Why are more and more global companies choosing India to set up their Global Capability Centers (GCCs)? The answer lies in India’s unique blend of cost savings, access to skilled talent, and a strong technology ecosystem.

For U.S.-based MNCs, establishing a GCC in India can bring impressive benefits, from lowering operational costs to creating a hub for innovation and research.

This post will walk you through the seven key benefits of setting up a GCC in India. You’ll discover how India’s talent pool, government incentives, and digital infrastructure can help your company scale, innovate, and stay competitive globally. 

Whether you’re looking to expand operations, drive new R&D initiatives, or simply save on costs, India offers compelling reasons to consider this investment.

7 Benefits of Setting up a GCC in India

1. Cost Efficiency and Operational Savings

Setting up a GCC in India allows multinational companies to significantly cut operational costs without sacrificing quality. India’s lower cost of living translates to lower wages for highly skilled professionals compared to the U.S. and Europe. 

Companies save on real estate, infrastructure, and utility costs, with favorable currency exchange rates adding even more savings. This cost-effectiveness is one of the top reasons why global companies continue to choose India as a GCC destination.

Supporting Points:

  • Labor costs in India can be 60-70% lower than in Western countries for comparable roles, enabling substantial savings in operational budgets​.

  • Office space rentals and other facility-related expenses, such as utilities, are also affordable, especially in established GCC hubs like Bengaluru, Pune, and Hyderabad​.

This financial advantage lets companies reinvest in innovation and growth, freeing up resources that would otherwise go toward operational expenses.

2. Access to a Vast Skilled Talent Pool

India’s educational system produces a large pool of highly skilled professionals each year, particularly in STEM fields like engineering, computer science, and business management. 

For U.S.-based MNCs, this means a consistent supply of qualified talent ready to support high-level functions, from IT and analytics to research and development. 

A talent partner like Supersourcing can be instrumental in helping companies build these teams more efficiently. 

With a data-driven talent acquisition approach, Supersourcing utilizes AI-backed platforms and pre-vetted databases, streamlining the hiring process by up to 50%, minimizing time to hire, and increasing retention rates through better candidate matching.

Supporting Points:

  • India graduates over 1.5 million engineers annually, providing a steady influx of talent for technology, engineering, and analytics roles​.
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  • Indian professionals are known for their proficiency in technical skills, language abilities, and familiarity with international business standards, allowing MNCs to integrate teams into their global operations smoothly​.

This access to skilled labor allows companies to build scalable and specialized teams, positioning GCCs in India as not only a cost-saving measure but also a hub for high-quality service and innovation.

3. Innovation and R&D Opportunities

India’s GCCs have evolved from traditional support functions to become innovation hubs for multinational companies. 

Many GCCs are now integral to R&D efforts, working on cutting-edge projects in artificial intelligence, machine learning, data analytics, and IoT. 

Cities like Bengaluru and Hyderabad have emerged as global innovation centers, offering an environment where research and new ideas thrive. 

For U.S.-based MNCs, setting up a GCC in India means tapping into this culture of innovation, where teams are focused on developing solutions that drive global digital transformation.

Supporting Points:

  • India’s reputation as an innovation hub is supported by over 1,500 GCCs that contribute not only to operational excellence but also to product development and strategy for companies worldwide​.
  • The proximity to India’s thriving startup ecosystem also enhances GCCs’ ability to innovate, as they can collaborate with local tech startups, universities, and incubators to push new boundaries in technology and product development​.

By establishing a GCC in India, companies gain a dedicated center focused on accelerating R&D and innovation, enhancing their global competitiveness.

4. Government Incentives and Regulatory Support

India’s government has been proactive in attracting foreign investment, especially in the technology and service sectors. 

Policies such as 100% Foreign Direct Investment (FDI) in numerous industries and tax incentives within Special Economic Zones (SEZs) make it easier for MNCs to establish and operate GCCs. 

Additionally, initiatives like Digital India and Make in India promote digital infrastructure and simplify regulatory processes, making India an attractive location for companies looking to expand globally.

Supporting Points:

  • India allows 100% FDI in many sectors, simplifying the entry process for foreign MNCs and enabling smoother operations once GCCs are established​.
  • SEZs offer a range of tax benefits and incentives, which can reduce setup costs and encourage long-term growth​.
  • Government-backed programs such as Digital India enhance India’s technological capabilities and ensure connectivity, an advantage for high-tech GCC operations​.

These regulatory advantages create a favorable environment for MNCs, making it easier to manage compliance, reduce costs, and streamline operations for long-term success.

5. Scalability and Flexibility in GCC Operations

India’s GCC ecosystem provides flexibility for MNCs to scale operations as business needs evolve. Companies can start with smaller teams and expand as demand grows, thanks to the country’s adaptable workforce and expanding infrastructure. 

This scalability allows companies to pilot projects or launch specific functions within a GCC, then quickly ramp up based on performance and strategic needs.

Such flexibility makes India an ideal location for testing new processes and expanding operations efficiently.

Supporting Points:

  • India’s extensive talent pool and supportive infrastructure let MNCs scale teams quickly, accommodating both gradual expansions and rapid growth as required​.
  • Many cities, including Bengaluru, Hyderabad, and Pune, are geared toward housing large GCCs, with office spaces, co-working hubs, and essential services designed to support expansion without disruption​.

This scalability means that MNCs can efficiently respond to market needs, ensuring that GCC operations in India remain agile and aligned with broader business goals.

6. Established Ecosystem and Proven Track Record

India has developed a robust ecosystem for GCCs, which includes experienced local partners, a network of tech service providers, and reliable infrastructure. 

With over 1,500 GCCs already operational, India has proven itself as a dependable location for MNCs across industries, from finance and healthcare to retail and telecommunications.

This established ecosystem reduces the learning curve for new entrants, offering a ready-made support network for smooth operations and integration.

Supporting Points:

  • Companies such as Goldman Sachs, Citibank, and Walmart have successfully scaled their GCCs in India, leveraging the local support system to go beyond basic support functions and build capabilities in R&D and strategy​..
  • India’s top GCC cities like Bengaluru, Hyderabad, and Pune offer access to a mature supply chain and a large network of skilled vendors, which help streamline everything from hiring to facility management and IT support​.

The established presence of MNCs and support services means that new GCCs can integrate faster, with less operational friction and a clear path to achieving high performance.

7. Enhanced Digital Infrastructure and Tech Capabilities

India’s commitment to digital growth and infrastructure has created a strong foundation for advanced GCC operations. 

Initiatives like Digital India and the Smart Cities Mission are aimed at improving internet connectivity, cybersecurity, and digital services across the country. 

This means that MNCs setting up GCCs in India can rely on stable and advanced tech infrastructure to support high-tech operations, including cloud computing, big data, and cybersecurity needs.

Supporting Points:

  • India’s internet penetration and advancements in fiber-optic connectivity make it possible for GCCs to operate with high-speed internet and reliable IT support, essential for running advanced digital operations​.
  • Programs like Smart Cities Mission enhance the digital capabilities of cities, ensuring that major GCC hubs have the necessary tech infrastructure to support large-scale data processing and cloud-based systems​.
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India’s digital infrastructure upgrades mean MNCs can confidently deploy tech-driven GCCs that support data analytics, AI, and secure digital operations, further enhancing the value of setting up in India.

Conclusion

Setting up a GCC in India offers significant advantages, from cost savings and talent access to a supportive government and digital infrastructure. 

These benefits make India a prime location for MNCs aiming to optimize global operations while driving innovation.

Let me know if you’d like any additional sections, adjustments, or a summary with key points for sharing!

 

FAQs

How does working with a talent partner like Supersourcing benefit GCC operations?

Supersourcing accelerates the hiring process by up to 50% through AI-backed platforms and pre-vetted databases. This approach shortens the time to hire and improves retention rates by matching candidates more precisely with job requirements. This streamlined hiring can be crucial for companies aiming to build scalable and efficient GCC teams.

What industries can benefit most from setting up a GCC in India?

Industries that typically benefit include technology, finance, healthcare, telecommunications, and retail. GCCs in India can support a range of activities, from customer service to advanced analytics and R&D, making them suitable for many sectors looking to optimize operations and cut costs.

What are the main cities in India for establishing a GCC?

Leading cities for GCCs in India are Bengaluru, Hyderabad, Pune, Chennai, and the Delhi NCR region. These cities offer access to skilled professionals, supportive infrastructure, and favorable office setups.

How does the Indian government support foreign companies in setting up GCCs?

The Indian government provides several incentives, such as 100% FDI in many sectors, tax benefits within Special Economic Zones (SEZs), and initiatives like Digital India. These policies make it easier for foreign companies to establish and operate GCCs in the country.

What challenges might companies face when setting up a GCC in India?

Challenges include navigating local regulations, managing cultural differences, and establishing effective management structures. Working with a local talent partner like Supersourcing can ease these challenges by ensuring the right talent fit and providing smoother onboarding processes aligned with the company’s global standards.

How scalable are GCC operations in India?

GCCs in India are highly scalable, allowing companies to start small and expand based on demand. The adaptability of the Indian workforce and growing infrastructure make it easy to increase team sizes and add functions as the business grows.

What types of roles can be filled at an Indian GCC?

GCCs in India can handle diverse roles, including software development, IT support, finance and accounting, data analytics, customer service, R&D, and more. With India’s vast talent pool, companies can build specialized teams across multiple functions.