India is now one of the world’s largest markets for Global Capability Centers (GCCs). The Economic Survey 2025–26 estimated that India had about 1,700 GCCs employing around 1.9 million professionals and generating an estimated revenue of USD 64.6 billion. It also reflects the move to higher-value activities such as engineering, product development, analytics, cyber, and AI.

Setting up a GCC means choosing what India will own, where it will operate, how it will be structured, and how it will work with and grow beyond headquarters.

This guide covers how to set up a GCC in India, including strategy, operating model, location, legal structure, tax, costs, talent, technology, compliance, and long-term growth.

What Is a GCC in India?

A Global Capability Center, or GCC, is an operation set up by a multinational company in India to carry out a function for its parent or wider global business.

Unlike third-party outsourcing providers, a GCC typically becomes part of the organization’s own structure. This gives the parent company more control over its people, processes, technology, intellectual property, and global standards.

Common GCC functions include:

• Software and product engineering

• Artificial intelligence and machine learning

• Data analytics and engineering

• Cybersecurity

• Research and development

• Finance and accounting

• Human resources

• Procurement

• Supply chain management

• Legal and compliance support

• Customer and technical support

• Industry-specific operations

The distinction is important. An outsourcing company provides contracted services. A GCC is intended to become an internal capability of the multinational company.

Why Set Up a GCC in India?

India’s GCC ecosystem is moving from traditional shared-service operations to technology, innovation, and specialized global functions.

The Economic Survey 2025-26 said that higher-value areas associated with India’s GCC ecosystem are product development, engineering, analytics, cybersecurity, and AI.

For a global enterprise, this creates several potential objectives:

Build specialized capabilities: A company can create dedicated teams for engineering, AI, analytics, cybersecurity, or R&D.

Access skilled professionals: India has a large talent pool in technology, engineering, finance, and other professional functions.

Establish innovation hubs: A mature GCC can create new technologies, products, processes, and intellectual property rather than simply executing work transferred from HQ.

Support digital transformation: GCCs are more involved in enterprise-wide digital transformation, including cloud, AI, automation, and data initiatives.

Improve operating efficiency: Cost optimization may be one factor in establishing a GCC, but it should not be the sole measure of its value.

Build long-term global capability: Eventually a successful GCC may own a global process, product, technology platform, or center of excellence.

GCC Setup Roadmap

A practical GCC setup can be structured into 15 connected steps, grouped in 4 phases.

Phase 1 — Strategy

1. Define the GCC's strategic purpose

2. Decide what the GCC will own

3. Select the operating model

Phase 2 — Establishment

4. Choose the location

5. Evaluate state incentives

6. Establish the legal entity

7. Design the intercompany structure

8. Address tax and GST

9. Evaluate SEZ options

Phase 3 — Build

10. Build technology and cybersecurity infrastructure

11. Establish data-protection controls

12. Establish employment and HR systems

13. Hire GCC leadership

Phase 4—Operationalize and Scale

14. Build the workforce and transfer work

15. Scale into higher-value capabilities

This structure avoids treating legal, people, technology, and operational decisions as separate projects. They need to develop in alignment with the GCC's intended role.

Define the GCC's Strategic Purpose

Before you choose a city or office, determine why the company needs a GCC.

Start by identifying functions that can be established or extended in India.

Evaluate each function based on:

• Strategic importance

• Talent availability

• Scalability

• Cost

• Data sensitivity

• Intellectual-property requirements

• Existing ownership

• Potential for innovation

The GCC roadmap should also maintain clear alignment with the parent organization's global strategy.

Decide What the GCC Will Own

The long-term value of the GCC depends on the level of responsibility.

Level 1: Execution

The Indian team performs tasks defined by headquarters.

Level 2: Process ownership

GCC handles complete business processes.

Level 3: Capability ownership

The center owns a specialized capability such as AI, cybersecurity, or data engineering.

Level 4: Global ownership

The India operation becomes responsible for a global product, platform, function, or center of excellence.

Before large-scale recruiting begins, companies need to define that progression.

Select the GCC Operating Model

Companies can consider several structures for establishing an India presence, depending on their activities and long-term objectives.

A private limited company structure depends on the company’s activities, circumstances, tax position, and regulatory needs.

A branch or liaison office has different permitted activities and should not be treated as interchangeable with a full operating subsidiary.

When a multinational needs support with recruitment, infrastructure, administration, or initial operations before taking on more control, a managed GCC (where a third-party provider manages operations on behalf of the multinational) can be useful.

Companies that need to hire in India before establishing their own entity can also consider Global Employment Outsourcing (GEO) as a different market-entry approach.

Each structure has commercial and regulatory implications that you should consider before incorporation.

Choose the Right Indian City

India's established GCC locations include

• Bengaluru

• Hyderabad

• Chennai

• Pune

• Mumbai

• Delhi-NCR

Companies are also looking beyond established Tier-1 markets with emerging locations featured.

The Economic Survey 2025–26 notes that GCC expansion into Tier-2 and Tier-3 cities is supporting more geographically dispersed employment and strengthening linkages with local innovation and startup ecosystems. India’s GCC ecosystem grew from about 1,430 centres in FY2019 to an estimated 1,700 in FY2024, while GCC employment increased from 1.4 million to 1.9 million professionals, and revenue rose from USD 40.4 billion to USD 64.6 billion.

The broader startup ecosystem also has a strong presence beyond major metros: around 50% of DPIIT-recognized startups originated from Tier-II and Tier-III cities as of December 2025.

The Economic Survey 2025–26 gives these headline GCC statistics:

These figures come directly from the Economic Survey's “Growth of GCCs Ecosystem” chart, sourced to NASSCOM.

Compare locations using capability, not rent alone.

A useful starting scorecard is:

These weights are not universal.

A software R&D GCC may place a higher priority on specialized talent, whereas a financial-services GCC may place greater emphasis on domain expertise and business continuity.

Typical city strengths

Bengaluru: software engineering, product development, AI, and technology.

Hyderabad: technology, life sciences, analytics, and engineering.

Chennai: automotive, industrial engineering, technology, and shared services.

Pune: engineering, automotive, manufacturing, and software.

Mumbai: banking, financial services, insurance, and corporate functions.

Delhi-NCR: technology, consulting, financial services, and corporate operations.

The best city is therefore the one offering the strongest total capability economics, not simply the lowest salary or office cost.

Evaluate State-Level Incentives

State governments are increasingly relying on IT, ITeS, and investment policies to attract GCCs and other technology companies.

Invest India’s state-investment resources contain information on incentives available across the Indian states, including policies related to technology and IT-enabled services.

Before including incentives in a business case, verify:

• Investment eligibility

• Employment requirements

• Eligible activities

• Incentive duration

• Capital-investment thresholds

• Application deadlines

• Location restrictions

Incentives should support the location decision rather than determine it.

Establish the Indian Legal Entity

Once the operating model and location have been decided, the company can proceed to incorporation and other registrations.

Depending on the chosen structure, the process may involve:

• Company incorporation

• Memorandum and Articles of Association

• Directors

• Permanent Account Number (PAN)

• Tax Deduction and Collection Account Number (TAN)

• GST registration where applicable

• Bank account

• Foreign-investment reporting

• Registered office

• State-level registrations

The Ministry of Corporate Affairs' SPICe+ system integrates several incorporation-related services.

For a multinational establishing a long-term GCC, legal and tax advisers should confirm the appropriate entity structure before major contracts or cross-border transactions begin.

Review Foreign Direct Investment Requirements

India allows 100 percent foreign direct investment (FDI) in most sectors under the automatic route with sector-specific rules and conditions.

The statement, however, should not be interpreted to imply that all business activities are open to foreign ownership.

The current FDI policy has sectoral caps, approval requirements, and other conditions. For example, the policy provides differential treatment for areas such as insurance, pensions, financial services, and some strategically sensitive activities.

Therefore, a multinational has to verify the applicable DPIIT policy for its specific industry before finalizing the India entity.

Design the Intercompany Structure

Generally, a GCC provides services to its foreign parent or other group companies.

The company must establish:

• Services to be provided

• Responsibilities of each entity

• Cost allocation

• Remuneration

• Risk allocation

• Intellectual property ownership

• Cross-border payment arrangements

• Transfer-pricing documentation

The commercial structure carries legal and tax considerations that extend well beyond accounting.

The arrangement should reflect what the Indian entity actually does, controls, and assumes.

A center that engages in R&D and develops valuable intellectual property may need a different structure than one that provides routine support services.

Address Tax and GST

Tax should be part of the GCC business case from the beginning.

The finance and legal team should assess the following areas early in the planning process:

Areas for assessment include:

• Corporate income tax

• Transfer pricing

• GST

• Withholding tax

• Cross-border payments

• State-level taxes

• Applicable incentives

• Customs, where relevant

The GST treatment of service export arrangements can be significant because eligible exports may qualify as zero-rated supplies, subject to applicable conditions.

The company should review the treatment of its specific services and contractual setup, rather than assume that all cross-border GCC services are treated identically.

Evaluate Special Economic Zones

Companies may evaluate special economic zones (SEZs) to decide about GCC location.

An SEZ can offer particular benefits to qualifying operations, but it also comes with regulatory and operational requirements.

The comparison should consider:

• Applicable benefits

• Compliance obligations

• Location

• Office availability

• Employee accessibility

• Long-term flexibility

• Tax treatment

Thus, SEZ should be selected only when its overall economics and operational requirements fit the GCC’s strategy.

Build Technology and Cybersecurity Infrastructure

Technology should be built around the GCC’s role and the parent company’s global standards.

Core infrastructure

• Enterprise connectivity

• Cloud access

• Collaboration systems

• Endpoint management

• Identity and access management

Cybersecurity

• Zero-trust controls

• Network segmentation

• Security monitoring

• Vulnerability management

• Incident response

• Privileged-access controls

Business continuity

• Backup systems

• Disaster recovery

• Redundant connectivity

• Secondary facilities where required

A GCC that supports critical global platforms needs a different resilience architecture than a small support center.

Establish Data-Protection Controls

The Ministry of Electronics and Information Technology (MeitY) notified the Digital Personal Data Protection Rules, 2025, on 14 November 2025. The MeitY has also published the related enforcement timeline and Data Protection Board documents.

A GCC should therefore map:

• What personal data enters India

• Why it is processed

• Where it is stored

• Who can access it

• Which vendors can access it

• How long it is retained

• How it is deleted

• Whether it crosses international borders

The phased implementation framework of the rules should be compared with the applicable compliance dates.

Companies operating in regulated sectors may also have additional sector-specific data requirements.

Establish Employment and HR Systems

The GCC requires an employment framework before large-scale recruitment begins.

This includes:

• Employment contracts

• Payroll

• Employee benefits

• Provident-fund obligations

• Leave policies

• Workplace policies

• Performance management

• Grievance procedures

• Employee data protection

• Separation procedures

India’s four labor codes, namely the Code on Wages, the Industrial Relations Code, the Code on Social Security and Occupational Safety, and the Health and Working Conditions Code, were made effective on November 21, 2025, rationalizing 29 existing central labour laws.

However, GCC employers should still review the applicable central and state-level requirements for their location and workforce, as the actual implementation and administrative requirements may vary.

Hire the GCC Leadership Team First

Do not begin with mass recruitment. The initial leadership group is to create the organization.

Depending on the GCC's scope, the organization could include:

• GCC head

• Local leader

• HR leader

• Finance lead

• Technology lead

• Information security lead

• Talent acquisition leader

• Legal/compliance support

• Facilities lead

The GCC leader should have clear authority over:

• Workforce planning

• Budget

• Capability development

• Performance

• Stakeholder management

• Local operations

• Expansion

The GCC team should be built around a defined set of roles, rather than a target headcount.

Build the Workforce and Transfer Work

Hiring in phases helps reduce execution risk.

Foundation: Build leadership, HR, finance, IT, security, and initial specialist teams.

Capability: Transfer selected functions from headquarters.

Specialisation: Develop centres of excellence in AI, engineering, analytics, cybersecurity, R&D, or other strategic areas.

Global ownership: Allow the GCC to take responsibility for global processes, products, platforms, or capabilities.

For knowledge transfer, use five stages.

Document: Capture processes, systems, responsibilities, and performance measures.

Shadow: The India team works alongside existing global teams.

Co-own: Both teams share responsibility for delivery.

Own: The GCC assumes operational responsibility.

Optimise: The GCC improves the process instead of simply reproducing it.

This approach lays out a path for the GCC journey from execution to capability ownership.

How Much Does It Cost to Set Up a GCC in India?

GCC setup costs will not be the same for every company.

The degree of investment depends on the number of employees, the city and function, the office model, technology, cybersecurity, compliance, and the pace of expansion.

GCC setup cost categories

A GCC cost model should include:

• People: salaries, benefits, statutory employment costs, and leadership compensation

• Real estate: lease, security deposit, fit-out, furniture, and facilities

• Technology: hardware, software licenses, cloud infrastructure, and connectivity

• Cybersecurity: security platforms, monitoring, and identity management

• Recruitment: talent acquisition and onboarding

• Legal and compliance: incorporation, tax, accounting, and regulatory support

• Transition: knowledge transfer, travel, training, and process migration

• Business continuity: backup infrastructure and disaster recovery

• Contingency: allowance for unexpected setup and ramp-up costs

For most GCCs, people become the largest recurring cost as the center scales.

The business case should therefore take account of productivity, capability creation, and ownership in the longer term as well as salary differentials.

How Long Does It Take to Set Up a GCC in India?

There is no universal GCC setup timeline. A small, single-function center may move differently from a multi-function GCC requiring major office construction, specialist recruitment, or regulated operation.

A useful planning framework is

These are planning ranges, not industry timelines you can count on. Large-scale hiring, major office projects, or regulated functions can extend the schedule, while several activities can run in parallel.

Real GCC Examples in India

HCA Healthcare — Hyderabad

HCA Healthcare announced in August 2024 that it had expanded its Hyderabad Global Capability Center, reporting it had leased about 400,000 square feet for the operation. The center was designed to support capabilities such as artificial intelligence, machine learning, data science, and analytics.

This is a prime example of a healthcare GCC that mixes technology and domain capabilities rather than just administrative work.

Eli Lilly—Hyderabad

Eli Lilly's Hyderabad operations have grown into a technology hub supporting its global business. Lilly states the center focuses on data, AI, analytics, and digital solutions, while its India operations also highlight automation, software product engineering, and cloud computing.

This facility is an example of how a sectoral GCC can be integrated into the technology and innovation strategy of a multinational.

GCC vs Outsourcing to India

A GCC is not automatically better than outsourcing.

If the requirement is "We need a development team quickly," outsourcing to India or offshore dedicated development teams may be more appropriate

If the requirement is "We want India to be a global center of excellence for engineering, analytics, or R&D,” a GCC is more appropriate.

Common GCC Setup Mistakes

Choosing the city before defining the capability: Location should follow strategy.

Treating the GCC as a labour-cost project: Cost optimization might support the business case but should not define the centre’s long-term purpose.

Hiring before establishing leadership: Headcount without clear ownership creates organisational complexity.

Underestimating transfer pricing: The intercompany model should reflect the Indian entity’s actual functions, assets, and risks.

Treating cybersecurity as an IT project: GCCs can process sensitive customer, employee, financial, and intellectual property data.

Selecting incentives before evaluating capability: An incentive should reinforce the business case, not create it.

Measuring success by employee count: A smaller GCC with global ownership can add more value than a much larger center performing routine work.

GCC Setup Checklist

Strategy

• Define the GCC's purpose

• Identify functions

• Define ownership

• Establish a three- to five-year roadmap

• Set performance measures

Location

• Compare cities

• Assess talent

• Compare operating costs

• Review infrastructure

• Verify state incentives

Legal and tax

• Select entity structure

• Complete incorporation

• Review FDI requirements

• Establish tax structure

• Assess GST

• Design transfer pricing

• Prepare intercompany agreements

People

• Hire GCC leader

• Establish HR function

• Build recruitment strategy

• Benchmark compensation

• Create workforce roadmap

Technology

• Establish IT architecture

• Implement cybersecurity

• Establish data controls

• Create a business-continuity plan

Operations

• Select processes for transition

• Document processes

• Establish knowledge-transfer plan

• Define ownership

• Establish global governance

Growth

• Identify centre-of-excellence opportunities

• Identify innovation opportunities

• Define global ownership targets Establish expansion criteria

What Should a GCC Look Like After It Is Established?

A long-term goal should be stated before the GCC reaches scale.

A useful maturity model is

Delivery Centre → Capability Centre → Centre of Excellence → Global Innovation Hub

India does the work at the first stage. It owns the processes at the second. At the third, it develops specialized capabilities. At the fourth, it delivers products, intellectual property, research, and global business value.

This trend is indicative of the larger development of India’s GCC ecosystem, as it advances up the value chain into technology and innovation activities and expands to new locations.

Conclusion

The first GCC decision should not be about the choice of city or office.

It has to be a capability audit of the functions that the global organization wants India to own.

Once those capabilities are defined, it becomes easier to evaluate location, legal structure, hiring plan, technology architecture, and investment requirements.

This distinction is relevant for companies entering India in 2026. The strongest GCC business cases are increasingly built on specialized talent, global process ownership, technology, and innovation, instead of just labour-cost differentials.

Therefore, the practical next step is to map the global functions of the parent organization and identify what capabilities could be owned from India over the next three to five years and only then compare cities and operating models.

Make Your India GCC Decision With Better Market Intelligence

Choosing a GCC location is only the beginning. Talent availability, infrastructure, investment activity, industry clusters, and competitive conditions can materially affect the long-term business case.

Use Blackridge Research's market intelligence to evaluate India and identify the opportunities most relevant to your GCC strategy.