Why India's GCC boom is facing a talent problem — and what companies want next
Talent shortages are a growing strategic risk for India's global capability centres. These skill gaps are delaying product launches and limiting digital transformation programs. Rising costs and employee pressure are also contributing to the talent challenge. GCCs need to significantly increase investment in AI-ready talent and skills. Strengthening talent ecosystems will ensure India's continued…
India's global capability centre (GCC) sector is grappling with a burgeoning talent shortage, posing a strategic risk for the nation's businesses, according to a recent PwC India-FICCI study. The survey of 200 senior GCC executives across eight industries revealed that 11% of GCC leaders are actively considering shifting their operations to alternative regions, as talent gaps are already impeding business operations.
Nearly six in 10 GCCs (59%) have experienced delays in product launches, project timelines, or go-to-market plans due to these skills shortages. Additionally, 54% of GCCs reported that talent gaps are impeding their ability to scale artificial intelligence (AI) and digital transformation programs. The talent shortage is exacerbating operating costs and placing increased pressure on existing employees, with 56% of GCCs relying on external vendors or contractors at higher costs, while 49% noted that skilled employees are experiencing higher attrition rates due to intensified workloads.
The challenge is compounded by the fact that India's GCCs are broadening their operating mandates beyond traditional execution-focused roles, with over 85% expecting this expansion by 2030, including greater technology leadership, strategic ownership, and additional capabilities. The report indicates that GCCs need to significantly invest in AI-ready talent, with 80% of GCCs believing decisive action is required within the next 12 months to strengthen workforce, managerial, and leadership capabilities.
Talent investment budgets, typically around 3% of operating budgets, may need to double to at least 6% to build capabilities suited for the AI era, with 94% of GCC leaders stating they need to invest at least 6%, while 27% anticipate their investment will surpass 8%. Industry-designed GCC-ready certification standards, AI centers of excellence, AI-powered learning platforms, and cross-GCC executive AI leadership academies emerged as the most widely supported interventions to address the talent challenge.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
