BENGALURU, May 25 — Global companies in India are becoming more careful with their hiring as artificial intelligence (AI) changes job roles, leading to a growing demand for skilled workers in advanced technologies.
Leaders at global capability centers (GCCs) and executives from various multinational firms shared with Reuters that while they are still hiring, it’s increasingly hard to find candidates who possess the right mix of technical skills and the ability to adapt.
Puneet Chandok, president of Microsoft India and South Asia, remarked, “Each job will require a new approach… The toughest task is finding the right talent with proper AI skills.”
GCCs are essential hubs for international companies, engaging in innovative projects that range from designing dashboards for luxury cars to aiding pharmaceutical firms in drug discovery.
According to a recent report by industry group Nasscom and consultancy Zinnov, India is set to host 2,117 GCCs by the end of the fiscal year 2026, a rise of around 500 from 2021. These centers are expected to employ approximately 2.36 million people and generate about $100 billion in revenue.
The growth of GCCs in India is largely due to the country’s large pool of skilled workers and lower operational costs. However, as businesses increasingly integrate AI and automation, there is a growing demand for specialized talent across various sectors.
Radhakrishnan Kodakkal, head of Daimler Truck Innovation Center India, highlighted the necessity for niche skills in areas like AI and cybersecurity but acknowledged the difficulties in finding qualified candidates. “It’s a challenge, and the competitive nature of talent makes it even tougher,” he noted.
Nihar Nidhi, managing director of Catalyst Brands in India, echoed these concerns, emphasizing that attracting talent with advanced skills is particularly challenging at this time.
This situation has slowed hiring in GCCs, according to Lalit Ahuja, CEO of ANSR, a firm that aids companies in establishing global centers. “Organizations are being cautious by hiring fewer individuals,” he explained.
ENTRY-LEVEL HIRING IN THE AGE OF AI
The demand for unique skills is changing the landscape for early-career positions, with industry leaders predicting that traditional entry-level jobs may diminish as AI automates routine tasks.
A joint report from Nasscom and Indeed revealed that 40% of employers now prioritize demonstrable AI skills or certifications over formal degrees, and another 32% value skills, certifications, and degrees equally.
Deena Dayalan, the global head of digital operations at Kimberly-Clark, stated, “I believe that entry-level positions for those with zero to two years of experience may disappear in the next few years.”
To address this skills gap, companies are investing in reskilling programs and collaborating with educational institutions to ensure curriculums meet the evolving demands of the industry.
However, there are concerns regarding workforce readiness, with a report indicating that 73% of HR leaders see a widening skills gap.
Sandip Patel, head of IBM in India, emphasized the importance of collaboration among the government, educational bodies, and businesses: “We need a coordinated effort among industry, government, and academia to bridge this gap.”
(Reporting by Mrinalika Roy and Aishwarya Venugopal in Bengaluru)
