By 2026, the global capability centers (GCC) sector is expected to surpass a workforce of 2.2 million. As part of its expansion strategy, it is increasingly focusing on tier II and tier III cities to tap into a large pool of unexplored talent. Data indicates that the demand for GCCs in these cities is projected to rise by 25-30 per cent, signaling a move away from traditional metropolitan hubs.
According to NLB Services, India’s tech market reached a valuation of $254 billion in FY24, creating 1.5 lakh jobs during the year.
This growth fueled hiring in sectors like BFSI, automotive, and advanced technologies. GCCs played a pivotal role by expanding their focus to high-demand areas like AI, machine learning, digital transformation, and R&D, generating thousands of specialized roles annually.
Sachin Alug, CEO, NLB Services, said, “The GCC sector is currently experiencing rapid expansion, employing over 1.9 million professionals. By 2026, this workforce is projected to exceed 2.2 million, driven by the establishment of new centers and increasing demand for specialized skills. India is set to add approximately 800 new GCCs in the next 5-6 years, cementing its reputation as a global hub for high-value business services.”
The GCC sector is also focusing on tier II and tier III cities, which offer a cost-effective alternative to metros, making them attractive destinations for companies looking to expand their workforce, he added. While major cities like Bengaluru, Hyderabad, Mumbai, and Delhi NCR continue to be home to a high volume of GCCs, the focus has shifted to other tier II and III cities like Jaipur, Vadodara, Nasik, Coimbatore, Bhubaneswar and Indore.
Between 2018-19 and 2023-24, GCCs have added over 600,000 jobs, reaching a total of approximately 1.6 million jobs in the country, observed Sunil Nehra, CEO - IT Staffing, First Merdian Business Services. This growth is expected to continue, with projections indicating these centres will employ between 2.5 to 2.8 million professionals with the total number of GCC’s growing from approximately 1,600 to 2,200 by 2030.
“Tier II and III cities are impacting hiring trends and talent acquisition strategies, becoming increasingly attractive due to factors including a lower cost of living, reduced operational costs, and a growing pool of employable talent. Tier II cities like Jaipur, Vadodara, Coimbatore and Cochi are gaining increased interest from GCC Leaders and this will be a new trend to stay in times to come. Moreover, Tier 1 cities like Bangalore, Hyderabad, Pune, Chennai remain the hub for getting high end niche talent,” said Nehra, adding Tier II and III cities will see a 35-40% increase in job demands in the next two years.
Kedar Pathak, GCC Specialist at Xpheno, a specialist staffing company resounded that the Indian GCCs cohort reaching a projected 2.5 million headcount mark over the next 5-6 year period is a possibility, if the current trajectory is not hindered by any unforeseen global events.
The current estimated headcount of 1.9 million was reached with the cohort recording over 3.5 lakh net additions since the pandemic. Under current conditions, a 6 lakh net headcount growth by 2030, if not earlier, will be powered by greenfield GCCs and expansions by present and maturing GCCs, he noted.
“The mid-market & brick-and-motor brand GCCs have been on the rise over the last eight quarters. With US elections over and enterprises looking at global growth, US HQ companies will continue to open new and expand current centers for capabilities to move up the value change. GCCs in expansion mode invest in innovation and talent at speed for growth,” Pathak said.
GCCs that are set up as greenfields, from scratch, typically hire about one-third of their initial talent planned, in the first year. According to Pathak, the period since July 2024 has seen a few large GCC entrants and these entities will add significant volume in the H1 2025.