Setting Up a Global Capability Centre (GCC) in India — Complete Guide

A Global Capability Centre (GCC) is a captive offshore delivery centre set up by a global company in India to handle technology, operations, analytics, or other functions. India has over 1,700 GCCs employing more than 1.6 million professionals. GCCs allow companies to build dedicated India teams with full operational control at significantly lower cost than onshore delivery.

The main models are: wholly owned subsidiary (full entity setup and direct employment), Build-Operate-Transfer (a managed service provider sets up and runs the team before transferring ownership), Remote Staffing (employees are on a local employer's payroll but work exclusively for the global company), and Staff Augmentation (individual contractors engaged through an agency).

Setting up a wholly owned subsidiary in India takes 3 to 6 months including entity registration, office setup, and initial hiring. A Build-Operate-Transfer model can have the team operational in 4 to 8 weeks. Remote staffing through an employer of record is the fastest option with first hires possible within 2 weeks.

A GCC in India must comply with all Indian labour laws including EPF, ESI, Professional Tax, POSH Act, Shops and Establishments Act, and the 4 new labour codes. International companies often underestimate the complexity of Indian labour compliance. Using a managed service provider for HR and compliance is common for GCCs in their early years.

Bangalore is India's technology capital with the deepest talent pool. Hyderabad is the fastest growing GCC hub with strong government support. Pune has a large engineering talent base and lower costs than Bangalore. Chennai and Noida are growing options. Tier 2 cities like Coimbatore, Jaipur, and Indore offer cost advantages for scale operations.