Engineering the future: Why India’s STEM talent is the backbone of GCC growth

India’s STEM workforce is no longer just a talent reservoir. It is the nerve centre of the GCC (global capability centre) revolution. As digital transformation links industries, Indian engineers and technologists are not only driving efficiencies but also leading innovation and shaping global strategies. 

From building platforms that run at scale to advancing the frontiers of artificial intelligence, cybersecurity and sustainable technologies, India’s technical talent is no longer supporting the world, it is helping shape its future.

A STEM powerhouse ready to scale

With 1.5 million engineering graduates produced annually, India boasts the largest technical talent pipeline in the world. This unmatched supply of science, technology, engineering, and mathematics (STEM) professionals is what positions India as a natural choice for global firms setting up innovation hubs.

Today, over 1,950 GCCs operate in India, employing over 1.9 million professionals across tech, engineering, healthcare, and finance. Cities like Bengaluru and Hyderabad have emerged as global destinations for GCC investments, thanks to their deep STEM workforce, culture of innovation, and enabling policy ecosystems.

But it is not just about scale. With AI, green tech, and cybersecurity defining the next decade, India’s engineering and tech professionals are emerging as essential architects of the global digital future. GCCs increasingly see India not just as a delivery centre, but also as a strategic innovation partner—an idea reinforced by new developments across Bangalore, Hyderabad, Pune, Chennai, and Delhi-NCR.

GCCs are now innovation hubs

GCCs have evolved dramatically over the past decade. From cost-centric back-office functions, they have transformed into R&D and innovation powerhouses. Today, these centres lead core functions in AI, cloud computing, cybersecurity, digital engineering, and platform development—areas critical to global competitiveness.

This shift is generating tremendous job creation. In the near term alone, GCCs are expected to create 425,000–450,000 new tech jobs, most of which are STEM-intensive roles. Bengaluru and Hyderabad alone added over 60,000 new GCC jobs in 2024, reaffirming their status as the country’s innovation engines.

The employability paradox

However, despite the growing demand, a familiar challenge persists—the employability-skills gap. The engineering sector exemplifies this paradox. Although India produces 1.5 million engineering graduates annually, only about 10% secure employment within their field. The rest of them remain underutilised—signifying not a shortage of talent, but a crisis of alignment.

The problem becomes even starker when viewed against future needs. By FY2025, India is expected to face a talent shortfall of 30 million–32 million, especially in emerging domains like AI, semiconductors, and green tech—all of which are core to GCC growth trajectories.

Apprenticeships: The STEM talent engine

This is where apprenticeships are stepping in as a game-changing intervention. By embedding work-integrated learning into formal education, apprenticeships are equipping young professionals with job-ready skills while easing industry’s hiring bottlenecks.

As mandated by the Apprentices Act of 1961, companies with 30 or more employees are required to engage apprentices. This has encouraged GCCs to adopt apprenticeships at scale—offering them an efficient and high-ROI alternative to conventional hiring. Apprenticeships are not just plugging the skills gap; they are redefining the very model of workforce development.

The ‘net apprenticeship outlook’ for GCCs stands in India at a staggering 79% in FY25, indicating strong momentum. Over 80% of GCCs plan to hire apprentices, with a heavy focus on STEM-driven roles such as software engineers, QA engineers, and AI/data scientists.

There is also a powerful inclusion narrative emerging. 42% of GCCs aim to increase women apprentices, and 74% are open to hiring LGBTQIA+ candidates, reflecting a broader shift towards equitable and diverse hiring.

The demand for tech apprenticeships is so high that stipends range between ₹20,000 and ₹50,000 per month—a clear indication of competitiveness and value. These apprenticeships offer hands-on exposure in AI, quantum computing, cybersecurity, platform engineering, and more. In a fast-evolving workplace, certifications are fast replacing traditional degrees as employers prioritise skills over pedigree.

Bridging emerging tech gaps

Few sectors illustrate this better than AI. India’s AI talent pool is expected to double by 2027. GCCs are at the forefront of this growth, with many now operating as AI centres of excellence. These centres lead cutting-edge R&D in generative AI, healthcare applications, smart manufacturing, and beyond.

Apprenticeships and work-based learning programmes—which combine classroom learning with live projects—ensure that this STEM talent is not only trained, but is also industry-ready and agile.

Cost-efficient, future-ready

GCCs are also turning to apprenticeships to address business challenges around cost, attrition, and retention. The model reduces hiring costs by up to 50% and delivers 3X return on investment on training expenditures. Moreover, apprentices tend to have higher engagement and longer tenure due to better role alignment and hands-on learning.

Crucially, apprenticeships offer flexible deployment, enabling GCCs to tap into STEM talent in Tier II cities where costs are lower and attrition is reduced. This geographical spread also supports inclusive growth, allowing young professionals from smaller towns to access world-class career pathways.

A blueprint for the future

India’s GCC story is no longer just about numbers—it is about strategic workforce building. The synergy between STEM education, apprenticeships, and industry needs is shaping a blueprint for the future.

If India is to retain its edge as the global capital for digital transformation, the model must now be scaled, not just across large cities, but into every corner of the country. And that means bringing apprenticeships to the centre of the conversation, not as an alternative, but as the default pathway to building a future-ready, innovation-driven India.

The author is Chief Executive Officer, TeamLease Degree Apprenticeship.