government is also playing a crucial role in supporting GCC growth through tax benefits, Special Economic Zones (SEZs), and streamlined regulations. These initiatives aim to attract and retain foreign investment, further solidifying India's position as a preferred destination for GCCs.