India’s Global Capability Centres (GCCs) are expected to create up to 1.4 million net jobs by 2031, even as artificial intelligence transforms job roles, skill requirements and workplace structures. According to a report by Embark, the sector’s workforce could grow from around 2.3 million currently to between 3.3 million and 3.7 million.
The report, titled India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, estimates that this expansion could generate an additional 150–170 million square feet of office-space demand. It highlights how productivity gains from AI could coexist with workforce growth as existing centres expand their responsibilities, new centres are established and demand for specialised skills increases.
Based on a survey of 100 GCC leaders, executive interviews and market data, the report found that 92% of surveyed leaders had moved beyond selective AI adoption. However, realised productivity gains remained below 15%.
AI-led automation, slower backfilling and consolidation of roles are expected to reduce demand for routine jobs by 400,000–500,000. However, expanding business mandates and new GCC setups could create 1.2–1.5 million jobs, while AI-led role creation could add around 300,000 more. These gains are expected to outweigh the impact on routine roles. Existing GCCs are projected to contribute approximately 80% of incremental workforce additions.
“AI is reshaping GCCs from 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,” said Aravind Maiya, CEO and co-founder of Embark.
Hiring demand is expected to increasingly favour specialists in AI, data, platform engineering, cybersecurity, solution architecture and governance. India’s AI-specialist talent pool could reach 800,000–900,000 by 2031. Meanwhile, 71% of surveyed leaders expect their centres to take on broader functional responsibilities, while 15% anticipate global leadership roles shifting to India.
The report also estimates that around 3,144 viable Global 5000 companies have yet to establish a GCC in India. This could create opportunities for 590–640 new centres by 2031. Mid-market companies are expected to account for approximately 28% of new setups, including smaller “Nano GCCs” employing 5–100 specialists.
Tier 1 cities are projected to attract around 90% of new centres, with Bengaluru and Hyderabad currently accounting for 67% of Tier 1 GCC leasing.
Banking, financial services and insurance (BFSI), along with technology, media and telecom (TMT), are expected to contribute around 54% of incremental office demand. Workplace designs are also likely to prioritise collaboration, with shared and collaborative spaces projected to increase from 27% to 55% of workplace allocation by 2031.
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