AI cuts routine IT jobs as GCCs drive 2026 hiring in India

HYDERABAD, INDIA — While overall hiring remains stable compared with last year, AI-driven efficiencies are reshaping the demand for tech professionals, with Global Capability Centres (GCCs) emerging as the key drivers of India’s IT employment growth, according to a report from The Hans India. 

AI limits routine roles, GCCs step up

Traditionally, IT services firms relied on the time-and-materials (T&M) billing model, which charged clients based on the hours engineers worked. This approach meant more human resources, which translated into higher revenue. 

However, the rise of AI-powered platforms is fundamentally altering that model. AI-powered solutions and platforms are increasingly capable of automating repetitive tasks, reducing the need for entry-level engineers. 

The report noted that “AI is able to do more with a lesser number of engineers,” forcing the sector to adjust its hiring patterns.

Despite these structural changes, India saw a recovery in IT hiring in 2025. Demand for IT professionals jumped 16% to 1.8 million roles, with most of the growth coming from GCCs rather than traditional IT services companies. 

GCCs, now numbering around 1,700 and projected to reach 3,000 by 2030, are powering global firms’ digital transformation efforts. 

“GCCs boosted their share of India’s IT hiring market to around 27 percent of total demand in 2025, up from around 15 percent last year,” the report highlighted.

2026 India IT hiring outlook: Stable demand, AI-led shift

While product and SaaS firms expanded hiring selectively, IT services and consulting firms saw only modest growth, and startup hiring fell to low single-digit levels. 

According to staffing firm Xpheno, “Tech hiring remained sluggish through December 2025 and entered the New Year with little sign of recovery,” with current demand nearly 60% lower than the peak in early 2022. However, GCCs continue to be a notable exception, with a 7% increase in job opportunities.

Looking ahead, the hiring landscape will depend heavily on macroeconomic developments. If global supply chains stabilize, sectors like manufacturing, retail, and automotive could increase demand for IT professionals. 

Experts suggest that generative AI represents a “watershed movement in the global technology industry,” where more work will be executed through AI tools than by human engineers. 

Hiring is expected to shift toward complex, high-value tasks rather than routine operations.

What AI and GCC growth mean for global outsourcing jobs

For the outsourcing industry, these trends signal a long-term shift. While the number of traditional IT service roles may plateau, GCCs and AI-enabled workflows are creating a new blueprint for tech employment in India.

The sector’s growth will increasingly hinge on combining human expertise with AI capabilities, marking a strategic pivot for global IT outsourcing.