Key facts
- Multinational corporations are slowing hiring and cutting jobs at their Indian tech hubs.
- AI is a key driver behind companies rethinking their large workforces in India.
- India's global capability centers (GCCs) generated $98.4 billion in revenue in fiscal year 2026.
- Over 1,200 GCCs in India have integrated AI and machine learning capabilities.
- Companies are focusing on reskilling and AI-driven productivity rather than headcount expansion.
Multinational corporations are reassessing their large technology workforces in India, leading to a slowdown in hiring and job cuts at their global capability centers (GCCs). Companies such as Visa, Technicolour, PayPal, and Fidelity have each reduced their headcount in India, a trend attributed to the increasing integration of artificial intelligence (AI) into operations.
India's offshore technology ecosystem has seen significant growth, with GCCs generating $98.4 billion in revenue in fiscal year 2026, according to a report by Nasscom and Zinnov. This revenue figure nears projections previously set for 2030, highlighting the transition of these centers from cost-arbitrage back offices to strategic hubs for innovation and digital transformation. The report indicates that 506 companies from the Forbes Global 2000 now operate GCCs in India, with the ecosystem expanding 32% since FY2021.
AI is at the forefront of this transformation, with nearly half of GCCs established since FY2021 built with AI at their core. Over 1,200 GCCs have embedded AI and machine learning capabilities, supported by a workforce of 250,000 AI professionals. The focus is shifting towards governance, scalable economic value, and AI-led productivity gains, prompting companies to prioritize reskilling and redeployment of talent over linear headcount growth.
While hiring remains resilient overall, the strategic shift means companies are looking for AI-centric skills and are less focused on simply expanding their workforce size. North American firms continue to be the primary drivers of India's GCC expansion, accounting for two-thirds of new setups, often relocating work to access specialized talent.