Rise in Replacement Hiring in Global Capability Centres Due to Shorter Gen Z Tenures
Shorter Gen Z tenures push replacement hiring to 40 pc in GCCs in Q4: Report
News 18
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A recent report indicates that replacement hiring has surged to 40% of all recruitment in Global Capability Centres (GCCs) in India during Q4 of FY26, driven by Gen Z's decreasing job tenures, now averaging under 24 months. This shift is prompting GCCs to adapt their hiring strategies amidst ongoing talent shortages.
- 01Replacement hiring now constitutes 40% of all recruitment in GCCs.
- 02Gen Z job tenures have decreased to under 24 months.
- 03GCCs are experiencing 12-14% quarter-on-quarter growth in Q4 FY26.
- 04The BFSI sector faces a 42% skill gap in AI and data roles.
- 05Organizations are offering 1.5-2.5 times salary premiums to attract specialized talent.
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According to a report by Quess Corp, replacement hiring in Global Capability Centres (GCCs) in India has reached 40% of all recruitment activities in the fourth quarter of FY26. This increase is attributed to the declining tenure expectations of Gen Z employees, who now average under 24 months in their roles. The GCC ecosystem has shown a 12-14% quarter-on-quarter growth, shifting from a phase of selective optimization to a broader recovery-led expansion. Despite ongoing demand for skills in AI, platform engineering, and infrastructure modernization, GCCs are facing persistent talent shortages. Notably, the Banking, Financial Services, and Insurance (BFSI) sector is experiencing a 42% skill gap in AI and data roles, leading organizations to offer 1.5-2.5 times salary premiums to attract qualified experts. Quess Corp's CEO of IT Staffing, Kapil Joshi, emphasized the need for GCCs to balance rapid growth with long-term talent development to ensure sustainable success.
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The rise in replacement hiring may lead to increased job opportunities in GCCs, but it also highlights the challenges of retaining talent, particularly among younger employees. This could affect job stability and career growth for many workers.
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