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

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

A Global Capability Center (GCC), also called a Global In-House Center, is a wholly-owned offshore unit established by a multinational company to handle strategic business functions for its global operations.

Unlike outsourcing to third-party vendors, a GCC operates as a direct extension of the parent company. You maintain complete ownership, control, and cultural alignment while leveraging India's skilled talent pool.

What GCCs handle:

• Software development, engineering, and R&D
• Data analytics, AI/ML, and advanced technologies
• Finance, accounting, and payroll operations
• HR services and talent acquisition
• Customer support and service delivery

The evolution from captive centers

You might have heard the term "captive centers" before. Those were basic back-office operations focused purely on cost savings.

Today's GCCs are different. They're innovation hubs driving strategic value for the entire enterprise, not just cutting costs.

Why India leads the GCC world? India hosts over 1,800 GCCs as of January 2026, more than half the world's total. These centers employ 2 million professionals and generate $64.6 billion annually, with projections to reach $105 billion by 2030.

Now that you understand what GCCs are, let's look at why India specifically dominates the global GCC landscape.

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

From our experience helping global companies scale and setup GCC in India, we can tell you exactly why India dominates the GCC landscape.

1. Massive Talent Pool

India produces 2.5 million STEM graduates annually.

Companies get access to specialized talent in AI, data science, cybersecurity, and cloud engineering. Not just entry-level, you can hire mid-senior leaders who run global operations.

Over 120,000 AI professionals work in Indian GCCs right now and the workforce combines tech skills with business strategy.

If you need help accessing this talent pool, check out our guide on hiring employees in India.

2. Cost Efficiency That Actually Matters

Operating a GCC in India cuts costs by 30-60% compared to the US or Europe.

A software engineer in India earns 40-60% less than their US counterpart. With no compromise on quality.

• Office space costs 50-70% less than New York or London
• Total setup investment: $500K-$2M (recoverable within 2 years)
• Companies reinvest savings into R&D and innovation

Want to see the actual numbers? Use our India salary calculator to compare compensation costs for specific roles and experience levels across different Indian cities.

3. World-Class Infrastructure

India's digital infrastructure now matches global standards.

Major cities like Bengaluru, Hyderabad, and Pune offer everything you need. SEZs (Special Economic Zones) provide tax benefits and enterprise-grade facilities.

• Tier II cities like Coimbatore and Jaipur offer 15-25% lower costs
• GCCs accounted for 37% of all Grade A office leasing in 2025
• Cloud-first architecture, reliable networks, strong cybersecurity

4. Innovation Ecosystem

GCCs aren't just saving costs anymore. They're driving innovation.

Nearly 60% of GCCs now handle end-to-end product development, not just support work.

• 185+ dedicated AI/ML Centers of Excellence
• Partnerships with local startups and academia
• Leading global mandates for digital transformation

5. Strong Government Support

India actively welcomes GCC investment through policy reforms and incentives.

• 100% FDI allowed in most sectors (automatic route)
• SEZ benefits: Tax holidays, duty-free imports, reduced compliance
• State-specific incentives in Karnataka, Telangana, UP, Gujarat
• Simplified incorporation and compliance processes

Learn more about labor laws in India and how they protect both employers and employees.

India generated $64.6 billion in GCC revenue in 2024. By 2030, that's projected to hit $105 billion. The ecosystem is mature. The talent is ready. The infrastructure is proven. Companies aren't testing India anymore. They're scaling here.

With India's advantages clear, your next question is probably: which GCC model fits your business needs?

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

From working with global companies on GCC setup in India, we've seen six main models. Your choice depends on whether you want cost efficiency, strategic innovation, or faster market entry.

1. Wholly-Owned Subsidiary (Captive Model)

What it is: You set up your own legal entity in India, fully owned by the parent company.

Key features

• Full ownership and control
• Employees are on your payroll
• Direct compliance with Indian laws

Best for

• Long-term presence
• Strategic work (R&D, product engineering, analytics)
• Large-scale teams

Pros

• Maximum control
• Strong IP and data security
• Builds long-term capability

Cons

• Higher setup time and cost
• Full compliance responsibility

Setting up your own entity means handling complex regulatory requirements. Our guide on labor laws in India covers everything you need to know about employment compliance.

2. Build-Operate-Transfer (BOT) Model

What it is: A local partner builds and runs the GCC initially, then transfers it to you after a defined period.

Key features

• Phased ownership
• Partner manages hiring, compliance, operations early on
• Ownership transfers later

Best for

• Companies new to India
• Faster market entry
• Reducing initial risk

Pros

• Faster setup
• Lower early risk
• Smooth transition to captive

Cons

• Less control initially
• Dependency on partner quality

"The BOT model has become a preferred route for mid-sized US firms looking to access global talent without the initial administrative heavy lifting."

- Lalit Ahuja, CEO of ANSR.

If you're considering the BOT approach, we offer comprehensive GCC setup services including build-operate-transfer options.

3. Third-Party Managed GCC (Managed Services Model)

What it is: A vendor sets up and manages the GCC on your behalf, while you retain strategic control.

Key features

• Vendor handles HR, payroll, compliance, infrastructure
• You focus on delivery and outcomes

Best for

• Mid-sized companies
• Non-core or support functions
• Faster scalability

Pros

• Minimal administrative burden
• Quick to scale
• Predictable costs

Cons

• Limited operational control
• Possible IP and culture concerns

If you're evaluating managed services, understanding India's payroll complexity helps you assess vendor capabilities. Check our payroll compliance guide for detailed statutory requirements.

4. Employer of Record (EOR) Model

What it is: You hire employees in India without setting up a legal entity. An Employer of Record (EOR) legally employs them.

Key features

• No entity setup
• EOR handles payroll, tax, compliance
• Employees work exclusively for you

Best for

• Pilot GCCs
• Small teams (10-50 employees)
• Short-term or exploratory setups

Pros

• Fastest entry (weeks)
• Low upfront cost
• Zero legal setup

Cons

• Higher per-employee cost
• Not ideal for large or long-term GCCs

Wisemonk specializes in EOR services for India, enabling you to hire compliantly in 2-3 days without entity setup. Explore our Employer of Record services to see how EOR can fast-track your India entry.

5. Joint Venture (JV) Model

What it is: You set up a shared entity with an Indian partner.

Key features

• Shared ownership and investment
• Partner provides local expertise

Best for

• Highly regulated sectors
• Market-specific expertise needs

Pros

• Local market knowledge
• Shared risk and cost

Cons

• Complex governance
• Slower decision-making

Joint ventures require careful structuring and registration. Our company registration guide covers different entity types and their implications for foreign companies.

6. Hybrid / Phased GCC Model

What it is: A combination approach, often:

• Start with EOR or BOT
• Transition to Wholly-Owned Subsidiary later

Best for

• Companies planning long-term GCCs
• Wanting speed first, control later

Pros

• Flexible and scalable
• Lower initial risk
• Clear growth path

Cons

• Requires strong transition planning

The hybrid approach works best when you have strong recruitment support. Our India hiring guide covers talent acquisition strategies for each phase of your GCC journey.

Not sure which model matches your business needs? Our enterprise GCC services team can help you evaluate options based on your scale, timeline, and strategic goals.

Which model fits your needs?

• Choose Wholly-Owned Subsidiary if you're committed to India long-term and need maximum control over IP, operations, and strategic capabilities.

• Choose BOT model if you want speed to market, lower initial risk, and a proven transition path to full ownership within 12-24 months.

• Choose Third-Party Managed GCC if you need to scale support functions quickly without building internal admin infrastructure.

• Choose EOR if you're testing India with a pilot team (10-50 employees) or need to hire immediately without entity setup.

• Choose Joint Venture if you're in a regulated sector (banking, pharma) where local partnerships provide market access advantages.

• Choose Hybrid if you want the best of both worlds, start fast with EOR or BOT, then transition to full ownership as you scale.

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

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

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

From guiding hundreds of GCC setups, we've learned this: you need a clear roadmap. Here's our step-by-step process that gets you operational in 12-24 weeks.

Step 1: Define Your Purpose

Start with the basics. What will your GCC do?

IT services, R&D, analytics, finance, or engineering? Define your functions, expected headcount, and business outcomes upfront.

Don't skip this. Everything else follows from here.

Step 2: Choose Your Location

Pick the right city for your needs:

• Bengaluru: Tech and innovation hub
• Hyderabad: IT and BFSI
• Pune: Engineering and analytics
• Chennai: Telecom and manufacturing
• Delhi NCR: Finance and consulting

Tier-2 cities like Jaipur and Coimbatore offer 15-20% cost savings with good talent.

Step 3: Set Up Your Legal Entity

Register a Wholly-Owned Subsidiary (most common structure).

File with Ministry of Corporate Affairs. Get your PAN, TAN, GST, and Import Export Code if needed.

This gives you 100% control and ownership.

Step 4: Handle Compliance

India has clear regulations. Follow them from day one.

• FEMA/RBI filings for foreign investment
• GST and local tax registration
• Employment compliance (PF, ESI)
• Data protection and cybersecurity standards

Work with local legal experts. Don't cut corners here.

Our payroll compliance guide covers everything you need to know about statutory requirements.

Step 5: Build Your Infrastructure

Lease office space in an SEZ, IT park, or business district.

Set up secure IT infrastructure, access controls, and scalable digital tools. Your infrastructure should match global standards.

SEZs offer tax benefits. Standard tech parks give more flexibility.

Step 6: Hire Your Core Team

Start with leadership, then scale.

First hires: GCC Head, functional leaders, compliance advisors, HR team. They'll drive your recruitment and onboarding.

Position your GCC as an innovation hub to attract top talent.

Need help building your team? Explore our recruitment services for GCC hiring.

Step 7: Set Up Governance

Define how you'll operate and report.

Create reporting structures, collaboration frameworks with global HQ, and performance metrics. Set clear SLAs.

Strong governance from day one prevents headaches later.

Timeline Breakdown

Most companies go live in 6 months with proper execution. Setting up a GCC takes time, planning, and local expertise.

Before you finalize your budget, here's a breakdown of the key costs you'll encounter.

What does it cost to set up a GCC in India?[toc=Main Cost Heads]

Setup costs vary widely based on your GCC's size and location, small functional centers cost significantly less than large multifunctional operations.

Main Cost Heads include:

• Real Estate & Infrastructure: Office space in premium locations drives up initial investment; Tier-2 cities offer substantial savings.
• IT Setup & Cybersecurity: Enterprise-grade technology and security systems require major upfront investment to meet global standards.
• Recruitment & Talent: Hiring skilled professionals and onboarding costs scale with team size; retention programs add ongoing expenses.
  Discover competitive salary benchmarks for different roles in India.

• Legal & Compliance: Entity setup, employment law compliance, and tax structuring require specialized expertise with recurring annual costs.
  Our payroll software guide helps you choose compliance-ready solutions for India operations.

Your total investment depends on location choice, GCC model, and how quickly you want to scale operations.

With your budget framework in place, let's identify which Indian city offers the best fit for your GCC.

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.

Choose based on your talent needs, not just costs.

If you're considering multiple locations, our comprehensive India hiring 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.

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]

From guiding hundreds of GCC setups, we can tell you the obstacles are real. But they're manageable if you know what's coming.

• Initial Setup Issues: Weak planning kills momentum. Companies often expect office managers or recruiting teams to handle both operational and strategic work. That rarely works. You need dedicated leadership from day one.
• Regulatory Compliance: India has clear rules, but navigating them takes expertise. Employment laws, transfer pricing between your GCC and parent company, labor regulations, data protection requirements, and foreign exchange management. Each has specific compliance needs. Don't try to figure this out alone. Work with local legal and compliance experts.
  Navigate complex requirements with our guides on employment agreements and statutory employee compliance.

• Talent Competition: You're competing with tech giants and established IT companies for the same talent pool. High attrition rates in metros can disrupt operations. Tier-2 cities offer better retention, but you need strong employer branding everywhere.
  Strengthen your employer brand with competitive employee benefits that attract top talent.

• Integration Challenges: Getting your GCC aligned with global operations takes planning. Without tight integration from the start, you'll face cost overruns, delivery delays, and misalignment with your organizational roadmap.

Here's what we've learned: Most of these challenges come from moving too fast without local expertise. Companies that succeed follow proven best practices from day one. Let's look at what actually works.

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=How Wisemonk Helps]

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.

Here are the key services that make Wisemonk an ideal choice for setting up a GCC in India:

• Rapid 2-3 day onboarding management for Indian professionals.
• 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!

Wisemonk Client review/feedback:

“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
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“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
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