India's GCCs Drive Tech Hiring Amid Muted IT Sector Growth
India's GCC ecosystem is projected to surpass US$100 billion by 2030, employing over 2.5 million professionals.
20 JUNE 2025 / 1 min read
Global Capability Centres (GCCs) in India are emerging as key drivers of IT hiring, according to a recent report by Kotak Institutional Equities. Despite a subdued outlook for the IT sector in FY26 due to US tariffs and ongoing cost optimisation, GCCs are expanding in India, fuelling headcount growth by hiring talent from traditional IT-service firms.
The report highlights that GCC hiring continues to be on a growth trajectory, driven by the ramping up of Greenfield GCCs, which are becoming major growth drivers and taking the lead in overall hiring across the IT sector. Existing GCCs have seen some moderation, but the overall trend remains supportive.
The expansion of GCCs is impacting traditional IT companies’ growth and margins, with deal activity driven by cost optimisation rather than expansion or innovation, affecting margins and reducing pricing leverage and profitability.
India's GCC ecosystem is projected to reach US$100 billion in value by 2030 and employ over 2.5 million professionals. Greenfield GCCs are driving growth with expansion led by the rebadging of employees from IT-services companies. However, the cost of operating GCCs remains high, with divided opinions on whether it is higher than that of traditional-IT services.
Kotak Institutional Equities forecasts a moderate outlook for the IT sector in FY26, with a balanced view on IT sector stocks, and companies such as Tech Mahindra, Infosys, Hexaware, Coforge, and Indegene are top picks for the firm, expecting moderation in fresh investment in engineering, research and development sectors assuming slow US economic growth.
