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The Rise of GCCs in India: Why Global Companies Are Hiring Directly While Traditional IT Struggles

Global Capability Centers (GCCs) in India are rapidly expanding, now employing over 2.5 million professionals, while traditional IT companies face hiring freezes. AI has made it viable for companies to set up smaller, highly productive teams in India, offering 20–25% higher compensation than traditional IT services. This shift signals a move from service delivery to product ownership and innovation.

read1 min views1 publishedJun 26, 2026

🚨 A silent shift is happening in India's tech industry.

While headlines focus on hiring freezes at traditional IT companies, another ecosystem is expanding rapidly.

**Global Capability Centers (GCCs).**

Over 2.5 million professionals are already working in GCCs across India, and new centers are opening every quarter.

So, what's different?

Traditional IT companies:

GCCs:

Why are more companies choosing this model?

🤖 AI has changed the economics. Companies no longer need hundreds of engineers to justify setting up an India office. Smaller, highly productive AI-enabled teams make it viable.

🌍 India has become a global engineering hub. World-class talent, mature tech ecosystems, and cost efficiency make India an obvious choice for long-term investment.

The result?

📈 GCCs continue expanding.

💰 Many offer 20–25% higher compensation than traditional IT services.

🚀 Engineers get more opportunities to work on core products instead of outsourced projects.

This isn't the end of India's IT services industry.

But it is a signal that the future of software engineering is evolving—from service delivery to product ownership, AI, and innovation.

I explored this shift in detail, including why it matters for software engineers planning their careers.

📖 Read the full article here:

👉 https://www.saurabhsharma.dev/blogs/rise-of-gccs-india-ai-jobs Do you think GCCs will become the preferred career destination for software engineers over traditional IT companies?

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