India's Global Capability Centres (GCCs) are projected to add between 10 lakh and 14 lakh net jobs by 2031, taking the sector's workforce to approximately 33 lakh to 37 lakh employees, according to a new report by Embark.
The report, titled India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, estimates that employment will increase from the current 23 lakh, despite artificial intelligence and automation reshaping job requirements across the sector.
Released on October 23, the study is based on a survey of 100 GCC leaders in India, executive interviews and market data. It examines how AI adoption, expanding business responsibilities and changing workplace requirements could influence employment and infrastructure demand over the next five years.
According to the findings, existing GCCs are expected to account for approximately 80% of additional employment as multinational companies expand their operations and assign greater responsibilities to their India-based centres.
The report estimates that automation, slower replacement hiring and consolidation of positions could reduce demand for routine roles by 4 lakh to 5 lakh. However, expansion of existing operations and new GCC establishments could generate 12 lakh to 15 lakh positions, while AI-related roles could contribute another 3 lakh.
Demand is expected to increase for professionals specialising in artificial intelligence, data, cybersecurity, platform engineering, solution architecture and governance. India's AI-specialist talent pool could reach 8 lakh to 9 lakh by 2031.
The study also found that 92% of surveyed GCC leaders had moved beyond selective AI adoption, although realised productivity improvements remained below 15%.
Meanwhile, 71% of respondents expected their centres to assume broader functional responsibilities, while 15% anticipated global leadership positions moving to India.
Aravind Maiya, CEO and Co-founder of Embark, said AI was changing GCCs from delivery-oriented operations into centres responsible for strategic business capabilities. He emphasised the need to translate AI adoption into measurable business outcomes.
The report further estimates that India could attract 590 to 640 new GCCs by 2031, with mid-market companies accounting for approximately 28% of these establishments.
Smaller operating models, including Nano GCCs employing between five and 100 specialists, could provide multinational businesses with alternatives to establishing larger centres.
The expansion is also projected to generate demand for an additional 150 million to 170 million square feet of office space.
Around 90% of new GCC establishments are expected to be concentrated in Tier 1 cities, while Tier 2 and Tier 3 locations could attract selective expansion.
The report projects that collaboration and shared spaces will increase from 27% to 55% of workplace allocation by 2031, reflecting changing requirements as GCCs undertake more specialised and strategic functions.
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