Decoding the 'Other' GCC
When India's Chief Economic Adviser, V. Anantha Nageswaran, issued a warning about the future of GCC work, many minds may have jumped to the Gulf countries. However, he was addressing a different, yet equally vital, economic engine: India's Global Capability
Centres. These are the sprawling Indian offices of multinational corporations, acting as hubs for technology, finance, product development, and back-office operations. With over 2,100 centres employing close to 2.3 million professionals, India's GCC sector is a behemoth, generating over $64 billion in revenue. What started as a move by global firms to leverage India for cost savings has evolved significantly. As the CEA himself noted, companies “came to India for cost. They stayed for capability.” These centres are no longer just support functions; they are integral to global operations, with many driving innovation and making key business decisions from Indian soil.
The Heart of the AI Warning
Speaking at the CII GCC Business Summit on July 9, 2026, Nageswaran delivered a message of both caution and opportunity. He conceded that a part of the traditional GCC model is directly threatened by artificial intelligence. “The work that was routine, repetitive and rule-bound is exactly the work that AI does most easily and most cheaply as well,” he stated, adding, “If a centre's value rests only on doing simple tasks at low cost, then the value is under real threat. We should not pretend otherwise.” This isn't a distant, futuristic problem. It’s a present-day challenge for any role based on predictable processes, from data entry and basic report generation to certain types of customer service and administrative support. The core of his warning is that the very foundation of the old cost-arbitrage model is being eroded by technology that can perform those tasks faster and more efficiently.
Not All Work Is Created Equal
However, the CEA was clear that this is not a doomsday prophecy for the entire industry. He argued that most of India's GCC ecosystem has already begun moving up the value chain, away from the very tasks AI is set to automate. According to Nageswaran, many centres are now engaged in “cutting-edge work” where global intellectual property is being created and products are being shipped directly from India. In fact, he highlighted that over 1,200 of these centres are involved in serious AI and machine learning work themselves, establishing India as a significant hub for global AI talent. The message is nuanced: centres that remain focused on low-cost, simple tasks will suffer. But those that have embraced complex problem-solving, innovation, and high-value services are not only likely to survive but thrive. AI, in this context, becomes a tool that enhances the value of human workers rather than simply replacing them.
The Urgent Need for Upskilling
The adviser's speech was ultimately a call to action for the industry. While the government has provided support by simplifying tax regimes and encouraging expansion into Tier-II and Tier-III cities, Nageswaran emphasised that policy alone is not enough. “The move from cost to capability, from execution to innovation, has to be made by firms and by people,” he urged. This places the onus squarely on companies and individuals to invest in continuous learning and skill development. The jobs of the future within GCCs will not be about following a script. Instead, they will be about designing, training, testing, and governing the AI systems themselves. As Nageswaran put it, “Our goal should never be to make our people work like machines. Our goal should be to use machines so that our people are freed to do more of what only people can do.” This means a greater focus on critical thinking, creativity, strategic decision-making, and managing the technology that is automating routine work.
