Global Capability Center (GCC) Services in India
Set Up, Staff and Run a GCC in India Under One Partner
A company that waits for an Indian entity before it hires loses months, and one that hires through a contractor loses control when a compliance notice arrives. Either way, the GCC starts late. EOR Services India helps global companies plan, staff and run a GCC in India. First hires start on our payroll in one to three weeks, the entity is set up when the headcount justifies it, and payroll, compliance and HR stay with one partner throughout.
India hosts 2,117 GCCs that employ 2.36 million professionals. EOR Services India has deployed 42,000+ professionals for 550+ clients in 18+ years, and EOR fees start from $49 per employee per month.
42,000+Professionals Deployed
550+Satisfied Clients
18+Years of Experience
13Offices Worldwide
GCC in India
What Is a Global Capability Center in India?
A Global Capability Center (GCC), also called a captive center, is a company owned unit in India that does work for its global parent, from engineering and analytics to finance, HR and customer operations. The parent owns the team, the process and the intellectual property. India now hosts 2,117 GCCs with 2.36 million employees, and their revenue reached $98.4 billion in FY26 (NASSCOM and Zinnov figures reported by YourStory). EOR Services India handles hiring, employment and compliance, so a GCC can start without waiting for the entity.
GCC in India at a Glance
| Item | Answer |
|---|---|
| Usual structure | A wholly owned Indian subsidiary of the parent company, often a private limited company |
| First hires | Through EOR Services India, in one to three weeks once documents are in |
| Entity setup | Several months for incorporation, registrations and the bank account |
| Functions a GCC covers | Engineering, data, finance, HR, IT support, customer operations and research |
| EOR fee | From $49 per employee per month (basic package) |
| Main hubs | Bengaluru, Hyderabad, Pune, Chennai, Delhi NCR and Mumbai |
Why Companies Build a GCC in India
Companies build GCCs for three main reasons. First, the talent pool: engineering, analytics, finance and cloud talent is available in several cities. Second, cost: salaries for comparable roles are usually lower than in the US or Europe, and the team stays inside the company.
Third, coverage. Work done on Indian time covers hours when the parent office is closed. In addition, a GCC keeps process knowledge and intellectual property in house, which an outsourcing vendor does not.
A GCC in India Can Cover
- Software and product engineering
- Data, analytics and AI
- Finance and accounting operations
- HR and payroll operations
- IT support and infrastructure
- Customer and technical support
- Research and development
- Procurement and supply chain
Setup Routes
Ways to Start a GCC in India
The main choice is between starting through an Employer of Record and incorporating first. The routes differ on speed, control and what the parent carries from the first day.
| Route | Who employs the team | Time to first hire | Best for |
|---|---|---|---|
| EOR first, then own entity | EOR Services India, then the GCC entity after transfer | One to three weeks | Companies that want to hire now and register the entity in parallel |
| Own entity from day one | The GCC subsidiary | Several months, after incorporation and registrations | Large centres with a fixed plan and leadership already chosen |
| Build operate transfer | The partner during the build and run period, then the parent company after transfer | Depends on the agreed scope | Companies that want a partner to build and run the centre before taking full ownership |
| Outsourcing or BPO vendor | The vendor | Days to weeks | Defined tasks. The vendor controls the staff and tools, and the work is not a captive team |
Read the full framework in EOR to GCC transition frameworks in India and the comparison in EOR vs setting up a subsidiary.
Roadmap
How a GCC in India Gets Built
Hiring starts first. The entity and its registrations follow in parallel.
01. Define Scope and City
Functions, headcount plan and the city that matches the talent needed.
02. Choose the Structure
EOR start, own entity, or both in sequence.
03. Hire Leadership and Core Team
The site head and anchor hires start through the EOR.
04. Register the Entity
Incorporation, tax and statutory registrations run alongside hiring.
05. Move Staff to the Entity
Employees transfer with service records, notice terms and benefit balances documented.
06. Scale and Stabilise
Add teams, run payroll and compliance, and review retention.
GCC Services
Services for Global Capability Centers in India
| GCC service | What EOR Services India does |
|---|---|
| Talent sourcing and recruitment | Sourcing, screening, interviews and assessments for IT, finance, operations and support roles, from single hires to large project teams |
| Employer of Record | Legal employment in India without an entity: contracts, payroll, statutory filings and exit handling |
| Entity setup and build operate transfer | Support with incorporating the Indian subsidiary, registering for PAN, TAN, GST, EPF, ESI and professional tax, and moving employees from the EOR to the entity, including build operate transfer support |
| Payroll | Monthly salary, bonuses and incentives with TDS, PF and ESI deductions, plus payroll reports |
| Compliance and legal support | Statutory filings, employment contracts, labour law audits and handling of notices |
| HR and workforce management | Attendance, leave, performance reviews, benefits administration and workforce planning |
| Technology and infrastructure support | Help with hardware, software, network, cloud, security and helpdesk setup for the centre |
| Performance and productivity | Goal setting, KPI frameworks, review tools and feedback cycles agreed with GCC leadership |
| Talent development and training | Technical and soft skill programs and leadership development for GCC teams |
| Apprentice solution | Apprenticeship programs with educational institutions to build a pipeline of fresh talent |
Responsibilities
Who Manages What in a GCC
The Parent Company Manages
- Strategy and mandate of the centre
- Daily work and priorities
- Tools, systems and access
- Performance reviews
- Final hiring decisions
We Manage
- Sourcing and screening
- Indian employment contracts
- Payroll and statutory filings
- Benefits, leave and HR records
- Entity registrations and transfer support
Compliance
Registrations and Rules for a GCC in India
| Area | What applies to a GCC in India |
|---|---|
| Incorporation | A wholly owned subsidiary is registered with the Ministry of Corporate Affairs. Directors, registered office and share capital are set at this stage |
| Tax registrations | PAN and TAN are needed to run payroll. GST registration is usually needed when the GCC charges its parent for services |
| Foreign investment | Money invested by the parent is reported to the Reserve Bank of India under FEMA rules |
| Transfer pricing | Charges between the GCC and its parent must follow arm’s length pricing rules under Indian tax law |
| Employee schemes | EPF, ESI and professional tax registrations apply to employees. See professional tax rules by state |
| Labour laws | Shops and Establishments rules, working hours and the new labour codes apply. See what the new labour codes mean for GCCs |
| Data protection | The Digital Personal Data Protection Act applies to personal data the centre handles |
| Foreign staff | Foreign nationals need an employment visa and FRRO registration. See whether an Indian EOR can sponsor employment visas |
Cost
What Setting Up a GCC in India Costs
The total depends on headcount, city, office model and the functions in scope. In the first months an EOR avoids the fixed cost of an entity, since there is no overhead to carry before the team is hired. As headcount grows, companies compare the EOR fee with the fixed cost of an entity.
| Cost item | How it works |
|---|---|
| Salaries | Agreed by role and city, and paid in rupees every month |
| Employer statutory contributions | EPF, ESI and gratuity accrual are paid on top of salary. Use the EPF contribution calculator and the gratuity calculator |
| EOR fee | Starts from $49 per employee per month for the basic package. Current rates are on the pricing page |
| Entity setup | Professional fees for incorporation and registrations are quoted after the scope is clear |
| Office and workspace | Depends on the city, the headcount and whether a managed workspace is used |
| Technology and security | Laptops, network, software licences and security controls for the centre |
| Leadership hiring | Search fees apply for senior roles such as the site head |
The full build up is in the cost of Employer of Record in India.
Where to Build a GCC in India
The hiring state decides professional tax and state level rules, so the city choice affects compliance as well as talent.
| City hub | Why companies build a GCC there |
|---|---|
| Bengaluru | Established GCC hub for engineering, product and cloud teams. See Bengaluru and Hyderabad compared |
| Hyderabad | Growing hub for technology, healthcare technology and finance operations. See the Hyderabad IT talent market |
| Pune | Software, engineering and manufacturing technology talent |
| Chennai | Engineering, finance operations and manufacturing talent. See hiring in Chennai |
| Delhi NCR | Mix of finance, support and consulting operations across Gurugram and Noida |
| Mumbai | Banking, financial services and insurance operations |
| Tier 2 and tier 3 cities | Lower costs with smaller talent pools. See hiring in tier 2 and tier 3 cities |
Risks of Building a GCC in India Without the Right Setup
| Risk | What happens without the right setup |
|---|---|
| Permanent establishment | A parent that directs staff in India without a proper structure can create a taxable presence |
| Misclassification | Workers treated as contractors can be ruled employees, with back contributions and penalties |
| Missed filings | Late EPF, ESIC or TDS payments attract interest and penalties |
| Slow start | Waiting for the entity delays the first hires by months |
| IP and data exposure | Weak contracts make it harder to protect confidential work |
| Leadership gap | A centre without a site head struggles to hire and keep teams |
GCC in India Guides
| Guide | What it covers |
|---|---|
| EOR to GCC transition frameworks in India | How to move from EOR hiring to a GCC entity |
| GCC leadership hiring in India | Senior roles that GCCs hire first |
| Recruitment solutions for GCCs | Hiring across tech, finance, pharma and manufacturing |
| New labour codes and GCCs | What the codes change for captive centres |
| Financial product companies and GCC staffing | Staffing challenges in financial services GCCs |
FAQs
Frequently Asked Questions About GCCs in India
Setting up a GCC in India, including structure, cost, timeline, cities and compliance.
What is a global capability center in India?
A global capability center is a company owned unit in India that does work for its global parent, such as engineering, analytics, finance or customer operations. The parent owns the team, the process and the intellectual property.
How many GCCs are there in India?
India has 2,117 GCCs that employ 2.36 million professionals, with revenue of $98.4 billion in FY26, according to NASSCOM and Zinnov figures reported by YourStory.
How do I set up a GCC in India?
Define the scope and city, choose the structure, hire leadership and the core team, register the entity, move staff to it and then scale. Many companies hire through an Employer of Record while the entity is registered.
Do I need a legal entity to start a GCC in India?
A GCC that employs people directly needs an Indian entity, usually a wholly owned subsidiary. However, hiring can start earlier through an Employer of Record, which employs the team until the entity is ready.
How long does it take to set up a GCC in India?
Hiring through an EOR can start in one to three weeks once documents are in. Registering the entity and completing registrations usually takes several months, so many companies run both in parallel.
How much does it cost to set up a GCC in India?
The cost depends on headcount, city, office model and the functions in scope. EOR fees start from $49 per employee per month, and entity setup fees are quoted after the scope is agreed.
What is build operate transfer for a GCC?
In a build operate transfer model, a partner sets up and runs the centre for an agreed period, then hands it over to the parent company. EOR Services India supports entity setup and build operate transfer for companies that want it.
What is the difference between a GCC and outsourcing?
A GCC is owned by the parent, which controls the team, tools and intellectual property. An outsourcing vendor employs the staff and controls how the work is done.
What is the difference between a GCC and an EOR?
An EOR is the legal employer for staff, while a GCC is a company owned centre that does work for the parent. An EOR can employ the first GCC team before the GCC entity is ready.
Can employees move from the EOR to the GCC entity later?
Yes. Employees can move from the EOR to the new entity. The transfer is planned with service records, notice terms and benefit balances documented, so the change is clear for each employee.
Which cities are best for a GCC in India?
Bengaluru, Hyderabad, Pune, Chennai, Delhi NCR and Mumbai are the main hubs. The best city depends on the functions in scope, the talent needed and the budget.
What compliance does a GCC in India need?
Incorporation, PAN and TAN, GST where applicable, EPF, ESI and professional tax registrations, FEMA reporting for foreign investment, transfer pricing documentation and data protection controls.
Can EOR Services India hire leadership for a GCC?
Yes. Site heads and functional leaders can be recruited and employed under the EOR until the entity is ready. See the guide on GCC leadership hiring in India for the roles in demand.
Does EOR Services India help with GCC entity setup?
Yes. EOR Services India supports entity incorporation, registrations and build operate transfer, and employs the team in the meantime.
Related Services
| Related service | When it fits |
|---|---|
| Employer of Record in India | The legal employer for the first GCC hires |
| Remote staffing services India | Individual remote hires before a full centre |
| IT staffing services India | Software, cloud and data engineers |
| Payroll and HR services India | Salary processing and statutory filings |
| Recruitment services | Sourcing candidates and leaders |
| PEO services India | Companies that already have an Indian entity |
