Flexible hiring in India’s global capability centres (GCCs) is on the rise as businesses adapt to the increasing need for specialised AI, data, and cloud skills, outpacing traditional hiring methods.
According to Quess Corp’s GCC Talent Trend Report, flexible staffing within GCCs climbed to 25% in the last quarter of 2026, an increase from 22% in 2025. This shift highlights a continuous move towards subcontracting and temporary employment.
The surge in flexible hiring is largely influenced by the rapid growth of emerging technological roles within GCCs. Projects centred around AI, data, and machine learning have seen their share grow from 30% to 60%, indicating a significant and ongoing adoption across various sectors.
Kapil Joshi, CEO of IT Staffing at Quess Corp, remarked that the demand for subcontracting staff has transitioned from primarily seeking individuals with 0-4 years of experience to focusing more on mid-level positions requiring 4-10 years of expertise. This demand spans multiple industries, not confined to BFSI, healthcare, and retail, suggesting a sustainable trend.
Highlights
Project-Driven Hiring Influences Demand
Currently, contract roles extend beyond just supporting execution to include responsibilities tied to delivery outcomes, especially in AI-led transformation initiatives.
Hani Mukhey, Senior Director, People Success Partner – GCCs at Zinnov, pointed out that contract roles now come with delivery accountability. AI hiring is experiencing growth of around 60% year-on-year, albeit in cycles linked to pilots, releases, and transformation projects. The rapid fluctuations in hiring needs make permanent employment impractical in this context.
Organisations are regularly recruiting mid- to senior-level specialists on contracts typically spanning nine to 18 months to fulfil specific objectives.
This change signifies a broader transformation in GCC operations. Once primarily aimed at cost reduction, these centres are now undertaking high-value tasks such as AI transformation, cloud enhancement, and product innovation.
Milind Shah, Managing Director at Randstad Digital India, highlighted the shift as GCCs are increasingly required to deliver on complex projects within AI transformation, cloud upgrades, and product innovations. The skills necessary for this work are evolving quicker than traditional hiring pipelines can accommodate.
Cost Pressures and Skill Gaps
The increase in flexible hiring is closely tied to the backdrop of macroeconomic uncertainty, compelling companies to adopt a more cautious approach to permanent staffing.
Consequently, businesses are leaning towards developing capabilities on an as-needed basis, hiring specialised skills in areas like AI, data, cybersecurity, and product transformation only when necessary.
There is also an emerging awareness that skills acquired today might become irrelevant in 18-24 months, making long-term staffing decisions riskier.
A Shift in Mindset
Experts in the industry view the trend as a substantial evolution in workforce strategy rather than a fleeting adjustment.
Arindam Sen, Partner and GCC Sector Lead – Technology, Media & Entertainment and Telecommunications at EY India, noted that contract hiring has steadily increased from the high teens a few years ago and may continue to grow as transformation initiatives become more ongoing than sporadic.
He further acknowledged that a decrease in attrition rates in recent years has enabled companies to stabilise their core workforces while utilising flexible talent to address spikes in demand.
This could pave the way for a two-tier workforce model, signifying maturity rather than distress.
Mukhey reiterated this evolving perspective, stating that companies are increasingly shifting focus from headcount to capabilities. Rather than filling broad roles, they are identifying specific skills needed and hiring those on an as-required basis.
Changing Workforce Dynamics
The trend also reflects shifting workforce dynamics. Approximately 40% of GCC hiring is now attributed to backfilling positions, as indicated in the Quess report, pointing to ongoing turnover in the market.
Shorter job tenures, particularly among younger employees, are making long-term workforce planning more complex.
Joshi emphasized that the growth in flexible hiring results from various factors coming together, including increased attrition, a demand for specialised skills, and a shortage of qualified professionals.
A Temporary Solution
Despite the rapid increase, flexible hiring is not expected to permanently replace the need for building internal capabilities.
Forecasts suggest that contract hiring might escalate to 30-40% in the near future, while companies are also intensifying their reskilling initiatives.
Sen remarked that reskilling is becoming as critical as external hiring, with GCCs increasingly acknowledging that flexible staffing can temporarily fill gaps, but long-term capabilities must be developed internally, especially regarding AI and data proficiency.
