Setting up a GCC in India has become a top strategy for global companies that want talent, scale, and cost efficiency in one place. In short, a GCC in India lets you run a captive team of engineers, analysts, and support staff instead of outsourcing the work. This 2026 guide explains what a GCC is, why India leads, how to set one up, and what it costs.
Last updated: 18 August 2026.
What Is a GCC?
A Global Capability Centre (GCC) is a company-owned offshore unit that delivers strategic work — such as engineering, research, finance, analytics, and customer support — back to its parent organisation. Unlike a third-party vendor, it is your own captive centre. Therefore you keep full control of talent, roadmap, and intellectual property.
India is the world’s largest hub for these centres. According to NASSCOM, India hosted more than 1,700 Global Capability Centres employing over 1.9 million professionals by 2024, and the count keeps rising. A GCC in India now sits at the heart of many global operating models.
Why Set Up a GCC in India?
Companies choose a GCC in India for three main reasons: deep talent, a strong cost advantage, and a favourable time zone. Above all, India produces a vast pool of engineering, finance, and analytics graduates every year.
- Talent depth. India adds millions of STEM and commerce graduates annually.
- Cost efficiency. Industry estimates put fully loaded costs roughly 30 to 50 percent lower than in the parent country.
- Time-zone overlap. India works alongside both European and US business hours.
- Mature ecosystem. Established cities offer ready infrastructure and a large experienced workforce.
How to Set Up a GCC in India: Five Steps
The journey is structured, and an early team can go live in weeks with the right model. First you define the mandate. Next you choose a location and setup model. Finally you hire compliantly and scale.
- Define the mandate. First, decide which functions and roles the centre will own.
- Choose a city. For example, Bangalore, Hyderabad, Pune, and Chennai lead for engineering and analytics.
- Pick a setup model. Build your own entity, start with an Employer of Record, or use Build-Operate-Transfer.
- Hire and payroll compliantly. Next, onboard talent with compliant contracts and statutory registration.
- Operate and scale. Finally, add headcount and functions as the centre matures.
GCC Setup Models: Build, EOR-First, or BOT
There are three common ways to launch this kind of centre: build your own entity, start with an Employer of Record, or use a Build-Operate-Transfer partner. In practice, each option trades speed against long-term control.
| Model | How it works | Best for | Time to first hire |
|---|---|---|---|
| Build (own entity) | Incorporate an Indian subsidiary and hire directly | Large, permanent centres | 2 to 4 months |
| EOR-first | Hire through an Employer of Record while the entity is set up | Fast start and market testing | 24 to 48 hours |
| Build-Operate-Transfer | A partner builds and runs the team, then transfers it to you | Hands-off setup with future ownership | Weeks |
For example, many firms begin with an Employer of Record to hire the first engineers immediately, and then migrate the team to their own entity later.
Compliance and Payroll for a GCC in India
Once a GCC in India hires people, Indian labour law applies in full. The four Labour Codes came into force on 21 November 2025, and the new definition of wages requires basic pay to be at least 50 percent of total remuneration. Consequently, Provident Fund, ESIC, Professional Tax, gratuity, and TDS must all be filed correctly for each state.
Because the rules vary by state, many centres outsource payroll and staffing at first. You can review the framework on the Ministry of Labour and Employment site and track industry data through NASSCOM.
Costs and Timelines
Setting up an entity typically takes two to four months and carries fixed legal and registration costs. However, an EOR-first approach removes that delay, so the first hires can start within days. The model you choose should match your headcount plan and risk appetite.
Frequently Asked Questions
What is the difference between a GCC and outsourcing?
A GCC is your own captive team, so you keep full control of talent and intellectual property. Instead, outsourcing hands the work to a third-party vendor that manages its own staff.
How long does it take to set up a GCC in India?
Building an entity usually takes two to four months. With an EOR-first model, however, your first hires can be onboarded within 24 to 48 hours.
Can I start a GCC in India without setting up an entity?
Yes. An Employer of Record can legally employ your team from day one, which lets you start a GCC in India before your own entity is ready.
Start Your GCC in India With a Trusted Partner
Planning a GCC in India? TMS helps global companies hire, payroll, and stay compliant from the first employee, with an EOR-first option that goes live in 24 to 48 hours. Talk to our team to build your India centre without the compliance headache.
Related services
- GCC Setup in India — build a Global Capability Centre, end to end.
- Statutory Compliance — every state, every deadline, fully managed.