India's Global Capability Centre (GCC) ecosystem is experiencing a profound transformation, marked by significant workforce shifts. Multinational companies are implementing job reductions across their Indian GCCs as part of broader efforts to boost efficiency, reorganize teams, and increasingly integrate artificial intelligence (AI) into their operations. Simultaneously, these Indian centers are expanding their scope, moving beyond conventional support functions to assume greater responsibility in areas like AI development, engineering, product innovation, and enterprise decision-making.
The Scale of Job Reductions
The Moneycontrol report indicates India's GCC ecosystem currently employs approximately 2.4-2.5 million people across over 2,100 centers. While estimates for job cuts vary, Pareekh Jain, CEO of EIIRTrend, suggests a figure between 25,000 and 30,000 for the current year. In contrast, Sameer Dhanrajani of 3AI estimates around 4,000-5,000 reductions.
Recent notable job cuts include approximately 600 roles at PayPal and 1,500 positions at Visa. ServiceNow and various smaller GCCs have also reduced more than 100 roles each, according to the report.
Shifting Responsibilities and AI Integration
However, the narrative extends beyond mere headcount changes. Sukanya Roy, a partner at Zinnov, emphasized that while job numbers grab headlines, the more significant underlying trend is the increasing trust placed in Indian GCCs to own a larger share of enterprise decision-making. This indicates a strategic evolution rather than a simple retreat from the GCC model.
Data cited by Moneycontrol reveals that commodity work constitutes 17.7% of the GCC portfolio, while complex work now accounts for 38.1%. Furthermore, 55% of the portfolio has some exposure to potential AI displacement. This does not imply a direct loss of 55% of jobs, but rather a redesign of tasks within these roles as AI transforms work processes.
Beyond Headcount: Increased Strategic Ownership
The retail and technology sectors have been particularly impacted by these changes. Weak top-line growth in retail and rapid technology cycles are making certain existing skills less relevant. Consequently, companies are actively seeking professionals who can adeptly combine technology expertise with sound business judgment.
This strategic shift allows GCCs to streamline parts of their workforce while simultaneously taking on more critical and strategically important work. Roy reiterated that while restructuring will continue, not every reduction signifies a withdrawal from the GCC model. New GCCs continue to emerge, and specialized hiring remains active, though companies are becoming more discerning about the specific skills required.
Global Restructuring and Margin Pressures
Indian teams are also becoming more integrated with global operations and are no longer insulated from broader restructuring efforts by parent companies. Snehal Kulkarni, a GCC transformation leader, noted that when parent companies restructure global product or operational divisions, India-based teams often face proportional cuts.
For technology and fintech companies, the imperative to improve margins and redirect capital towards AI infrastructure is further accelerating the move towards leaner teams, with an increased emphasis on higher-skilled roles.