Bengaluru, 23 October 2026: India’s Global Capability Centres (GCCs) are projected to grow from approximately 2.3 million employees today to 3.3–3.7 million by 2031, adding 1–1.4 million net jobs and generating 150–170 million sq. ft. of incremental office demand according to a new report by Embark, titled, India GCCs in the AI Era: Implications for Workforce Growth and Office Demand.
The report finds that artificial intelligence (AI) will reshape the composition of GCC workforces, the nature of mandates and the type of workplaces organisations require. However, AI-led productivity gains are expected to coexist with continued workforce and office-space growth, driven by deeper mandates at established centres, new GCC formations and demand for specialist capabilities.
Based on a survey of 100 India GCC leaders, executive interviews and market data the report examines how AI adoption, evolving business priorities and changing workplace models will influence India’s GCC ecosystem through 2031. While 92% of surveyed leaders report having moved beyond selective AI adoption, realised productivity gains remain below 15%. At the same time, 71% expect their centres to take on broader functional ownership, while 15% anticipate global leadership roles moving to India. Existing GCCs are expected to account for around 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, Embark.
Key findings from the report:
- AI will change workforce composition before overall workforce size: Automation, slower backfilling and role consolidation are expected to moderate demand for routine roles by 0.4–0.5 million. However, expansion of existing mandates and new GCC setups (combined 1.2-1.5 million) and AI-led role creation (around 0.3 million) will more than offset this impact. Existing GCCs account for about 80% of projected additions.
- Demand will shift towards specialised capabilities: GCCs will increasingly require talent in AI, data, platform engineering, cybersecurity, solution architecture, governance, observability and domain-specialist roles, making workforces more capability-dense. India’s AI-specialist talent pool could reach 0.8–0.9 million by 2031.
- AI adoption is ahead of measurable value: While 92% of GCC leaders have moved beyond selective AI adoption, realised productivity gains remain below 15%. Data readiness, workflow redesign, governance, role readiness, and credible value measurement remain key barriers to scaling AI effectively.
- Established GCCs will lead near-term growth: Brownfield expansion will remain the primary engine of demand as mature centres move from delivery-oriented mandates to ownership of entire functions, products, platforms, and business outcomes.
- India has a significant pipeline of potential new entrants: Approximately 3,144 viable Global 5000 companies have yet to set up an India GCC, implying 590–640 new setups by 2031. Mid-market firms are expected to account for about 28% of new setups, aided by lower-capital entry models such as Nano GCCs of 5–100 specialists.
- Tier 1 cities will remain the scale anchor: About 90% of new GCC setups are expected in Tier 1 cities. Bengaluru and Hyderabad currently account for 67% of Tier 1 GCC leasing. Tier 2 and 3 cities will add targeted capacity through hub-and-spoke models, particularly for cost-sensitive delivery, specialised talent access, and operational resilience.
- Workplaces will shift from seat-led to purpose-led planning: Collaboration and shared spaces are projected to increase from 27% to 55% of workplace allocation by 2031. As hybrid models, peak-day attendance and specialist infrastructure requirements evolve, GCCs will require more purposeful environments designed for collaboration, innovation, security, and complex work.
- Office demand will be concentrated across key sectors: BFSI and TMT account for about 54% of incremental GCC office demand, while Retail/ CPG is projected to be among the fastest-growing sectors in area terms, at a 17–21% CAGR.
Implications for the Real Estate Market
The report finds that India’s GCC expansion will remain structurally office-accretive through 2031. Although existing capacity may absorb some near-term growth, these buffers are expected to narrow as attendance rises, mandates deepen and specialist infrastructure requirements increase. For landlords and developers, expansion optionality, secure and specialist-ready infrastructure, and speed to operational readiness will become increasingly important differentiators. Flexible and managed spaces are likely to remain relevant for pilot setups and smaller entry models, while larger and regulated GCCs will increasingly require dedicated, secure, and customised premises.
