GCCs vs IT sector: Who will win the talent war in 2025?

In a recent ‘Future of Work’ report by NASSCOM, millennial and Gen Z survey respondents pointed out two big driving reasons for changing employment. One being better financial benefits and the other the lack of learning opportunities. Traditionally, the Indian IT sector has been absorbing the country’s vast tech talent, however, post-pandemic captives/global capability centres (GCCs) of multinational corporations have been ramping up their headcount in India.

Currently, over 1,700 GCCs employ nearly 1.9 million people, while the IT/ITES sector employs nearly 5.4 million, according to industry estimates. While big IT firms have started hiring, though in fewer numbers, after a lull of nearly 6-8 quarters, ratings agency ICRA expects hiring to come back only in the second half of FY26. In contrast, industry experts see GCC hiring to be robust in 2025. According to staffing firm Quess Corp, in 2025, GCCs in India are likely to see a hiring surge of 18-20%, possibly creating 3.8 lakh new jobs across sectors, while IT companies might increase their hiring only by 8-10%.

Interestingly, in 2024, both IT services and GCCs saw an accelerated hiring of middle-level talent compared to freshers. Kapil Joshi, CEO, Quess IT Staffing, says this surge in middle management demand is especially in cities like Bangalore, Mumbai, and Chennai, where the focus is on leadership and technical expertise to drive expansion. When it comes to attracting talent, “IT firms are securing professionals with deep technical expertise, especially in areas like cloud, AI, and cybersecurity, by offering long-term career stability and specialised development opportunities. GCCs, meanwhile, are emerging as strong contenders by providing professionals the chance to work with global brands while enjoying the benefits of a more balanced work-life dynamic and the potential for global exposure,” he adds.

While AI, data analytics, cloud and cyber security skills will continue to be in demand in 2025, GCCs are also expected to continue to offer competitive packages compared to traditional IT services companies this year. At GCCs, the average salaries for mid-level roles are expected to range from ₹12-25 lakh per annum (LPA) while senior roles may command packages from ₹30- 50 LPA. However, the average salaries for mid-level roles in IT services companies are likely to be between ₹8-20 LPA, while senior positions may command ₹20-35 LPA, according to Quess.

Recruiters are also seeing a noticeable shift in the preference of employees, particularly at mid and senior levels, towards GCCs over traditional IT roles. “The emphasis on work-life balance and employee well-being is becoming a key differentiator for GCCs, making them increasingly appealing to job seekers,” says Karthikeyan Kesavan, director, Permanent Recruitment, Adecco India. With a culture of innovation, and diverse career advancement opportunities, “Employees often have the chance to take on international assignments or collaborate with global teams, which enhances their exposure to different cultures and business practices. This experience is invaluable for personal and professional growth, as it not only broadens their understanding of international markets but also significantly boosts their career prospects,” says Kesavan.

With a focus on highly skilled talent, GCCs are also raising the bar for the recruitment process by refining their hiring strategies through data and feedback. To adapt quickly to the changing market dynamics, tracking metrics such as time-to-hire, quality of hire and use of technologies like AI/ML, to streamline candidate sourcing, screening and selection, which help in reducing unconscious bias, are now an integral part of the talent acquisition process for building a diverse and inclusive talent pool.