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AI raises employment standards as global firms rethink India GCC hiring

AI raises employment standards as global firms rethink India GCC hiring
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Global companies are tightening hiring standards as artificial intelligence reshapes job roles, forcing employers to seek workers with deeper technical skills and stronger adaptability.

Executives at multinational firms told Reuters that recruitment has not stopped, but the profile of the ideal candidate profile is changing quickly. Employers are placing more weight on AI fluency, cybersecurity knowledge, advanced engineering skills and the ability to adjust as automation changes traditional roles.

Microsoft India and South Asia President Puneet Chandok said every role is likely to change as AI adoption expands, adding that companies now face pressure to find workers with the “right AI skill.”

India’s GCC boom faces an AI skills test

Global capability centers have become a major pillar of India’s technology economy, giving multinational companies a base for complex work that now goes far beyond back-office support.

As AI and automation become more central to business operations, companies are using these hubs for more specialized roles across engineering, analytics, cybersecurity, product development and enterprise technology.

Industry data cited by Reuters showed India is expected to have 2,117 GCCs by the end of fiscal 2026, employing 2.36 million people and generating about $100 billion in revenue, underscoring why shifts in hiring demand inside these centers carry weight for India’s broader tech workforce.

Companies hire with more caution

The expansion is continuing, but companies are becoming more careful about the roles they add. Radhakrishnan Kodakkal, who recently became head of Daimler Truck’s innovation center in India, said demand remains strong for niche skills in areas such as AI and cybersecurity, while competition for the right workers has intensified.

Catalyst Brands’ India head Nihar Nidhi also pointed to a tougher hiring market for advanced capabilities, while ANSR founder Lalit Ahuja said companies are adding fewer workers “as a matter of abundant caution,” reflecting a broader reassessment of workforce needs as AI becomes part of daily operations.

Global layoffs point to wider AI-related workforce reset

The shift in India comes as global companies use AI adoption to rethink staffing elsewhere.

Meta began a major round of layoffs on May 20 affecting about 10% of its workforce, or roughly 8,000 employees, as it pushed deeper into AI adoption and more cost-efficient operations.

Crypto firms have also trimmed headcount, with Kraken parent Payward cutting 150 jobs and Coinbase announcing a 14% staff reduction as AI becomes more central to its operating model.

For India’s GCC sector, the trend points to a more selective growth cycle in which AI is not eliminating the need for talent, but raising the threshold for who gets hired and what skills companies are willing to pay for.

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