India’s global capability centres (GCCs) are thriving — but their growth is powered less by fresh talent pipelines and more by a deep, continuous draw from the same lateral talent pool.
The model has worked so far, but as demand outpaces supply, cracks will begin to show in the ecosystem’s long-term sustainability.
Over the last few years, GCCs have outpaced traditional IT services in hiring, capability building, and innovation. Yet, the very engine driving this acceleration is one that runs on borrowed force of lateral hiring.
Kapil Joshi, CEO of Quess IT Staffing, told AIM that lateral hiring continues to be the backbone of GCC growth in India. “Around 40–48% of GCC headcount comes directly from the IT services industry, rising to ~53% in newer GCCs, particularly in the 1-5 years’ experience range, which forms the sweet spot for capability and cost.”
He mentioned that recent trackers show that roles seeking 0-3 years’ experience make up about 42% of GCC jobs today, but these are mostly laterals with 1-3 years of experience, not fresh graduates.
It’s a cycle of talent recycling rather than replenishment. Joshi added that beyond IT services, “another ~36% of lateral talent is sourced from peer GCCs for senior roles, and ~24% through internal movements, with only a small fraction from freshers.”
The reason, he explained, is both structural and strategic. “The demand-supply gap makes this reliance unavoidable. In high-demand domains like AI, data science, and platform engineering, the talent shortfall ranges between 25–40%. At the same time, 40% of GCC hiring in 2025 is expected to be replacement hires, reflecting high churn and short tenure cycles.”
However, it’s a high-velocity, high-churn loop that sustains growth in the short term — but raises long-term questions about depth and durability.
Mid-Market GCCs Change the Game
If global Fortune 500 GCCs are competing with sheer salary power, mid-market centres are playing a different game altogether.
Namita Adavi, partner at Zinnov, told AIM that mid-market GCCs are carving out a distinct talent strategy in India.
They believe not in chasing parity, rather changing the game. Those companies are offering faster career mobility, broader cross-functional mandates, and fast-tracked global exposure, the very things mid-level professionals now prize more than a few extra percentage points of pay.
Adavi added that these GCCs are “positioning themselves as accelerators of talent rather than just employers,” and that they’re “future-proofing their pipelines by tapping tier-2 talent pools, running structured campus programs, and embedding reskilling initiatives that create a diversified, sustainable workforce engine.”
It’s a subtle but significant shift, from chasing talent to cultivating it.
Smaller Centres, Sharper Cultures
Contrary to popular perception, it isn’t just the big names who can afford to pay well. Ashutosh Sharma, VP and research director at Forrester, said he doesn’t completely agree with the assumption that global giants are a better paymaster than smaller GCCs. “It is all about skills and the prevalent pay scales for the same. We have smaller GCCs that pay top dollar for good talent.”
Sharma added that in many cases, smaller companies attract certain job-seekers because of the breadth of experience they offer compared to larger counterparts. Sometimes smaller GCCs try to differentiate by offering flexibility and a more welcoming culture.
He noted that market dynamics also play a huge role. “Sometimes talent supply exceeds the demand lowering wage expectations — a phase we experienced post-pandemic boom.”
A Shift in the Talent Equation
The hiring data supports the story of a changing power balance between GCCs and traditional IT firms.
Neeti Sharma, CEO of TeamLease Digital, said that GCCs in India are hiring many more experienced professionals than traditional IT companies for the second year in a row. “In 2024–25, they hired almost 10 times more than the larger Indian IT services companies.”
And this surge isn’t just about volume — it’s about value.
She added that a lot of this hiring is for specialised skills like AI, cybersecurity, data analytics, and data governance combined with respective domain knowledge and experience.
“GCCs usually pay 20–25% higher, sometimes even more for new tech roles. Plus, they offer global exposure, better work-life balance, and more meaningful roles with real responsibility,” she mentioned.
As GCCs evolve into product-centric, innovation-led organisations, the expectations from mid-level leaders have changed dramatically.
Sanju Ballurkar, president at Experis India, ManpowerGroup, said that GCCs operate with flatter, product-centric structures and expect mid-level leaders to own product outcomes, collaborate globally, and contribute to innovation. “This evolution highlights the need for traditionally execution-focused mid-level talent to move beyond coordination and step into more strategic, innovation-driven roles.”
The Much Needed Reckoning
For now, India’s talent reservoir continues to fuel the global GCC expansion story, but as attrition, cost pressures, and demand for specialised skills rise, the question looms: how long can the ecosystem sustain itself without a stronger supply?
With 4.5 lakh professionals expected to be employed in GCCs by the end of 2025, the stakes are high. India’s dominance as the global hub for complex, high-value work depends not just on lateral hiring, but on building the next wave of homegrown, future-ready talent.
The borrowed force has powered the ascent, but the next chapter will depend on whether India can make it truly its own.
The post GCCs Living on Borrowed Force, But for How Long? appeared first on Analytics India Magazine.
