BENGALURU, India, Oct. 26, 2026 – India’s Global Capability Centre (GCC) ecosystem is projected to expand significantly by 2031, with employment expected to reach 3.3–3.7 million and office space demand increasing by 150–170 million square feet. According to a new report by Embark, the sector could add between 1 million and 1.4 million net jobs, even as artificial intelligence (AI) transforms workforce structures, business responsibilities and workplace requirements.
The report, India GCCs in the AI Era: Implications for Workforce Growth and Office Demand, examines how AI adoption, evolving corporate strategies and changing workplace models will shape the country’s GCC landscape over the next five years.
Although AI is expected to automate certain tasks and improve productivity, the report suggests these developments will not necessarily reduce overall employment or office requirements. Instead, growth in existing centres, new GCC establishments and demand for specialised skills are expected to support continued expansion.
AI Adoption Is Advancing, but Productivity Gains Remain Limited
The Embark report draws on a survey of 100 GCC leaders in India, executive interviews and market data to assess the sector’s growth prospects through 2031.
Its findings indicate that 92% of surveyed leaders have progressed beyond selective AI adoption. However, realised productivity improvements remain below 15%, highlighting a gap between implementing AI technologies and achieving measurable business outcomes.
The report also points to a shift in the responsibilities assigned to Indian GCCs. Around 71% of respondents expect their centres to assume broader functional ownership, while 15% anticipate global leadership roles moving to India.
Existing GCCs are expected to contribute approximately 80% of the projected workforce additions, reinforcing the importance of established centres in the sector’s next phase of growth.
“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.
India GCC Growth: Key Findings From the Embark Report
1. AI Will Transform Job Roles Before Reducing Overall Workforce Demand
Automation, slower replacement hiring and consolidation of certain roles are expected to moderate demand for routine positions by approximately 400,000–500,000 jobs.
However, the expansion of existing GCCs, the establishment of new centres and the creation of AI-related positions are projected to generate substantially more opportunities.
Together, existing-centre expansion and new GCC establishments could support 1.2–1.5 million additions, while AI-led role creation could contribute around 300,000 positions. These gains are expected to outweigh the anticipated reduction in routine-role demand.
The resulting workforce transition is likely to favour employees with specialised technical capabilities, domain knowledge and the ability to manage complex business processes.
2. Demand for AI and Technology Specialists Will Increase
As GCCs take on more complex responsibilities, employers are expected to prioritise expertise in artificial intelligence, data, platform engineering, cybersecurity, solution architecture, governance and observability.
Demand is also likely to increase for professionals who combine technical knowledge with industry-specific expertise.
According to the report, India’s AI-specialist talent pool could grow to approximately 800,000–900,000 professionals by 2031.
This shift suggests that the future competitiveness of GCCs will depend not only on workforce size but also on the depth of expertise and the ability to deliver strategic business outcomes.
3. Established GCCs Will Remain the Main Growth Engine
Existing centres are expected to drive the majority of near-term expansion as multinational companies broaden the responsibilities of their Indian operations.
Rather than focusing primarily on service delivery and back-office activities, mature GCCs are increasingly expected to assume ownership of entire business functions, products, technology platforms and outcomes.
This transition could strengthen India’s position as a destination for global decision-making, product development and advanced technology operations.
For companies with established Indian operations, expanding existing centres may also provide a more practical route to growth than creating entirely new facilities.
4. Hundreds of New GCCs Could Enter India by 2031
India also has a substantial pipeline of potential new GCC establishments.
The report identifies approximately 3,144 viable companies from the Global 5000 that have yet to establish GCCs in India. This opportunity could translate into 590–640 new centres by 2031.
Mid-market companies are expected to account for around 28% of these new establishments.
Smaller entry models, including Nano GCCs employing approximately 5–100 specialists, could make India more accessible to companies that want to build focused teams without committing to large facilities or significant initial investments.
These models may provide an entry point for organisations testing the Indian market before expanding their operations.
5. Bengaluru and Hyderabad Will Continue to Anchor GCC Expansion
India’s major metropolitan markets are expected to retain their importance as GCC destinations.
The report projects that Tier 1 cities will account for approximately 90% of new GCC establishments. Bengaluru and Hyderabad together currently represent 67% of Tier 1 GCC leasing, underlining their position in the market.
Their established technology ecosystems, talent availability and commercial real estate infrastructure are likely to support further expansion.
Tier 2 and Tier 3 cities are also expected to attract targeted investments through hub-and-spoke operating models. These locations could help companies access specialised talent, manage costs and improve operational resilience.
However, the scale and pace of expansion outside major metropolitan areas will depend on the availability of appropriate talent, infrastructure and business services.
GCC Office Demand Could Rise by 150–170 Million Square Feet
The projected expansion of India’s GCC sector is expected to support significant demand for commercial office space through 2031.
Embark estimates that the sector could require an additional 150–170 million square feet of office space as existing centres expand, new companies establish operations and workplace requirements evolve.
AI adoption is not expected to eliminate this demand. Instead, changes in the nature of work could influence how office space is designed, allocated and used.
Workplaces Will Prioritise Collaboration and Innovation
The report anticipates a shift away from office planning based primarily on the number of employee seats towards environments designed around specific activities and business objectives.
The share of workplace allocation devoted to collaboration and shared spaces is projected to increase from 27% to 55% by 2031.
This change reflects the anticipated growth of hybrid working arrangements, fluctuating office attendance and the need for specialist environments that support teamwork, innovation and complex problem-solving.
GCCs may increasingly require secure technology infrastructure, collaborative areas and facilities tailored to sensitive or highly specialised operations.
Consequently, the quality and functionality of office space could become as important as its size and location.
BFSI and TMT to Drive a Significant Share of Office Demand
Demand for GCC office space is expected to remain concentrated in major industry segments.
Banking, Financial Services and Insurance (BFSI), alongside Technology, Media and Telecommunications (TMT), account for approximately 54% of projected incremental office demand, according to the report.
The Retail and Consumer Packaged Goods (CPG) segment is also expected to expand rapidly, with office area demand projected to grow at a compound annual growth rate of 17–21%.
These trends indicate that commercial property demand will be influenced by the expansion of technology-intensive and business-critical functions across multiple industries.
For developers and office operators, understanding sector-specific requirements will become increasingly important when planning new developments and upgrading existing properties.
What India’s GCC Expansion Means for Commercial Real Estate
The report suggests that India’s GCC sector will continue to support commercial office demand despite advances in AI and changing workplace practices.
Some organisations may initially accommodate additional employees within their existing facilities. However, this available capacity is expected to narrow as attendance increases, business responsibilities expand and demand for specialised infrastructure rises.
For landlords and developers, the implications extend beyond providing additional floor space.
Three priorities could become particularly important:
- Flexible expansion capacity: Companies may favour properties that allow them to expand operations as business requirements evolve.
- Secure, specialist-ready infrastructure: GCCs handling sensitive data, regulated activities and advanced technology operations may require customised facilities with stronger security and technical capabilities.
- Faster operational readiness: Buildings that can be configured and occupied quickly may offer an advantage to companies entering India or expanding existing teams.
Flexible and managed office spaces are likely to remain relevant for pilot operations, smaller teams and Nano GCCs. Larger centres and organisations operating in regulated industries may prefer dedicated premises designed around their security, technology and operational requirements.
The report’s projections suggest that office demand will increasingly depend on the type of work GCCs perform, rather than simply the number of employees they accommodate.
India’s GCC Industry Enters a New Phase of Growth
India’s GCC ecosystem is approaching a period in which workforce expansion, AI adoption and commercial real estate demand will increasingly influence one another.
While automation is expected to change the composition of jobs, broader business mandates, new centre formations and specialised talent requirements could continue to drive employment growth. At the same time, the need for collaborative, secure and technology-enabled workplaces is expected to support additional office demand.
The central challenge for GCC leaders will be translating AI investments into measurable productivity and business value while developing the capabilities required for more complex global responsibilities.
For India’s technology talent market and commercial real estate sector, the opportunity extends beyond creating more jobs or leasing more office space. It lies in building an ecosystem capable of supporting higher-value work, global business ownership and sustained innovation through 2031.
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.