TCS layoffs trigger talent shift as GCCs eye 3.8 lakh tech hires in FY26

India's tech industry witnessed a major jolt this week after IT behemoth Tata Consultancy Services (TCS) announced it would lay off 2%--approximately 12,000 employees globally--at the mid and senior level in fiscal year 2026, citing 'skill-mismatch'. Experts told Storyboard18 that TCS's move is likely just the beginning, with other IT giants such as Infosys, Wipro, and HCL Tech expected to follow suit in the coming quarters due to tepid growth climate and AI disruption.

However, Global Capability Centers (GCCs), offshore or nearshore entities owned and operated by multinational corporations (MNCs), are emerging as a promising refuge for tech professionals. Some of the popular GCCs in India are IBM, Dell, Capgemini, JP Morgan, Barclays, AWS, etc.

According to Ritesh Sharma, Country Head, SA Technologies, working professionals affected by layoffs are increasingly drawn to GCCs due to their 'inherent stability'.

While GCCs previously outsourced tech work to IT services firms, they now directly tap into India's skilled talent pool.

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"GCCs have evolved from being purely cost centers into innovative hubs requiring high-value digital skills," Ritesh added.

Currently, India is home to around 1,900 GCCs. Over 120 have been established since January 2023, driven by growing demand for Artificial Intelligence (AI), cloud, and analytics skills, and state governments’ support.

'GCC's popularity among IT professionals'

An industry expert told Storyboard18 about that there has been a noticeable shift among engineering graduates, who now prefer GCCs and startups over traditional IT services firms--primarily for two reasons: job safety and higher pay cheques.

Sector desirability among freshers or experienced professionals alike is often influenced by hiring trends and job creation momentum.

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According to Kamal Karanth, Co-founder, Xpheno - a specialist staffing firm, GCC hiring has outpaced that of the IT services sector since the hyper-hiring phase in early FY2022.

"The IT Services cohort has clocked a little under 3.5 lakh net headcount additions to move from 22 lakh to 25.5 lakh headcount," Karanth added. "The GCCs and the GCC-enabling Consulting cohorts have clocked 3.2 lakh net and 1.7 lakh net headcount additions, respectively. Overall, they have grown from 16 lakh to nearly 21 lakh when it comes to job creation".

Ritesh further explained that professionals are attracted to GCCs for timely onboarding, better work culture, and the opportunity to work on proprietary global products, rather than project-based services typical of IT firms.

'Hiring at GCCs'

The robust hiring trend at GCCs is set to continue in the current fiscal year 2026 at GCCs amid the increased demand for talent in AI, cloud computing, and digital transformation.

According to Neeti Sharma, CEO, TeamLease Digital, recruitment at GCCs is projected to rise by 50-75% in FY26 compared to FY25.

"GCCs are expected to create 3.4 – 3.8 lakh new jobs over the next 5-6 quarters," Neeti Sharma added.

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Several GCCs are actively looking for skilled mid-level professionals with domain knowledge and global experience, which matches well with the profile of many laid-off IT employees, Sharma said.

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Furthermore, expansion into tier-2 cities has made GCCs even more attractive for mid-level and senior professionals seeking career stability outside of major metro areas. According to Pranay Kale, Chief Revenue & Growth Officer, foundit, Hyderabad, Pune, Jaipur, and Indore are some of the emerging hubs where GCCs continue to scale their operations.

"GCCs are also making it easier for professionals to find good opportunities without having to move to big metros," Sharma said.

'GCC vs IT attritions'

GCCs have also outperformed IT software giants when it comes to employee retention. Attrition rate, defines as the percentage of employees leaving an organization over a specific period, has been higher in IT services companies than in GCCs over the past three years.

Wipro's involuntary attrition rates have witnessed massive fluctuation over the past three years, standing at 19.4% (FY23), dipping to 14.2% (FY24), and slightly rising to 15.1% (FY25), respectively.

TCS followed a similar trend, with involuntary attrition at 20.1% (FY23), 12.5% (FY24), and ticking up to 13.3% (FY25). At Infosys, the involuntary attrition stood at 20.9% (FY23), 12.6% (FY24), and 14.1% (FY25).

However, HCL Tech has reported a sustained decline in attrition, reporting 19.5% in FY23 and a drop to 12.4% in FY24. However, the company has yet to disclose its attrition rates for FY25.

Over the last two years, these four IT giants collectively saw a headcount reduction of over 40,200, with Wipro leading the decline (25,200 jobs lost since 2023), followed by Infosys (12,506), and TCS (2,249).

In contrast, the GCC sector has not been degrowing headcounts during the same period.

According to Karanth, GCCs are seen performing relatively better with 2 - 3 percentage points lesser than the IT services average. "IT services cohort clocked attrition in the 14% - 18% range, the GCCs fared better at 12% - 15% range".

'Salaries'

Despite similarities in job roles for techies, GCCs offer higher compensation packages compared to traditional IT firms. GCCs are offering salaries 12%-20% higher on average, and in some cases, up to 30% more than traditional IT services companies.

According to foundit data, working professionals with 7 to 10 years of experience, earn an average salary ranging between Rs 15.42 LPA and Rs 24.62 LPA at GCC, while their counterparts in IT sector draw salaries between Rs 15.38 LPA to Rs 18.75 LPA.

For GCC employees with 11 to 15 years of experience, draws average salary between Rs 25.34 LPA and Rs 33.67 LPA. Whereas, an IT professionals with similar experience earn between Rs 18.41 LPA and Rs 30.07 LPA.

"This growing disparity reflects the increasing strategic importance of GCCs in global operations, where demand is high for specialised skills, digital capabilities, and leadership that can drive transformation at scale," Kale said.