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:

MetricInsight
Hiring Expansion48% of GCCs plan to increase headcount in FY26
Replacement Hiring40% of new hires will replace those who exited
Tier 1 Hiring Share60% of GCC hiring still focused on metros
Tier 2/3 Opportunity42% of firms open to hiring from non-metro cities
AI in Hiring48% plan to adopt smart hiring tech tools
Flex Real Estate28M 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’

You May Also Like

Island near Mumbai to be Developed as Picnic Spot

An Island near Mumbai and just 5 kilometers from Navi Mumbai’s Ulwe…

Mumbai’s Rental Agreements Increasingly Go Digital: 88,267 E-Registrations Recorded in Q1 2025

In the first three months of 2025, Mumbai saw 96,322 rental agreements registered. A significant 88,267 of these were e-registrations, indicating a strong trend towards digital processing in the city’s rental market.

Kartik Aaryan Buys Rs. 13 Crore Office in Mumbai’s Andheri West With Parents

Bollywood actor Kartik Aaryan and his parents have purchased a Rs. 13 crore office in Andheri West’s Signature by Lotus project. The September 2025 deal covers ~2,095 sq. ft. built-up area, 3 car parks, and stamp duty of Rs. 78 lakh, highlighting strong celebrity confidence in Mumbai’s commercial property market.

Repo Rate Cut to 5.25%: How Your Home Loan EMI Will Now Fall

RBI has cut the repo rate to 5.25%, triggering a likely fall in home loan EMIs. With affordability pressures rising and buyers sitting on the fence, this move is expected to revive demand across affordable, mid-income, and premium housing. Experts call it the sentiment boost the market needed.