Why Companies Setup GCC in India in 2026

Why are so many global companies setting up GCCs in India? Because India offers the rare combination of a world-class talent pool, substantial cost savings, and the infrastructure to drive real innovation at scale.

As of FY2024, India hosts over 1,700 global capability centers, employing 1.9 million professionals and generating $64.6 billion in annual revenue. 174 Fortune 500 companies now run 390+ centers across the country. That's not a trend. That's a fundamental shift in how global enterprises build and run their operations.

In this guide, we break down the core reasons why companies setup GCC in India, what makes the country's ecosystem hard to replicate anywhere else, and how you can get started without the typical 6-month setup delay.

For a complete step-by-step setup process, see our GCC setup in India guide.

Why are global companies setting up GCCs in India?[toc=Why GCC in India]

Global companies setup GCCs in India for access to talent, cost efficiency, innovation, and scale. Having helped global companies build India teams, we've seen each of these play out firsthand.

What started as cost-saving back offices two decades ago looks completely different today. GCCs in India are now strategic assets that own product roadmaps and shape their parent company's global strategies.

Between early 2024 and late 2025, roughly 110 new GCCs were set up in India. It's not just US firms anymore. Companies from the UK, Germany, Japan, and Denmark are all expanding here.

Here's what's driving this remarkable growth.

1. Access to the world's deepest tech talent pool

India produces over 1.5 million engineering graduates every year. The country's robust education system feeds a diverse talent pool in AI, data science, cloud computing, and cybersecurity.

Over 120,000 AI professionals already work within Indian GCCs. In today's competitive job market, no other country matches this scale.

If you're looking to tap into this talent, our guide on how to hire employees in India walks you through the process.

2.Cost efficiency beyond mere cost cutting

Operating a GCC in India delivers 30-60% substantial cost savings compared to the US or Europe.

But cost efficiency remains just the starting point. GCCs now create tangible business value through innovation and product development, with projected revenue generation expected to cross $100 billion by 2030.

Learn about the full cost of setting up a GCC in India including infrastructure, talent, and compliance expenses.

3. Accelerated innovation and digital transformation

Nearly 60% of GCCs in India now handle end-to-end product development.

These centers build breakthrough solutions in cutting-edge technologies that global companies deploy worldwide. India's startup ecosystem makes accelerated innovation the norm, not the exception.

4. Business continuity and risk mitigation

Geographically distributed operations reduce single-point-of-failure risk.

GCCs in India serve as excellent risk mitigation centers through follow-the-sun coverage, robust governance frameworks, and 24/7 operational efficiency. For US and UK companies, global operations never stop.

5. Government support for foreign investment

India allows 100% foreign direct investment in most sectors.

States like Karnataka, Telangana, and Tamil Nadu offer GCC-specific policies with tax benefits and plug-and-play infrastructure. This positions India uniquely among emerging Asian markets.

Learn more about company registration in India to understand the entity setup process.

6. Scalability that matches your business needs

India's vast talent pool lets you start with 10 people and scale to hundreds without bottlenecks.

Tier II cities like Coimbatore, Jaipur, and Ahmedabad offer 15-25% lower costs while maintaining strong access to a skilled workforce.

Global capability centers in India have moved from back-office plays to innovation engines. Companies without a GCC presence here are falling behind.

If you're evaluating how to structure your GCC for long-term ownership, explore our in-depth guide on Build Operate Transfer in India to understand costs, risks, and transfer timelines.

You can refer to this article to know more the top 10 GCC setup consultants in India.

Let's look at what specific talent advantages make Indian GCCs so effective.

What makes India's talent pool ideal for GCCs?[toc=Diverse Indian Talent Pool]

India offers the largest tech talent pool any global company can access in one country. We've helped multiple global companies set up GCC in India and hire across 15+ Indian cities, and talent depth is the top reason GCCs thrive here.

The country produces roughly 2.5 million STEM graduates every year. 34% of all Indian graduates come from STEM fields, a scale no other country matches.

But numbers alone don't build a successful global capability center. Here's what actually makes India's diverse talent pool different.

Engineering and AI Talent at Scale

India is home to over 126,600 AI professionals working in Fortune 500 GCCs alone. That makes it the world's largest enterprise AI talent hub.

India's AI talent concentration grew 252% between 2016 and 2024 and now sits 2.5x above the global average. 83% of GCCs are actively scaling GenAI projects.

Demand for specialized skills in data science, machine learning, and cloud engineering keeps growing. English proficiency and cultural alignment with US and UK business practices make collaboration across time zones easy.

Explore the cost of hiring employees in India for detailed salary benchmarks across roles and cities.

From Cost Savings to Running Global Operations

GCCs in India have moved well past the cost-saving back offices stage. Today, 60% of GCCs handle end-to-end product and analytics mandates.

Global leadership roles based in India crossed 6,500 in 2024. They're projected to reach 30,000 by 2030.

GCC attrition dropped from 13% in 2023 to just 9% in 2025. Professionals now see these centers as places for real career advancement, not just stepping stones.

If you're looking to tap into this talent pool, our recruitment services help you find and onboard the right people quickly.

The talent picture is strong. But what about cost savings and innovation? Let's get into that.

What are the advantages of setting up GCCs in India?[toc=GCC India Advantages]

Setting up GCCs in India delivers 30-60% cost savings compared to the US or Europe, while simultaneously driving accelerated innovation in cutting-edge technologies.

From processing $20M+ in monthly payroll for global companies operating in India, we see these cost advantages play out every single month.

Here's what the numbers actually look like.

• Operating costs in India run 40% lower than Europe and up to 70% lower than the US for comparable roles.
• Grade A office space in cities like Bengaluru, Hyderabad, and Pune costs 50-70% less than New York or London.
• India allows 100% foreign direct investment in most sectors through the automatic route, with no government approval needed.
• Special Economic Zones offer tax holidays, duty-free imports, and reduced compliance requirements for GCCs.
• Tier II cities like Coimbatore, Jaipur, and Ahmedabad offer an additional 15-25% savings over major metros.
• Total GCC setup investment typically ranges from $500K to $2M, recoverable within two years through operational savings.
• State governments in Karnataka, Telangana, and Tamil Nadu now offer GCC-specific policies with plug-and-play infrastructure and streamlined approvals.

If you're evaluating whether to set up your own entity or use an EOR first, our EOR vs Entity Calculator breaks down the cost comparison.

But cost efficiency remains just one part of the story. GCCs in India are now creating tangible business value through innovation.

• 60% of GCCs now handle end-to-end product development, not just support work.
• 83% are scaling GenAI projects and 58% are investing in agentic AI (EY GCC Pulse Survey 2025).
• Indian GCC revenue hit $64.6 billion in FY2024 and is projected to cross $100 billion by 2030.
• Nearly 90% of GCCs in India now operate as multi-functional hubs covering R&D, analytics, product engineering, and digital transformation.

Want to see exact cost breakdowns for your specific roles? Use our Employee Cost Calculator to compare across Indian cities.

Cost savings get you started. Innovation keeps you ahead.

But what about business continuity and scaling your global operations from India? That's next.

How do GCCs in India help you run global operations around the clock?[toc=How GCC Helps]

GCCs in India give your company follow-the-sun coverage, geographic risk diversification, and the ability to scale teams without infrastructure delays.

We've helped global companies distribute critical functions across India and their home markets. The operational continuity advantages are immediate and measurable.

• India's time zone (GMT+5:30) creates a natural handoff with US and UK teams, keeping work moving 24/7 without overnight shifts.
• When your US team logs off, your India GCC picks up. Projects that take days in a single time zone get done in half the time.
• Geographically distributed operations reduce single-point-of-failure risk. If one location faces disruption, your India center keeps running.
• 90% of GCCs in India now operate as multi-functional hubs, handling R&D, analytics, product engineering, and business operations together.
• India's telecom backbone and hybrid work readiness mean your teams stay connected across cities and continents without reliability issues.
• You can start with 10 people and scale to hundreds. India's mature GCC ecosystem supports rapid growth across Bengaluru, Hyderabad, Pune, Chennai, and emerging Tier II cities.
• 88 mega GCCs already operate in India today, with projections crossing 230 by 2030. Companies of every size are scaling here successfully.
• GCCs accounted for 37% of all Grade A office leasing in India in 2025, which means infrastructure is purpose-built and ready for global operations.

See our detailed breakdown of the top GCC hubs in India to compare cities by talent, cost, and infrastructure.

For companies exploring dedicated development teams, our guide on offshore development centers in India covers the ODC model in detail & build your offshore team in India.

The operational case is straightforward. India gives you 24/7 coverage, built-in risk diversification, and a scaling path that doesn't slow you down.

So how do you actually get started? That's where Wisemonk EOR comes in.

Get Started with Wisemonk EOR[toc=Wisemonk EOR]

Setting up a GCC in India means dealing with entity registration, Indian labor laws, state-level compliance, payroll structuring, and talent acquisition all at once. Wisemonk is a leading Employer of Record in India that handles the entire process. We help global companies go from planning to operational in 12-24 weeks through entity setup, compliant hiring, payroll management, tax optimization, recruitment, and dedicated on-ground HR support.

Whether you're starting with a 10-person pilot through our EOR model or building a fully owned subsidiary from day one, we give you one partner for the full GCC journey. 300+ global companies trust us to manage 2,000+ employees across India. Or explore how companies use captive centers in India as an alternative expansion model.

Talk to our India GCC experts today!