India's GCC Sector Records Robust Hiring Growth in Q1 FY26

India's Global Capability Centres experienced an 8-10% increase in hiring during the first quarter of FY26, rebounding from the previous quarter's decline. The focus shifted from volume hiring to acquiring high-value talent in areas like AI and cybersecurity, leading to skill shortages, particularly in Tier-2 cities.

India's Global Capability Centres (GCCs) have reported a notable uptick in hiring, with volumes rising by 8-10% during the first quarter of FY26. This growth marks a rebound from a somewhat sluggish performance in Q4 FY25, where hiring saw a modest downturn of 3-6%. The latest figures reflect a strategic shift towards skill-focused recruitment practices, particularly in high-demand areas such as artificial intelligence and platform engineering.

The hiring landscape is shifting as companies target high-value positions in AI, platform engineering, and cybersecurity. However, according to Quess Corp, these efforts have exacerbated critical skill shortages nationwide. The focus is now on quality over quantity, with firms looking for specialists who can drive innovation and contribute to long-term value.

While Tier-1 cities dominated hiring volumes, it is Tier-2 cities that showed the fastest growth, though they face significant skill shortages. As Tier-2 locations like Coimbatore, Kochi, and Ahmedabad report hiring booms, complex digital roles continue to struggle due to a lack of deep expertise, prompting many companies to redirect talent needs back to Tier-1 cities like Bengaluru.

(With inputs from agencies.)