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Is GCC Hiring Decelerating in India? A Look at FY25 and Projections for FY26
Is GCC Hiring Decelerating in India? A Look at FY25 and Projections for FY26

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The landscape of Global Capability Center (GCC) hiring in India is undergoing a significant transformation, shaped by a confluence of seasonal patterns, sector-specific dynamics, evolving attrition rates, and overarching macroeconomic factors. Understanding these nuances is crucial for both job seekers and organizations navigating this dynamic environment.

India GCC Hiring - Slowing in FY25

Historically, the final quarter of the fiscal year (January to March) witnesses a noticeable dip of 10-15% in hiring demand compared to the initial quarter (April to June). This slowdown is often attributed to candidate sentiment, with professionals preferring to defer job transitions until annual bonuses and appraisals are finalized. Conversely, the second and third quarters emerge as peak hiring seasons, fueled by net workforce additions, the onboarding of campus graduates, and ongoing backfilling initiatives.

Sectoral nuances depict a divergent hiring story. BFSI GCCs are exhibiting a deceleration in hiring, particularly for support and operational roles. Their strategic focus has pivoted towards automation, leveraging AI for tasks like fraud detection and regulatory technology. Consequently, demand for niche skillsets in areas such as Generative AI, MLOps, cybersecurity, and financial modeling is on the rise. This shift is reflected in a 10-15% decline in job postings in Q1 2025 compared to the preceding quarter.

In contrast, Software Product GCCs present a picture of stabilized hiring, with a pronounced emphasis on roles within AI/ML, cloud engineering, DevSecOps, and product-led growth. However, expansion plans for startups within this sector have encountered headwinds due to prevailing funding challenges.

Digital Engineering GCCs demonstrate remarkable resilience, with hiring driven by a strong focus on high-end Research and Development (R&D) in domains like embedded software, edge computing, the Internet of Things (IoT), and digital twin technologies. While overall job openings in this segment experienced a 10-12% contraction, the demand for high-value roles remains robust.

Other GCC segments, encompassing Retail, Healthcare, and Manufacturing, have witnessed a general slowdown in hiring due to macroeconomic caution. Nevertheless, stable hiring persists in specialized areas such as health tech compliance, supply chain automation, predictive maintenance, and the development of smart factory technologies.

Across GCCs of varying sizes, attrition rates hover between 12-15% annually. This necessitates consistent and significant backfilling efforts to maintain operational capacity. Notably, larger GCCs (with a headcount exceeding 5000) exhibit higher monthly job postings during the first three quarters of the fiscal year, followed by a reduction in hiring activity during the final quarter.

The broader economic climate plays a crucial role in shaping GCC hiring trends. Factors such as global economic uncertainty, budget tightening within the BFSI and technology sectors, and a cautious approach to workforce planning considering AI adoption have collectively contributed to an 8-12% decrease in overall job openings during Q1 2025.

Predictions and Strategic Shifts for FY2026

As we look towards the first quarter of FY2026 (starting April 2025), the GCC hiring landscape is poised for strategic realignments. A cautious hiring sentiment is expected to prevail for support and operations roles. However, GCCs are likely to resume targeted hiring in critical, high-impact areas such as Generative AI, platform engineering, data security, and core engineering roles. Early indicators suggest a potential modest uptick of up to 10% in job postings compared to the final quarter of FY2025.

The initial two quarters of FY2026 will likely underscore a strong emphasis on operational efficiency, driven by the increasing adoption of AI and the implementation of shift-left engineering practices. Organizations are anticipated to prioritize internal upskilling initiatives over large-scale external recruitment.

Sector-specific outlooks suggest that BFSI GCCs will maintain their focus on specialized roles over volume hiring. Software Product GCCs will adopt a cautious yet strategic approach to investments in innovation-driven talent. Digital Engineering GCCs are expected to remain resilient, with hiring aligned with next-generation engineering priorities. Meanwhile, Retail and Healthcare GCCs will likely proceed with caution while strategically integrating technology.

Despite challenges such as funding constraints for startups and fluctuating consumer spending impacting retail GCCs, sectors like manufacturing and digital engineering are projected to maintain their resilience, primarily due to their focus on innovation-centric roles.

In essence, the GCC hiring narrative in India is evolving beyond mere numbers. The emphasis is increasingly on acquiring individuals with the right skills to navigate the changing technological landscape. As AI continues to reshape industries, GCCs are strategically recalibrating their talent acquisition strategies, prioritizing specialized expertise while adapting to the dynamic interplay of economic forces and technological advancements.

Source:

Han Digital


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