EXCLUSIVE: TCS Is Cutting Jobs. Big Tech Is Hiring in India - GCCs Are Replacing Traditional IT

· Source: AIM Network · Field: Business & Management — Operations & Process Management, Human Resources & Workforce Development, Corporate Strategy & Leadership · Depth: Intermediate, extended

Summary

The Indian IT landscape is rapidly transforming. Traditional IT services are shrinking, with TCS cutting 12,200 jobs (2% of its global workforce). Concurrently, major American tech companies like Meta, Amazon, and Microsoft added over 32,000 jobs in India in 2025. This represents an 18% year-on-year growth. This expansion is driven by Global Capability Centers (GCCs), now often called "India offices." These 2,100+ centers generate over \$68 billion and employ 2 million professionals. They are projected to double to 4 million by 2035. GCCs have evolved from back offices to innovation hubs. They now drive R&D, digital transformation, and own end-to-end functions. This shift leverages India's significant cost advantage (1/5 to 1/6 of US costs) and proven business continuity. Upskilling talent in AI and critical thinking is a key priority. Expanding into Tier 2 cities, despite infrastructure challenges, is vital. This will sustain growth and help achieve targets like 5,000 India offices by 2030.

Key takeaway

For Directors of AI/ML or VPs of Engineering considering global talent strategies, recognize India's Global Capability Centers as strategic innovation hubs, not just cost centers. Your teams should prioritize establishing AI Centers of Excellence in India, leveraging the significant cost advantage and skilled talent pool. Focus on upskilling existing staff in AI and critical thinking. Also, explore distributed growth models in Tier 2 cities. This will enhance continuity, reduce attrition, and ensure long-term scalability and IP ownership.

Key insights

India's IT landscape is shifting from traditional services to rapidly expanding Global Capability Centers driving innovation and end-to-end ownership.

Principles

Method

Organizations should implement mandatory AI upskilling programs for all employee levels, from new graduates to managing directors, focusing on case study analysis and critical thinking.

In practice

Topics

Best for: Investor, CTO, Executive, Consultant, Director of AI/ML, VP of Engineering/Data

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Editorial summary, takeaway, and curation by AIssential. Original article published by AIM Network.