India’s Global Capability Centres (GCCs) are projected to add 1 million to 1.4 million net jobs by 2031, taking their combined workforce from approximately 2.3 million currently to between 3.3 million and 3.7 million, according to a new report by Embark.
Titled India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, the report examines how artificial intelligence (AI), evolving business mandates and demand for specialised skills will shape employment across the country’s GCC ecosystem.
The report draws on a survey of 100 GCC leaders, executive interviews and market data.
It finds that while AI adoption is expected to reduce demand for some routine roles, the expansion of existing centres, new GCC establishments and the creation of AI-related positions are likely to drive overall workforce growth.
Established centres
Existing GCCs are expected to account for around 80% of incremental workforce additions by 2031, as multinational companies expand their operations in India and give their centres greater responsibility for business functions, products and platforms.
The report estimates that the expansion of existing centres and the establishment of new GCCs could generate 1.2 million to 1.5 million jobs combined, while AI-led role creation could contribute approximately 300,000 positions.
These additions are expected to offset the projected moderation of 400,000 to 500,000 roles due to automation, slower backfilling and role consolidation.
The findings suggest that employment growth will increasingly depend on the complexity of work undertaken by GCCs, rather than simply the expansion of delivery operations.
Demand for skills
As GCCs take on more strategic responsibilities, demand is expected to increase for professionals with expertise in AI, data, platform engineering, cybersecurity, solution architecture, governance and domain-specific capabilities.
India’s AI-specialist talent pool could reach 800,000 to 900,000 by 2031, according to the report.
However, the report also highlights a gap between AI adoption and measurable productivity gains. While 92% of surveyed GCC leaders said their organisations had moved beyond selective AI adoption, realised productivity gains remained below 15%.
Data readiness, workflow redesign, governance, employee preparedness and the ability to measure business value remain key barriers to scaling AI effectively.
These challenges are likely to influence how GCCs recruit, reskill and deploy employees as they integrate AI into business operations.
New GCC entrants
India also has scope to attract more multinational companies establishing their capability centres.
The report estimates that approximately 3,144 viable Global 5000 companies have yet to establish a GCC in India, creating the potential for 590 to 640 new centres by 2031.
Mid-market companies are expected to account for around 28% of these new establishments, supported by lower-capital entry models such as Nano GCCs, which typically employ between five and 100 specialists.
While new centres will contribute to employment growth, the report expects established GCCs to remain the primary driver of incremental hiring.
Around 90% of new GCC establishments are projected to be located in Tier 1 cities.
Bengaluru and Hyderabad currently account for 67% of Tier 1 GCC leasing, while Tier 2 and Tier 3 cities are expected to attract targeted expansion through hub-and-spoke operating models.
Workplace expansion
The projected increase in GCC employment is also expected to drive demand for office space. According to Embark, the sector could generate an additional 150 million to 170 million square feet of office demand by 2031.
Workplace requirements are also expected to change as organisations move towards more specialised and collaborative environments.
The share of workplace allocation devoted to collaboration and shared spaces is projected to increase from 27% to 55% by 2031.
The report identifies banking, financial services and insurance (BFSI), along with technology, media and telecommunications (TMT), as key drivers of office demand.
Together, the sectors are expected to account for approximately 54% of incremental GCC office requirements.
Retail and consumer packaged goods are also projected to be among the fastest-growing sectors in terms of office demand, with an estimated compound annual growth rate of 17% to 21%.
Overall, the report projects that India’s GCC expansion will create new employment opportunities while changing the skills, responsibilities and workplace environments required across the sector.
AI is expected to reshape the composition of the workforce, even as broader business mandates and the arrival of new centres sustain demand for talent.
