India's Global Capability Centres (GCCs) are poised for significant expansion, with a new report by Embark forecasting the creation of up to 1.4 million net jobs by 2031. This growth is projected to increase the GCC workforce from its current 2.3 million to between 3.3 and 3.7 million, even as artificial intelligence (AI) fundamentally alters job roles and skill requirements.
The report, titled India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, highlights a dual impact of AI. While AI-led automation, slower backfilling, and role consolidation are expected to moderate demand for routine positions by 400,000 to 500,000, this will be more than offset by new opportunities. Expansion of existing mandates and the establishment of new GCCs could generate 1.2 to 1.5 million jobs, with AI-led role creation contributing an additional 300,000 positions. Existing GCCs are anticipated to account for approximately 80% of these incremental workforce additions.
AI Drives Demand for Specialized Talent
According to Aravind Maiya, CEO and co-founder of Embark, AI is transforming GCCs from mere delivery centres into strategic capability hubs. “India’s opportunity is to turn AI adoption into measurable business value, driving demand for specialist talent and supporting continued workforce and office growth through 2031,” Maiya stated. The report, based on a survey of 100 GCC leaders, found that 92% have moved beyond selective AI adoption, though productivity gains remain below 15%.
The shift in demand will favor specialists in critical areas such as AI, data, platform engineering, cybersecurity, solution architecture, and governance. India's talent pool for AI specialists alone is expected to reach 800,000 to 900,000 by 2031. Furthermore, 71% of surveyed leaders anticipate their centres assuming broader functional ownership, with 15% expecting global leadership roles to relocate to India.
Expansion and Office Space Implications
The report estimates that around 3,144 viable Global 5000 companies have yet to establish an India GCC, potentially leading to 590 to 640 new centres by 2031. Mid-market companies are expected to contribute significantly, accounting for about 28% of new setups, including smaller “Nano GCCs” employing 5-100 specialists.
This growth will also fuel a substantial demand for office space, estimated at 150-170 million square feet. Tier 1 cities are projected to attract about 90% of these new centres, with Bengaluru and Hyderabad currently dominating Tier 1 GCC leasing, accounting for 67%. The Banking, Financial Services, and Insurance (BFSI) and Technology, Media, and Telecom (TMT) sectors are expected to drive approximately 54% of this incremental office demand. Workplace planning is also evolving, with shared and collaborative spaces projected to rise from 27% to 55% of total workplace allocation by 2031.