Global Capability Center (GCC) in India: A Complete Guide

Global Capability Centers (GCCs) are no longer just offshore cost-saving units, they’ve become strategic innovation engines for multinational companies. Whether you’re planning to set up, scale, or optimize a GCC in India, this guide covers everything you need, from why India is the preferred destination & major GCC hubs to step-by-step setup, challenges, and best practices.

What is a GCC in India?[toc=What is a GCC]

A Global Capability Center (GCC) in India is a wholly owned subsidiary of a multinational corporation that manages technology, business, and R&D operations for its parent company. It enables global firms to enhance operational efficiency, drive innovation, and tap into India’s highly skilled workforce and robust infrastructure.

From our experience helping global companies establish and scale GCCs in India, here are the key GCC functions these centers typically handle:

1. R&D and Product Engineering: Conducting research, product design, testing, and development across software, hardware, and emerging technologies.
2. Technology & Innovation: Leading AI, automation, and digital transformation initiatives that strengthen global competitiveness.
3. Data Analytics & Business Intelligence: Applying predictive analytics and data modeling to optimize global operations and decision-making.
4. Finance & Risk Management: Overseeing financial analysis, forecasting, and compliance for multi-country operations.
5. Human Resources & Talent Management: Managing recruitment, payroll, and social security while aligning with global HR frameworks.
6. Cybersecurity & Data Protection: Ensuring data security and IP protection across international operations.
7. Strategic Innovation & Long-Term Value: Supporting strategic projects, developing intellectual property, and driving business innovation aligned with the parent company’s global strategy.

Why are GCCs in India growing so rapidly?[toc=Why GCCs Are Growing]

The rise of GCCs in India is fueled by a strong combination of talent availability, cost efficiency, digital maturity, and government support. India now accounts for over 45% of all global capability centres worldwide (NASSCOM), making it the preferred destination for global companies building advanced technology and R&D hubs.

Based on our experience helping global businesses set up and scale GCCs in India, here are the main reasons behind this rapid growth:

1. Abundant Skilled Talent: India produces over 5 million STEM graduates every year, giving GCCs access to a large pool of highly skilled professionals in data analytics, AI, R&D, and product engineering.
2. Leadership in Digital Transformation: Multinational corporations are leveraging India’s thriving startup ecosystem and emerging technologies to drive digital transformation and strengthen global innovation capabilities.
3. Strong Government Initiatives: The Indian government actively promotes foreign investment through Special Economic Zones (SEZs), simplified compliance, and robust policy frameworks that make India a conducive environment for global operations.
4. Cost Efficiency with Scale: Companies achieve up to 40–50% lower operational costs while enhancing operational efficiency and maintaining global quality standards.
5. World-Class Infrastructure: Modern business districts, tech parks, and emerging GCC hubs in Tier II cities such as Pune and Coimbatore are offering advanced infrastructure for sustainable growth.
6. Shift Toward Strategic Roles: GCCs now lead strategic projects, develop intellectual property, and play a pivotal role in global strategy and business innovation.

According to EY (2024), India’s GCC market size is expected to reach $110 billion by 2030, with 50 new global entrants every quarter. This momentum highlights India’s position as the global hub for capability development and strategic innovation.

Which industries are leading the GCC wave in India?[toc=Leading GCC Industries]

The GCC wave in India is being driven by industries that rely heavily on technology, innovation, and data-led decision-making. As per Deloitte and NASSCOM, over 70% of India’s GCCs belong to sectors like technology, BFSI (banking, financial services, and insurance), healthcare, retail, and automotive, all of which are leveraging India’s skilled talent pool and R&D ecosystem to build global capabilities.

From our experience helping global companies across multiple sectors establish GCCs in India, here are the industries leading the transformation:

1. Technology & Software: Global tech giants like Microsoft, Google, and IBM run large India Development Centers (IDCs) focusing on AI, automation, cybersecurity, and product engineering. These centers handle strategic projects that drive global innovation and digital transformation.
2. Banking & Financial Services (BFSI): Firms like JP Morgan Chase, Goldman Sachs, and American Express use their Indian GCCs for financial analysis, risk management, compliance, and predictive analytics, improving both data security and decision-making speed.
3. Healthcare & Life Sciences: Global healthcare giants are building GCCs for clinical data analytics, R&D, and digital patient platforms, using India’s strong base of skilled professionals in biotechnology and data science.
4. Retail & E-commerce: Companies like Walmart, Target, and Amazon have set up large Indian GCCs that manage supply chain analytics, customer experience platforms, and data-driven personalization strategies.
5. Automotive & Manufacturing: Leading automakers and industrial giants are using their Indian GCCs for product design, engineering simulations, and automation technologies, turning India into a key player in smart manufacturing and mobility innovation.
6. Telecom & Media: With the growth of 5G and streaming technologies, global telecom companies are leveraging Indian GCCs for network optimization, digital content management, and user analytics.

Where are the top GCC hubs in India?[toc=Major GCC Hubs]

India’s GCC ecosystem is concentrated in a few major cities that offer the perfect blend of talent, infrastructure, and business ecosystem support. These cities have become global magnets for multinational corporations building their innovation hubs and India Development Centers (IDCs).

From our experience supporting global companies in selecting the right GCC locations, here are the major GCC hubs in India:

• Bengaluru: Often called the Silicon Valley of India, Bengaluru hosts over 40% of India’s GCCs, including tech giants like Microsoft, Google, and JP Morgan Chase. The city offers an unmatched talent pool in AI, product engineering, and R&D, supported by world-class infrastructure and a thriving startup ecosystem.
• Hyderabad: Emerging as a top innovation and R&D destination, Hyderabad attracts companies in healthcare, BFSI, and technology. With business-friendly policies and IT parks like HITEC City and Gachibowli, it has become a preferred hub for global firms seeking cost-effective scalability.
• Pune: Known for its automotive, manufacturing, and financial services GCCs, Pune is gaining traction due to its skilled professionals, strong educational institutions, and lower operational costs compared to metros.
• Chennai: A strategic base for automotive, logistics, and IT GCCs, Chennai offers a strong engineering talent pipeline, excellent port connectivity, and a stable business environment.
• Delhi NCR (Gurugram & Noida): Home to many BFSI, e-commerce, and analytics-driven GCCs, Delhi NCR combines top-tier infrastructure with easy access to global headquarters through international connectivity.
• Mumbai: As India’s financial capital, Mumbai hosts financial analysis and risk management GCCs for global banks and insurance firms, leveraging proximity to regulatory and financial institutions.
• Tier II Cities (Emerging Hubs): Cities like Coimbatore, Ahmedabad, Kochi, and Jaipur are rapidly becoming emerging GCC hubs due to talent availability, robust infrastructure, and lower operational costs. These locations are attracting companies looking to diversify beyond Tier I cities.

According to NASSCOM (2024), these seven clusters together host more than 1,900+ GCCs employing over 1.6 million professionals, contributing significantly to India’s service exports and global innovation. With ongoing investments in special economic zones (SEZs) and digital infrastructure, India’s GCC hubs continue to play a pivotal role in the global value chain.

What are the different types of GCCs in India?[toc=Types of GCC Models]

Global Capability Centers (GCCs) in India operate in different models based on the parent company’s objectives, maturity level, and strategic priorities. Some focus purely on operational excellence, while others lead R&D, innovation, and global transformation initiatives.

Based on our extensive experience helping multinational corporations set up and scale GCC operations in India, here are the key models you’ll find:

1. Functional GCCs

Functional GCCs are designed to centralize specific business functions such as finance, HR, IT, or legal. They help global companies streamline processes, ensure compliance, and enhance operational efficiency. For instance, a finance GCC may handle financial analysis, reporting, and risk management across multiple regions.

These centers serve as the backbone for standardized global operations, allowing the parent company to focus on higher-value activities like strategy and expansion.

2. R&D and Innovation Centers

R&D (Research and Development) GCCs are the innovation hubs of multinational corporations. They focus on research, product engineering, design, and prototyping across industries such as automotive, healthcare, and technology.

These centers often manage intellectual property development, AI and automation initiatives, and emerging technologies that drive global competitiveness. Global leaders like Bosch, Samsung, and JP Morgan Chase run such centers in India to accelerate strategic innovation and product development.

3. Digital and Analytics Centers

These GCCs specialize in data analytics, cybersecurity, AI, and automation. They support global operations by generating data-driven insights and building tools for predictive analytics and business intelligence.

With India’s thriving startup ecosystem and deep tech talent, these centers play a critical role in optimizing decision-making and driving digital transformation across global operations.

4. Enterprise or Multi-functional GCCs

Multi-functional GCCs handle a wide array of services across departments such as technology, finance, HR, operations, and customer experience.

They act as a strategic extension of the parent company, supporting both execution and innovation at scale. These centers often take end-to-end ownership of strategic projects, aligning with global leadership roles and creating long-term business value.

5. Build-Operate-Transfer (BOT) Model

In this model, a third-party partner helps a global company build and operate the GCC during its initial phase. Once it reaches operational stability, the ownership and control are transferred to the parent company.

This model is ideal for companies seeking faster setup and reduced risk, especially when entering emerging markets like India. It allows businesses to focus on strategic initiatives while leveraging local expertise for compliance, hiring, and infrastructure.

According to EY (2024), nearly 65% of new GCCs in India now operate as multi-functional or digital innovation centers, highlighting a clear transition from cost-saving operations to strategic, innovation-led value creation. This evolution has firmly positioned India’s GCC ecosystem as a key driver of global business transformation.

How can a global company set up a GCC in India?[toc=How to Set Up GCC]

Setting up a Global Capability Center (GCC) in India involves several well-defined steps that cover everything from market evaluation and entity setup to hiring and operations. With the right planning and local expertise, a GCC can be established within 4–6 months, depending on the scale and business model.

From our experience guiding global companies through successful GCC setups in India, here’s a step-by-step overview of the entire process:

Step 1: Define the Purpose and Scope

Start by identifying why you are setting up a GCC and what functions it will handle. Define whether it will focus on R&D (Research and Development), digital transformation, analytics, finance, or multi-functional operations.

A clear roadmap helps align your GCC with your global strategy, set KPIs, and determine the right operating model (captive center, BOT, or hybrid).

Step 2: Conduct Feasibility and Location Analysis

Evaluate different GCC hubs based on your priorities, such as talent availability, infrastructure quality, cost efficiency, and industry ecosystem.

For example, Bengaluru and Hyderabad are strong in tech and R&D, while Pune and Chennai excel in manufacturing and finance. Many global companies are now expanding into Tier II cities for better cost effectiveness and talent retention.

Step 3: Choose the Right Operating Model

Decide how you want to build your GCC:

• Captive GCC: Fully owned and operated by the parent company.
• Build-Operate-Transfer (BOT): Initially managed by a local partner, then transferred to your ownership.
• Hybrid Model: A blend of in-house and outsourced management for flexibility and scalability.

Selecting the right model early helps manage legal, financial, and HR complexities efficiently.

Step 4: Legal Entity Setup and Compliance

Register your company under India’s Companies Act, 2013 as a private limited entity or liaison office. You’ll need to obtain:

• Director Identification Number (DIN) and Digital Signature Certificate (DSC)
• Permanent Account Number (PAN) and Tax Registration
• Goods and Services Tax (GST) registration
• Registration under the Shops and Establishments Act (state-specific)
  Also, ensure compliance with foreign investment regulations (FEMA) and data security laws to protect intellectual property and confidential business data.

If you need any help to register a company in India, check out our article "Register a Company in India: Everything You Need to Know", it walks you through the entire process and shows how we can help make it seamless from start to finish.

Step 5: Infrastructure and Technology Setup

Choose your physical or hybrid workspace depending on your operational model. This may include leasing office space in a tech park or SEZ, setting up secure IT infrastructure, and establishing data protection protocols.

Many companies now opt for plug-and-play office setups that include connectivity, cybersecurity, and disaster recovery systems to enable faster deployment.

Step 6: Hiring and Talent Acquisition

India’s wide talent pool makes recruitment one of the most strategic steps. Build your core team by hiring skilled professionals in engineering, analytics, finance, HR, and operations.

Global companies often work with local hiring experts like Wisemonk, who specialize in sourcing top-tier professionals and managing end-to-end onboarding, payroll, and compliance.

Step 7: Operational Framework and Governance

Establish clear governance structures to align your GCC with the parent company’s global operations. Define reporting lines, data security policies, and performance frameworks to maintain accountability and control.

Regular performance audits and cross-functional leadership reviews ensure operational efficiency and strategic alignment.

Step 8: Compliance and Payroll Setup

Set up payroll systems compliant with Indian labor laws, including Provident Fund (PF), Employee State Insurance (ESI), gratuity, and income tax deductions.

Also, ensure social security contributions and statutory filings are managed accurately to maintain compliance and employee trust.

Step 9: Build a Strong Organizational Culture

Focus on creating a unified company culture that connects Indian teams with the parent organization’s values. Encourage collaboration, leadership opportunities, and local innovation through training, mentorship, and transparent communication.

Step 10: Continuous Optimization and Scaling

Once operational, regularly evaluate the GCC’s performance and identify areas for automation, upskilling, or expansion. Many successful GCCs expand into new domains like AI, data analytics, and cybersecurity within two to three years of setup.

With a structured approach, robust compliance, and the right local partner, setting up a GCC in India can transform into a long-term strategic investment. Companies that plan carefully not only achieve cost efficiency but also unlock sustained innovation and global leadership advantage.

What challenges do companies face while setting up a GCC in India?[toc=Key Challenges]

Setting up a Global Capability Center (GCC) in India presents several challenges that companies need to navigate carefully. Drawing from our experience guiding GCC setups, here’s an expert breakdown of the key challenges faced when establishing a GCC:

• Initial Setup Challenges: The initial phase of setting up a GCC is critical. Weak initial setup, including expecting the office manager or recruiting team to handle both operational and strategic tasks, can lead to a poor start.
• Regulatory Compliance: Companies often struggle with understanding and following the various employement laws and rules set by the Indian government. These include regulations on how to price services between the GCC and the parent company, special rules for operating in certain business zones, and strict labor laws. There are also new data protection laws and rules about handling foreign currency. 
• Talent Acquisition and Retention: Finding and retaining skilled professionals is a significant challenge, especially in emerging markets. GCCs must compete with established IT and technology companies for talent, and high attrition rates can disrupt operations.
• Operational Model and Integration: Setting up an efficient operating model and ensuring tight integration with the parent company can be challenging. Without proper alignment, GCCs may struggle to deliver expected outcomes at scale, face cost overruns, and have difficulty aligning with organizational roadmaps.

What are the best practices for a successful GCC setup in India?[toc=Best Practices]

Based on our extensive experience assisting global companies and parent organizations with setting up GCCs in India, we’ve found that adhering to proven best practices ensures operational efficiency, risk management, and long-term success.

Here are the most effective approaches:

1. Strategic Location Selection: Choose GCC hubs with a rich talent pool and robust infrastructure, such as Bengaluru, Hyderabad, or Pune, to maximize access to skilled professionals and cost efficiency.
2. Regulatory Compliance and Data Security: Ensure complete compliance with Indian legal and regulatory requirements, including labor, tax, and data security laws, by leveraging local expertise and established GCC ecosystem support.
3. Talent Acquisition and Development: Invest in hiring and nurturing global talent with diverse skill sets relevant to core functions like software development, data analytics, digital transformation, and process automation.
4. Robust Infrastructure and Technology: Set up world-class office spaces with cutting edge technologies and strong digital infrastructure to drive innovation and operational efficiency across global operations.
5. Governance and Continuous Improvement: Establish transparent governance frameworks, strong risk management practices, and metrics to track operational performance, cost effectiveness, and impact on global capability. Foster an innovation-driven culture to maintain a competitive edge within the global business landscape.

Following these best practices, as seen across established GCCs and new GCCs in India, leads to sustainable growth, seamless global integration, and enhanced strategic importance within your organization.

Why choose Wisemonk for setting up a GCC in India?[toc=Why Choose Wisemonk]

Wisemonk is a leading Employer of Record (EOR) in India, dedicated to helping global companies set up and manage Global Capability Centers (GCCs) with ease. Our comprehensive suite of services is designed to ensure a smooth transition and operational efficiency for your GCC, so you can focus on scaling your business.

Key Features of Wisemonk:

• Rapid 2–3 day onboarding management for Indian proffestionals.
• Tailored talent acquisition and recruitment strategies.
• Specialized compliance with Indian payroll and statutory benefits.
• End-to-end equipment procurement and management.
• Dedicated India-based HR (human resources) support and employee self-service portal.

Beyond these core features, we offer comprehensive payroll processing, contractor management, company registration, background verification, work permit & visa assistance, and set up an offshore team. By partnering with us, you gain a trusted local ally who simplifies every aspect of your GCC’s setup and ongoing operations in India, making your expansion seamless and fully compliant.

Let us help you unlock the full potential of your Global Capability Center (GCC) and drive innovation within your organization. Contact us today!

FAQs

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

The cost of setting up a Global Capability Center (GCC) in India typically ranges from $500,000 to $2 million, depending on the scale, city, and operating model. Initial costs include entity setup, legal registration, infrastructure, technology, and talent acquisition. Many global firms start with a Build-Operate-Transfer (BOT) model to reduce upfront investment and operational risk.

What is the growth outlook for GCCs in India over the next decade?

According to NASSCOM and EY, India’s GCC sector is projected to grow at 11–13% CAGR, reaching a market value of around $110 billion by 2030. Over 500 new GCCs are expected to be established by then, driven by AI, R&D, and digital transformation initiatives, solidifying India’s role as the global GCC hub.

How many GCC are there in India?

As of 2025, India hosts more than 1,900 operational GCCs, employing over 1.6 million professionals across technology, finance, healthcare, retail, and manufacturing. These centers contribute significantly to India’s service exports and global R&D and innovation ecosystem.

When was the first GCC set up in India?

The first wave of GCCs in India began in the early 1990s, when global IT and banking firms like Texas Instruments and American Express established their India development centers. Since then, the GCC landscape has evolved from back-office functions to strategic innovation and R&D hubs.

What is the GCC agreement of India?

The term “GCC agreement” doesn’t refer to a specific trade or government pact. In this context, GCC stands for Global Capability Center, not the Gulf Cooperation Council. A GCC in India is a corporate setup, not a diplomatic or trade agreement.

Which company has GCC in India?

Over 1,900 global companies operate GCCs in India, including JP Morgan Chase, Walmart, Microsoft, Google, Deloitte, Amazon, and Bosch. These centers manage R&D, product design, finance, and analytics functions, contributing to each company’s global innovation and operational efficiency.