Why India Is the Ideal Destination for Your Global Capability Center (GCC)

Why Is India the Leading Destination for Global Capability Centers?

India is now the undisputed GCC capital of the world.

Let’s look at the facts.

• Over 1,700 global companies already run their capability centers in India (2025). They employ nearly two million professionals. By next year, that number will be even bigger.
• India produces more than 1.5 million engineering graduates annually. That is an unmatched talent pipeline.
• The country offers operating costs that are up to 50% lower than in the US or UK tech hubs.
• India’s innovation ecosystem is rapidly growing, and includes AI and product design centers, which can support next-gen capabilities for Fortune 1000 companies.
• Indian government’s initiatives like SEZs and the Production Linked Incentive (PLI) scheme provide robust policy support for GCC investments.

So what you are seeing is a perfect convergence of talent, cost, innovation, and policy in India.

How Does India Stack Up Against Other Top GCC Destinations?

Here’s how India compares with other leading contenders.

That’s why India’s GCC advantages are now too significant for any global CIO to ignore.

Your obvious next question is, “How do we start?”

What Are the Different Operating Models for GCCs and Which One Suits Your Business?

Your choice of GCC operating models is critical. It defines your path forward.

You have three clear options.

1. Do It Alone (Captive Model). You build, own, and manage everything. This gives you absolute control, but it also means you carry all the risk and face a steep learning curve. It’s a legit path, but it’s a long one.
2. Share the Load (Co-Managed Model). You partner with a local expert to handle specific functions like HR or admin, while you control the core technical work. It’s a good balance, but can create operational seams.
3. Accelerate Your Launch (The BOT Model). This is the strategic shortcut. With a Build-Operate-Transfer partner like us, you define the vision, and we make it happen. We build the center, hire the talent, and run the operations until it’s perfectly tuned. Then, we hand you the keys. The BOT model is designed for one thing: getting you to your desired end-state faster and with far less risk.Ready to make a move?

How Do You Set Up a Global Capability Center in India?

To set up a GCC in India means you need a blueprint that turns your ambition into a value-generating asset.

1. Define Your Mission. Get specific. What, exactly, will this GCC do? Your clarity here will guide every other choice you make.
2. Pinpoint Your Location. Don’t follow the crowd. The right city depends entirely on your mission. You need a location with the right blend of…
3. Establish Your Legal Entity. You will have to navigate the regulations and set up your company structure correctly from day one to ensure smooth operations and compliance
4. Build Your A-Team. This is the core of your GCC. With 1.5 million new engineering graduates a year in India, the talent is here. Your challenge is attracting the best. You need a compelling story and a smart recruitment engine.
5. Create a Resilient Workplace. Your GCC must be robust. This means Grade A facilities and, more importantly, enterprise-grade, secure technology infrastructure.
6. Implement a Governance Framework. How will your new team connect with your global organization? Define your reporting lines. Define your metrics for success. Establish your communication rhythms early.
7. Launch and Grow. Start with a focused pilot team. Get some quick wins on the board. Then you can prove the model and scale with confidence. A partner with deep Build-Operate-Transfer GCC expertise can guide you through every single one of these steps.

What Are the Typical Costs and ROI Benchmarks for GCCs in India?

You need numbers to justify the move. Let’s understand a typical case of GCC cost in India and ROI.

Annual TCO (For a 100-Member Tech Team)

The TCO is primarily driven by three core areas. Let’s model it for a 100-person team with a blend of junior, mid, and senior talent.

• Fully-Loaded Employee Costs (approx. 65-70% of TCO) A blended average for a fully-loaded tech employee in an Indian GCC is in the range of $55,000 – $70,000 annually.

For a 100-member team, this puts your annual employee cost at $5.5M – $7.0M.

A comparable team in the US, with a fully-loaded average of $150,000+, would cost over $15M.

• Infrastructure & Real Estate (approx. 15-20% of TCO) Budget for an annual cost of $4,000 – $6,000 per seat for Grade-A facilities, including rent, utilities, internet, and management.

For 100 employees, this amounts to $400k – $600k annually.

• Support & Operations (approx. 10-15% of TCO)

A standard estimate is 10-15% of your total employee and infrastructure costs.

This adds another $600k – $1.1M to your annual TCO.

Total Annual TCO Estimate: ~$6.5M to $8.7M This calculation shows that the widely cited “50% saving” is a realistic, conservative benchmark for your entire operation.

Strategic Returns

The ROI goes far beyond the TCO savings.

• Productivity Velocity: For our 100-person team, you can expect to capture an entire extra month of development output in year one.
• Innovation Arbitrage: How do you model the ROI of hiring 10 AI engineers you couldn’t find or afford at home? This “innovation arbitrage” lets you pursue projects that were previously off-limits.
• Scalability as a Multiplier: When you can double a team’s size in six months, your market responsiveness becomes such that a static, high-cost team cannot match.Therefore, with India as your GCC, you get a powerful model to accelerate innovation and scale capability efficiently.

Which Indian Cities Are Best for Establishing Your GCC?

Location matters. It can make or break your GCC’s success.

• Gurgaon, with its proximity to the capital and a strong base in IT services and finance, is a major hub.
• The Bangalore GCC hub is the mature, undisputed leader, with an incredibly deep ecosystem.
• Then you have Hyderabad GCC, which has rapidly become a global center for R&D, life sciences, and AI talent.
• Pune offers a fantastic mix of engineering prowess and financial tech expertise.

But the truly strategic play is to look at what’s next. We are seeing immense potential and success in emerging locations. A tier-2 city GCC in a place like Visakhapatnam or Lucknow can offer you…

• Access to fresh, untapped talent pools.
• Significantly lower operational costs.
• Higher employee loyalty and lower attrition.

The right choice depends entirely on your mission.

You must match the city’s strengths to the specific capabilities you need to build.

What Future Trends Are Shaping GCCs in India Through 2030?

The GCC you build today must be designed for tomorrow. The ground is shifting fast, and you need to be ahead of the curve.

The GCC India trends (2025) and beyond are not about doing the same things cheaper.
They are about doing entirely new things.

• India’s GCC market is projected to grow from $45 billion in 2023 to $110 billion by 2030, with around 115 new GCCs opening each year.
• 86% of GCCs in India have shifted focus from cost-saving to expanding innovation and value-added services.
• Approximately 80% of Indian GCCs prioritize AI, machine learning, and data analytics as their core capabilities.
• Leading companies are investing millions in upskilling, with over 70% of GCC employees expected to receive training in emerging tech like AI and cloud computing by 2027.
• The government’s initiatives have driven the development of over 100 new data centers in India by 2025.So, the conversation is now about GCC AI maturity.

When you want a GCC that works as hard as you do, India is where you build it.

This is your opportunity to stop compromising on your tech roadmap and start building the exact teams you need to win.

Frequently Asked Questions