India’s Global Capability Centres (GCCs) could expand their combined workforce to 3.7 million by 2031, driven by AI adoption, specialised technology skills and increasing global business mandates, according to an Embark report.
India’s Global Capability Centres (GCCs) are expected to generate between 1 million and 1.4 million net jobs by 2031, taking the sector’s total workforce to approximately 3.3 million to 3.7 million, according to a report by Embark.
The report, titled India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, highlights the growing role of India as a strategic destination for multinational companies seeking technology expertise, business operations capabilities and specialised talent.
The projected employment growth is expected to be driven by the expansion of existing GCCs, the establishment of new centres and increasing demand for capabilities in artificial intelligence and other advanced technologies.
Existing GCCs to Drive Majority of Job Creation
Established Global Capability Centres are expected to contribute approximately 80% of the incremental workforce additions by 2031.
As multinational companies expand their operations in India, existing centres are increasingly taking responsibility for higher-value activities, including product development, technology platforms and strategic business functions.
According to the report, the expansion of existing GCCs and the establishment of new centres could collectively generate between 1.2 million and 1.5 million jobs.
AI-related roles are expected to contribute an additional 300,000 positions. However, these employment gains will partly offset an anticipated reduction of 4 lakh to 5 lakh roles due to automation, slower replacement hiring and consolidation of certain job functions.
AI and Emerging Technologies to Drive Skill Demand
The changing responsibilities of GCCs are expected to increase demand for professionals with specialised technical and industry-specific expertise.
Key areas likely to witness growing demand include:
- Artificial intelligence and machine learning.
- Data engineering and analytics.
- Platform engineering.
- Cybersecurity.
- Solution architecture.
- Technology governance.
- Industry-specific digital capabilities.
The report estimates that India’s AI-specialist talent pool could expand to between 8 lakh and 9 lakh professionals by 2031.
This shift is expected to increase the importance of continuous learning, specialised technical training and workforce reskilling as GCCs take on more complex global responsibilities.
AI Adoption Has Yet to Deliver Significant Productivity Gains
Despite increasing investments in artificial intelligence, organisations are still facing challenges in converting AI adoption into measurable productivity improvements.
The report found that 92% of surveyed GCC leaders said their organisations had moved beyond selective AI adoption. However, realised productivity gains remained below 15%.
Challenges such as data readiness, workflow redesign, governance frameworks and employee preparedness continue to affect the effective deployment of AI solutions.
The findings suggest that technology adoption alone may not be sufficient to deliver productivity improvements. Organisations will also need to redesign business processes and prepare employees to work effectively alongside AI systems.
India Could Attract Up to 640 New GCCs by 2031
The report also highlights significant opportunities for India to attract new multinational companies looking to establish global capability operations.
Approximately 3,144 viable companies from the Global 5000 have yet to establish GCCs in India. This represents an opportunity to attract between 590 and 640 additional centres by 2031.
Mid-market companies are expected to account for around 28% of these new establishments.
Smaller operating models, including Nano GCCs employing between five and 100 specialised professionals, could provide multinational companies with a relatively lower-capital entry route into the Indian market.
Tier 1 Cities to Remain Major GCC Destinations
Around 90% of newly established GCCs are projected to be located in Tier 1 cities.
Bengaluru and Hyderabad currently account for approximately 67% of GCC leasing activity across Tier 1 cities, reinforcing their positions as major destinations for multinational operations.
However, selected Tier 2 and Tier 3 cities could also attract new investments as companies explore hub-and-spoke operating models to expand their geographical presence and access additional talent pools.
GCC Expansion Could Generate Up to 170 Million Sq. Ft. of Office Demand
The expected growth in GCC employment is also likely to influence India’s commercial real estate market.
According to the report, GCCs could generate an additional 150 million to 170 million square feet of office space demand by 2031.
Workplace design requirements are also expected to evolve. The allocation of office space for collaboration and shared activities could increase from 27% to 55%, reflecting the growing emphasis on teamwork, innovation and collaborative work environments.
The banking, financial services and insurance (BFSI) sector, along with technology, media and telecommunications (TMT), is expected to account for approximately 54% of incremental GCC office demand.
GCCs to Play a Greater Role in India’s Employment Growth
The projected expansion of India’s GCC ecosystem highlights the country’s growing importance in global business operations and technology development.
While automation is expected to reduce certain routine job functions, the overall employment outlook remains positive, with new opportunities emerging in AI, engineering, cybersecurity, data and strategic business operations.
The next phase of GCC growth will increasingly depend on companies’ ability to move towards higher-value responsibilities, invest in specialised talent and translate technology adoption into measurable business outcomes.
For India’s workforce, this transition could create significant opportunities for professionals equipped with advanced technical skills and the ability to adapt to changing business requirements.
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