India GCCs move from execution hubs to strategic centres as AI reshapes work, talent and workspace

India's Global Capability Centres (GCCs) are assuming control over product ownership and advanced tech initiatives. They are becoming key players in high-level problem-solving and pioneering research and development efforts. By 2026, the AI talent...

ETMarkets.com
India's Global Capability Centre (GCC) ecosystem is undergoing a significant transformation, with centres increasingly moving beyond traditional execution-focused roles to take ownership of products, platforms and advanced technology mandates, according to a new report by Awfis Space Solutions and Zinnov.

Titled "The Great Workplace Reset: How India GCCs are Redefining Work, Workforce, and Workspace", the report examines how the evolution of GCCs is reshaping hiring, skilling and workspace strategies across India. The report covers the GCC landscape, changing economics of work, workforce dynamics, workspace decisions and case studies of GCCs that have scaled through flexible and managed office formats.

India now has over 2,100 GCCs

India currently hosts 2,117 GCCs operating 3,728 units, generating an estimated 98.4 billion dollars in revenue in FY26 and employing more than 2.36 million professionals, the report said.


The number of GCCs has increased by nearly 32 per cent since FY21, while 506 companies from the Global 2000 now operate centres in India. The report noted that GCC adoption is also expanding beyond large global corporations, with private-equity-backed companies, mid-market enterprises and digital-native firms increasingly establishing centres in the country.

This suggests that India's GCC proposition is evolving from a cost and scale-led model towards a broader platform for growth, innovation and strategic ownership.

GCC work moves up the value chain

The nature of work being undertaken by GCCs has also changed sharply over the past decade.
ADVERTISEMENT

Between 2015 and 2026, commodity and procedural work declined, while complex problem-solving increased to 38.1 per cent. Cutting-edge research and development work also doubled during the period, pointing to a broader shift towards higher-value capabilities.

Almost half of India's GCCs now have an equal or higher share of frontier work compared with their headquarters. The report also found that companies actively building AI products have twice as much cutting-edge R&D work in India as companies that primarily adopt third-party AI solutions.

The findings indicate that India is increasingly becoming a location where global companies develop core AI capabilities and products, rather than simply deploying technologies developed elsewhere.

AI boom is reshaping GCC talent demand

The transformation in the nature of work is also driving a sharp increase in demand for specialised talent.
ADVERTISEMENT

According to the report, India's AI/ML talent pool within GCCs has nearly doubled from 122,000 professionals in 2023 to a projected 250,000 in 2026. This makes India the world's second-largest AI talent market after the US, the report said.

Zinnov CMO and Managing Partner Nitika Goel said the shift in AI work from invention to industrialisation has fundamentally changed GCC workforce requirements. The specialist roles tracked in job descriptions three years ago are increasingly evolving into full-stack roles combining domain expertise, AI frameworks and business context, she noted.
ADVERTISEMENT

GCCs drive office leasing demand

The shift in GCC mandates is also having a significant impact on India's commercial real estate market.

The report said India recorded its highest-ever quarterly office leasing volume of 20.7 million sq ft in Q1 2026, with GCCs accounting for 44 per cent of total demand, or 9.1 million sq ft. This was the largest amount of office space absorbed by GCCs in a single quarter.

The GCC share of office leasing has increased for three consecutive quarters. E-commerce, BFSI and technology accounted for 64 per cent of GCC leasing demand, while US-headquartered companies contributed 73 per cent. Bengaluru and Hyderabad together accounted for 67 per cent of the demand.

Flexible workspace gains traction

The growing need for speed and flexibility is also supporting demand for flexible workspaces.

GCCs currently account for 40 to 45 per cent of enterprise flexible-seat uptake, while 67 per cent of GCCs plan to increase their flexible-space allocation beyond 10 per cent of their overall real estate portfolio, according to the report.

The report also highlights case studies in which GCCs expanded from incubation to more than 3,000 seats within months using managed and flexible office formats provided by Awfis. These examples span sectors including global commerce, healthcare technology, media monitoring and consumer manufacturing.

Workspace becomes an operating decision

The report argues that workspace is increasingly being viewed not merely as a real estate decision but as an operating decision influenced by five factors: talent, control, speed, flexibility and brand.

Awfis Chairman and Managing Director Amit Ramani said GCCs are no longer limited to execution functions and are increasingly responsible for products, platforms and AI-led mandates. Such strategic responsibilities, he said, require workspace solutions that can adapt at the pace of business.

Awfis has built an integrated offering spanning flexible workspaces, managed offices and Transform by Awfis, its design-and-build offering, allowing GCCs to scale from early incubation to customised, branded workplaces.

The report's findings suggest that as India's GCC ecosystem moves towards higher-value work and greater ownership of global mandates, decisions around talent, technology and workplace infrastructure are becoming increasingly interconnected.

Awfis said the report is part of its continued partnership with Zinnov. The company is also the workspace partner for the 19th edition of Zinnov Confluence 2026, marking its second consecutive year of association with the industry event.

Awfis currently has a presence across 18 cities and more than 250 centres, serving over 3,500 clients, according to the company profile.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
ADVERTISEMENT
READ MORE

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › Markets › Digital Real Estate › Realty News › India GCCs move from execution hubs to strategic centres as AI reshapes work, talent and workspace
Text Size:AAA
Success
This article has been saved

*

+