Gen Z Tenures Drive GCC Replacement Hiring to 40% in Q4

Mumbai, Apr 20 (PTI) Global capability centres (GCCs) are seeing a sharp rise in replacement hiring, which now accounts for 40 per cent of all recruitment activity in the fourth quarter, as shorter Gen Z job tenures force them to balance rapid expansion with organisational continuity, a report said on Monday.

India's GCC ecosystem recorded a 12-14 per cent quarter-on-quarter (QoQ) growth in the fourth quarter of FY26, marking a strategic shift from the selective optimisation seen in the third quarter to a broader, recovery-led expansion, according to a report by staffing and workforce solutions provider Quess Corp.

The report further found a significant rise in replacement hiring, which now accounts for 40 per cent of all recruitment activity.

This trend is mainly driven by shifting workforce dynamics, specifically a decline in Gen Z tenure expectations to under 24 months, it stated.

These evolving cycles are forcing GCCs to balance aggressive expansion with the need for organisational continuity, it said.


While demand remains anchored in AI-driven capabilities, platform engineering, and infrastructure modernisation, persistent talent shortages continue to throttle the pace of scaling.

Notably, the report revealed that the BFSI sector is grappling with a 42 per cent skill gap in AI and data roles, prompting organisations to offer 1.5-2.5 times salary premiums to attract specialised experts.

"The fourth quarter (January-March) of FY26 reflects a clear recovery in India's GCC ecosystem, with momentum gaining across diverse sectors.

However, we are witnessing a structural shift, a higher volume of recruitment is being diverted to replacement roles as tenure cycles shorten. This is prompting organisations to rethink how they build depth in their talent pools. As GCCs evolve into strategic global hubs, the focus must shift toward balancing rapid scale with long-term capability building to ensure sustained growth," Quess Corp CEO of IT Staffing Kapil Joshi added.

The report, India's GCC Tech Talent Landscape Q4 FY26, is based on secondary research.