The Great Migration: How Global Capability Centres are Reshaping India’s IT Employment Landscape
The Indian technology sector is undergoing a tectonic shift. As artificial intelligence continues to disrupt legacy workflows, traditional IT firms are grappling with the need for rapid upskilling. Amidst this transition, a significant power shift is occurring: Global Capability Centres (GCCs)—the offshore innovation hubs of multinational corporations—are emerging as the primary engine of India’s tech job market.
A recent PwC report highlights that these centers have evolved far beyond their original roles as back-office support units. Today, they are at the heart of enterprise strategy, managing functions ranging from advanced AI research and product engineering to global profit-and-loss (P&L) mandates.
GCCs vs. Traditional IT: The New Hiring Calculus
For years, traditional IT services firms were the undisputed giants of recruitment. However, the data suggests the tide has turned. According to Neeti Sharma, CEO of TeamLease Digital, GCCs are now outpacing traditional service providers in net new job creation. In FY26, GCCs added approximately 200,000 employees, compared to 110,000 by traditional IT services firms.
The compensation gap further reflects this changing landscape. According to Aon’s latest Salary Increase Survey, GCCs are projecting salary hikes of around 9.3% for 2026, significantly higher than the 6.6% anticipated by traditional technology consulting firms.
“Compensation is often the most powerful indicator of employer confidence,” says Anuradha Mohanty, Associate Partner at Aon. “When one segment is willing to consistently pay above market while another remains restrained, it reflects where organizations see future value creation.”
The Skills in Demand: Beyond Coding
As the industry pivots toward automation, the barrier to entry has shifted. The market is currently experiencing a critical shortage of AI-fluent talent. While India hosts roughly 420,000 AI professionals, demand is expected to balloon to 1.3 million by 2027.
The most sought-after candidates are no longer those proficient only in legacy technologies, but professionals who can bridge the gap between technology and business strategy. “The opportunity is moving toward people who can combine technology with AI, business understanding, and problem-solving,” notes Sharma.
Key areas of demand include:
- AI and GenAI model development
- Cloud infrastructure and Cybersecurity
- Data engineering and Product management
Can GCCs Absorb the Talent Surplus?
While GCCs are growing, experts warn that they cannot fully replicate the sheer volume of hiring that traditional IT firms once provided. Kamal Karanth, co-founder of the specialist staffing firm Xpheno, notes that while the “mid-career” layer offers significant promise, GCCs remain highly sensitive to Return on Investment (ROI).
“The highest scale of talent action historically happened at the fresher level, which is an expensive and low-ROI layer for GCCs to undertake at scale,” Karanth explains. Consequently, the relationship between the two sectors—once a symbiotic pipeline for talent—has weakened. The talent released by traditional IT firms often lacks the specific, specialized capabilities required by modern GCCs.
The Bottom Line
The “sleeping giant” of the Indian tech sector—traditional IT services—still commands a larger overall headcount, contributing to over 34% of the industry total. However, as the focus shifts toward AI-driven transformation, the ability of the workforce to adapt will determine their career trajectory.
For professionals currently in the market, the message is clear: the era of relying on legacy skills is ending. The future belongs to those who invest in niche, AI-integrated expertise, as the “dark horse” GCCs continue to curate a highly specialized, innovation-focused workforce.
