India’s Global Capability Centres (GCCs) are projected to add 1 million to 1.4 million net jobs by 2031, taking their combined workforce to between 3.3 million and 3.7 million, as multinational companies expand their operations and demand for specialised skills grows, according to a report by Embark.
The report, ‘India GCCs in the AI Era: Implications for Workforce Growth and Office Demand’, estimates that established GCCs will account for around 80 per cent of incremental workforce additions by 2031, driven by expanding business mandates and greater responsibility for products, platforms and strategic functions.
The expansion of existing centres and the establishment of new ones could generate 1.2 million to 1.5 million jobs combined, while AI-related roles could contribute another 300,000 positions. These additions are expected to offset a projected reduction of 4 lakh to 5 lakh roles due to automation, slower replacement hiring and role consolidation.
As GCCs take on more complex responsibilities, demand is expected to rise for professionals skilled in artificial intelligence (AI), data, platform engineering, cybersecurity, solution architecture and governance, alongside industry-specific expertise. India’s AI-specialist talent pool could reach 8 lakh to 9 lakh by 2031, the report estimates.
However, wider AI adoption has yet to translate into substantial productivity gains. Although 92 per cent of surveyed GCC leaders said their organisations had moved beyond selective AI adoption, realised productivity gains remained below 15 per cent. Data readiness, workflow redesign, governance and employee preparedness continue to pose challenges to scaling AI effectively.
The report also identifies opportunities for new GCCs to enter India. Around 3,144 viable Global 5000 companies have yet to establish a centre in the country, potentially creating 590 to 640 new GCCs by 2031. Mid-market companies are expected to account for approximately 28 per cent of these establishments, with smaller operating models, including Nano GCCs employing five to 100 specialists, offering a lower-capital entry route.
Around 90 per cent of new GCCs are projected to be located in Tier 1 cities. Bengaluru and Hyderabad currently account for 67 per cent of Tier 1 GCC leasing, while selected Tier 2 and Tier 3 locations could attract expansion through hub-and-spoke models.
The workforce expansion is also expected to increase demand for office space, with GCCs projected to generate an additional 150 million to 170 million square feet by 2031. The share of workplace allocation devoted to collaboration and shared spaces is expected to rise from 27 to 55 per cent.
Banking, financial services and insurance (BFSI), along with technology, media and telecommunications (TMT), are expected to account for around 54% of incremental GCC office demand.
The findings suggest that while automation may reduce demand for some routine roles, employment growth will increasingly depend on GCCs taking on higher-value work and developing the specialised capabilities needed to support evolving business priorities.
