Automation hits India’s tech hiring, and staffing giants are feeling the chill
This trend raises concerns for staffing and job search firms, including TeamLease Services Ltd, Quess Corp and Info Edge (India) Ltd; because IT-related hiring by GCCs and IT services companies is among their largest source of business, providing them with 44% of their revenue.
“Many of the large-scale GCCs, which have expanded significantly over the last few years, are now focusing on transforming their processes in the areas of people management, technology and shared services (IT and customer support functions). As such, hiring volumes at present are not in line with hiring in previous years,” Neeti Sharma, CEO of TeamLease Digital, said in an emailed response. Mint‘s queries.
The Gulf Cooperation Council (GCC), which has traditionally recruited specialist talent from IT outsourcing providers at higher salaries, is looking at ways to reduce its hiring. Mint Report dated September 1. The decline in hiring in these technology hubs has begun to have an impact on staffing firms that derive 4-10% of their revenue from such hubs.
IT slowdown extends to captives
For two years, staffing firms have muted the hiring of IT outsourcing providers due to weak global demand. Hiring in the Gulf Cooperation Council has also begun to decline this year, forcing staffing companies to reduce their growth expectations.
However, Sharma added that GCCs are hiring in AI/ML (machine learning), cybersecurity, cloud and data roles. TeamLease ended July-September 2025 as follows: ₹Revenues rose 4.9% sequentially to Rs 3,032 crore.
A similar trend follows Quess Corp. It was also emphasized by.
“Certain traditional IT and support roles (for GCCs) have stabilized due to automation – but the slowdown is not uniform,” Kapil Joshi, CEO of Quess Corp’s IT Staff, said in an emailed response. Mint‘s queries.
“The decline is concentrated in entry-level, repeatable roles. Demand for specialized talent remains resilient,” Joshi said.
Quess finished last quarter as follows: ₹Revenues rose 5% sequentially to Rs 3,832 crore. Without a doubt, Quess is the only major staffing and recruiting firm that shares revenue from GCCs.
The Bengaluru-based firm generated 4% of its total revenue. ₹155 crore – down 13% sequentially from the Gulf Cooperation Council last quarter. The decline signals weakening demand from dependents and highlights the risk of over-reliance on IT-related hires.
Info Edge, club GCC income with BT or most other staffing and employment platforms, including special staffing categories.
For now, there is a shift towards specialized hiring, according to a third staffing and job search firm, adding that the Gulf Cooperation Council is not hiring as it has in the past.
“They (GCCs) have moved up the value chain over time. You are now seeing a lot of high-end jobs also moving to India, which was not the case before. Earlier, most GCCs or back offices were just about hiring IT people and call center people. That is not the case anymore,” Hitesh Oberoi, co-promoter and managing director of Info Edge, said during the company’s post-earnings analyst call on November 12.
Naukri.com’s parent company, Info Edge, finished the last quarter as follows: ₹Revenues rose 1.36% sequentially to Rs 746 crore.
H-1B hope fades amid uncertainty
Expectations had grown that the US’s moves to tighten H-1B visa rules would create new jobs by pushing more Fortune 500 companies to open the Gulf Cooperation Council in India. India is already a major hub thanks to its scale and talented talent.
However, Oberoi said it was “difficult to tell” the impact of the norms even as multiple companies continue to open technology centers in the country.
“So, will this H-1B issue lead to more hiring in the Gulf Cooperation Council countries? I don’t know, because things change every few weeks. So, a lot of announcements have been made by the US government. So, I don’t know if this will have an impact on creating more jobs in India,” Oberoi said.
A survey sent to Info Edge went unanswered.
Hiring pivots to non-tech sectors
Staffing firms expect hiring to be more value-focused, with higher salaries for specialist roles, even if IT-related hiring remains weak.
“IT hiring remains weak but non-tech sectors such as retail, manufacturing and GCCs continue to show steady growth,” Motilal Oswal analysts Abhishek Pathak, Keval Bhagat and Tushar Dhonde said in a Nov. 12 note.
Firms also expect more hiring in the pharmaceutical, retail and manufacturing sectors, along with the Gulf Cooperation Council’s increase in AI-led investments.
“GCCs are evolving into AI-specific talent hubs. Investments in university partnerships, stack-aligned skill development programs and advanced AI platforms will drive the next phase of growth,” Quess’ Joshi said.
Demand from tier 2 cities is also expected to increase.
“Growth will come from nano GCCs, which are AI-powered, 50-150-person delivery hubs emerging in Tier 2 cities. These deliver tailored outputs at lower cost and faster delivery,” said Sharma, adding that growth will shift from headcount to talent.
According to the National Association of Software and Services Companies (Nasscom), there are more than 1,760 GCCs in India, including 875 in Bengaluru and 355 in Hyderabad. These Gulf Cooperation Council countries generate export revenues of at least $64.6 billion; that’s almost a quarter of the IT industry’s $283 billion.
Nasscom estimates that India will have 2,200 GCCs by March 2030 and its market will be worth $105 billion by then.
