How to Set Up a Global Capability Centre in India

As the global capability centres own technology, finance, analytics, & customer experience across industries, they have become a strategic differentiator to global companies.

A global capability centre is typically a captive centre strategically established by global corporates to conduct business in an offshore location. By integrating customised experts & advanced technologies, GCCs have become a strategic enabler for companies to build a talented workforce, enhance operational efficiency, improve financial stability, manage risk, & scale business growth.

Set up a GCC in India as Tier 2 & Tier 3 cities are emerging hubs & NASSCOM research forecasts GCC growth of 8% by 2030.

Why do companies have a Global Capability Centre Set Up in India?

India is home to over 1200 GCCs with 2 million professionals. Since 50% of the world’s GCCs are in India, most global companies are in a race to establish a GCC for the following reasons:

1. Access to Diverse Talent

The wide availability of technical and non-technical talent with specialised capabilities has attracted global companies to set up GCCs across the country. The explosion of startup culture, high supply of cross-functional talent, & digital-savvy professionals fuelled the establishment of GCCs in India.

2. Digital Infrastructure

The widespread digital transformation across regions & innovative tech parks has enabled global companies to set up GCCs in the remotest regions. The high accessibility to multi-purpose vendor services in the cloud, cybersecurity, AI, Design, & ERP facilitated the augmentation of GCCs in India.

3. Cost Cutting

Compared to the US, Europe, or East Asia, India has the lowest real estate costs, a diverse talent ecosystem, & system maintenance facility. These opportunities enable companies to set up GCCs to build high-performing products & services and gain a global competitive advantage.

4. Innovation Hub

India is a hub for top universities, research centres, & think tanks. By collaborating with these centres & institutions, global companies gain new market benchmarks, innovative trends, talent hubs, & leadership ecosystems in the country to support the scaling needs of the GCC.

5. Government Assistance

The government of India, along with foreign direct investments, has enabled global companies with a range of benefits. From tax exemptions to SEZ benefits, payroll & rent subsidies, employment-linked incentives, & standardized policies have contributed to the expansion of GCCs in India.

What are the Key Steps to Establish GCC in India?

Setting up GCCs typically takes up to 12 to 24 weeks, from planning to the go-live stage. The process involves entity registration, compliance & talent acquisition. Here are 7 key steps to setting up a GCC in India.

Step 1: Define the Goal & Scope of your GCC

As the first step, decide the functions your GCCs will handle. Depending on the R&D, products, data analytics, financial operations, or marketing functions, assess what headcounts & outcomes you will expect in the next 12-24 months.

Step 2: Choose Your Location

Choosing a city depends on the functions your GCC handles. For instance, Bangalore is known for its AI and Engineering talent. Hyderabad leads the healthcare & BFSI industries, Pune in automotive and manufacturing engineering, Chennai in automotive & logistics manufacturing industries, & Delhi NCR in finance consulting.

Step 3: Register as a Legal Entity

Most companies register themselves as a wholly owned subsidiary under the Ministry of Corporate Affairs to obtain PAN, GST, TAN, & IEC and gain complete control under India’s automatic route FDI policy.

Step 4: Advanced Infrastructure

To ensure that your GCC gets enterprise-grade cybersecurity, cloud facilities, & global data protection, register your GCC in a SEZ or tech park zone or commercial hub.

Step 5: Regulatory Standards

File FEMA & RBI declarations for foreign investments. Ensure you comply with state-level Shops and Establishment Acts. Register your employees under PF & ESI & set up the TDS process for tax deductions through legal experts.

Step 6: Hire Your Core Team

Start hiring the leadership team with the GCC head, functional leaders, HR managers, compliance & legal experts, operations & engineering teams to ensure your GCC is a successful business hub with structured teams & processes.

Step 7: Establish Governance & Integration

Setting up clear & defined reporting procedures between Indian operations and global offices will help drive quick decision-making & cultural integration to ensure that your GCC operates as a typical global corporate extension.

What is the cost of setting up GCC in India?

India is no longer an emerging GCC hub, but a mature GCC ecosystem. In 2024, about 1700 GCCs were set up in India, employing 1.9 million professionals. According to industry benchmarks, the initial establishment of GCCs in India comes to about 4.5 crores to 28 crores. The cost of operating a GCC in India has increased 6% in the last year.

Which cities are suitable for setting up GCCs?

Considering the various talent opportunities, infrastructure, & government policies, we have listed 5 key steps to establish key parameters to help you decide the best city to establish your GCC.

What Talent Strategy is needed for GCCs?

A successful GCC is built on three main talents: engineering, product development, & analysts. To shape your GCC’s future, you need to focus on three hiring decisions.

1. Hiring your GCC Head

Hiring a GCC head is key as they attract talent, build company culture, & act as a bridge between GCCs and parent companies.

2. Hiring your Management

To lead the team, you need specialised engineers, cloud architects, & analysts. Later, other managerial positions connected with operations, HR, legal & compliance can be hired.

3. Hiring the Right Recruitment Partner

Setting up GCCs in an unknown land may bring challenges in terms of talent costs, compliance risks, diverse salary benchmarks, complex industry laws, & government benefits. To help you navigate this stage, you need to collaborate & partner with a leading GCC recruitment service provider.

What Are Common GCC Setup Challenges?

The 5 major challenges global companies face while setting up GCCs in India are:

1. High Rent

Setting up GCC centres in commercial locations can be expensive due to high commercial rents. This can negatively impact cost arbitrage benefits.

2. Poor Infrastructure

High traffic congestion, poor commuting facilities, & bad ambience in urban centres would affect the quality of life & hence can pose a work-life imbalance for GCC employees.

3. High-end Talent Competition

Leading firms and startups compete fiercely for niche talent. This can be challenging for GCCs as they must keep track of the salary, talent, & market benchmarks to avoid retention risks.

4. Complex Regulations

Most GCCs enter the region without clear knowledge of the new labour law updates, regulation standards, & approval agencies. This can lead them to face audit, financial, & reputational risks.

5. Cultural & Operational Alignment

Ensuring operational & cultural alignment of a GCC with the parent company is a daunting task. Also, maintaining the local standards, leadership, & change management of the regional country is highly critical as it can distort operational and strategic direction.

How Alp Consulting will help in building a Robust GCC in India

Alp Consulting Ltd, India’s leading global recruitment firm, gives you the ability to hire better and faster. Alp’s suite of automated recruitment solutions is designed to tap top talent. Our validated assessments help you drive high-quality talent decisions and build a diverse workforce of tomorrow. Alp has processed over 10 million candidates, and analysing these data helps us deliver actionable insights to zero in on candidates who meet your business needs and growth.

Frequently Asked Questions (FAQs)

1. What is required to set up a GCC in India?

Setting up a GCC in India requires legal entity registration, office infrastructure, robust IT systems, talent acquisition strategy, compliance frameworks, and alignment with global business objectives for seamless operations.

2. How long does GCC setup take?

GCC setup timelines in India typically range from 3 to 9 months, depending on entity registration, hiring scale, infrastructure readiness, regulatory approvals, and operational complexity of business functions.

3. What is the cost of setting up a GCC?

The cost of setting up a GCC in India varies widely, typically ranging from $500,000 to several million dollars, depending on location, scale, talent requirements, infrastructure, and technology investments.

4. Which cities are best for GCC in India?

Top GCC cities in India include Bangalore, Hyderabad, Pune, Chennai, and Gurgaon, offering strong talent pools, infrastructure, tech ecosystems, and favourable policies supporting global capability centre growth.

5. What talent is required for GCC?

GCCs require diverse talent, including software engineers, data scientists, finance professionals, HR specialists, cybersecurity experts, and operations managers, aligned with global delivery, innovation, and digital transformation goals.

6. What compliance is needed for GCC?

GCCs in India must comply with company laws, labour regulations, tax requirements, data protection norms, transfer pricing rules, and industry-specific guidelines to ensure smooth, legally sound operations.

Contact Us For Business Enquiry

Kishore V N

Managing Director

Kishore V N is the Managing Director at ALP Consulting, bringing over 29 years of extensive experience in global recruitment, talent strategy, and workforce solutions. He has been instrumental in building scalable RPO, MSP, and modular talent sourcing models that empower organizations with a competitive edge in talent acquisition. Kishore’s leadership focuses on expanding ALP’s global presence, driving innovation in recruitment technology, and enhancing operational excellence. He also serves as Director at Datacore Technologies, steering digital HR transformation through advanced HRMS and virtual staffing solutions.