Talent crunch threatens India's GCC edge as firms weigh alternatives
Skill shortages are pushing some global firms to move GCC mandates away from India, with delays and rising costs reported by a majority of centres.
India's position as a preferred destination for global capability centres (GCCs) is facing a fresh challenge, as a new industry study reveals that persistent talent shortages are prompting some multinationals to look elsewhere.
The study, based on a survey of 200 senior GCC executives across eight industries, found that 11 per cent of leaders report their global headquarters are actively evaluating or shifting mandates to competing geographies. This comes as a warning sign for a sector that has become a cornerstone of India's business services economy.
The impact of the skill gap is already being felt on the ground. Nearly six in ten GCCs (59 per cent) said they have experienced delays in product launches, project timelines, or go-to-market plans. A further 54 per cent noted that talent gaps are limiting their ability to scale artificial intelligence and digital transformation programmes.
Cost pressures are also mounting. Over half of the respondents (56 per cent) said they are increasingly dependent on external vendors or contractors at higher costs. Meanwhile, 49 per cent reported higher attrition among skilled employees due to increased workloads, and 45 per cent said wage inflation has significantly exceeded budget projections.
The stakes are rising as GCCs take on more strategic responsibilities. More than 85 per cent of centres expect their mandates to expand into technology leadership and strategic ownership by 2030, with one in five targeting global profit-and-loss responsibility. The study cautions that India's leadership in this space cannot be taken for granted, as other nations strengthen their own talent ecosystems.
To address the challenge, eight in ten GCC leaders believe decisive action is needed within the next 12 months. The report suggests that talent investment budgets, currently around 3 per cent of operating costs, may need to double to at least 6 per cent to build capabilities for the AI era. Indeed, 94 per cent of leaders said they need to invest at least 6 per cent, with 27 per cent expecting to exceed 8 per cent.
Industry-designed GCC-ready certification standards emerged as the most widely supported intervention, backed by 53 per cent of respondents. AI centres of excellence and AI-powered learning platforms followed at 51 per cent, while 48 per cent supported cross-GCC executive AI leadership academies.
The study concludes that GCCs which successfully build AI-ready leaders and composite-skilled workforces can evolve from centres of execution to centres of influence, shaping global business strategy rather than merely delivering on it.