Rising Replacement Hiring in GCCs: Balancing Rapid Expansion with Continuity

Global capability centres (GCCs) are witnessing a substantial increase in replacement hiring, which now constitutes 40% of all recruitment activities in the fourth quarter. This surge is attributed to the brief job tenures seen among Gen Z, which compel GCCs to navigate the complexities of rapid expansion while ensuring organizational stability, according to a recent report.

India's GCC ecosystem reported a 12-14% quarter-on-quarter growth for the fourth quarter of FY26, marking a shift from previous selective optimizations towards broader, recovery-focused expansion, as detailed by Quess Corp. The report highlights a significant rise in replacement hiring driven by changing workforce dynamics, with Gen Z’s tenure expectations dipping below 24 months. This evolution is forcing GCCs to reconcile aggressive growth with the necessity for organizational continuity.

Despite strong demand for AI-driven capabilities, platform engineering, and infrastructure modernization, persistent talent shortages are slowing scaling efforts. Critical gaps are apparent in the BFSI sector, which faces a 42% skill gap in AI and data roles, pushing companies to offer heightened salary premiums to lure specialized talent. Quess Corp's report underscores the ongoing transformation as GCCs evolve into strategic global hubs, stressing the importance of balancing rapid expansion with the development of long-term capabilities.