Global Firms Slow India GCC Hiring as 73% of HR Leaders Flag AI Skills Gap
Updated
Updated · Reuters · May 25
Global Firms Slow India GCC Hiring as 73% of HR Leaders Flag AI Skills Gap
3 articles · Updated · Reuters · May 25
Global capability centers in India are hiring more selectively and in smaller numbers as AI changes job requirements and makes advanced tech talent harder to find.
73% of HR leaders see a widening skills gap, while employers increasingly favor AI-ready candidates—40% prioritize demonstrable AI skills or certifications over degrees and 32% weigh them equally.
Executives from Microsoft, Daimler Truck, Catalyst Brands and Kimberly Clark said niche skills in AI and cybersecurity are scarce, pushing up competition and threatening to shrink traditional zero-to-two-year roles.
India is still expected to host 2,117 GCCs by fiscal 2026, up about 500 from 2021, employing 2.36 million people and generating roughly $100 billion in revenue.
Companies are responding with reskilling programs and university partnerships, while IBM said industry, government and academia must work together to close the talent gap.
GCC hiring is slowing, yet AI roles have surged 131%. Is this a talent transformation or a massive job replacement?
As AI erases entry-level roles, are India's graduates facing a permanent career crisis before their careers even begin?
With AI skills now trumping degrees, is the traditional university model becoming obsolete for a tech career in India?
India's GCC Hiring in 2026: AI Skills Gap Drives 33% Drop in Senior Roles and 19% Fewer Entry-Level Jobs
Overview
India's Global Capability Centres (GCCs) are facing a significant slowdown and transformation in hiring, driven by the rapid impact of Artificial Intelligence on workforce needs. Recruitment has been sluggish for four quarters, with tech sector hiring dropping sharply and both mid-senior and entry-level roles declining. As AI reshapes job requirements, employers struggle to find the right talent, highlighting a growing skills gap. This shift is pushing GCCs to seek professionals with strong digital and analytical skills, adaptability, and AI literacy, making continuous upskilling essential for future job seekers in this evolving landscape.