Blitz Bureau
Bengaluru: The surge of generative artificial intelligence (AI) and automation is beginning to slow the hiring boom at India’s Global Capability Centres (GCCs)—the captive units of multinational corporations that have emerged as one of the country’s strongest job engines in recent years.
Once seen as dependable recruiters, especially when traditional IT services firms cut back on intake, GCCs are now re-evaluating their hiring strategies. The emphasis is shifting from expanding headcount to building specialised skills that can complement AI-driven processes.
From Quantity to Quality
Senior executives at Walmart, Tesco and Thryve Digital Health said that the days of measuring a GCC’s importance by the number of people it employs are fading.
“With AI coming in, maybe in two to three years we won’t even talk about the number of people, because that might not be the right metric by which a GCC is benchmarked,” observed Arvind Srinivasan, Chief Financial Officer of Thryve Digital Health, the captive arm of US-based Highmark Health.
Tesco India echoed a similar view. “It’s no longer about headcount—it’s about skill count,” said Sumit Mitra, CEO of Tesco India. “I could go up to 5,500 employees or remain at 5,000 as we bring in more automation. The real measure will be capability, not numbers.”
Suresh Kumar, Global Chief Technology Officer of Walmart, added that hiring would increasingly focus on roles in data science and emerging technologies rather than on broad-based recruitment.
Uncertain Outlook for Fresh Graduates
This recalibration could spell trouble for India’s engineering graduates. GCCs, which had been absorbing large numbers of freshers at attractive pay packages, may no longer offer the same opportunities.
According to Nasscom, India’s $283-billion IT industry employs 5.8 million people, with GCCs contributing nearly a third of that headcount and generating $64.6 billion in exports. Any slowdown in GCC recruitment will weigh heavily on the country’s young job seekers.
Efficiency Gains, Not Immediate Job Cuts
Executives stressed that AI adoption does not necessarily mean immediate job losses. Instead, AI is being deployed to streamline operations and cut costs, particularly in internal and customer-facing functions.
Thryve Digital, for example, already uses AI for customer invoicing and to tailor treatment data for doctors. Analysts at Kotak Institutional Equities note that GCCs functioning primarily as cost centres will face pressure to adopt AI more aggressively, with expansion giving way to optimisation.
Industry consultants such as ANSR and IT service providers are also expected to benefit, as many multinational firms may turn to the build-operate-transfer (BOT) model, outsourcing operations before assuming control.
Blitz View
India is home to over 1.3 million GCC employees, spread across technology, finance, R&D and back-office operations. Cities such as Bengaluru, Chennai and Hyderabad remain key hubs, hosting large centres for global giants including Walmart and Tesco.
While expansion is likely to continue, it will be selective and skill-driven. The GCC of the future will not be measured by the size of its workforce, but by its ability to deliver high-end expertise in an AI-first world.
As Walmart’s Suresh Kumar put it: “In some areas, we will need more people. But across the board, AI is already reshaping the kind of skills we look for. That is the real disruption.”
