India’s GCC Boom Confronts A Talent Reckoning

Today, India’s 1,600+ GCCs employ the type of strategic talent that global companies spanning industries as wide ranging as pharmaceuticals, banking, retail and leading-edge AI research once reserved for talent closer home. India’s talent superiority has always been based on two pillars—cost-effectiveness and scale. A million engineers graduating every year, with the cost of recruiting a mid-level AI or cybersecurity specialist in Bangalore still remaining much lower than in Silicon Valley or London. But cracks are beginning to emerge and we find ourself in the middle of a steadily widening talent conundrum.

First, the pipeline of IT and data talent is under pressure. According to the ManpowerGroup’s Global Talent Shortage Survey 2025 report, which found 86% of employers struggling to find skilled professionals in this sector. The demand-supply gap is exacerbated by the rapid pace of digital transformation, AI adoption, and the growing need for data-driven decision-making. The AI and semiconductor industries, which are key to next-generation GCCs, suffer from a severe shortage, with just 2.5% of Indian engineers proficient in global AI competency standards, and just 5.5% qualified in basic programming, according to Team Lease Digital’s annual Digital Skills and Salary Primer 2024-25. 

Second, inflation in compensation is undermining India’s cost arbitrage. With supply well outpacing demand, top-technology talent commands salaries that are significantly higher today. It is also a retention problem, with Indian GCCs competing not only with IT services majors like Infosys and TCS, but with MNcs that are prepared to pay a premium for remote talent.

It is encouraging to note here that the Government of India and India Inc., recognise these challenges. India revamped education by integrating AI, 5G, and semiconductor design into university curricula under NEP 2020. The IndiaAI Future Skills initiative expands AI education across all levels, with AI and Data Labs in Tier 2/3 cities. India ranks first globally in AI skill penetration, with 16% of the world’s AI talent and a fast-growing developer base. By 2026, demand for AI professionals will reach 1 million. The government’s policies to encourage deep-tech education and semiconductor training schemes are positive measures. 

Meanwhile, in recognition of the talent challenge, employers are responding by offering more flexibility, expanding talent pools, and increasing wages to attract and retain skilled professionals. Addressing this challenge will require upskilling, reskilling, and workforce planning strategies.

But there is more to be done by the industry itself. Multinationals establishing GCCs in India will have to invest in indigenous R&D and developing homegrown talent—both in entry-level programmers and top engineering leadership. India’s IITs and top private schools are among the world's best, but their best and brightest usually end up heading for Silicon Valley. It will be important to create significant career opportunities within Indian GCCs to reverse this brain drain.

India is still the undisputed favourite among GCCs, but the talent risks are very real. If businesses do not take action, increasing costs and diminishing skill availability may drive new GCC investments to emerging hubs in Eastern Europe, Latin America, and Southeast Asia. For global CEOs and policymakers placing bets on India’s sustained dominance, the message is clear: invest in human talent now, or risk the golden age for GCCs in India only flattering to deceive.