Tier-2 cities are no longer second choices—they’re becoming strategic launchpads for global capability centers. In fact, over 40% of new GCCs in India in 2023 were set up outside the top metros. Cities like Coimbatore, Indore, and Bhubaneswar are attracting global enterprises with their growing talent pools, competitive costs, and lower attrition rates.
But what happens after you choose your location and commit to the build?
The first six months are make-or-break. Whether you’re setting up in-house or with a partner, this period will define how quickly your center becomes productive—and how well it integrates with your global team. From infrastructure bottlenecks to hiring surprises, there’s a steep learning curve that every organization should be prepared for.
In this blog, we break down what to expect month by month as you set up your Tier-2 GCC—so you can avoid delays, manage risks, and build a center that actually delivers.
What to Expect in the First 6 Months of Your Tier-2 GCC Setup
The journey from signing the lease to seeing your GCC deliver tangible results is filled with key milestones, practical hurdles, and strategic decisions. Here’s a detailed month-by-month breakdown to help you navigate the critical first six months of setting up your Global Capability Center in a Tier-2 city.
Month 1: Groundwork and Legal Setup
What happens:
You’ll begin by finalizing your legal entity, banking infrastructure, and office space. If you’re going in-house, this includes company registration, tax setup, and compliance documentation. A partner-led model can accelerate this phase.
Key tasks:
- Entity incorporation (Private Ltd, LLP, etc.).
- Lease or co-working office agreement.
- Local tax/GST registrations.
- Begin identifying leadership hires (HR, Admin, Finance).
Watch for:
Local regulatory delays, especially in licensing or municipal approvals. Smaller cities often have slower bureaucratic processes compared to Tier-1 locations.
Month 2: Infrastructure and Employer Branding
What happens:
You’ll start setting up basic infrastructure—IT, internet, security, and workspace design. This is also when you begin building your presence in the local talent market.
Key tasks:
- Internet and systems integration.
- Office furnishing and basic amenities.
- Kick off employer branding campaigns.
- Launch hiring portal or careers page.
Watch for:
Underdeveloped vendor ecosystems. You may need to import IT equipment or negotiate longer installation timelines for power backup, internet, or furniture.
Month 3: Initial Hiring and Team Onboarding
What happens:
You’ll onboard your first wave of employees. These will likely include operational managers, talent acquisition leads, and your first batch of engineers or analysts.
Key tasks:
- Hiring 10–30 initial team members.
- Finalizing local HR policies and payroll structure.
- Building internal training modules and onboarding.
- Creating collaborative workflows with HQ.
Watch for:
Compensation benchmarking mismatches. Salaries in Tier-2 cities vary widely and may require adjustment to attract top talent from Tier-1 cities or retain local talent.
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Month 4: Operational Integration
What happens:
This month is all about process alignment. The new team begins contributing to live projects, while back-end systems are connected with your global tools and reporting workflows.
Key tasks:
- Set up security protocols and SSO for tools.
- Initiate work on initial deliverables.
- Start daily syncs or agile ceremonies with global teams.
- Begin building internal culture and rituals.
Watch for:
Time zone coordination issues and communication gaps with HQ. Teams need clear documentation, asynchronous workflows, and local leadership to stay productive.
Month 5: Performance Tracking and Early Wins
What happens:
Your teams begin to hit their stride. Initial projects close, and performance benchmarks become clear. Feedback loops with HQ tighten, and you start to see where the GCC is adding value.
Key tasks:
- Define OKRs/KPIs for each function.
- Share progress dashboards with global stakeholders.
- Collect employee feedback on workplace and onboarding.
- Plan for the next hiring phase.
Watch for:
Underestimating integration challenges—especially if HQ teams haven’t worked with distributed teams before. Be proactive in setting expectations and response times.
Month 6: Scale Decisions and Local Momentum
What happens:
By now, you should be ready to decide how to scale—add new functions, increase headcount, or build a leadership bench locally. Your GCC is no longer a pilot. It’s part of your core operations.
Key tasks:
- Approve roadmap for next 6–12 months.
- Launch cross-functional hiring (e.g., finance, QA, analytics).
- Introduce formal learning and development programs.
- Deepen ties with local colleges or industry groups.
Watch for:
Burnout in small founding teams. Make sure you’re investing in leadership support and not overloading early hires with responsibilities across roles.
Conclusion
The first six months of a Tier-2 GCC setup are a blend of groundwork, trial runs, and rapid learning. You’re not just building an office—you’re building systems, culture, and credibility in a city that’s still defining its tech identity. Expect slower vendor response times, tighter talent markets, and the need to wear multiple hats early on.
But if managed well, the payoff is real. You get access to stable, loyal talent, significantly lower operating costs, and a head start in a region your competitors might be ignoring. By month six, your GCC should be contributing to live projects, syncing seamlessly with HQ, and preparing to scale.
Tier-2 doesn’t mean second-rate. It means untapped. And if you approach it with the right mix of structure, patience, and local insight, your GCC won’t just support the business—it will help lead it.
Frequently Asked Questions
Why are companies choosing Tier-2 cities for GCCs?
Tier-2 cities offer access to untapped talent, lower real estate and operating costs, and reduced attrition rates. They also allow companies to build long-term strategic presence without the talent wars and inflated overheads of Tier-1 metros.
How long does it typically take to make a Tier-2 GCC fully operational?
Most Tier-2 GCCs take around 4 to 6 months to become operational. This includes legal setup, infrastructure, hiring, onboarding, and process alignment. Partner-led setups may reduce this timeline further.
What are the common risks in the first 6 months of a Tier-2 GCC setup?
Companies often face delays in vendor support, longer hiring timelines due to niche talent availability, and initial misalignment with HQ processes. These can be mitigated with strong local leadership and proper planning.
Do Tier-2 cities have enough tech and engineering talent?
Yes. Many Tier-2 cities have reputable engineering colleges and growing tech ecosystems. While the talent pool may be smaller than in metros, it’s often more stable, cost-effective, and loyal when nurtured properly.
How can Supersourcing help with Tier-2 GCC setup?
Supersourcing offers end-to-end GCC setup in Tier-2 cities—from legal incorporation and infrastructure setup to hiring, payroll, and compliance. We help you go live faster, minimize risk, and tap into emerging talent hubs with confidence.