How much does it cost to set up a GCC in India ?

Setting up a Global Capability Center (GCC) in India costs significantly less than other markets, often 40-70% lower than the US or Europe.

But what's the actual investment? Initial setup typically ranges from $500,000 to $3 million, with annual operational costs of $700,000 to $1.5 million for mid-sized teams.

Here's exactly what you'll spend and how to optimize costs.

For a complete roadmap, see our comprehensive guide to setting up a GCC in India covering legal setup, compliance, and talent strategies.

Initial Setup Costs[toc=Initial Setup Costs]

Your GCC's upfront investment covers six main cost areas. Here's what you'll spend before opening your doors:

1. Legal & Company Registration: Budget $5,000 to $50,000+ for corporate registration, regulatory approvals, and compliance setup.
2. Office Space Fit-out: Expect $50,000 to $250,000+ for furniture, interiors, and utilities in your leased space.
3. IT Hardware & Networking: Plan for $50,000 to $200,000+ covering workstations, servers, and networking infrastructure.
4. Software Licenses & Cloud Setup: Allocate $30,000 to $100,000+ for enterprise software, cloud subscriptions, and business tools.
5. Initial Recruiting & Onboarding: Hiring costs vary with team size but factor heavily into your initial budget.
6. Total Setup Investment: For a 50-100 person GCC, total upfront costs typically range from $500,000 to $2 million in major hubs like Bengaluru or Hyderabad.

Tier-2 cities like Pune or Coimbatore can reduce these initial costs by 25-40% through lower real estate and infrastructure expenses.

Once your GCC is operational, here's what you'll spend annually to keep it running.

Ongoing operational costs[toc=Operational Costs]

Ongoing operational costs are key to long-term GCC success.

Here’s what drives these expenses year after year:

1. People Costs: Talent acquisition costs in India have been rising, especially for niche skills, growing at about 9.9% in FY 2017-18. However, India still offers significant cost savings compared to Western countries for comparable roles.
2. Infrastructure Costs: Tier-2 cities deliver 30-50% savings on office space versus Bengaluru or Hyderabad. Tier-1 city rents grow just 4-5% annually, far slower than US or European markets.
3. Travel Costs: Global role expansion increases travel budgets, but India's lower base costs easily absorb these increases.
4. Vendor & Regulatory Costs: Third-party services and compliance filings cost significantly less than developed markets.

Managing payroll across states? Our guide to payroll compliance in India covers PF, ESI, and statutory requirements.

By understanding these factors, you can optimize your GCC's ongoing operational costs and maximize cost efficiency.

India vs Other Countries: Cost Comparison[toc=India vs. Other countries]

Here's how India stacks up against major GCC destinations for a 30-member team:

For detailed payroll processing mechanics, see how payroll works in India with compliance assurance.

India offers significant cost advantages vs many global markets due to lower salaries and operating costs.

For broader context on India's position, see why US companies are offshoring to India in 2026.

India's 82% cost advantage vs the US comes from lower salaries, affordable real estate, and reduced operational overhead, without compromising talent quality or productivity.

What factors affect the cost of setting up a GCC in India?[toc=Factors Affecting]

Several factors influence the overall cost of establishing and operating a GCC in India, from location to talent needs.

Let’s break down the key variables that can impact your cost structure.

• Location: Costs vary significantly between Tier-1 and Tier-2 cities.
• Talent Pool: Specialized skills like data science or cloud engineering may cost more.
• Company Size: Larger GCCs benefit from economies of scale.
• Technology Infrastructure: Advanced IT needs raise upfront and ongoing costs.
• Regulatory Environment: Government incentives and state policies can reduce costs.

Understanding these factors helps you optimize your budget and make informed decisions about your GCC setup.

Looking to optimize hiring costs? Compare independent contractors vs EOR employees to understand trade-offs.

Why is India more cost-effective than other countries for GCCs?[toc=India Cost-effectiveness]

India delivers significantly lower talent and operating costs while offering scale, productivity, and a mature business ecosystem that helps global companies do more with the same budget.

1. Talent Costs: India offers 40–70% lower salary costs compared to the US, Western Europe, and Australia for similar skill sets.
2. Operating Expenses: Office rent, utilities, and support services in India are significantly cheaper than most developed and nearshore markets.
3. Scale Economics: India allows faster and more affordable scaling due to a deep talent pool, unlike tighter labor markets in Eastern Europe or LATAM.
4. Productivity per Dollar: For the same budget, India typically delivers larger teams and longer coverage hours than other global locations.
5. Support Ecosystem: Mature vendors, consultants, and service providers in India reduce indirect costs compared to newer outsourcing destinations.
6. Long-Term Cost Stability: India offers more predictable long-term cost structures than regions affected by currency volatility or talent shortages.

The mature GCC landscape means infrastructure is ready, explore captive center models in India for strategic control.

Get Started with Wisemonk EOR[toc=Wisemonk EOR]

Wisemonk simplifies the entire process of setting up and managing your GCC in India. We handle all the legal setup, compliance, and payroll operations, ensuring you meet local labor laws while minimizing risks.

With our Employer of Record (EOR) services, we manage your ongoing costs, from talent acquisition to compliance filings, so you can focus on scaling your business efficiently.

Ready to set up your GCC in India? Contact us today to get started.