GCCs dominate India’s tech hiring with over 1 lakh recruits in FY25
India’s technology sector expanded its workforce by 1.2 lakh people in the 2024-25 financial year, with global capability centres (GCCs) accounting for over 1 lakh hires during this period.
This marks a significant increase from 90,000 hires in the previous year. The total tech industry workforce now stands at 5.8 million, up from 5.6 million in the prior year, reported timesofindia.indiatimes.com.
GCCs outpace IT firms for the second consecutive year in net hiring
In the first nine months of FY25, top Indian IT firms hired just 11,000 employees. The five largest Indian IT services companies increased their workforce by only 5,190 employees during FY24. For the second year in a row, GCCs have surpassed traditional IT firms in net hiring
As India’s tech sector approaches a $300 billion valuation by FY26, business models are evolving to become dynamic and outcome-driven. For the first time, Nasscom reported an even split in export revenues of $224 billion between multinational corporations (including GCCs) and Indian IT firms, each contributing $112 billion.
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The technology sector has shifted from an employees’ market to an employers’ market. Artificial intelligence is disrupting the conventional relationship between revenue and employment
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While major Indian IT firms face single-digit growth and workforce reductions, GCCs remain a driving force behind employment growth
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India now hosts 1,760 GCCs, focusing on high-value services and engineering research and development (ER&D)
At the Nasscom Technology & Leadership Forum (NTLF), HCL CEO C Vijayakumar emphasized the need to adapt to industry changes. He stated that companies must focus on delivering greater value through existing resources to unlock new growth opportunities.
Cognizant CEO Ravi Kumar highlighted the impact of AI, explaining that machines now generate 20% of the code, allowing teams to achieve more with fewer personnel.
He referenced Jevons Paradox, where increased efficiency drives higher overall demand.
Tech sector snapshot and industry insights
Kumar dismissed the notion that GCCs are competitors, revealing that Cognizant actively collaborates with them. He mentioned that Cognizant is engaged in 10 GCC deals, helping to establish centres and develop microservices.
With operations work increasingly moving to India, the addressable market for IT firms is expanding.
Ramkumar Ramamoorthy, partner at Catalincs, compared the industry landscape to “a tale of two cities.”
He described 2024 as a year of slow growth for major IT firms but rapid expansion for GCCs. Ramamoorthy warned that IT companies must invest in innovation to remain competitive, or GCCs will continue to dominate tech talent acquisition.
He estimated that IT services companies generated $20 billion in free cash flow last year, with over 75% returned to shareholders instead of being reinvested.
Nasscom president Rajesh Nambiar emphasized the complementary relationship between IT firms and GCCs.
He noted that many Indian IT companies have established dedicated GCC practices to serve this growing market, fostering a balanced ecosystem. This collaborative approach, he asserted, is essential for the future of India’s tech industry.
tech hiring, GCCs, India technology sector, FY25, Indian IT firms, Nasscom, AI disruption, tech workforce, global capability centres, employment growth
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