**AI Impact on Global Capability Centres: A Shift in Workforce Dynamics**
As artificial intelligence (AI) continues to evolve, several global capability centres (GCCs) are anticipating a reduction in headcount for specific roles. Notably, two GCCs have indicated that the traditional measure of a GCC’s size—employee count—may soon become obsolete. Arvind Srinivasan, CFO of Thryve Digital Health, a captive centre for a US firm, remarked, “In two to three years, we might not even discuss the number of employees, as that may not be the right metric for benchmarking a GCC.” He further noted that the number of hires could be lower than previously expected, suggesting that work currently managed by 2,000 employees could potentially be handled with the same number, even as new projects arise.
This shift in workforce dynamics could pose challenges for upcoming engineering graduates, especially as GCCs have been expanding and offering competitive salaries. Meanwhile, major IT firms in India are hiring fewer employees. According to the National Association of Software and Services Companies (Nasscom), India’s IT sector, valued at $283 billion, employs approximately 5.8 million people, with GCCs representing nearly a third of this workforce and contributing at least $64.6 billion in export revenue.
Despite these changes, Srinivasan does not foresee immediate job losses due to AI and expects continued investment in GCCs. Thryve is already leveraging AI for various internal and customer-facing applications, such as customer invoicing and personalizing patient data for doctors based on treatment preferences. Currently, Thryve employs 3,600 individuals across its locations in Chennai and Hyderabad and is part of Pennsylvania-based Highmark Health, which reported $29.4 billion in revenue last fiscal year.
**The Shift Towards Skill-Dependent Roles**
A senior executive from another GCC highlighted that AI is driving a transition towards more skill-dependent roles. Suresh Kumar, global CTO and chief development officer of Walmart Inc., stated, “We are increasingly focusing on skill sets like data science that will help us accelerate our operations.” He clarified that while some areas may see a reduction in hiring, others could experience growth, indicating a nuanced approach to workforce management.
Walmart, the largest retailer globally, established its GCC in Bengaluru last December and has since expanded to Chennai, where it operates a 4,500-seat office.
In conclusion, as AI reshapes the landscape of global capability centres, the focus is shifting from sheer headcount to the quality and relevance of skills. This evolution presents both challenges and opportunities for the workforce, particularly for new graduates entering the job market.
**FAQ**
**Q: How is AI affecting job opportunities in global capability centres?**
A: AI is leading to a reduction in headcount for certain roles while increasing demand for skill-dependent positions, particularly in data science and technology.