India's GCCs face talent shortage as AI and security hiring surges

A shift in hiring priorities

India's Global Capability Centres (GCCs) are significantly altering their recruitment strategies to prioritize high-growth technology sectors. According to a report by Quess Corp, AI, data, and cybersecurity now represent 30.3% of all technology hiring demand across the country. This figure reflects a notable increase of 4.5 percentage points from the previous quarter.

This trend indicates that international companies operating these centers are moving beyond general IT support. They are now seeking specialists who can specifically deploy artificial intelligence, manage complex data systems, and protect enterprise infrastructure. The focus is shifting toward the core capabilities that power modern digital business operations.

The data suggests that the ecosystem is maturing as companies integrate these technologies into their core workflows. As AI requirements deepen across various industries, the demand for talent capable of handling these specific tools is becoming a primary driver of the labor market. This shift is reshaping what it means to be a technology professional in the region.

The growing talent gap

Despite the high demand, the current workforce is struggling to keep pace with the needs of these expanding centers. The Quess Corp report identifies a substantial supply gap in the most critical areas of the tech landscape. Specifically, the shortage for AI, data, and analytics roles is estimated to be 38-42%.

The situation is similarly strained in the realm of cybersecurity and risk management. The report estimates a supply gap of 30-35% for these essential security functions. This mismatch suggests that while companies are eager to adopt new technologies, they are finding it difficult to source the qualified personnel required to run them safely and effectively.

These shortages create a bottleneck for companies looking to scale their digital capabilities. When the demand for specialized skills outstrips the available talent pool, it can slow down the deployment of new products and services. This gap highlights a pressing need for more robust training and recruitment pipelines to support the growing GCC ecosystem.

Geographic trends in hiring

The geography of tech hiring in India is showing signs of both concentration and diversification. While the demand for advanced skills remains heavily centralized, some smaller cities are beginning to see significant growth. Currently, tier 1 cities still account for approximately 84-86% of the total demand for advanced-skill hiring.

However, the growth patterns within these cities are becoming uneven. Among the major metros, Pune was the only city to record a modest 2% increase in demand. In contrast, other major hubs saw declines, with Hyderabad and Mumbai recording the steepest drops at about 10% and 9%, respectively.

In a notable shift, Coimbatore emerged as a standout performer in the tier II category. The city recorded approximately 30% quarter-on-quarter growth in GCC tech hiring demand. This surge helped drive an overall 13% growth in tier II cities, compared with 8-10% in the first quarter of FY27.

Pathways for reskilling

To combat the talent shortage, the report suggests that companies may need to look inward at their existing workforce. Rather than relying solely on external recruitment, organizations can facilitate transitions from adjacent roles. This involves moving employees into positions that align with the current high-demand skills in AI and security.

Specific pathways identified in the report include moving data scientists into model operations and data engineers into applied AI roles. Additionally, cybersecurity analysts can be transitioned into specialized cloud security positions. These moves allow companies to leverage the foundational knowledge of current employees while providing them with new, high-demand skills.

Structured reskilling programs and internal career pathways are presented as essential complements to traditional hiring. As the demand for AI-related skills deepens across all sectors, these internal movements become vital. By creating clear routes for professional development, companies can build a more resilient and versatile workforce to meet future technological needs.