GCCs Expect to Fill 50% of New Roles Through Internal Talent in FY26: Report

Global capability centres (GCCs) in India are shifting their talent strategies as nearly nine out of 10 expect up to 50% of their hiring in FY26 to come from internal mobility, as per a new report titled ‘Cracking the Growth Code for GCCs in India’ by Taggd in partnership with the Confederation of Indian Industry (CII) and JLL India.

This marks a growing move toward building talent from within amid rising attrition and changing workforce expectations.

To address this, GCCs are increasingly leaning on internal mobility strategies, providing employees with new roles or responsibilities within the organisation. This shift is being used not just to retain talent but to build specialised, future-ready teams.

Despite the challenges pertaining to employee retention, 48% of GCCs plan to expand their workforce in FY26, while another 19% maintain hiring levels similar to FY24. Early-career lateral professionals with one to five years of experience remain the top hiring priority, as they bring a balance of cost efficiency, adaptability and technical capability.

However, talent churn is proving to be a key concern, with replacement hiring expected to account for nearly 40% of total recruitment this year. This signals a growing struggle with retention across the GCC ecosystem in India. 

The report also highlights a shift in tenure expectations, particularly among Gen Z professionals, who prefer not to stay in the same role beyond 18–24 months due to limited career growth or job stagnation.

Furthermore, 60% of GCCs continue to hire exclusively from Tier 1 cities like Bengaluru, Hyderabad and Pune, with nearly 29% expanding into a mix of Tier 1 and Tier 2 cities. An additional 13% are exploring hiring in Tier 2 and Tier 3 cities—driven by cost optimisation and access to regional talent pools.

Moreover, hybrid roles are now mainstream, with 78% of GCC hiring expected to be for hybrid positions. This demand has made flexible office solutions the second-largest occupier segment in India’s commercial real estate market. Enterprises are particularly interested in “managed space” models that allow agility and cost control.

AI is also reshaping recruitment processes, with 48% of GCCs planning to adopt AI hiring tools and 24% already having some level of implementation. Yet, concerns remain around data privacy and algorithmic bias, prompting many organisations to proceed carefully with these technologies.