Tech companies are under a global revolution. They are not just selling locally but expanding globally. As companies expand globally, Global Capability Centers (GCCs) have become pivotal for managing core business functions efficiently.

Setting up a GCC in India has proven especially advantageous for US companies seeking to leverage India’s extensive talent pool, benefit from significant cost savings, and establish a footprint in a fast-growing economy.

Understanding Global Capability Centers (GCCs) and Their Strategic Value

For global businesses, GCCs act as strategic hubs where essential functions—such as IT services, R&D, data analytics, and customer support—are centralized to drive efficiency and maintain quality control.

As companies increasingly look to optimize costs and tap into skilled talent, India has emerged as a preferred destination for setting up GCCs. The country’s unique combination of a tech-savvy workforce, competitive costs, and favorable business policies has attracted over 1,300 GCCs, including those by giants like Google, Amazon, and Citi.

With India’s GCC setup cost savings of up to 30-40% compared to Western markets, a mature infrastructure, and deep talent pools across various fields, India offers companies a strategic advantage for global scalability. This guide provides an overview of setting up a GCC in India, giving readers a foundation while encouraging those interested to explore more detailed, in-depth content in future sections.

Why is India a Leading Destination for GCCs?

India’s cost-effective business environment, coupled with a vast workforce, has made it a top choice for GCCs. With over 1.5 million engineering graduates annually and significant expertise in IT and analytics, India offers talent at 30-40% lower costs compared to the US or Europe.

According to NASSCOM, India hosts over 1,300 GCCs, including centers for major players like Google, Microsoft, and JP Morgan, contributing more than $33 billion in revenue annually.

This dynamic environment positions India as a crucial location for international companies seeking to centralize functions and leverage cost-efficient, high-quality talent.

Advantages of Setting Up a GCC in India for Global Businesses

GCCs in India typically manage high-priority tasks such as software development, customer support, and analytics, often achieving significant efficiencies and quality improvements through a centralized structure.

Access to a Skilled Talent Pool

India’s workforce is renowned for its technical skills, particularly in fields like IT, engineering, and data analytics.

The country produces around 25% of the world’s STEM graduates, making it an ideal source for high-caliber talent. IT industry body Nasscom reported that India has 1,600 GCCs and an installed talent base of 1.6 million people in the fiscal year 2023-24.

How a Talent Partner Can Help: A partner like Supersourcing with a data-driven talent acquisition approach ensures quick and effective hiring. For instance, using AI-backed platforms and pre-vetted databases can expedite the recruitment process by up to 50%, minimizing time to hire and increasing retention rates through better candidate matching.

Hire Software Developers in India 

Cost Savings and Operational Efficiency

India offers substantial cost benefits across multiple areas. Office space and salaries, which make up a significant portion of GCC operational costs, are considerably lower in India. For example, salaries for IT professionals in India can be 60-70% lower than in the US, enabling companies to scale operations without escalating costs. According to Deloitte, GCCs in India save companies 20-30% annually on operational expenses.

Companies can further control costs by leveraging managed workspace solutions. Such solutions offer scalable office spaces with built-in infrastructure, allowing businesses to avoid the high upfront costs associated with office leases and fit-outs.

Enhanced Market Presence and Scalability

Setting up a GCC in India reduces costs and helps companies establish a stronger foothold in an emerging market. By centralizing operations in a high-growth region, companies are better equipped to respond to regional market demands, tap into local consumer insights, and scale rapidly across Asia.

McKinsey reports that over 40-45% of GCCs in India act as innovation hubs, driving product development for both local and global markets.

Step-by-Step Guide to Setting Up a GCC in India

Step 1: Conduct Market Research and Feasibility Analysis

Market research is the foundation of a successful GCC setup, providing insights into factors like labor costs, skill availability, and infrastructure quality. India’s tech hubs, including Bangalore, Hyderabad, and Pune, each offer unique advantages. For instance, Bangalore is ideal for software development, while Hyderabad is known for pharmaceutical R&D.

Key Consideration: Partnering with a service provider experienced in Indian markets can streamline this research process, providing precise data to assess each city’s suitability for specific business needs.

Step 2: Establish a Legal Entity and Compliance Framework

Setting up a GCC in India requires choosing an appropriate legal structure, with common options being Private Limited Companies and Liaison Offices. India’s Foreign Direct Investment (FDI) policies allow up to 100% foreign ownership in many sectors, making it easy for companies to operate independently.

Understanding GCC setup India regulatory requirements is vital, especially for labor laws and intellectual property (IP) protection. A compliance partner can navigate these regulations, ensuring a smooth setup that adheres to all India GCC operational management support requirements.

Step 3: Selecting an Optimal Location

Each major Indian city has unique advantages that cater to different operational needs:

  • Bangalore: India’s Silicon Valley, ideal for tech and software development.
  • Hyderabad: Known for R&D, particularly in pharma and life sciences.
  • Pune: An emerging IT and manufacturing hub with a well-educated workforce.
  • Chennai and Indore: Rising centers for IT and BPO services.
  • Ahmedabad: A manufacturing and financial services hub with a growing tech presence.

A seasoned partner like Supersourcing can provide insights into each region’s local workforce, infrastructure, and cost factors, guiding companies in making the right choice for their GCC.

Step 4: Building Technological Infrastructure and Security

Robust GCC technology infrastructure in India is essential for a secure, efficient operation. Data protection is a priority, especially with India’s upcoming Personal Data Protection Bill, which aligns with international standards. Setting up secure IT infrastructure from the outset ensures that companies are compliant with India GCC operational management support and data security regulations.

Value of Expert Support: Supersourcing specializing in IT and data security can help implement necessary infrastructure, including cloud integration, high-speed internet connectivity, and secure networks, allowing companies to focus on core operations without infrastructure concerns.

Choosing the Right GCC Model: Captive, Outsourced, or Hybrid

When establishing a GCC in India, companies typically choose from three models:

  1. Captive Centers: Fully owned by the parent company, offering maximum control over data and processes.
  2. Outsourcing Partnerships: Lower control but greater cost savings; managed by third-party providers.
  3. Hybrid Models: A blend of both captive and outsourcing models, providing flexibility and cost-efficiency.

An advisory partner can help companies select the optimal model based on factors like control, budget, and scalability, ensuring a tailored approach to India’s GCC setup.

Talent Acquisition and Retention: Key to GCC Success

Efficient Talent Acquisition Strategies

Given India’s vast talent pool, acquiring the right people efficiently is essential. A tech-driven talent acquisition platform leveraging AI and analytics helps identify high-quality candidates quickly, reducing time-to-hire by up to 50%. This is especially critical for specialized roles in IT, R&D, and analytics.

Ensuring Quality Retention: In addition to recruitment, it’s crucial to invest in retention strategies like cultural training and professional development. Cross-cultural training can improve team cohesion and productivity, creating an integrated and motivated workforce aligned with global objectives.

AI-Driven Recruitment with Proven Results

Using an AI-powered recruitment platform, companies can access pre-vetted, skilled talent ready to drive GCC objectives forward. This approach ensures quick access to top candidates, an essential factor in India’s competitive job market.

Navigating Legal and Compliance Requirements for GCCs in India

Compliance is a key component of how to set up a GCC in India, encompassing FDI regulations, IP protection, and labor law adherence. Here are critical areas where compliance is essential:

  • FDI Regulations: India’s FDI guidelines support up to 100% foreign ownership in key sectors.
  • Intellectual Property Protection: Ensures proprietary processes and data are secure.
  • Labor Law Compliance: Covers employee welfare, minimum wage standards, and safety requirements.

For companies, a compliance partner can navigate these complex regulations, enabling smooth and lawful operations.

Operational Excellence: Managing Day-to-Day GCC Activities

Effective operational management is essential to the success of a GCC. Establishing standardized workflows, process optimizations, and aligning operations with global standards enable smoother day-to-day management.

Process Optimization and Global Alignment

Experienced partners help businesses run GCC operations in India to create workflows that ensure high productivity and efficiency. They also offer insights into balancing global strategies with local market nuances, enabling businesses to optimize operations while respecting local customs and practices.

Leveraging Government Support and Incentives

India offers several incentives for foreign businesses to establish GCCs, including tax breaks and financial assistance through Special Economic Zones (SEZs) and technology parks. For example, companies in SEZs can benefit from a 100% income tax exemption on export profits for the first five years.

An advisory team can navigate the application processes for these incentives, ensuring companies maximize benefits and streamline costs.

Empowering Your GCC Setup with AI-Driven Recruitment and Workspace Solutions

Establishing a Global Capability Center in India can transform business operations, achieving savings, scalability, and access to world-class talent. However, the setup process is complex, requiring a nuanced understanding of India’s regulatory, technological, and cultural landscape.

AI-driven talent acquisition for GCC India, combined with managed workspace solutions, allows businesses to recruit skilled talent efficiently and access fully-equipped office spaces tailored to their needs. With comprehensive support for recruitment, compliance, and daily operations, companies can focus on long-term goals while experts handle the intricacies of navigating legal requirements for GCC setup in India and GCC operational management support.

FAQs on Setting Up a GCC in India

Here are answers to common questions about setting up a GCC in India, with insights on how Supersourcing supports each stage of the process.

What is the typical cost of setting up a GCC in India?

Costs depend on factors like location, team size, and operational scope. Generally, companies enjoy a 30-40% cost advantage over Western markets, with cities like Bangalore, Hyderabad, and Pune offering varying cost structures. Supersourcing optimizes these savings by providing cost-effective workspace solutions and helping companies maximize tax incentives and government rebates.

How long does it take to set up a GCC in India?

The setup process typically takes 6-12 months, encompassing market research, legal entity formation, infrastructure setup, and hiring. Supersourcing’s comprehensive approach, including rapid AI-driven talent acquisition and managed office space solutions, streamlines the process, enabling faster go-live times.

What are common challenges in setting up a GCC in India?

Key challenges include understanding regulatory requirements, acquiring skilled talent, and managing local-global operational alignment. Supersourcing offers full regulatory compliance support, efficient recruitment solutions, and operational guidance to address these hurdles, making the setup process smoother and more efficient.

Are there tax benefits for GCCs in India?

Yes, the Indian government provides tax incentives, especially for GCCs located in Special Economic Zones (SEZs) and technology parks, where companies can benefit from tax breaks and other financial incentives. Supersourcing’s advisory team assists in identifying and securing these benefits to maximize India GCC setup cost savings.

Which industries commonly set up GCCs in India?

GCCs are popular in sectors like IT, finance, R&D, data analytics, and customer support. India attracts businesses across these industries due to its skilled talent pool and cost-efficient ecosystem. Supersourcing’s talent acquisition platform offers access to pre-vetted candidates across all these fields, ensuring that companies can quickly build capable teams.

Is India a secure choice for data-intensive GCCs?

Yes, India’s data protection laws are aligned with global standards, making it a secure location for data-centric operations. Supersourcing’s infrastructure solutions include robust data security measures and compliance with India’s Personal Data Protection Bill, ensuring that companies can operate with confidence in a secure environment.

What is the process of recruiting for a GCC in India?

Recruiting for a GCC typically involves a combination of local hiring, partnerships with recruitment agencies, and campus outreach. Supersourcing’s AI-driven talent acquisition solution provides access to a pool of pre-vetted candidates, expediting the hiring process and improving the quality of hires for long-term GCC success.