GCC Hiring Grew 8-10% QoQ in Q1FY26 Driven by Skill-First Approach: Quess
India's global capability centre (GCC) sector marked a steady return to growth in Q1FY26 with hiring volumes increasing by 8-10 per cent quarter-on-quarter after a muted Q4 driven by a skill-first approach, according to Quess Corp's latest report titled 'India's GCC Tech Talent Landscape'.
This improvement is not just a rebound, it reflects a more focused and priority-led approach to talent investments. Rather than scaling teams broadly, organizations are now hiring selectively for skills that drive innovation and long-term value.
The report offers an in-depth look at how GCCs in India are recalibrating talent strategies to stay ahead in a tech-driven, innovation-led global market. 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.
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 per cent share increase, reaching 20 per cent and 16 per cent respectively, while Technology & Hardware grew by 1 per cent to touch 13 per cent, fuelled by investments in AI, automation, and digital modernisation.
In contrast, traditional sectors like Hospitality, Travel & Logistics, Construction & Engineering, and Healthcare & Pharma witnessed a dip in hiring share. Demand in BFSI was led by functions such as AI-led credit risk, embedded finance, cybersecurity, and digital lending. In Manufacturing and Automotive, hiring was fuelled by initiatives around smart factories, industrial IoT, EV platforms, and predictive maintenance. Similarly, Technology & Hardware showed robust demand for cloud engineering, chip design, and IoT hardware development.
In Q1FY26, India's GCCs continued to face significant talent shortages in high-impact digital roles, particularly in AI, data, and platform engineering. AI, Data & Analytics recorded the steepest supply gap at 42 per cent, with critical demand for skills in Generative AI, large language models (LLMs), and machine learning operations (MLOps). Platform Engineering followed closely with a 38 per cent gap, as organizations sought DevOps, Kubernetes, and multi-cloud integration expertise to modernize infrastructure.
Cloud and Infrastructure Engineering showed a moderate gap of 25-27 per cent. Cybersecurity and software engineering also faced noticeable pressures, with 15-22 per cent gaps due to increasing needs for Zero Trust architecture, mobile development, and DevOps pipelines. In contrast, traditional domains like ERP, ITSM, and digital operations witnessed stable supply, reflecting a market shift away from legacy IT functions toward next-gen digital capabilities.
Tier-II Cities Clock Faster Growth
In Q1FY26, tier-I cities like Bengaluru, Hyderabad, and Pune continued to anchor GCC hiring, led by specialization in AI, cloud, and automotive tech respectively. Bengaluru retained the top spot with a 29 per cent share of demand, while Pune (10.6 per cent QoQ) and Chennai (9.4 per cent QoQ) showed faster growth driven by ERP and R&D roles.
Meanwhile, tier-II cities such as Coimbatore (58 per cent), Kochi (47 per cent), and Ahmedabad (42 per cent) posted significantly higher growth rates. However, due to limited mid-senior talent availability, nearly 50 per cent of complex roles in these cities are being redirected back to tier-I hubs, indicating a readiness gap despite promising momentum. The recalibrated hiring pattern suggests that tier-1 cities will continue to house high-priority, innovation-led mandates, while tier-II hubs will scale rapidly for cost-sensitive, modular, or support-driven roles
Compensation trends across India's GCC ecosystem showed signs of stabilization, with salary growth in premium tech roles moderating to 3-5 per cent quarter-on-quarter. High-scarcity positions such as Zero Trust Security Engineers, AI Observability experts, and FinOps Specialists continued to command top-tier packages, especially in tier-I cities like Bengaluru. Tier-II cities, however, continue to face a talent maturity gap, with limited availability in advanced AI and cybersecurity roles, keeping salaries comparatively lower. Mid-premium roles such as senior SDETs, cloud-native developers, and data engineers also saw steady 3-4 per cent increases, consolidating in the ₹30-38 lakh range. The compensation plateau signals a maturing market that increasingly values functional complexity and digital depth over volume.
Kapil Joshi, CEO – IT Staffing, Quess Corp said, "India's GCC landscape is undergoing a structural shift, one that prioritizes capability over sheer scale. Q1FY26 marked a steady return to growth, with hiring volumes rising by 8-10 per cent QoQ after a muted Q4FY25. This growth was driven by hiring in tier-II cities and high-impact sectors like BFSI, Manufacturing, and Tech Hardware. Deep-tech roles like AI, data science, and platform engineering face over 40 per cent talent shortfalls, slowing hiring cycles and limiting team scalability. The sustained demand for niche skills in AI, cloud, cybersecurity, and data engineering reflects a market shift, from just hiring talent to enabling transformation. It's no longer about filling positions, but about building the workforce that powers enterprise innovation and growth."
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