Staffing firm Quess Corp is confident of delivering a 'good double-digit growth' during FY26, led by core segments information technology (IT) and Global Capability Centre (GCC) hiring, focusing on post-demerger plans and exiting legacy contracts.
"Even if we grow at 11–12 percent at this size, all put together across segments, we will still deliver a double-digit growth," Guruprasad Srinivasan, Executive Director & Group CEO, Quess Corp, told Moneycontrol.
During Q4FY25, Quess’ IT staffing revenue rose 11 percent year-on-year, while operating margin from the segment jumped 42 percent. A key driver, GCCs, now account for 70 percent of the company’s mandates in this segment.
Quess Corp signed 45 new clients in Q4FY25 alone and currently holds 1,300 open mandates, most of them from non-tech and enterprise clients with emerging tech hiring needs.
"Even if IT services hiring remains muted for a few more quarters, GCCs and non-tech firms continue to be the engines of demand," Srinivasan added.
Riding the GCC Wave
The Bengaluru-headquartered staffing firm plans to launch 'GCC-as-a-Service' offering within the next few weeks for global firms looking to set up or expand India-based delivery centres.
The second client engagement is already at the request for proposal stage, with a third in early discussions. Quess had signed its first GCC client last quarter.
These delivery centres range from 150 to 200 seaters and are expected to scale rapidly, said Srinivasan. “This will be launched with a new brand identity under Quess. The sales engine is already cranking.”
The company said even traditional enterprises are hiring AI engineers and digital experts, and it is no longer limited to tech companies.
Conservative Provisioning
FY25 was also the first full year of operations after Quess' demerger, with the company now focusing on its core staffing businesses. Quess exited the low-margin and long-gestation utility services and skill development verticals, which had been in sunset mode for the past six to eight quarters.
Also Read: Margins from GCC recruits triple of IT staffing, says Quess Corp CEO
The company took a Rs 164 crore one-time hit in Q4 towards these closures, Rs 119 crore towards utility and skilling projects and the remainder towards goodwill impairments and demerger-related expenses.
“We decided to be aggressive in provisioning and conservative in approach. No inefficiencies are being carried forward,” Srinivasan said. Nevertheless, the Street did not let this go unpunished, with the stock down 10 percent on earnings day, though it has recovered slightly since then.
AI, Sectoral Shifts
Srinivasan believes that AI-led transformation is adding a new layer of demand across sectors, from retail and BFSI to healthcare and field operations. "AI is everywhere now. Even small firms are hiring AI experts to improve customer experiences and business processes. This demand will sustain," he said.
Quess itself is experimenting with AI internally to reduce hiring times and increase operational productivity, with pilots like hiring candidates within 30 minutes under exploration.
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