India's Tech Sector Expands with GCCs at the Forefront

In a significant development for India's technology sector, Global Capability Centers (GCCs) have emerged as the primary drivers of employment, accounting for over 1 lakh of the 1.2 lakh tech jobs created in 2024-25. This marks the second year in a row where GCCs have outpaced traditional IT firms in net hiring, reflecting a dynamic shift in the industry's employment landscape.

Changing Dynamics in the Tech Industry

The tech industry, now boasting 5.8 million employees, is witnessing a transformation in its business models, moving towards more outcome-based approaches. Nasscom highlights an even distribution in export revenues between MNCs, including GCCs, and Indian IT firms, each contributing $112 billion to the $224 billion total. This shift underscores the evolving nature of the sector, with AI and efficiency gains playing pivotal roles.

Insights from Industry Leaders

Cognizant CEO Ravi Kumar shared insights on the Jevons Paradox in the context of AI, noting how increased efficiency leads to higher demand. Meanwhile, HCL CEO C Vijayakumar emphasized the importance of embracing change for long-term success. The synergy between IT firms and GCCs, as noted by Nasscom president Rajesh Nambiar, suggests a complementary relationship that benefits the sector at large.