India’s GCCs taking the lead in solving global AI talent deficit

The global economy is presently facing a considerable shortage of skilled artificial intelligence (AI) professionals, which threatens innovation and growth across all sectors. As businesses worldwide rapidly embrace AI technologies, the demand for qualified experts has significantly outstripped the available supply. In this context, India's Global Capability Centers (GCCs) are optimally situated to lead initiatives aimed at addressing the urgent global talent shortage.

By leveraging India's extensive reservoir of STEM graduates and a robust technology ecosystem, GCCs are transforming from traditional service providers into sophisticated centers of innovation and talent development. Currently, India hosts over 1,800 GCCs, with more than 120 new centers established in 2024 alone, indicating a 17% year-on-year growth in the workforce and the addition of 180,000 new jobs. The need for generative AI skills in these centers has experienced an impressive 32% annual increase, particularly in the BFSI and retail sectors, while platform engineering and SRE skills are rising at 26% and UI/UX design at 25%. These centers play a crucial role in developing the specialized skills necessary for advanced AI-driven projects, such as machine learning, data analytics, and intelligent automation. The fierce competition for talent has heightened the emphasis on skilled professionals within India's GCC sector, where the demand for specialized technology talent has been steadily increasing. This scenario has compelled these organizations to adopt proactive and strategic talent management approaches, resulting in a significant increase in investments in upskilling and reskilling initiatives. Most notably, AI and data science engineers in India are now receiving salaries that are 25-40% higher due to this talent deficit and fierce global competition.

GCCs play a pivotal role in the AI revolution, nurturing a culture of innovation and serving as centers for high-value AI projects. This essential transformation requires a comprehensive revamp of talent strategies, compelling GCCs to move beyond conventional recruitment practices and focus on cultivating a workforce that is ready for the future. It is expected that a substantial segment of the Indian workforce in GCCs will need to acquire new skills in AI-related areas to meet the forthcoming demands of the industry. In fact, India is projected to have over 2.3 million AI job openings by 2027, while the existing AI talent pool is estimated to grow to only about 1.2 million, leading to a significant gap of more than 1 million positions that will necessitate focused reskilling and upskilling efforts. This highlights the essential requirement for strong internal training programs, fostering a culture of ongoing learning and offering employees chances to engage in advanced AI projects.

The undeniable strategic significance of Indian GCCs is recognized by MNCs that are expanding their operations in the country to tap into this thriving talent ecosystem. With over 1,800 GCCs in India and a growing number dedicated to research, development, and innovation in advanced technologies like AI, these centers are crucial. By developing and strengthening their AI capabilities within these centers, global firms can not only tackle the pressing global talent deficit but also foster significant innovation and secure a distinct competitive advantage. The unmatched capacity of India's GCCs to merge extensive technical expertise with advanced operational models and a steadfast commitment to outcome-oriented delivery positions them as a crucial player in closing the global AI talent gap and decisively influencing the future of the AI economy. By 2030, the Indian GCC market is expected to expand to $99-105 billion, with a workforce surpassing 2.4 million professionals, reinforcing India's status as a global AI leader.

Aditya Joshi

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Aditya Joshi is COO at SA Technologies (SAT).