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Iran Conflict 2026
30MAR

India's GCCs absorb the offshored work

3 min read
08:00UTC

NASSCOM named JPMorgan, Goldman Sachs and Apple among firms expanding in-house India offices even as they cut at home, a relocation channel no US AI disclosure law or federal dataset can see.

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Key takeaway

A job that moves from New York to Bengaluru inside one company never registers as a US AI layoff.

NASSCOM, India's IT industry body, reported the sector added roughly 140,000 staff in the 2026 financial year to reach about 5.9 million, naming JPMorgan, Goldman Sachs, Apple, Walmart and Shell among firms expanding Global Capability Centres (GCCs) in Bengaluru, Hyderabad and Pune. 1 Several of those firms are confirming AI-driven cuts at home in the same period. Entry-level IT hiring fell 20% to 25%, so the door into the industry is narrowing as the industry expands. 2

A GCC is an in-house offshore office, not an outsourcing contract, so when a multinational moves work to one it stays inside the same corporate entity. That distinction is the whole story. The job never appears as a US layoff cause and never shows up as an outsourcing deal either. Goldman Sachs has modelled AI substituting 25,000 US jobs a month while building these centres; JPMorgan's Jamie Dimon told investors the bank displaced staff through AI and is retraining them . The same headcount decision reads domestically as AI efficiency and offshore as capability investment.

The channel sits in a measurement blind spot by construction. A role moved from New York to Bengaluru triggers no WARN Act (Worker Adjustment and Retraining Notification) filing, the US law requiring 60 days' notice of mass layoffs at a single site, and never enters the domestic-only JOLTS sample the data war turns on. Oracle already showed the gap, its US filings covering under 4% of its cuts .

The legacy outsourcers are squeezed from the other side. TCS posted its first modern revenue decline and Infosys shed 8,400 in a quarter , with Wipro setting a zero-fresher target for the year ahead . The firms that pioneered offshoring Western white-collar work are now losing it to the automation their clients are buying and to the in-house centres their clients are building.

Deep Analysis

In plain English

A Global Capability Centre, or GCC, is an overseas office that a company owns and runs itself, rather than hiring a separate company to do work on its behalf. JPMorgan can run a GCC in Bengaluru employing 5,000 Indian analysts doing the same work that 5,000 US employees used to do, without that shift appearing in any US government data. The WARN Act is a 1988 US law requiring companies to give 60 days notice before mass layoffs. It only covers US-based jobs at US-based offices. Moving work to a GCC in India is not a layoff in legal terms; no WARN filing is required. JOLTS (Job Openings and Labor Turnover Survey), the monthly Bureau of Labor Statistics survey that Stanford used to calculate its one-million-hire suppression figure, covers US employment only. Neither the WARN Act nor the JOLTS survey captures GCC job creation in India. NASSCOM is India's IT industry body. It reported that India's entire IT sector grew by about 140,000 jobs in the financial year 2026, reaching about 5.9 million workers. At the same time, the traditional Indian IT outsourcing companies, TCS, Infosys and Wipro, are shedding workers and have stopped hiring graduates, because the multinational banks and tech firms they used to outsource to are bringing that work in-house through GCCs. The result is a two-speed India IT market: GCC jobs growing (run by multinationals, serving global demand) while traditional outsourcers shrink (run by Indian companies, losing clients to the GCC model). For workers in the US who lost jobs to AI, the work is not always gone; sometimes it moved to a GCC in India instead.

What could happen next?
  • Risk

    US disclosure frameworks built around WARN Act filings and domestic-only labour surveys systematically undercount AI-plus-offshoring displacement, distorting the evidence base for policy intervention.

  • Consequence

    India's traditional IT outsourcers (TCS, Infosys, Wipro) face structural revenue decline as their multinational clients bring work in-house through GCCs, compressing a major Indian export-services sector.

Sources:Office for National Statistics
Mentions:JPMorgan Chase →Goldman Sachs →Apple →Walmart →NASSCOM →Shell →WARN Act →Jamie Dimon →Tata Consultancy Services →Infosys →Wipro →Bureau of Labor Statistics →India →Oracle →Job Openings and Labor Turnover Survey →Bengaluru →Hyderabad →Pune →Global Capability Centre →
First Reported In

Update #10 · Rival studies split on AI's hit to jobs

Office for National Statistics· 24 May 2026
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Causes and effects
Caused by
India IT trio post first negative quarter
TCS posting its first modern revenue decline and Infosys cutting 8,400 reflects the same GCC displacement that NASSCOM's FY2026 figures now document at sector level.
Occurred 1 Apr 2026
Read story →
Wipro zeros out its campus intake
Wipro's zero-fresher hiring target for FY27 is the firm-level response to the same competitive pressure from GCC expansion that NASSCOM documents at sector level.
Occurred 17 Apr 2026
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Dimon: JPMorgan displaced workers from AI
Dimon's confirmation of JPMorgan AI-driven displacement at the February investor meeting makes JPMorgan's simultaneous India GCC expansion the clearest single-firm example of the dual-channel pattern NASSCOM documents.
Occurred 24 Feb 2026
Read story →
This Event
India's GCCs absorb the offshored work
The fastest-growing displacement channel is the one no AI labour law or federal dataset can see.
Led to
India IT grows 140,000 as US firms cut
NASSCOM's May FY2026 data makes the offshore GCC magnitude concrete, building on the earlier finding that GCC expansion sits outside US disclosure regimes.
Occurred 27 May 2026
Read story →
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