India GCCs Boost Flexible Hiring to 25% Amid Surge in AI and Cloud Skill Demand
In response to evolving technological demands, India’s global capability centres (GCCs) are increasingly adopting flexible hiring models. This shift is crucial as organizations strive to meet the rising need for specialized skills in artificial intelligence (AI), data analytics, and cloud computing.
Rising Demand for Specialized Skills
A recent report by Quess Corp indicates that flexible staffing within GCCs reached 25% in the last quarter of 2026, up from 22% in 2025. This trend highlights a significant increase in subcontracting and short-term hiring, particularly as the share of projects involving AI, data, and machine learning has surged from 30% to 60%.
Kapil Joshi, CEO of IT Staffing at Quess Corp, noted that the demand for subcontracting staff has shifted from entry-level positions to mid-level roles requiring 4-10 years of experience. This broad-based demand spans multiple sectors, including banking, financial services, insurance (BFSI), healthcare, and retail, suggesting a sustainable trend.
Contract Roles Linked to Delivery Outcomes
The nature of contract roles is evolving, particularly in AI-led transformation initiatives. Hani Mukhey, Senior Director at Zinnov, explained that these roles are now closely tied to delivery outcomes rather than merely execution support. The demand for AI talent is growing at approximately 60% year-over-year, often in bursts associated with pilot projects and transformation tracks. Permanent hiring cannot adapt to this fluctuating demand without inefficiencies.
As a result, companies are increasingly hiring mid- to senior-level specialists on contracts ranging from 9 to 18 months for specific projects. This structural shift indicates a move away from cost-focused operations towards high-value work, such as AI transformation and cloud modernization.
Project-Driven Work and Specialized Teams
Milind Shah, Managing Director at Randstad Digital India, emphasized that GCCs are being tasked with delivering on AI transformation and product innovation, which are inherently project-driven. The skills required for these projects are evolving faster than any permanent hiring pipeline can accommodate. Companies often prefer to hire specialized teams for short durations. For instance, if a GCC aims to develop a real-time fraud detection engine, it is more efficient to engage eight highly specialized machine learning engineers for nine months rather than expanding the permanent workforce.
Despite the premium that contract workers may command, the overall unit economics remain favorable.
Cost Pressures and Skill Gaps
Cost pressures and skill gaps are significant factors driving this trend. Organizations are increasingly avoiding fixed costs by hiring talent on demand in critical areas such as AI, data, cybersecurity, and product transformation. The rapid evolution of skills often renders them outdated within 18-24 months, further necessitating flexible hiring practices.
Experts suggest that this trend reflects a deeper transformation in workforce strategy. Arindam Sen, Partner at EY India, pointed out that contract hiring has gradually increased from the high teens a few years ago and may continue to rise as transformation programs become more continuous rather than episodic. Stable attrition levels enable firms to maintain a core workforce while leveraging flexible talent to address demand spikes, indicating a maturation of workforce strategies.
Evolving Workforce Dynamics
Mukhey added that companies are increasingly focusing on capabilities rather than headcount. Instead of hiring for broad roles, organizations are breaking down positions into specific skills and bringing in talent as needed. This shift is influenced by workforce dynamics, with nearly 40% of GCC hiring driven by backfilling roles. The trend of shorter job tenures, particularly among Gen Z employees, complicates long-term workforce planning. Joshi remarked that the rise in flexible hiring reflects a convergence of factors, including higher attrition rates, the demand for specialized skills, and a skills shortage.
The Future of Flexible Hiring
While flexible hiring is on the rise, it is not seen as a long-term substitute for developing internal talent. Experts estimate that flexible hiring could reach 30-40% in the coming years, as companies continue to invest in reskilling initiatives. Sen highlighted that reskilling has become as critical as external hiring. GCCs recognize that while flexible hiring can address short-term gaps, long-term capabilities must be built internally, especially in AI and data-related skills.
For further insights into the evolving landscape of workforce strategies and technology trends, visit the original reporting source: The Mainstream.
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