India’s Global Capability Centres (GCCs) witnessed an 8-10% increase in hiring volumes in Q1 FY26, compared to a 3-6% decline in the Q4 of FY25. This marks a return to strategic, skill-focused recruitment practices. The sector is shifting away from volume hiring, instead prioritising high-value talent in AI, platform engineering, and cybersecurity. This shift is driven by the need to address critical skill shortages across the country.
As global enterprises double down on automation, AI, and next-gen infrastructure, India’s GCCs are seeing a clear pivot from headcount expansion to capability-centric hiring. According to the report, hiring volumes rose to 8-10% in Q1FY26, as against to a muted Q4FY25, signalling a shift back to strategic and skill-first recruitment.
In Q1FY26, India’s GCC sector saw a strategic hiring shift, with high-growth verticals like BFSI, Manufacturing, Automotive & Energy, and Technology & Hardware driving demand. BFSI and Manufacturing sectors each saw a +2% share increase, reaching 20% and 16% respectively, while Technology & Hardware grew by +1% to 13%, fuelled by investments in AI, automation, and digital modernisation. In contrast, traditional sectors like Hospitality, Travel & Logistics, Construction & Engineering were the main drivers of demand during Q1 FY26.
The Manufacturing, Automotive, and Energy sector saw the highest demand growth at 31% QoQ, fuelled by investments in smart factories, Industrial IoT, and electric vehicle (EV) platforms. The BFSI sector remained the largest hirer, accounting for 20% of the total GCC market share and growing 15% QoQ. Demand in BFSI is primarily driven by AI-led credit risk analysis, cybersecurity, and digital lending.
Geographically, Tier-I cities continued to dominate the GCC hiring market, with Tier-2 cities also witnessing significant growth. This shift signifies a move towards a more diversified and inclusive talent pool, tapping into the potential of emerging markets and untapped talent resources.
In conclusion, India’s Global Capability Centres are experiencing a transformative hiring landscape, focusing on quality over quantity. The rise in demand for specialized talent in areas like AI, data science, and platform engineering highlights the industry’s shift towards innovation and digital transformation. As the sector continues to evolve, strategic recruitment practices will be key in meeting the demands of a rapidly changing business environment.
Originally published on https://www.crn.in/news/gcc-hiring-picks-up-pace-with-8-10-qoq-growth-in-q1fy26-market-study-by-quess/
