India staffing firms hit as GCC tech hiring slows on automation
NEW DELHI, INDIA — India’s staffing industry is scaling back growth projections as Global Capability Centers (GCCs) slow down recruitment in routine tech roles amid automation and shifting business priorities.
According to a report from The Wire, the slowdown is adding pressure on recruitment firms that rely heavily on hiring by GCCs and IT services companies.
Automation reshapes India GCC tech hiring
The rise of automation is reshaping the hiring landscape across India’s technology sector, leading GCCs to focus on process transformation rather than large-scale recruitment.
“Most large scale GCCs that had expanded majorly over the past few years are now focusing on transforming their processes in areas of people management, technology, and shared services (IT and customer support functions),” said TeamLease Digital chief executive Neeti Sharma as quoted by Live Mint.
“Hence, currently their hiring volumes are not in line with their previous years’ hiring,” Sharma added.
This slowdown comes on top of already muted recruitment over the past two years, when weak global demand curbed hiring by IT services players.
The reduction in routine recruitment has particularly affected staffing firms such as TeamLease Services, Quess Corp, and Info Edge, which earn as much as 44% of their revenue from IT-related placements by GCCs and tech services companies.
India pivots to value-led, AI and cybersecurity hiring
Despite the slowdown, demand persists for specialized roles in AI, machine learning, cybersecurity, cloud, and data. Staffing companies are anticipating a shift toward value-led hiring, offering higher compensation for niche skills while routine tech recruitment remains subdued.
Companies also expect recruitment growth in sectors such as pharma, retail, and manufacturing, alongside increased AI-focused investments by GCCs.
India hosts over 1,760 GCCs, with 875 in Bengaluru and 355 in Hyderabad, generating around US$64.6 billion in export revenue, nearly a quarter of the country’s IT sector revenue of US$283 billion.
Nasscom projects the number of GCCs will grow to 2,200 by March 2030, with the market reaching US$105 billion.
While routine tech hiring may be slowing, the outsourcing industry is undergoing a structural transformation rather than a contraction.
GCCs are paying more attention to important jobs and tech-based services, which means that staffing companies that can shift to hiring for specialized skills might still find chances to grow in a fast-changing market.
