GCCs are redrawing their talent maps as Tier-II leadership gaps widen

a story published by ET.

While attrition is significantly lower and operating costs are attractive in Tier-II cities, the inability to source senior and deep-tech talent within viable timelines is forcing HRs to recalibrate their expansion plans.

talked with HR leaders associated with GCCs about how they are balancing speed-to-hire, leadership depth and long-term workforce sustainability, prompting a shift toward ‘hub-and-spoke’ models and selective role migration back to metros.

Speed-to-hire vs leadership depth

For GCCs racing to deploy AI platforms or modernize cloud infrastructure, a 90-day vacancy in a senior role can disrupt delivery roadmaps, observed HR leaders.

“A 90-day vacancy for a niche role like a Cloud Architect or AI Lead can be a direct hit to product roadmaps. While Tier-II cities offer immense potential, the senior talent ecosystem there is still maturing,” said Anitha Sarathy, Head of People and Culture, India, Encora.

In this scenario, Encora has responded by shifting from a “location-first” to a “capability-first” hiring model. “If a role requires immediate deployment and deep specialization, we map it to a hub where the talent density allows for a 30-day turnaround. Tier-II locations are the focus for roles where we have the runway to build talent from the ground up,” Sarathy added.

Ritu Anand, Vice President – HR and Corporate Communications, Terumo India, said, “This is a challenge most GCCs are grappling with right now. On one hand, businesses need talent quickly to keep projects moving. On the other hand, you can’t rush leadership development.”

Rather than viewing longer hiring cycles as purely a bottleneck, Anand considers them as an inflection point. “In Tier-II cities, the pool for highly specialised roles is smaller, and that naturally extends hiring timelines. It is time to invest in people, mentorship and capability-building so that when leaders do come in, they are ready to make a lasting impact,” added Anand.

For Ensono, speed and depth are not opposing goals. “At Ensono, we view speed-to-hire and long-term leadership depth as inseparable,” said Robin Monical, Vice President – Talent Acquisition, Culture and People Experience, Ensono.

While acknowledging that senior AI and cloud roles in Tier-II cities can take longer due to limited local specialization, Monical emphasised, “Rather than relying solely on external hiring, we invest in skills development, internal mobility and succession planning within a flexible, hybrid operating model.”

That hybrid layer has become a crucial bridge allowing experienced leaders in metros to stay closely connected to Tier-II teams, while creating visible progression pathways for emerging leaders, Monical said.

The reinvention of the ‘Hub-and-Spoke’ model

The traditional ‘hub-and-spoke’ model where metros housed strategy and Tier-II cities handled execution is evolving under deep-tech pressures.

Sarathy pointed out that the shift is no longer just geographical but functional. “The ‘hub-and-spoke’ model is moving away from being purely geographical to becoming functional. Deep-tech innovation often requires proximity to peer networks, which currently exist primarily in metros,” she observed.

Encora’s redesigned structure positions metro hubs as Centres of Excellence. Here the ‘Hub’ functions as the centre for strategy, architecture and complex problem-solving, and the ‘Spoke’ becomes the engine for execution, scale and stability, Sarathy said.

Instead of hiring a Cybersecurity Head in a Tier-II city where the ecosystem may not support that role, Encora hires such leaders in Bengaluru or Hyderabad, with delivery teams operating from cities like Coimbatore or Bhubaneswar. “This hybrid structure allows us to tap into the best of both worlds without compromising on technical leadership,” Sarathy explained.

At Terumo India, the shift is about capability democratisation rather than role segregation. “The ‘hub-and-spoke’ model is evolving a lot from what it used to be. It is no longer just about centralizing expertise in metros; the focus is on creating capability everywhere,” said Anand.

While metros may still host highly specialized roles, Tier-II locations are no longer treated as execution-only centres. Through structured development anchored in the ‘70:20:10 learning model’, learning by doing, mentorship, and formal programmes, Terumo is building functional academies that allow associates in all locations to grow into strategic roles.

“Organisations are increasingly finding ways to expose Tier-II teams to bigger projects, mentorship and cross-functional experiences so they can grow into leadership roles themselves,” Anand emphasised.

“At Ensono, the evolution is explicitly skills-led. In response to deep-tech talent shortages, the ‘hub-and-spoke’ model evolves from a location-led construct to a skills-led approach,” Monical said.

Metro hubs such as Bengaluru, Hyderabad and Pune continue to concentrate scarce deep-tech skills, while Tier-II locations like Kochi, Coimbatore and Ahmedabad are leveraged for scaled delivery and domain-specific execution. However, the connective tissue is the hybrid operating model.

“Our hybrid model enables close collaboration across global and regional teams, allowing deep-tech expertise in innovation hubs to remain tightly connected with Tier-II centres. This mitigates localized talent constraints while maintaining delivery speed, quality and consistency,” Monical explained.

Solving the cost-depth paradox

Tier-II cities consistently offer two advantages. These are lower attrition and lower cost structures. Yet without leadership depth, those benefits can erode productivity, HR leaders observed.

“Tier-II cities offer lower attrition and operational costs, but if you lack the senior leadership to guide that stable workforce, productivity can take a hit,” Sarathy said.

Terumo India is resolving the paradox by shifting the lens from geography to enablement. “We address this by shifting the focus from where talent sits to how talent is enabled to grow,” said Anand.

Hybrid working plays a critical role, ensuring that associates in Tier-II cities remain closely connected to leadership and decision-making without relocation pressure. Platforms like ‘Terumo One Connect’ allow employees to contribute to cross-functional and global projects.

“For teams in Tier-II locations, this kind of exposure is critical. It helps broaden perspectives, build confidence and develop leadership capabilities without requiring a physical move to a metro. Over time, this creates stronger, more well-rounded leaders,” said Anand.

At Ensono, the solution blends targeted hiring with structured leadership acceleration.

“The organisation combines selective external hiring with internal mobility, skills development and intentional succession planning. This is reinforced through multilevel leadership development cohorts that run throughout the year, designed to build depth at every stage of the pipeline,” said Monical.

Culture and inclusion, according to Monical, are central enablers. “When associates can see clear pathways to growth, feel supported in building new skills, and have access to strong leaders, retention and leadership depth follow,” she added.

The new talent map

The recalibration underway across GCCs is less about abandoning Tier-II cities and more about redefining their role in the value chain.

Metros remain deep-tech anchors for now. Tier-II cities remain stability engines. But increasingly, the boundary between the two is being softened by hybrid collaboration, structured capability-building and skills-led workforce design. The emerging consensus among HR leaders is that neither objective can be sacrificed.