The Rise of Global Capability Centers (GCCs): Driving India's Tech Hiring Boom in FY25

The Indian tech ecosystem is undergoing a significant transformation, and at the forefront of this shift are Global Capability Centres (GCCs). According to recent reports published in Time of India, GCCs have accounted for a staggering 83% of of all tech hiring in FY25,g in FY25, surpassing the traditional IT sector for the second consecutive year including the niche roles. India's technology sector workforce grew by 1.2 lakh in 2024-2025, fueled largely by Global Capability Centres (GCCs) hiring over 100,000 professionals. Lets understand the why behind it.

Why Are GCCs Leading the Hiring Surge?

GCCs, which were initially established for cost-effective back-office operations, have evolved into strategic hubs of innovation, technology development, and business transformation. The changing role of GCCs has led to increased demand for specialized talent in AI, data engineering, cybersecurity, and cloud computing, making them a preferred career destination for top-tier tech professionals. what are the key factors that are driving it.

Key Drivers of This Hiring Boom:

1. Evolution Beyond Support Functions: GCCs are no longer just cost-arbitrage centers; they are now driving core engineering, R&D, and digital transformation initiatives for global enterprises.
2. Rapid Expansion Across Sectors: While BFSI has traditionally dominated GCC presence in India, new entrants from healthcare, retail, manufacturing and FMCG are significantly contributing to growth, diversifying job opportunities in the process.
3. Investment in Infrastructure and Talent: The Indian GCC market has crossed $46 billion in FY23 and continues to attract large-scale investments. Companies are set to add more tech roles in their Bengaluru, Hyderabad, Indore, Pune, Chennai, Vishakhapatnam center over the next few years.

India as a Global Digital Powerhouse: With access to top talent, a thriving startup ecosystem, and government-backed digital initiatives, India remains the preferred destination for multinational corporations (MNCs) setting up or expanding their GCCs, across tier 1 and tier 2 cities.

This is leading to the opportunities of growth in India, How?

Opportunities for IT Organizations in India

While GCCs are transforming the hiring landscape, Indian IT services companies have a unique opportunity to capitalize on this trend. Here’s how they are leveraging the growing influence of GCCs:

1. Building Strategic Partnerships: IT services firms are collaborating with GCCs to provide specialized services and niche skills such as Prompt Engineers, cloud management, AI-driven analytics, and cybersecurity solutions. Instead of competing, they are integrating their offerings to become key enablers of GCC success and working as extended arms for the success factors of theses GCCs.
2. Upskilling Workforce for Emerging Technologies: With GCCs investing in AI, automation, and blockchain, IT service providers are shifting focus on reskilling their talent to align with the demand for high-end engineering roles.
3. Enhancing Digital Transformation Capabilities: As GCCs drive global innovation, Indian IT companies are focusing towards digital consulting and transformation services, helping enterprises navigate the complexities of cloud adoption, cybersecurity, and DevOps.
4. Leveraging India’s Startup Ecosystem: By collaborating with deep-tech startups and GCCs, IT services Organizations are co-create cutting-edge solutions in IoT, AI, and 5G, thus strengthening their competitive advantage.

Lets see, How these organizations are keeping the pace going and manage the competition.

Competitive Landscape: How Companies Are Ensuring Results

The rise of GCCs has intensified competition among IT firms, requiring them to innovate and differentiate their service offerings. Key strategies include:

• Strengthening Domain Expertise: IT Companies are focusing on industry-specific digital solutions to align with GCC requirements.
• Expanding Global Delivery Models: IT firms are setting up nearshore delivery centers(tier 2, tier 3 cities) to complement GCC operations and ensure seamless business continuity.
• Investing in AI & Automation: Automation-first approaches in software development, customer support, and cybersecurity are giving firms an edge in efficiency and cost-effectiveness.

The Road Ahead: Growth Areas to Focus On

As the GCC ecosystem continues to thrive, both IT services companies and tech professionals must align with key growth factors that will shape the future:

1. Enterprise AI & Machine Learning: AI-driven decision-making and predictive analytics are at the core of GCC-driven transformation.
2. Cybersecurity & Risk Management: With increasing cyber threats, investing in zero-trust security models and cloud security frameworks is crucial and focus point.
3. Sustainability & Green IT: GCCs are adopting eco-friendly technology solutions. IT firms are investing in integrating green cloud computing and energy-efficient data centers into their service portfolios.
4. Product Engineering & Embedded Systems: High-end product development and IoT integration are becoming key focus areas for GCC expansion.

Final Thoughts: The Future of GCCs and IT Organizations in India

The growth of GCCs presents a dual opportunity—for organization and enterprises to drive global innovation from India and for IT organizations to scale their value proposition in high-tech #consulting and digital #transformation.

As the industry evolves, strategic partnerships, investment in emerging tech, and a future-ready workforce will be the key differentiators.

?? What’s your take on the rise of GCCs in India? How can IT services firms maximize this trend?

#GCC #TechHiring #DigitalTransformation #Innovation #Leadership #AI #CloudComputing #ITLeadership #CIO #CTO #ITServices #CyberSecurity #EnterpriseAI #wordsbyaparna