Key Cost Components of a GCC Setup

The first invoice you get after setting up a GCC in India isn’t for rent or talent. It’s for the thing you forgot to plan for.

Maybe it’s a surprise legal compliance fee. Maybe it’s your IT vendor charging double for “urgent setup.” Or maybe it’s the realization that your brand-new office in Bangalore needs 3x the Wi-Fi bandwidth to support hybrid calls across time zones. Whatever it is, it costs time, money, and momentum.

Most companies assume a GCC is a plug-and-play solution for cutting costs and scaling fast. And while that’s partly true, what they don’t see—until it’s too late—are the 50+ line items that don’t show up in the pitch decks.

This isn’t a scare tactic. It’s a breakdown of every cost you should plan for before you sign that lease or onboard your first engineer.

Let’s get into the actual numbers.

Cost Breakdown: Where Your GCC Budget Actually Goes

Before you write your first offer letter or lease your first desk, you need to map out every rupee that’s going to leave your budget. This section breaks down the key cost components—no fluff, no corporate jargon.

Let’s get into it.

Talent Acquisition & HR

You’re not just paying salaries—you’re paying to compete for the same talent as Google, Microsoft, and every Series C startup with fresh VC money. That means the “cost to hire” is its own budget line, not a footnote.

Key Costs to Expect:

• Recruitment Fees
  If you’re working with an external partner or staffing agency, expect 8–20% of annual CTC per hire. Hiring 100 engineers? That’s ₹1.5–2 crore, just on placement fees.
• Employer Branding
  Unknown brand in India? You’ll need paid LinkedIn campaigns, Glassdoor boosts, and maybe even a local PR partner to make candidates care.
• Hiring Infrastructure
  Includes ATS tools, technical assessment platforms (like HackerRank), interview bandwidth, and internal recruiter time.
• Onboarding & Training
  Time-to-productivity isn’t instant. You’ll invest in domain training, onboarding systems, and provisioning gear/software before the employee delivers any value.
• Retention Buffers
  If you’re not benchmarking salaries, offering growth paths, or investing in culture early—expect 20–30% attrition within a year. That’s a second hiring cycle you didn’t plan for.

Real Estate & Infrastructure

Office space in India ranges from surprisingly affordable to shockingly overpriced depending on the city, the building, and your timing. And it’s not just about rent—you’re setting up an entire physical ecosystem for productivity, collaboration, and retention.

Key Costs to Expect:

• Office Leasing
  In Tier-1 cities like Bangalore or Hyderabad, Class A office space can cost ₹100–150 per sq. ft. per month. A 100-seater setup with meeting rooms, server space, and common areas? You’re easily looking at ₹10–15 lakh/month in just rent.
• Interior Fit-Out
  Desks, chairs, conference rooms, acoustic panels, branding, lighting, HVAC—this is often a one-time capex, but a big one. Budget ₹1,500–₹3,000 per sq. ft. depending on finish.
• IT & Connectivity
  Dual-bandwidth internet lines, backup servers, routers, firewalls, conference hardware—no compromises here unless you enjoy downtime. Also factor in UPS, generators, and managed IT services.
• Facilities Management
  This includes cleaning staff, maintenance contracts, security personnel, pantry services, and waste management. Many companies outsource this to agencies but it still runs into lakhs per month.
• Office Expansion or Flexibility Clause
  If you’re planning to scale headcount in 6–12 months, you’ll either need to lease more space upfront or negotiate flexible lease terms—which often come at a premium.

Technology & IT Infrastructure

Most GCCs underestimate this category by lumping it into “laptops and Zoom.” But this is your digital backbone—it powers everything from employee onboarding to secure code deployment.

Key Costs to Expect:

• Hardware
  Laptops, monitors, docking stations, headsets—₹75,000 to ₹1.5L per employee depending on the tech stack. Add servers, biometric systems, and display screens for shared spaces.
• Software Licenses
  Jira, Slack, GitHub, Office 365, Notion, Adobe Suite—the monthly SaaS stack adds up quickly. Some vendors offer India-specific pricing, but it’s still a major ongoing cost.
• Security Infrastructure
  VPNs, endpoint protection, firewalls, Single Sign-On (SSO), and compliance tools (especially if you’re in finance or healthcare) are non-negotiable. Expect high upfront costs plus annual renewals.
• Networking Equipment
  Routers, switches, Wi-Fi controllers, leased lines, backup connections—all need to be enterprise-grade for 100+ seats.
• Support & Maintenance
  Whether you hire in-house IT or contract a managed service provider, someone needs to keep the lights on (literally and digitally).

Legal, Compliance & Regulatory

Set up a GCC without this mapped out? Prepare to bleed money—and time—into damage control. From entity formation to ongoing audits, your legal and compliance budget will cover the entire lifecycle of your GCC’s existence in India.

Key Costs to Expect:

• Entity Registration & Structuring
  Legal counsel for setting up a Private Limited or LLP, drafting Articles of Association, shareholding agreements, etc. Can cost ₹3L–₹10L depending on complexity.
• Transfer Pricing & Tax Advisory
  Especially critical if you’re doing intercompany billing or cross-border IP sharing. One small oversight here can trigger penalties or investigation.
• Labor Law Compliance
  Provident Fund, ESI, Shops and Establishments Act, maternity leave policies—non-compliance can shut you down. You’ll either need an internal compliance team or retain a legal consultant.
• Employee Contracts & IP Protection
  Every offer letter, NDA, and contractor agreement should be bulletproof. Templates don’t cut it when you’re building IP-heavy teams.
• Annual Filings & Audit Fees
  Includes secretarial services, statutory audits, TDS filings, and ROC submissions. Add another ₹5L–₹15L/year minimum.

People Operations & Employee Benefits

A great office and a fat paycheck don’t guarantee your engineers will stay. What keeps them around are the invisible systems—benefits, growth paths, and a frictionless work culture.

Key Costs to Expect:

• Salary + Statutory Contributions
  Salaries vary by role and city, but don’t forget PF (12%), ESI (if applicable), gratuity, and professional tax.
• Medical Insurance
  Group health coverage for employees and their families is expected—₹12,000–₹25,000/year per employee depending on the coverage.
• Wellness & Engagement Programs
  Mental health sessions, fitness reimbursements, learning budgets—all of these are baseline now, especially for mid-senior tech talent.
• Rewards & Recognition
  Monthly shoutouts, spot bonuses, team outings—what sounds “extra” actually builds retention. Budget ₹2,000–₹4,000/month per employee for structured R&R programs.
• HR Ops Tools
  Payroll software, performance tracking platforms, pulse surveys, and HRMS licenses—most GCCs run lean HR teams but heavy HR tech stacks.
  

Vendor & Managed Services

Unless you’re planning to do everything in-house (you shouldn’t), get ready to pay others to keep the engine running. This covers all your third-party dependencies—from day-to-day admin to high-skill consulting.

Key Costs to Expect:

• Facility Management Services
  Cleaning, security, pantry supplies, power backup, HVAC maintenance—usually bundled in an AMC or managed contract.
• IT Support Providers
  Most early-stage GCCs outsource L1/L2 IT support to firms offering 24×7 coverage. Costs scale with headcount and service level.
• HR & Payroll Outsourcing
  Many companies use external agencies to handle payroll, tax computation, and compliance. Cost per employee: ₹200–₹500/month.
• GCC Advisory or BOT Partner Fees
  If you’re working with a build-operate-transfer model or a consultant for setup, expect milestone-linked fees—often tied to hiring targets or setup phases.

Marketing & Local Branding

India’s top tech talent gets multiple offers a week. If your brand doesn’t show up on their radar, your recruiter outreach isn’t going far.

Key Costs to Expect:

• Employer Branding Campaigns
  LinkedIn ads, TechCrunch India placements, Quora ads, blog content, and employer videos—this is top-of-funnel hiring spend.
• Community Events & Tech Meetups
  Sponsoring local hackathons, meetups, and college fests helps position your brand where the talent hangs out.
• Internal Culture Activation
  Swag, digital welcome kits, founder AMAs, and behind-the-scenes videos—what you share online shapes how your GCC is perceived.
• PR & Launch Events
  Especially if you’re a global brand new to India. Announcing your GCC in media outlets builds both candidate trust and ecosystem visibility.

Conclusion

Setting up a GCC isn’t just a hiring initiative—it’s a company-building exercise in a different country. If you treat it like a side project or assume it’s just “cheaper offshore talent,” you’ll blow through your budget, delay launches, and churn good people before they deliver value.

But when done right—with a clear cost map, airtight compliance, and thoughtful long-term investments—a GCC becomes a growth engine, not just a cost center. You’ll ship faster, operate leaner, and build tech that’s owned by your team, not borrowed from a vendor.

The upfront cost may look heavy, but the long-term control, IP ownership, and operational velocity? Absolutely worth it.

FAQs 

How much does it typically cost to set up a 100-member GCC in India?

Expect a ballpark setup cost of ₹5–7 crore ($600K–850K) for a mid-tier city with decent infrastructure. This includes real estate, hiring, legal, IT, and six months of runway. Costs drop 25–30% in Tier-2 cities, but hiring and onboarding may take longer.

Can I outsource some components to reduce initial costs?

Yes. Many companies outsource IT support, payroll, recruitment, and even facility management to reduce load. Just ensure these vendors are aligned with your long-term GCC culture and quality benchmarks.

What’s the best way to reduce real estate costs?

Set up in a Tier-2 city (like Indore, Nagpur, or Coimbatore), use flexible workspaces initially, and negotiate for scalability clauses in your lease. You can also explore co-working models before committing to a full office fit-out.

Do I need to register a legal entity in India before hiring?

Yes. To hire full-time employees legally and offer statutory benefits, you’ll need to register a local entity—usually a Private Limited company. Some companies use an EOR (Employer of Record) temporarily during setup.

How do GCC costs compare to outsourcing or vendor partnerships?

Short term, outsourcing is cheaper. Long term, a GCC offers better control, higher retention, and protects your IP. The breakeven typically happens around the 2–3 year mark, especially with a team of 50+.