Nearly 46% of India's global capability centres (GCC) workforce will require significant upskilling or reskilling over the next three years as artificial intelligence transforms jobs and skills requirements, according to a PwC India-FICCI report released on Wednesday. The report titled 'Navigating the skills imperative for India's GCCs in the AI era' surveyed 200 senior GCC executives across eight industries and found that eight in 10 GCCs felt decisive action was needed within the next 12 months to close the skills gap. 41% of respondents described the window for action as immediate, within six months. As per the latest PwC India-FICCI study, 11% of GCC leaders are reporting that their global headquarters are actively evaluating or shifting mandates to competing geographies, highlighting the strategic urgency of addressing talent shortages.
Seven states are leading a massive expansion of Global Capability Centres, with Karnataka, Maharashtra, Rajasthan, Gujarat, Kerala, Haryana and Madhya Pradesh targeting the establishment of 1,380 GCCs across their territories. According to CBRE's latest report 'The Policy Advantage: Powering India's GCC Growth', these states aim to create 1.18 million additional jobs by 2031. Karnataka leads with 500 GCCs targeting 350,000 jobs, while Maharashtra plans 200 GCCs for 400,000 new positions. Rajasthan is looking at more than 200 GCCs with 150,000 job potential, Gujarat targets over 250 GCCs and 50,000 employment opportunities, Kerala aims for 80 GCCs creating 160,000 jobs, and Haryana plans more than 100 GCCs with 30,000 job creation. Madhya Pradesh is targeting over 50 GCCs and 37,000 jobs creation.
The urgency stems from the rapid pace of AI adoption, with 86% of GCC leaders expecting AI integration to result in substantial or transformational changes in work nature by 2030. Healthcare, manufacturing, technology, media and telecommunications sectors are among those expecting the most significant workforce shifts. According to the report, GCC leaders are not focusing solely on frontier technologies, but also investing in AI/ML engineering, agentic AI, AI governance, generative AI, advanced cybersecurity and MLOps (Machine Learning Operations). Among the skills with the largest gaps are domain-specific AI, AI/ML engineering, digital fluency, generative AI and large language models, advanced data engineering and cybersecurity. The challenge comes as India's GCCs are moving beyond traditional execution-focused roles, with more than 85% of GCCs expecting their operating mandates to expand by 2030, including greater technology leadership, strategic ownership and additional capabilities.
Skills shortages are already impacting business outcomes, with 59% of GCCs reporting delays in product launches, project timelines or go-to-market plans, making this the most commonly reported consequence of talent gaps. 54% reported higher dependence on external vendors or contractors at increased cost, while 56% said they were unable to scale AI and digital transformation programmes as planned. Additionally, 49% reported higher attrition due to overburdening existing skilled staff, and 45% cited wage inflation significantly exceeding budget projections. The shortage is also increasing operating costs and putting greater pressure on existing employees, with 56% of GCCs reporting greater reliance on external vendors or contractors at higher costs, while 49% said skilled employees were experiencing higher attrition because of increased workloads.
The report estimates that unresolved talent gaps are already constraining GCC value creation by up to 10%. Addressing critical skills gaps could unlock an additional 7.83% of value or revenue annually, with potential gains rising to 19.32% of total sector value or revenue by 2030. The average time-to-productivity for new entrants is 8.69 months, highlighting the gap between recruiting talent and making it ready for specific industry requirements. Currently, most GCCs allocate 3-5% of operating budgets to talent development, but 94% believe investments must rise to at least 6%, with more than a quarter expecting spending to exceed 8%. According to ANI, 80% of GCCs believe decisive action is needed within the next 12 months to strengthen capabilities across workforce, managerial and leadership levels. The report identified industry-designed GCC-ready certification standards as the most widely supported intervention, backed by 53% of respondents, followed by AI centres of excellence and AI-powered learning platforms at 51%, and cross-GCC executive AI leadership academies at 48%.
