India’s GCCs Could Add 1.4 Million Jobs by 2031—But AI Productivity Gains Lag

According to a report published by CIOL, India’s Global Capability Centres (GCCs) are poised for explosive job growth over the next five years, but a significant gap between AI adoption and realised productivity gains could temper the sector’s true potential. The report, titled India GCCs in the AI Era and prepared by Embark, a GCC setup and expansion services provider backed by Embassy Group, estimates that the GCC workforce could grow from 2.3 million to 3.3–3.7 million by 2031—adding between 1 and 1.4 million net jobs. Yet even as 92% of surveyed leaders say they have moved beyond selective AI adoption, realised productivity gains remain below 15%.

The GCC Expansion Engine: Big Numbers, Big Expectations

The growth story is undeniable. India’s GCC sector has become a critical hub for global enterprises seeking technology, operations, and innovation capabilities. The Embark report draws on a survey of 100 GCC leaders, executive interviews, and market data to project a workforce expansion that depends on companies scaling existing operations, launching new centres, and creating specialised roles. However, the report also warns that automation will reduce demand for some routine jobs, shifting the nature of employment rather than simply adding headcount.

• Current GCC workforce: 2.3 million
• Projected workforce by 2031: 3.3–3.7 million
• Net job additions: 1–1.4 million
• AI productivity gains: below 15% despite 92% adoption

The AI Productivity Paradox: Adoption Without Efficiency

The most striking finding is the disconnect between AI deployment and productivity outcomes. Ninety-two percent of surveyed GCC leaders report having moved beyond selective AI adoption, meaning they have integrated AI into multiple functions. Yet the realised productivity gains from these initiatives remain below 15%. This suggests that merely implementing AI tools is not enough; organisations must focus on workflow redesign, data quality, employee training, and end-to-end process integration to convert AI adoption into measurable efficiency improvements.

“Wider AI deployment has yet to translate into comparable productivity improvements,” the report notes, highlighting a critical gap that many companies are struggling to bridge.

Industry analyses conducted by AI Consultant & Training Institute reinforce this observation: many enterprises treat AI as a technology project rather than a business transformation initiative. Without aligning AI models with specific business outcomes and retraining teams to work alongside them, productivity gains will remain elusive.

Hiring Shifts: Specialised Skills Over Routine Work

The employment outlook is also changing. Demand is moving towards AI, data science, cloud, cybersecurity, and product engineering, while companies are becoming more selective about entry-level hiring and routine tasks. This raises important questions about how GCCs will absorb early-career workers as automation expands. The report estimates that automation, slower replacement hiring, and role consolidation could moderate demand by 400,000–500,000 jobs by 2031. In contrast, AI-led roles could add around 300,000 jobs, alongside growth from expanded mandates and new centres.

The net effect is a shift in the skills premium: workers with expertise in cloud infrastructure, data pipelines, and AI model deployment will command higher demand, while those in repetitive administrative roles may face displacement. This is a critical moment for career planning and corporate training programmes.

Office Demand Expected to Grow

The physical footprint of GCCs is set to expand as well. Embark projects that GCCs will generate an additional 150 to 170 million square feet of office demand by 2031. Bengaluru and Hyderabad currently account for 67% of GCC leasing in Tier-1 cities, and the report expects around 90% of new centres to be established in Tier-1 locations. This real estate forecast reflects the sector’s continued expansion, but it remains a projection; actual demand will depend on hiring, the pace of new centre launches, and how hybrid work and AI reshape office requirements.

The Talent Pipeline Challenge

The report projects India’s AI specialist talent pool to reach 800,000–900,000 by 2031. However, that outcome will depend partly on whether employers can find workers with the required skills and whether training systems can keep pace with changing demand. As consultants at AI Consultant & Training Institute often observe, the gap between existing capabilities and future AI skill requirements is widening, making it imperative for organisations to invest in structured upskilling—especially in prompt engineering, machine learning operations, and cloud-native development.

What This Means for Your GCC Strategy

The data paints a clear picture: India’s GCC sector is thriving, but the value creation from AI is lagging. Leaders who act now to close the productivity gap will gain a significant competitive advantage. This includes investing in AI training for existing employees, redesigning workflows around AI capabilities, and partnering with experienced consultants to build a measurable AI roadmap. At AI Consultant & Training Institute, we specialise in AI & LLM consulting, custom chatbot and workflow automation builds, SaaS product development, cloud & DevOps infrastructure, and hands-on training through Kyma Academy. Whether you need to prototype a new AI solution or upskill a team of 500, we can help you translate AI adoption into real productivity gains.

Don’t wait for the talent pool to tighten or for competitors to outpace you. The time to act is now.