Deeptech Fund of Funds – A Game Changer for Talent Management in GCCs
The Union Budget 2025-26 has introduced several initiatives specifically aimed at powering India’s technology ecosystem and ensuring talent development. One of the standout measures is the Deeptech Fund of Funds (FoF), which, along with a ₹10,000 crore boost for startups, is set to transform Global Capability Centres (GCCs) by providing access to skilled professionals in fields like artificial intelligence (AI), cybersecurity, and cloud computing. This particular measure is essential, given that over 1,580 GCCs in India employ 1.66 million people, and the number is only increasing. However, many industry leaders and experts have stressed that finding the right talent has become a bigger challenge than building office spaces, and some GCCs are also suffering due to hiring challenges. Aparna Iyer, CFO at Wipro Limited, said, “With AI becoming an essential tool for a tech-powered economy, it is heartening to see the introduction of Centres of Excellence (CoE) for AI in education. To position India as a leader in the global AI race, it is imperative to prioritise investment in STEM (science, technology, engineering and mathematics) talent.” Bridging the Skill Gap in GCCs Formulating a national framework to guide states in promoting GCCs is undoubtedly a step in the right direction. Suresh Ramamoorthy, country head of Lingaro India, stated, “The…national framework for GCCs…will provide a structured roadmap for one of the fastest-growing sectors in India.” He added that with over 1,700 GCCs employing nearly 1.9 million professionals, the national framework for GCCs will help strengthen India’s position as a hub for advanced technology solutions while also helping drive deeper collaboration between industry and academia. GCCs have already become an integral part of India’s tech industry, with companies setting up innovation hubs to develop AI-driven solutions, automation systems, and next-generation software. However, hiring the right talent has been a major challenge, as pointed out by many industry leaders. The deeptech FoF is expected to address this by enhancing skill development programs and creating a strong talent pipeline. “With strategic investments in education, skilling, and inclusion, the Union Budget 2025-26 lays the foundation for a future-ready workforce and an inclusive growth story,” said Dhriti Prasanna Mahanta, vice-president of  TeamLease Degree Apprenticeship. He also emphasised that the 10,000 fellowships for tech research at IITs and IISc under the Prime Minister’s Research Fellowship (PMRF) Scheme will help build a talent pool ready for deep-tech innovations. However, he also suggested that to maximise impact, the program must integrate industry internships similar to a Prime Minister’s Internship Scheme (PMIS). “Engaging the top 20 Indian tech companies to co-create flexible, agile, and responsive training modules will further enhance the program’s effectiveness,” Mahanta added. By collaborating with global tech giants, these fellowships could also offer international internship opportunities and enhance exposure to real-world AI applications. How AI Internships Can Shape Future Talent The National Education Policy (NEP) 2020 has already introduced a credit-based system for future skill courses like AI and machine learning (ML). AI internships are now a core part of practical learning, where students gain hands-on experience with advanced AI tools and industry-led projects. According to Mahanta, these internships offer an average stipend of up to ₹35,000 and upon completion, interns can command salaries between ₹8-10 lakh per annum. This clearly indicates that specialised AI skills will be in high demand, making such programs crucial for GCCs looking to build AI-driven solutions. GCCs Expanding to Tier-2 Cities While Bengaluru and Hyderabad have traditionally been India’s top GCC hubs, the government is now encouraging their expansion to tier-2 cities. With improved infrastructure and new talent pools, cities like Chandigarh and Indore are emerging as potential hubs. Vineet Dhawan, CEO of Digital Convergence Technologies (DCT), welcomed this development, stating, “We are excited to see how the national framework for promoting GCCs in emerging tier-2 cities will encourage talent availability, infrastructure improvement, and industry outreach.” He also noted that the ₹20,000 crore allocated for private-sector research, development, and innovation will accelerate projects in AI, cloud computing, and cybersecurity, further fueling talent demand. The Union Budget 2025 underscores the government’s proactive efforts to drive the expansion of GCCs in India, particularly in emerging tier-2 cities. Chandan Barve, VP and chief administrative officer of Sun Life Global Solutions, said that this initiative, with its strong focus on talent availability, infrastructure development, and regulatory reforms, will create new opportunities for both organisations and the country’s employable youth. He further added that the commitment to a national framework for GCCs strengthens India’s role as a “global hub fostering deeper innovation”, which will deliver state-of-the-art technology services, and drive operational excellence. In addition, Garima Mitra, co-founder of Treelife, highlighted in her LinkedIn post that the five-year extension of the sunset clause in GIFT City for tax-neutral relocation of foreign funds reflects a strong positive sentiment about the government’s intent to develop GIFT City. She added that tax clarity for alternative investment funds (AIFs) and the removal of tax collected at source (TCS) on securities will create a more streamlined investment ecosystem, reinforcing the government’s commitment to fostering a more investor-friendly environment. By combining fellowships, AI internships, industry collaborations, and startup support, India is taking strong steps toward becoming a global leader in deeptech innovation. With government initiatives, industry partnerships, and startup growth, the future of talent management in India’s GCCs looks promising.
This measure is essential, given that over 1,580 GCCs in India employ 1.66 million people.
This measure is essential, given that over 1,580 GCCs in India employ 1.66 million people.
["deeptech", "GCC india", "union budget"]
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["AI", "artificial intelligence", "machine learning", "ML", "Aim", "RAG", "cloud computing", "R", "Go", "Git"]
Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.