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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. They are expected to add 1–1.4 million net jobs during this period, generating 150–170 million sq. ft. of incremental office demand, according to a new report by Embark, a fully integrated service provider. Released on October 23, 2026, the report draws on a survey of 100 Indian GCC leaders, executive interviews and market data to examine how AI adoption, evolving business priorities and changing workplace models will shape the sector through 2031. Most surveyed leaders said their centres had moved beyond selective AI adoption. However, productivity gains remain below 15%, suggesting AI benefits have yet to translate into substantial productivity improvements. Meanwhile, 71% of respondents expect their centres to take on broader functional ownership, while relatively few anticipate global leadership roles moving to India. Existing GCCs are expected to account for around 80% of incremental workforce additions. “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. AI to reshape GCC workforce composition The report identifies a shift in workforce composition rather than headcount growth alone. Automation, slower backfilling and role consolidation are expected to moderate demand for routine roles by 0.4–0.5 million jobs. This is expected to be offset by expanded mandates, adding 1.2–1.5 million jobs, and the creation of around 0.3 million AI-led roles. As GCCs take on more complex responsibilities, demand for specialised capabilities is expected to grow, including platform engineering, cybersecurity, solution architecture, and domain-specific expertise. India also has scope to attract new GCCs. According to the report, about 3,144 viable Global 5000 companies have not yet established a GCC in India, potentially leading to 590–640 new setups by 2031. Tier 1 cities, including Bengaluru and Hyderabad, are expected to account for 90% of new GCC setups. These cities already account for 67% of GCC leasing across India’s Tier 1 markets, the report states. “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,” the report states. GCC expansion to reshape office demand As GCCs assume greater responsibility for global functions, products and platforms, their workplace requirements are also expected to change. Collaboration and shared spaces are projected to increase from 27% to 55% of workplace allocation by 2031. Hybrid working models, peak-day attendance, and specialist infrastructure requirements are expected to shift planning from seat-led to purpose-led workspaces designed for collaboration, innovation, security, and complex work. Office demand is expected to remain concentrated in a few sectors. Banking, financial services and insurance (BFSI), along with technology, media and telecommunications (TMT), are projected to account for around 54% of incremental GCC office demand. Retail and consumer packaged goods (CPG) are expected to be among the fastest-growing sectors for office space, with a projected compound annual growth rate of 17–21%. The report expects India’s GCC expansion to support office demand through 2031. While existing office capacity may absorb some near-term growth, available capacity is expected to tighten as attendance increases, mandates deepen, and specialist infrastructure requirements rise. This could make expansion flexibility, secure infrastructure and faster operational readiness important considerations for landlords and developers. “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,” the report states. Established GCCs are expected to remain the primary drivers of near-term growth, with mature centres expanding beyond delivery-oriented mandates to take ownership of entire functions, products, platforms and business outcomes. As their responsibilities evolve, the report suggests office infrastructure must keep pace with changing workforce requirements and the growing need for specialised, secure work environments.
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