India’s Tier-2 GCC push hits infrastructure, AI talent gaps
- 3AI QuantX estimates a 20% to 25% gap in advanced AI and data roles.
- Less than 15% of available talent has end-to-end AI lifecycle expertise.
- India hosts more than 2,100 GCCs employing over 2.3 million professionals.
- The government targets around 5,000 GCCs by 2030.
MUMBAI, INDIA — India’s push to spread global capability center (GCC) growth beyond its biggest technology hubs is running into two hurdles: infrastructure that can support global talent and a shortage of the specialized skills that artificial intelligence (AI)-led centers need.
India already hosts more than 2,100 GCCs employing over 2.3 million professionals, and the government is targeting around 5,000 centers by 2030.
Report flags up to 25% AI talent gap
A new report by 3AI QuantX estimates a 20% to 25% gap in advanced AI and data roles, with acute shortages in machine learning operations (MLOps), large language model operations (LLMOps) and agentic AI, according to Moneycontrol.
Less than 15% of available talent currently has end-to-end AI lifecycle expertise, the report found.
The report estimates that 35% to 40% of GCCs could lead product engineering and AI platform mandates by 2026, compared with around 20% to 25% in 2022.
It also notes that more than 300 university partnerships have been established with global capability centers in India, with joint programs in AI, data engineering and emerging technologies.
“It’s very difficult to impress them,” said Mona Agarwal, managing director of ETS, recalling a visit to Nashik with executives from overseas.
Tier-2 cities weigh infrastructure against attrition
Agarwal said poor roads, connectivity and basic infrastructure can put off global headquarters executives evaluating locations, while housing, commuting and social infrastructure matter when companies relocate staff from larger cities.
She said Tier-2 locations can offer lower attrition, since employees with shorter commutes and more predictable work arrangements may stay longer.
The central government’s proposed national GCC policy is expected to focus on enabling growth through measures such as single-window clearances rather than another round of fiscal incentives, and states including Uttar Pradesh, Karnataka, Telangana, Haryana and Tamil Nadu have already notified their own policies.
“HR is taking care of them and giving them opportunities to grow in the same way as they are given in the metro city,” Agarwal said.
For companies weighing a captive center in a Tier-2 Indian city, lower attrition has to be set against thinner infrastructure and a smaller pool of specialized AI talent.
Firms that cannot close that gap on their own can compare hybrid models with the top BPO companies worldwide before committing headcount to a smaller city.
Related news
- Starbucks to open first India GCC in Chennai, creating 800 jobs · 26 Sep
- Seven Indian states target 1,380 GCCs by 2031: CBRE · 26 Aug
- Maharashtra targets 400 GCCs, 400,000 jobs · 21 Aug
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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