TLDR: A new report by Quess Corp reveals a substantial talent deficit in critical tech domains within India’s Global Capability Centers (GCCs). AI, data & analytics roles face a 42% shortage, while platform engineering sees a 38% gap, despite an overall increase in hiring focused on high-value skills. The report highlights a strategic shift towards capability-centric recruitment and internal talent development to address these challenges.
Indian Global Capability Centers (GCCs) are experiencing a significant talent crunch in advanced technology domains, particularly in Artificial Intelligence (AI) and platform engineering. A recent report by Quess Corp, titled ‘India’s GCC Tech Talent Landscape’ for Q1 FY26, indicates a widening gap between demand and supply for these specialized skills.
The report highlights that AI, data & analytics roles are facing the steepest talent shortage, with a substantial 42% supply gap. Platform engineering follows closely, grappling with a 38% deficit. These critical roles are essential as companies increasingly invest in cutting-edge technologies such as generative AI, machine learning operations (MLOps), Kubernetes, and multi-cloud systems.
Despite these talent shortfalls, India’s GCC sector witnessed a steady return to growth in Q1 FY26, with hiring volumes increasing by 8-10% quarter-on-quarter (QoQ) after a subdued Q4 FY25. This growth is driven by a strategic ‘skill-first’ approach, moving away from volume hiring towards securing high-value talent. Kapil Joshi, CEO of IT Staffing at Quess Corp, emphasized this shift, stating, ‘Rather than scaling teams broadly, organizations are now hiring selectively for skills that drive innovation and long-term value.’
Joshi further elaborated on the severity of the talent crunch in deep-tech roles: ‘Deep-tech roles like AI, data science, and platform engineering face over 40% talent shortfalls, slowing hiring cycles and limiting team scalability.’ He stressed that readily available skill sets for these roles are scarce in the market, making external hiring unsustainable for most companies. ‘There’s no way this kind of skill set is readily available in the market,’ he said, adding, ‘External hiring will not help—unless you have, you know, $100 million lying around like Meta does. That’s not the case for everyone.’
To counter this, Quess Corp advocates for internal talent development and fresher intakes as sustainable solutions. Joshi highlighted the importance of building capability from the ground up: ‘We always believe fresher intakes can also play a key role in capability building. Yes, there’s an investment in training them, but it’s worth it. It’s much better than chasing talent at a premium in the current market.’
Beyond AI and platform engineering, other digital roles also face pressures. Cybersecurity roles show a 15-22% talent gap, driven by increasing needs for Zero Trust architecture and DevOps pipelines, while Cloud and Infrastructure Engineering roles have a moderate gap of 25-27%. In contrast, traditional IT domains like ERP, ITSM, and digital operations are experiencing stable demand and supply, reflecting a market shift towards next-generation digital capabilities.
Geographically, Bengaluru continues to be the leading hub for GCCs, particularly in AI and product engineering. However, cities like Hyderabad, Pune, and Chennai posted stronger QoQ growth this quarter. Tier-2 cities, including Coimbatore and Kochi, are also gaining momentum, with their share of GCC hiring rising from 5% to 7%, challenging traditional location orthodoxies.
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High-growth sectors are driving demand for these specialized skills. The BFSI (Banking, Financial Services, and Insurance) sector remains the largest hirer, commanding 20% of the total GCC market share and growing 15% QoQ, fueled by AI-led credit risk, embedded finance, cybersecurity, and digital lending. Manufacturing, Automotive & Energy sectors registered the highest demand growth at an impressive 31% QoQ, driven by investments in smart factories, Industrial IoT, and electric vehicle (EV) platforms. Technology & Hardware also saw robust demand, growing by 16% QoQ, propelled by cloud engineering, chip design, and IoT hardware development. Top offers for niche skills in metros continue to exceed Rs 50-60 lakh, reflecting the high demand for specialized expertise.
