GCC Setup in India: Complete Guide 2026

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

A Global Capability Center (GCC) is a wholly-owned offshore unit that a multinational company sets up in India to run strategic business functions for its global operations.

Think of it as your own office in India, not an outsourced vendor. You own it. You control it. Your employees work directly for you, aligned with your company culture and goals.

GCCs go by a few names. You might hear "Global In-House Center" or the older term "captive center." They all mean the same thing: a dedicated unit fully owned by the parent company.

What do GCCs in India handle?

• GCCs run software development, product engineering, and R&D for their global operations.
• Data analytics, artificial intelligence, and machine learning teams power digital transformation initiatives from India.
• Finance, accounting, and payroll operations are centralized for cost optimization and accuracy.
• HR services, talent acquisition, and customer experience teams support business continuity across time zones.

Why does this matter right now?

India hosts over 1,800 GCCs as of late 2025, more than half the world's total. These centers employ nearly 2 million professionals and generated $64.6 billion in revenue in FY2024. The sector is projected to cross $100 billion by 2030.

Around 110 new global capability centers were set up in India between 2024 and 2025 alone. US headquartered firms drive 70% of all GCC demand, and companies like Google, Microsoft, JPMorgan, Walmart, and Goldman Sachs now run some of their largest global operations from Indian cities.

From our experience helping global companies with GCC setup in India, we can tell you this: the question is no longer "why India?" It's "how fast can we get started?"

This guide covers everything you need to know, from choosing the right GCC model and location to understanding costs, compliance, and the exact steps to go live.

Now let's look at why India specifically dominates as the preferred destination for global capability centers.

Why choose India for a GCC Setup?[toc=Why Choose India]

India dominates because no other country combines this depth of talent, cost efficiency, and operational maturity in one place.

From helping global companies with GCC setup in India, we see the same five advantages drive every decision.

1. Deep talent pool: India produces 2.5 million STEM graduates annually and Indian GCCs already employ over 126,600 AI professionals, making it the largest enterprise AI talent hub globally.
2. 30-50% cost savings: Operating costs across salaries, office space, and infrastructure run 30 to 50% lower than the US or Europe, with companies reinvesting savings into R&D and product engineering.
   Use our Employee Cost Calculator to see exact salary costs for roles across Indian cities.
3. Innovation, not back-office: Over 50% of Indian GCCs now function as transformation hubs driving digital transformation, with 58% investing in agentic AI and 83% scaling generative AI projects.
4. Full IP ownership: GCCs give you complete control over intellectual property, proprietary code, and sensitive data, with India's IP protection laws and enforceable contracts ensuring your assets stay fully protected under your parent company.
5. World-class infrastructure: Bengaluru leads with 875+ GCCs followed by Hyderabad, Pune, Delhi NCR, Chennai, and Mumbai, while tier II cities offer 15 to 25% lower costs with untapped talent pools.
6. Government support: 100% FDI is allowed through automatic route, SEZs provide tax holidays and duty-free imports, and the 2025 Union Budget introduced a national framework to expand GCC activity into tier II and tier III cities.

Companies aren't evaluating India anymore. They're scaling here.

For a deeper look at what's driving this shift, read our guide on why companies set up GCCs in India.

Your next decision is which GCC model fits your business.

What GCC models can you choose in India?[toc=GCC Models in India]

There are six proven GCC setup models in India, and your choice depends on how much control you need, how fast you want to launch, and how long you plan to stay.

From working with global companies on their India operations, we've seen most enterprises choose based on three factors: speed to market, ownership preference, and budget for the first 12 months.

1. Wholly-Owned Subsidiary (Captive Model)

You register your own legal entity in India with full ownership, full control, and complete IP protection, best suited for global enterprises committed to long-term India presence with large-scale teams.

2. Build-Operate-Transfer (BOT)

In the BOT model, a local partner builds and runs your GCC initially, then transfers full ownership to you within 12 to 24 months, making it the preferred route for companies new to India that want faster decision making with lower early risk.

3. Managed GCC

In the managed GCC model, a third-party vendor handles daily operations like HR, payroll, and compliance while you retain strategic control over delivery and outcomes, ideal for mid-market companies scaling support functions without building internal admin infrastructure.

4. Employer of Record (EOR)

You hire employees in India without setting up a legal entity, with an EOR handling payroll, tax, and compliance, giving you the fastest market entry in weeks rather than months for pilot teams of 10 to 50 people.

Read our detailed EOR vs GCC comparison to understand when each model makes sense.

5. Joint Venture

You establish a shared entity with an Indian partner who brings local market knowledge and regulatory expertise, best for companies entering highly regulated sectors like banking, pharma, or insurance where local partnerships provide access advantages.

6. Hybrid Model

You start with an EOR or BOT to test India operations, then transition to a wholly-owned subsidiary once your team and processes stabilize, combining speed at the start with complete control later.

Which model fits your business?

If you're testing India with a small team and want zero setup time, start with an EOR. If you want speed to market with a clear path to ownership, the BOT model gives you both. If you're committed long-term and need maximum control over IP and global operations, go with a wholly-owned subsidiary.

Many global enterprises start with EOR or BOT, then evolve to a captive subsidiary once operations stabilize. That has become the preferred destination strategy for companies entering India in 2026.

Wisemonk specializes in EOR services for India, enabling you to hire compliantly in 2 to 3 days without entity setup. We also offer comprehensive GCC setup services, including build-operate-transfer options for companies ready to scale.

Once you've chosen your model, it's time to understand the step-by-step GCC setup process.

How to setup a GCC in India? Step-by-Step Process[toc=GCC Setup Steps]

The GCC setup process takes 12 to 24 weeks from planning to go-live, covering everything from entity registration and compliance to infrastructure build-out and talent acquisition.

From guiding global companies through GCC setup in India, we've learned that a clear roadmap is what separates a 12-week launch from a 12-month delay.

Here are the seven steps that get you operational:

Step 1: Define your GCC's purpose and scope.

Decide what functions your global capability center will handle, whether that's R&D, product engineering, data analytics, finance operations, or customer experience, and set clear headcount targets and business outcomes for the first 12 to 24 months.

Step 2: Choose your location.

Bengaluru remains the top choice for technology and AI talent, Hyderabad leads in healthcare and BFSI, Pune suits engineering and manufacturing, Chennai works for automotive and logistics, and Delhi NCR is strong for finance and consulting, while tier II cities like Coimbatore and Jaipur offer 15 to 20% lower costs with growing talent pools.

Step 3: Register your legal entity.

Most companies register a wholly-owned subsidiary as a Private Limited Company with the Ministry of Corporate Affairs, then obtain PAN, TAN, GST registration, and an Import Export Code if needed, giving you 100% ownership and operational control under India's automatic route FDI policy.

Read more: Company Registration in India: A Complete 2026 Guide

Step 4: Complete regulatory compliance.

File FEMA and RBI declarations for foreign investment, register for Provident Fund and Employee State Insurance, comply with state-level Shops and Establishments Act requirements, and set up TDS processes for employee tax deductions, all of which should be handled with local legal expertise from day one.

Step 5: Build your infrastructure.

Lease office space in an SEZ, IT park, or commercial business district, set up secure IT infrastructure with enterprise-grade cybersecurity and cloud computing capabilities, and ensure your facilities meet global standards for data protection and business continuity.

Step 6: Hire your core team.

Start with experienced leadership, a GCC head, functional leaders, HR, and compliance advisors, then scale your engineering, analytics, or operations teams through structured talent acquisition that positions your center as an innovation hub rather than just another office.

Step 7: Establish governance and integration.

Define clear reporting structures between your India operations and global HQ, set performance metrics and SLAs, create collaboration frameworks that enable faster decision making, and ensure cultural integration so your GCC operates as a true extension of the parent company.

Most companies go live within six months with proper execution and local expertise. Companies using a BOT or EOR model can start hiring within weeks and transition to a fully owned entity later.

Explore our recruitment services for GCC setup, or start immediately with our Employer of Record services to hire compliantly in 2 to 3 days.

Before you finalize your budget, let's look at what it actually costs to set up a GCC in India.

How much does it cost to setup GCC in India?

A 50 to 100 person GCC in India costs $500,000 to $2 million to set up, with annual operating costs 40 to 60% lower than the US or Europe. The exact number depends on five factors.

From helping global companies plan their India operations, we know these are the real cost drivers.

Five factors that determine your GCC costs in India:

1. Location is the biggest variable. Bengaluru and Hyderabad cost 25 to 40% more than tier II cities like Coimbatore, Pune, or Jaipur.
2. Team size and role mix matter most for operating costs. A 50-member GCC runs $1.5 to $2 million annually, while a 200-member center costs $6 to $8 million.
3. Talent specialization affects salary budgets. Senior engineers cost $30,000 to $60,000 annually, while a GCC Head runs $80,000 to $150,000+. GCCs pay 20 to 25% higher than non-GCC employers in India for equivalent roles.
   Use our Salary Calculator tool to understand CTC breakdowns for specific roles.
4. Infrastructure choices shape your upfront spend. Office fit-out for a 50-seat center costs $200,000 to $250,000, while IT setup adds $75,000 to $100,000.
5. Government incentives can reduce costs significantly. SEZ locations offer up to 30% savings on tax obligations, and several states offer payroll subsidies for high-value GCC roles.

For a full breakdown of setup costs, operating expenses, and optimization strategies, read our detailed guide on how much it costs to set up a GCC in India.

Not ready for full entity setup? Many companies start with an EOR model to test India with a pilot team before committing $500,000+ in setup costs. Use our Employee Cost Calculator to see exact salary costs for specific roles.

Compare the cost of EOR vs entity setup before committing to full incorporation.

With costs mapped out, let's look at the regulatory framework and government support that make GCC setup in India increasingly attractive for global companies.

What are the latest government policies and incentives to Setup a GCC in India?[toc=Government Policies]

India's Union Budget 2025-26 announced a National Framework for GCCs to promote global capability centers in emerging tier ii cities, and MeitY is building a Single Window Portal to streamline approvals nationwide.

FDI Rules:

100% foreign investment is allowed under the automatic route for IT services and most GCC-relevant sectors, with no prior government approval needed.

Union Budget 2026 set a uniform 15.5% safe harbour margin for transfer pricing, raised the threshold from Rs 300 crore to Rs 2,000 crore, and covers over 1,000 existing GCCs. GIFT City's tax holiday was extended to 20 years, and foreign cloud providers using Indian data centres get a tax holiday until 2047.

State-Specific Policies:

• Karnataka launched India's first dedicated GCC policy in November 2024, targeting 500 new GCCs and 350,000 jobs by 2029 with rental reimbursements, EPF support, and 45-day fast-track approvals.
• Uttar Pradesh's GCC Policy 2024 offers payroll subsidies up to Rs 2,000 per employee per month and innovation grants up to Rs 10 crore.
• Maharashtra's GCC Policy 2025 targets 400 new GCCs and 4 lakh jobs by 2030 across Mumbai, Pune, Nagpur, and Nashik. Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, and Madhya Pradesh all offer targeted incentives with single-window clearances and infrastructure development support.

Compliance:

The DPDP Act requires full compliance by May 2027 with 72-hour breach reporting and mandatory consent management. Labor laws run on a dual central-state system, and written employment contracts are mandatory with rules that differ from US at-will norms.

Multi-state compliance is where most companies underestimate the effort. Wisemonk EOR handles payroll compliance and regulatory filings so your team stays focused on building.

Now let's look at which Indian cities give you the best return on your GCC investment.

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

From helping companies choose the right location for their GCC setup in India, we've learned this: your city choice directly impacts talent access, costs, and speed to scale.

Tier-1 GCC Hubs

• Bengaluru: India's Silicon Valley hosts 40% of all GCCs. Tech giants like Microsoft, Google, and JP Morgan Chase are here for AI talent, product engineering, and R&D capabilities.
• Hyderabad: The fastest-growing innovation hub. Strong in healthcare, BFSI, and technology with IT parks like HITEC City. Offers cost-effective scalability with government support.
• Pune: The go-to for automotive, manufacturing, and financial services GCCs. Lower operational costs than Bengaluru with strong engineering talent from top universities.
• Chennai: Automotive, logistics, and IT hub. Excellent engineering talent pipeline with stable business environment and port connectivity.
• Delhi NCR (Gurugram & Noida): Home to BFSI, e-commerce, and analytics GCCs. Top-tier infrastructure with direct international connectivity to global headquarters.
• Mumbai: India's financial capital. Global banks and insurance firms set up here for financial analysis and risk management. Close to regulatory institutions.

Tier-2 Emerging Hubs

Cities like Coimbatore, Ahmedabad, Kochi, and Jaipur are the new frontier for GCC expansion.

Why companies are moving here: 15-25% lower operational costs, untapped talent pools, robust infrastructure, and lower attrition rates.

These emerging GCC hubs let you diversify beyond metros while maintaining operational excellence.

Bengaluru and Hyderabad lead for tech and innovation. Pune and Chennai work for engineering and manufacturing. Delhi NCR and Mumbai suit financial services. Tier-2 cities offer the best cost optimization.

Explore the complete list of top GCC hubs and emerging cities with detailed talent and cost data.

Choose based on your talent needs, not just costs.

If you're considering multiple locations, our comprehensive Build You Offshore Team in India guide covers regional differences in talent availability and costs.

Understanding the difference between a GCC and traditional outsourcing will help you make the right strategic choice.

GCC vs. Traditional IT Service Providers: What's the Difference?[toc=GCC vs. IT Service Providers]

Here's a question we get often: "Why set up a GCC when we can just hire an IT vendor?" The simple answer is ownership and control.

A GCC in India is your wholly-owned unit. It's part of your parent company, not an external vendor.

Traditional IT service providers are third parties. You're one of many clients on their roster.

The key differences:

GCCs are for companies seeking long-term value creation and strategic alignment. IT vendors work when you need fast execution on specific projects.

If you're building for the long term in India, a GCC makes sense.

If you're evaluating alternatives to full GCC setup, consider our best Employer of Record services as a faster path to hiring in India.

Also explore captive center models if you want full ownership from day one.

Every GCC setup faces obstacles. In the next section, let's see what to expect and how to prepare.

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

Most GCC setup failures come from rushing without local expertise.

We've guided hundreds of companies through this process, and the same patterns show up every time.

• Weak planning stalls momentum when companies assign office managers to handle both operational readiness and strategic direction without dedicated local leadership.
• Regulatory compliance covers employment agreements, transfer pricing with the parent company, DPDP Act data protection, and foreign exchange management across multiple states.
• You're competing with global enterprises and established IT firms for the same engineering talent and data science professionals in every major tech hub.
  Strengthen your employer brand with competitive employee benefits that attract top talent.
• High attrition in metros drives many companies toward tier ii cities where talent retention is stronger and cost effectiveness is significantly better.
• Poor integration with global business operations from day one causes cost overruns, delivery delays, and strategic misalignment.

These challenges are solvable with the right strategic partners. Here's what consistently works.

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

Treat your GCC as a strategic innovation hub, not a cost center.

We've seen the difference firsthand across hundreds of setups for global companies entering the Indian market.

1. Pick locations based on talent availability and cost efficiency, with established hubs offering deep talent pools and emerging cities delivering 15-25% lower operational costs.
2. Build regulatory compliance into the foundation from day one, covering labor laws, tax obligations, and data security across every state you operate in.
3. Invest early in talent development for high-value functions like artificial intelligence, cloud engineering, supply chain analytics, and digital transformation.
4. Set up world-class infrastructure with strong digital systems that drive innovation and operational excellence across your global operations.
5. Define clear governance frameworks and performance metrics so your GCC earns strategic importance within the parent organization, improving customer experience and not just cutting costs.

Getting this right takes deep local expertise and a trusted India partner. Our guide on top GCC setup consultants in India covers what to look for when choosing one.

Set Up Your GCC in India with Wisemonk EOR[toc=Wisemonk GCC Setup]

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. We have onboarded 2,000+ employees for 300+ companies and processed over $20M in payroll, giving us deep, first-hand knowledge of every compliance, payroll, and hiring challenge that comes with setting up a GCC in India.

Most companies lose 3 to 6 months waiting for entity incorporation before they can hire a single person. With Wisemonk EOR, your first team members are onboarded in 48 hours while your entity registration runs in parallel. No waiting. No compliance gaps.

Here is what we handle end to end for your GCC setup:

• Full payroll processing with PF, ESI, TDS, professional tax, and gratuity compliance across all Indian states, on time every cycle.
• Compliant employment contracts with onboarding completed in 48 hours, not weeks.
• Dedicated India-based recruiters who source, screen, and place talent across engineering, data analytics, product engineering, and operations roles.
• A dedicated HR business partner for every client handling employee relations, policy guidance, and day-to-day support. No chatbots, no ticket queues.
• CTC tax optimization that increases employee take-home pay by 10 to 15%, directly improving retention.
• Equipment procurement and delivery of laptops, phones, and peripherals shipped directly to employees anywhere in India.
• Company registration, contractor management through our Agent of Record service, background verification, and visa and work permit processing.

Whether you are testing India with a 10-person pilot or scaling a 200-member global capability center, we flex with your growth. Companies that start with our EOR model often transition to a wholly-owned subsidiary once India operations stabilize, and we support that shift too.

Let us help you unlock the full potential of your Global Capability Center (GCC) and drive innovation within your organization. Talk to our India GCC experts today →

What our clients say:

“I've been working with Wisemonk as an EOR employee for past two years. The onboarding call was really good and they even helped my team onboarding as well. They helped me with the macbook, iphone devices procurement. Their interface is good and I can manage my team in a single interface”

- Felix S.
Senior Software Development Engineer
Read the full review on G2 →

“Wisemonk was instrumental in identifying and assisting in the recruitment of three successful senior executives. The team took a hands-on approach to solving the client's needs, and Wisemonk iterated multiple approaches to problem-solving based on the client's needs and directional shifts.”

- Hariher B
Co-Founder, BuyEazzy
Read the full review on Clutch →