India’s Global Capability Centres (GCCs) are gearing up for significant workforce expansion in FY26, with a massive 48% of them planning to increase headcount, according to a new report released jointly by Taggd, Confederation of Indian Industry (CII), and JLL. But while Tier 1 cities continue to lead the hiring charts, a quiet but notable shift is underway: Tier 2 and Tier 3 cities are rising fast on the hiring radar.
The “India GCC Trends Report 2025–26”, launched at the CII Southern Region Annual Meeting, offers a comprehensive outlook on how India’s 1,600+ GCCs — which employ over 1.9 million people — plan to navigate the upcoming fiscal.
📍 Tier 1 Cities Still in Command — For Now
According to the report, 60% of GCC hiring in FY26 will be concentrated in Tier 1 cities, reaffirming the dominance of metros like Bengaluru, Hyderabad, Pune, Chennai, and Gurugram. These cities continue to attract talent due to better infrastructure, educational institutions, and access to client ecosystems.
“GCCs continue to leverage Tier 1 cities because they still offer unmatched scale and domain depth,” said Devashish Sharma, CEO of Taggd. “But a structural shift is beginning.”
🧭 Tier 2 & 3 Cities Emerge as Strategic Alternatives
Interestingly, 42% of GCCs are now open to hiring from Tier 2 and Tier 3 cities, signaling a decentralisation trend. Cities like Coimbatore, Ahmedabad, Kochi, and Jaipur are gaining attention for their lower operational costs, improving infrastructure, and emerging tech talent pools.
This shift is also powered by hybrid work models, which give companies flexibility to tap into talent beyond conventional hubs without relocating entirely.
“Flexibility in workspace formats and the increasing adoption of digital infrastructure have given GCCs the confidence to look beyond metros,” noted Sandeep Sethi, Division President, Work Dynamics, JLL Asia Pacific.
📉 Attrition & Replacement Hiring: A Growing Concern
While net hiring sentiment is high, 40% of anticipated hiring in FY26 is to backfill vacant positions, pointing to persistent attrition challenges. The report observes that the average tenure of employees in GCCs has reduced to 18–24 months, with Gen Z professionals showing the highest mobility.
This churn is pushing companies to re-strategise hiring with a focus on retention, internal mobility, and upskilling.
🏢 Real Estate & Flex Work Also Evolving
In parallel with hiring trends, GCCs leased nearly 28 million sq. ft. of office space in 2023–24, with a sharp increase in demand for flexible office formats and hybrid-ready workspaces. JLL notes that real estate strategies are increasingly being designed around work-from-anywhere capabilities, which further enables talent access from smaller towns.
🔍 AI-Driven Hiring on the Rise
The report also highlights that 48% of GCCs are planning to adopt AI-driven hiring tools in FY26. While this promises better recruitment efficiency, there’s caution over potential risks such as algorithmic bias and data privacy.
📊 Key Highlights from the Report:
| Metric | Insight |
|---|---|
| Hiring Expansion | 48% of GCCs plan to increase headcount in FY26 |
| Replacement Hiring | 40% of new hires will replace those who exited |
| Tier 1 Hiring Share | 60% of GCC hiring still focused on metros |
| Tier 2/3 Opportunity | 42% of firms open to hiring from non-metro cities |
| AI in Hiring | 48% plan to adopt smart hiring tech tools |
| Flex Real Estate | 28M sq. ft. leased by GCCs in FY24; hybrid on the rise |
✅ Conclusion: Metro-First But Not Metro-Only
India’s GCC landscape is expanding with renewed momentum, but the geographic playbook is changing. While Tier 1 cities still dominate, the future may belong to digitally connected, affordable, and decentralised Tier 2/3 hubs. Companies that balance metro muscle with regional reach will likely lead the next wave of smart hiring in FY26.
Also Read: Embassy Group Unveils India’s First Integrated GCC Platform – ‘EMBARK’