Why Flexiple is the best platform to hire talent for Indian GCCs?
Flexiple is one of the best platforms for Indian GCCs (Global Capability Centers) because it combines high-quality vetted talent with a scalable delivery model tailored for long-term engagement.
Flexiple is one of the best platforms for Indian GCCs (Global Capability Centers) because it combines high-quality vetted talent with a scalable offshore delivery model tailored for long-term engagement—not just short-term gigs.
Companies set up a GCC in India to build long-term, owned teams that deliver technology, operations, analytics, and innovation at global scale. India offers a rare combination of talent depth, cost advantage, operating maturity, and ecosystem support that makes GCCs sustainable beyond pure cost arbitrage. Companies prefer India for establishing GCCs due to its skilled workforce, cost advantages, supportive government policies, and mature business ecosystem.
A GCC in India is no longer a back-office construct. It is a core delivery and innovation engine used by global enterprises, high-growth startups, and PE-backed firms to scale critical capabilities. This article breaks down the GCC journey in a clear, step-by-step structure, from first decision to steady-state operations.
Why Are Companies Choosing India to Set Up a Global Capability Center?
Companies choose India for GCCs because it combines scale, skill diversity, and operating maturity better than any other global location. India supports both rapid initial setup and long-term expansion across multiple functions.
Unmatched Talent Scale and Skill Depth
India has the largest concentration of skilled talent and professionals across engineering, data, finance, product, and operations. The country produces millions of graduates annually from engineering colleges, universities, and professional institutes. This scale allows companies to hire niche skills while also planning growth to hundreds or thousands of employees.
Strong Cost Advantage With Predictable Economics
India offers a structural cost advantage compared to North America and Europe, providing competitive costs for companies setting up GCCs. Salary levels, real estate, and operational costs remain significantly lower even after accounting for leadership, compliance, and overheads. Over a 3–5 year horizon, this cost advantage compounds as teams stabilize and productivity increases.
Mature GCC and Services Ecosystem
India has decades of experience running captive centers and large-scale delivery operations. Global enterprises across banking, SaaS, healthcare, manufacturing, and retail already operate large GCCs in Indian cities. This maturity translates into experienced leaders, reliable vendors, and well-understood operating playbooks.
India has emerged as a leading hub for global capability centers due to its mature ecosystem and experienced talent pool.
English Proficiency and Global Work Culture
English is the primary business language in most Indian GCCs. Professionals are accustomed to working with global stakeholders, distributed teams, and international compliance standards. This reduces friction in collaboration, documentation, and decision-making.
Time-Zone Leverage and 24/7 Operations
India’s time zone enables round-the-clock operations when paired with teams in the US and Europe. Companies use this overlap to accelerate development cycles, reduce turnaround times, and provide continuous support. This model improves speed without increasing burnout on any single team.
What Is a GCC and How Does the GCC Model Work in India?
A GCC is a wholly owned offshore center that delivers core business capabilities for a parent company. In India, the GCC model is designed for long-term ownership, scalability, and tight integration with global teams.
Definition of a Global Capability Center
A Global Capability Center (GCC) is a captive entity set up by a company to perform strategic, operational, or innovation work. Employees in a GCC are hired directly by the company’s Indian entity and work exclusively for the parent organization. This structure gives full control over people, processes, data, and intellectual property.
How the GCC Operating Model Works in India
The Indian GCC typically operates as a subsidiary or private limited company. Clear reporting lines are established between the Indian GCC and the parent company to ensure effective governance and alignment. It has its own leadership, HR, finance, and compliance setup while aligning closely with headquarters. Work allocation, performance metrics, and roadmaps are jointly planned with global business units.
Difference Between GCCs and Outsourcing in India
A GCC differs from outsourcing because there is no third-party delivery vendor involved. Outsourcing focuses on contracts and SLAs, while GCCs focus on long-term capability building. This difference makes GCCs more suitable for core engineering, data platforms, and IP-sensitive work.
Additionally, GCCs offer enhanced data security and greater control over sensitive information compared to outsourcing.
Typical Functions Handled by Indian GCCs
Indian GCCs handle a wide range of business functions. Support functions such as HR, finance, and IT are commonly managed within GCCs. Common examples include software engineering, QA, data engineering, analytics, finance operations, HR operations, cybersecurity, and product support. Advanced GCCs also own product roadmaps, R&D charters, and platform architecture decisions. GCCs also provide essential support services to their parent organizations.
What Are the Key Steps to Set Up a GCC in India Successfully?
Setting up a GCC in India requires a structured sequence of strategic, legal, operational, and hiring steps. Skipping or rushing these steps increases execution risk later.
Define the GCC Vision, Scope, and Business Case
The first step is defining why the GCC exists and what success looks like. Identifying key factors such as talent availability, cost optimization, and risk management is essential when defining the GCC vision. Companies clarify whether the primary goal is cost optimization, faster execution, innovation, or risk diversification. This vision is translated into a multi-year business case covering headcount, functions, cost savings, and milestones.
Choose the Right GCC Operating Model
The operating model determines how the GCC integrates with headquarters. One popular approach is the build operate transfer model, where a third party service provider or service provider sets up and operates the GCC on behalf of the foreign entity, and then gradually transfers ownership and control once the center is self-sustaining. The virtual captive model is a hybrid approach in which management is handled by a third party service provider until the transfer is complete, allowing the foreign entity to expand service offerings after the handover. Alternative structures include the joint venture model and other hybrid bot models, where the service provider may retain a minority equity interest in the project after transfer, reflecting a collaborative partnership. The entire process in these models typically involves the third party service provider handling setup, initial operations, and then transferring ownership to the foreign entity through a phased or structured transition.
Companies decide between a pure captive setup, an employer-of-record transition model, or a phased build approach. The model should balance speed, control, and internal bandwidth.
Finalize Location and City Strategy
Selecting the optimal location for a GCC in India is crucial, as it defines access to talent, cost structure, and long-term scalability. Each city offers its own advantages in terms of talent availability, operational costs, and proximity to key industries. Shortlisted cities are evaluated on talent availability, salary benchmarks, infrastructure, and competition intensity. It is essential to ensure robust infrastructure in the chosen location to support seamless GCC operations. This step directly impacts hiring speed and attrition levels.
Set Up Legal Entity and Core Infrastructure
Legal setup includes entity incorporation, tax registrations, banking, and statutory compliance. When setting up a GCC in India, legal considerations are critical and include regulatory compliance with corporate, tax, contract law, and data privacy requirements. Companies must also assess the concept of permanent establishment, as it determines tax liabilities and legal obligations for foreign entities operating in India.
Organizations have the option to establish their GCCs in special economic zones (SEZs) such as GIFT City, which is governed under the Special Economic Zones Act. These zones offer significant tax benefits and tax incentives, including exemptions and regulatory relaxations, making them attractive for foreign investment. Government support in the form of simplified investment rules and SEZ-specific incentives further facilitates the setup and operation of GCCs.
In parallel, companies plan office space, IT infrastructure, security controls, and collaboration tools. The advanced infrastructure available in SEZs and locations like GIFT City enhances innovation, process efficiency, and compliance, providing a strong foundation for GCC operations. This foundation ensures the GCC can hire and operate without regulatory risk.
Hire Leadership and Build the Founding Team
Leadership hiring is a critical part of the talent acquisition process and anchors the entire GCC. Companies typically hire a site head and senior functional leaders first. Talent development initiatives are essential for building a high-performing founding team, ensuring continuous upskilling and fostering innovation. The founding team then builds initial delivery capacity and establishes culture, processes, and hiring standards.
Transition Work and Scale Gradually
Work transitions should be phased and well-documented. The goal is to create a self sustainable unit capable of independent operation. Early wins build confidence, while lessons from initial transitions improve later waves. Once operations stabilize, the GCC scales headcount and scope in planned increments. Achieving operational excellence through standardized processes and SOPs is crucial for scaling and maintaining high performance.
How to Choose the Right City and Location When Setting Up a GCC in India?
Choosing the right Indian city determines talent access, costs, and long-term sustainability. There is no single “best” city; the right choice depends on your function mix and growth plans.
Tier-1 Cities for Large-Scale GCCs
Tier-1 cities such as Bengaluru, Hyderabad, and Pune are popular GCC hubs. These cities are ideal for managing complex business operations due to their abundant talent and robust infrastructure. They offer deep talent pools, experienced leaders, and mature ecosystems. These cities suit companies planning rapid scale or advanced engineering and product work.
Tier-2 Cities for Cost and Attrition Optimization
Tier-2 cities such as Coimbatore, Indore, Jaipur, and Kochi are gaining traction. They offer significant cost efficiency for companies setting up GCCs, making them attractive for organizations seeking to optimize expenses. These locations offer lower costs, lower attrition, and growing talent pools. These locations work well for shared services, support, and stable delivery teams.
Evaluating Talent Density and Competition
Talent density matters more than absolute population size. Companies assess how many professionals exist for specific skills and how many competitors are hiring the same profiles. High competition can drive up salaries and attrition even in large cities.
Infrastructure, Connectivity, and Quality of Life
Infrastructure affects productivity and employee satisfaction. Reliable power, internet, transport, and office zones matter for day-to-day operations. Quality of life factors influence retention, especially for senior leaders and niche talent.
Sample City Comparison
|
City |
Strengths |
Typical GCC Functions |
Considerations |
|
Bengaluru |
Deep tech talent, leadership pool |
Engineering, product, R&D |
High competition, higher costs |
|
Hyderabad |
Balanced cost and scale |
Tech, analytics, shared services |
Rapid growth, improving infra |
|
Pune |
Strong engineering and IT talent |
Engineering, QA, platforms |
Salary inflation in hotspots |
|
Tier-2 hubs |
Cost, stability |
Ops, support, finance |
Smaller niche talent pools |
What Legal, Compliance, and Regulatory Requirements Apply to GCCs in India?
Legal and regulatory compliance is foundational for foreign companies operating a GCC in India. Non-compliance exposes the parent company to financial and reputational risk.
Entity Incorporation and Corporate Structure
Most GCCs are set up as private limited companies in India. This structure allows full ownership, local hiring, and long-term operations. Incorporation includes registration with the Ministry of Corporate Affairs and opening statutory accounts.
Employment Laws and HR Compliance
Indian labor laws govern hiring, contracts, benefits, and termination. Companies must comply with rules around provident fund, gratuity, health insurance, insurance, and working hours. Clear HR policies and compliant contracts reduce disputes and attrition risk.
Taxation and Transfer Pricing
GCCs operate under Indian corporate tax and transfer pricing regulations. Intercompany agreements must reflect actual functions, assets, and risks. Proper documentation and annual audits help avoid disputes with tax authorities.
Data Protection, IP, and Security
Data protection and IP ownership are critical for technology and data-driven GCCs. Companies implement access controls, secure networks, and IP assignment clauses. Alignment with global security standards ensures consistency across locations.
Ongoing Regulatory Filings and Governance
Indian entities require regular filings and board governance. This includes financial statements, statutory audits, and compliance reporting. Strong local finance and legal teams ensure smooth operations over time.
How to Build the Right Talent Strategy When Setting Up a GCC in India?
Talent strategy determines how fast the GCC reaches productivity and how well it retains capability. Early hiring decisions have long-term cultural and operational impact.
Hire the Right Leadership Early
Leadership hiring sets the direction for culture and execution. A strong site head understands both Indian talent markets and global stakeholder expectations. Functional leaders translate business goals into scalable team structures.
Design Competitive and Sustainable Compensation
Compensation must be competitive without being reactive. Salary bands should reflect local benchmarks, role criticality, and growth paths. Overpaying early can distort future hiring and internal equity.
Build a Scalable Hiring Engine
Hiring at GCC scale requires structured processes. This includes defined role frameworks, assessment standards, and fast offer cycles. Partnering with specialists accelerates hiring without compromising quality.
Focus on Onboarding, Learning, and Growth
Onboarding connects new hires to the global mission. Structured learning paths build technical and leadership capability over time. Clear growth opportunities improve retention and engagement.
Invest in Culture and Employer Brand
Culture differentiates a GCC in competitive talent markets. Transparent communication, recognition, and exposure to global work matter more than perks. A strong employer brand attracts better candidates and reduces hiring friction.
Why Is Flexiple the Best Recruitment Agency in India for Hiring GCC Talent?
Flexiple is the best recruitment agency in India for GCC hiring because it combines speed, quality, and operating depth. Flexiple focuses specifically on building long-term offshore teams and GCCs, not transactional staffing.
Deep Focus on GCC and Offshore Hiring
Flexiple works extensively with global companies setting up and scaling GCCs in India. This focus translates into a strong understanding of GCC leadership, engineering, and operations roles. Hiring strategies are designed for long-term team building, not short-term placements.
Access to Pre-Vetted, High-Quality Talent
Flexiple maintains a large network of pre-vetted engineers and professionals. Candidates are evaluated for skills, communication, and reliability before being recommended. This reduces interview cycles and improves offer-to-join ratios.
Speed Without Compromising Quality
Flexiple is known for speed in shortlisting and hiring. Companies receive relevant profiles quickly without compromising assessment rigor. This speed helps GCCs hit early milestones and build momentum.
End-to-End Support for GCC Hiring
Flexiple supports hiring across leadership, core teams, and scale roles. The team aligns hiring plans with compensation benchmarks and growth roadmaps. This integrated approach reduces coordination overhead for global leaders.
How Long Does It Take to Set Up a GCC in India?
Setting up a GCC in India typically takes 12–24 months to reach steady-state operations. The timeline depends on scope, scale, and readiness.
Initial Planning and Setup Phase
The first 3–6 months focus on strategy, location selection, and legal setup. Leadership hiring and infrastructure planning begin in parallel. This phase establishes the foundation.
Build and Transition Phase
The next 6–12 months involve hiring core teams and transitioning work. Processes stabilize and productivity ramps up gradually. Early metrics focus on delivery stability rather than full efficiency.
Scale and Maturity Phase
Beyond 12–18 months, the GCC enters scale mode. Headcount grows, scope expands, and teams take end-to-end ownership. Business impact becomes clearly measurable.
FAQs About How to Set Up a GCC in India
1. Is India suitable for both startups and large enterprises?
India suits both startups and large enterprises. Startups use GCCs to scale engineering efficiently, while enterprises use them for transformation and cost optimization.
2. What is the minimum headcount for a GCC in India?
Most viable GCCs plan for at least 50–100 employees within two years. Smaller setups may struggle to justify fixed costs and governance overhead.
3. Can companies start with an EOR model and later form a GCC?
Many companies start with an employer-of-record model. They later transition employees into a fully owned Indian entity once scale and confidence increase.
4. What functions should move first to a GCC in India?
Companies usually start with engineering, QA, analytics, or shared services. Early success in one function creates confidence to expand scope.
5. When should a company avoid setting up a GCC in India?
Companies should avoid a GCC if they need only short-term capacity or lack leadership commitment. GCCs require long-term investment and ownership mindset to succeed.
