In a significant shift in talent management strategies, Global Capability Centres (GCCs) in India are increasingly turning to internal mobility as a primary means of filling new roles. A recent report titled “Cracking the Growth Code for GCCs in India,” published by Taggd in collaboration with the Confederation of Indian Industry (CII) and JLL India, reveals that nearly 90% of GCCs anticipate that up to 50% of their hiring in the fiscal year 2026 will come from within their existing workforce. This trend underscores a broader movement towards nurturing talent internally, driven by rising attrition rates and evolving workforce expectations.
The concept of internal mobility is not new, but its prominence has surged in recent years as organizations grapple with the challenges of employee retention and the need for specialized skills. By focusing on reskilling and redeploying current employees into new roles, GCCs aim to build agile, future-ready teams capable of adapting to the rapidly changing business landscape. This strategy not only helps retain valuable talent but also fosters a culture of continuous learning and development within organizations.
As companies navigate the complexities of the modern workforce, the report highlights that 48% of GCCs plan to expand their workforce in FY26, while another 19% intend to maintain hiring levels similar to those of FY24. This indicates a cautious optimism among employers, despite the ongoing challenges associated with talent churn. The report notes that replacement hiring is expected to account for nearly 40% of total recruitment this year, reflecting a growing struggle with employee retention across the GCC ecosystem in India.
One of the key factors contributing to this talent churn is the shifting expectations of younger professionals, particularly those from Generation Z. This demographic tends to favor dynamic career paths and is less inclined to remain in the same role for extended periods—typically preferring to transition every 18 to 24 months. The desire for growth opportunities and the fear of job stagnation are driving these professionals to seek new challenges, often outside their current organizations. As a result, GCCs must adapt their talent strategies to meet these expectations, ensuring that they provide clear pathways for advancement and skill development.
In response to these trends, many GCCs are re-evaluating their hiring practices and location strategies. Currently, 60% of GCCs continue to hire exclusively from Tier 1 cities such as Bengaluru, Hyderabad, and Pune, which have long been recognized as hubs for tech talent. However, the report indicates that nearly 29% of organizations are beginning to explore a mix of Tier 1 and Tier 2 cities, while an additional 13% are venturing into Tier 2 and Tier 3 locations. This shift is largely driven by the need for cost optimization and access to diverse regional talent pools, allowing companies to tap into a broader range of skills and experiences.
Moreover, the rise of hybrid work models has become a defining characteristic of the current employment landscape. With 78% of GCC hiring expected to be for hybrid positions, the demand for flexible office solutions has surged, making it the second-largest occupier segment in India’s commercial real estate market. Enterprises are increasingly interested in “managed space” models that offer agility and cost control, enabling them to adapt quickly to changing workforce needs.
The integration of artificial intelligence (AI) into recruitment processes is another notable trend highlighted in the report. Approximately 48% of GCCs plan to adopt AI hiring tools, while 24% have already implemented some level of AI technology in their recruitment efforts. While AI offers the potential to streamline hiring processes and enhance decision-making, concerns around data privacy and algorithmic bias remain prevalent. Many organizations are proceeding cautiously, balancing the benefits of AI with the need to ensure fairness and transparency in their hiring practices.
As GCCs continue to evolve their talent strategies, the emphasis on internal mobility and hybrid work models reflects a broader recognition of the need to adapt to a dynamic talent landscape. By investing in their existing workforce and creating opportunities for growth, organizations can not only improve employee retention but also foster a culture of innovation and agility.
The implications of these trends extend beyond individual organizations; they signal a fundamental shift in how companies approach talent management in the digital age. As the competition for skilled professionals intensifies, GCCs that prioritize internal mobility and embrace flexible work arrangements will be better positioned to attract and retain top talent. Furthermore, as the workforce becomes increasingly diverse and dispersed, organizations must remain vigilant in their efforts to create inclusive environments that support the unique needs and aspirations of all employees.
In conclusion, the findings of the report underscore the importance of rethinking traditional hiring practices in favor of more adaptive and forward-thinking approaches. By leveraging internal talent and embracing hybrid work models, GCCs in India can navigate the complexities of the modern workforce while positioning themselves for sustained growth and success in the years to come. As the landscape continues to evolve, organizations that prioritize employee development and flexibility will undoubtedly emerge as leaders in the competitive talent market.