India's technology hiring landscape is undergoing a significant transformation as automation scales and global demand weakens, creating challenging conditions for the country's largest staffing companies. Global capability centers (GCCs), which have been major drivers of tech employment in recent years, are substantially reducing their recruitment of routine roles, directly impacting staffing firms that depend heavily on IT-related placements.
The Staffing Sector Squeeze
Major staffing and job-hunting platforms including TeamLease Services Ltd, Quess Corp, and Info Edge (India) Ltd are experiencing revenue pressure as GCCs and IT services companies pull back on hiring. These technology clients typically contribute between 4-10% of staffing firms' revenue, with some companies deriving up to 44% of their business from this sector.
Neeti Sharma, chief executive of TeamLease Digital, confirmed this trend in an emailed statement, noting that "Most large scale GCCs that had expanded majorly over the past few years are now focussing on transforming their processes in areas of people management, technology, and shared services. Hence, currently their hiring volumes are not in line with their previous years' hiring."
Revenue Impact and Shifting Patterns
The financial impact is becoming increasingly evident in quarterly results. TeamLease ended July-September 2025 with ₹3,032 crore in revenue, representing a 4.9% sequential increase, while Quess Corp reported ₹3,832 crore in revenue for the same period, up 5% quarter-over-quarter.
Quess Corp provides the clearest picture of GCC exposure, with the Bengaluru-based firm earning 4% of its total revenue—₹155 crore—from GCCs last quarter, marking a significant 13% sequential decline. This drop signals weakening demand from captive centers and highlights the risks of over-reliance on IT-linked hiring.
Kapil Joshi, CEO of IT Staffing at Quess Corp, explained the nuanced nature of the slowdown: "Certain traditional IT and support roles for GCCs have plateaued due to automation - but the slowdown is not uniform. The decline is concentrated in entry-level, repeatable roles. Specialized talent demand remains resilient."
Specialization and Geographic Shifts
While routine hiring declines, GCCs continue to actively recruit for specialized positions in AI/ML (machine learning), cybersecurity, cloud, and data roles. This shift toward higher-value positions reflects the evolving nature of India's technology centers.
Hitesh Oberoi, co-promoter and managing director of Info Edge, highlighted this transformation during the company's November 12 analyst call: "They (GCCs) have also over time moved up the value chain. You are seeing a lot of high-end jobs also move to India now, which was perhaps not the case earlier. Earlier, most GCCs or back offices used to be about just hiring IT workers and call centre employees. That's not the case anymore."
Info Edge, which operates Naukri.com, reported ₹746 crore in revenue for the last quarter, a modest 1.36% sequential increase.
Future Outlook and Emerging Trends
Staffing firms anticipate continued growth in non-tech sectors such as retail, manufacturing, and healthcare, even as IT hiring remains subdued. The geographic distribution of opportunities is also changing, with increased demand emerging from tier-2 cities.
Neeti Sharma of TeamLease Digital pointed to an emerging trend: "Growth will come from nano GCCs which are AI-powered, 50–150 person delivery hubs, emerging in Tier-2 cities. These are delivering specialized output with lower cost and faster deployment." She emphasized that growth metrics are shifting from headcount to capability.
According to Nasscom data, India currently hosts more than 1,760 GCCs, with Bengaluru leading with 875 centers followed by Hyderabad with 355. These centers generate export revenue of approximately $64.6 billion, representing nearly one-fourth of the IT sector's total $283 billion. The industry body projects India will have 2,200 GCCs by March 2030 with a market worth of $105 billion.
The uncertainty around US H-1B visa regulations had initially raised expectations of increased GCC expansion in India, but Oberoi noted the impact remains unclear as policies continue to evolve. Meanwhile, staffing companies are adapting their strategies to focus on value-driven hiring with higher compensation for specialized roles, even as they navigate the current slowdown in traditional IT recruitment.
