India’s Global Capability Centres (GCCs) are projected to increase their workforce from around 2.3 million currently to 3.3–3.7 million by 2031, adding 1–1.4 million net jobs and generating 150–170 million sq. ft. of additional office demand, according to a report by Embark.
The report, India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, examines how artificial intelligence adoption, changing business mandates and workplace requirements could shape the sector over the next five years.
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%. Meanwhile, 71% expected their centres to assume broader functional ownership, while 15% anticipated global leadership roles moving to India.
“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.
The report estimates that automation, slower backfilling and role consolidation could moderate demand for routine roles by 400,000–500,000. However, expansion of existing mandates, new GCC formations and AI-related role creation are expected to more than offset the reduction. Established GCCs are projected to account for around 80% of incremental workforce growth.
Hiring demand is expected to shift towards specialised skills in AI, data, platform engineering, cybersecurity, solution architecture, governance and observability. India’s AI-specialist talent pool could reach 800,000–900,000 by 2031, according to the report.
Despite widespread AI adoption, organisations continue to face challenges involving data readiness, workflow redesign, governance, employee preparedness and measuring business value. The report suggests that deeper ownership of functions, products and platforms by existing centres will remain a major driver of expansion.
Embark also estimates that around 3,144 viable Global 5000 companies have yet to establish a GCC in India. This could translate into 590–640 new centres by 2031, with mid-market companies expected to account for approximately 28% of new setups. Smaller entry models, including Nano GCCs employing 5–100 specialists, could support this expansion.
Tier 1 cities are expected to remain the main locations for new centres, accounting for around 90% of projected setups. Bengaluru and Hyderabad currently represent 67% of Tier 1 GCC leasing, according to the report. Tier 2 and Tier 3 cities are expected to attract more targeted expansion through hub-and-spoke models.
The projected growth is also expected to change office design and space requirements. The share of workplace allocation devoted to collaboration and shared spaces is forecast to rise from 27% to 55% by 2031 as companies adapt to hybrid work, peak-day attendance and demand for specialist facilities.
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. Retail and consumer packaged goods is projected to be among the fastest-growing sectors in office-space demand, with a forecast compound annual growth rate of 17–21%.
The report expects office demand from GCCs to continue growing through 2031, although existing capacity could absorb some near-term expansion. As utilisation increases and centres take on more specialised work, secure infrastructure, customised premises and faster operational readiness are expected to become more important for landlords and developers.