Bengaluru: The Rise of GCCs

The meteoric rise of India’s global capability centers (GCCs) continues to showcase their growing influence, not just as execution engines but as drivers of strategic initiatives. For the second consecutive year, GCCs are expected to outshine IT services in hiring, establishing themselves as custodians of process and tech innovation for their parent organizations.

IT Firms' Hiring Trends

Contrastingly, the top five Indian IT firms witnessed a modest workforce increase in the first half of the 2024-25 fiscal year, adding 13,000 new hires. This marks an improvement from the previous year's significant reduction of nearly 44,000 employees. However, with a quarter remaining, industry experts anticipate muted hiring activity.

Challenges and Opportunities

Several IT firms, including Infosys, Cognizant, Wipro, and HCL, experienced headcount reductions in the September quarter of the 2024-25 financial year. This trend reflects a three-year pattern of decoupling revenue and headcount, driven by enhanced automation, improved productivity, and a conservative growth outlook amidst single-digit growth this fiscal year.

Future Outlook

With the number of GCCs expected to grow to 2,200 by 2030, employing 2.5 to 2.8 million employees, the landscape of the Indian IT industry is shifting. GCCs are not only enhancing their capabilities but also elevating the entire Indian IT industry, offering higher salaries, challenging roles, and opportunities to work with cutting-edge technologies.