Moving to India for talent doesn’t mean outsourcing anymore

For many years, when international leaders mentioned “relocating to India for talent,” it was a euphemism for outsourcing. It involved entering into a contract with an external vendor, typically a major IT services firm, and allowing them to manage the projects.

The outsourcing model certainly provided cost reductions, but the compromises were significant: diminished quality, restricted control, and workers who seldom felt linked to the companies whose products they were creating. Loyalty was with the seller, not the label.
Zooming in on the present, the strategy appears completely changed. International corporations are no longer turning to India solely for outsourcing.

They are arriving to establish their own teams, Global Capability Centres (GCCs), and sustainable careers. India has emerged as a major global center for engineering, analytics, product development, and digital transformation, propelled by direct employment frameworks, rather than project transfers.

This piece examines how relocating to India no longer equates to outsourcing, the factors prompting this shift, and how platforms such as Kaamwork facilitate a smooth transition for international businesses.

The old playbook: Outsourcing as the default

Before exploring how the model has evolved, it is important to reflect on the reasons outsourcing became the favored strategy initially:

Why outsourcing became the first option

During the 1990s and early 2000s, India held a global position as the outsourcing hub of the world. Firms in the US and Europe recognized the opportunity to reduce expenses by 60–70% by hiring Indian providers that could offer pre-assembled groups of engineers, call center agents, and back-office personnel.

The request was straightforward:

• Rapid vendor access to "pre-assembled" teams.
• Significant cost advantages, as dollar and euro budgets went a long way in India.
• Reduced operational risk, since vendors are guaranteed to manage recruitment, office facilities, and compliance.

For those who embraced it first, outsourcing seemed like an obvious choice.

The Concealed Drawbacks

As time went on, the flaws became apparent.

• Quality degradation: Suppliers frequently charged customers top rates while utilizing “bench” workers, engineers who were accessible but not necessarily qualified for the job.
• High turnover: Since employees were contractually linked to the vendor, they displayed minimal long-term dedication to the client's brand or mission. I have changed jobs within 12–18 months.
• Loss of oversight: Key elements such as culture, quality of work, and even intellectual property were challenging to protect when projects were managed externally.
• The outcome: businesses reduced expenses but frequently sacrificed innovation, speed, and lasting sustainability.

The new reality: Talent wants full-time careers, not vendor contracts

Today, the tale is entirely distinct. India has evolved from being merely an outsourcing hub to a key centre for global operations. The nation is now seen not just as a site for reducing expenses, but as a place to develop sustainable skills, creativity, and leadership.

India: A growing hub for global capability centres (gccs)

Take into account these data points that emphasize the extent of this change:

Between 2014 and 2025, India drew in USD 748 billion in Foreign Direct Investment (FDI), representing almost 143% of the total inflows over the last 11 years. This illustrates the increasing global trust in India as a hub for long-term investments rather than merely short-term project outsourcing.

Currently, more than 1,700 Global Capability Centres (GCCs) function in India, providing jobs for over 2 million individuals. These centers have evolved beyond mere “support offices”; they actively participate in product innovation, enhance customer experience, and drive global growth, generating over $64 billion each year.

Firms such as Airbus exemplify this change effectively. India is no longer utilized exclusively for IT or support services. Rather, they are developing engineering, manufacturing, and supply chain capabilities, aiming to procure almost $2 billion in components and services from India by 2030.

These changes demonstrate how India has transformed from a back-office location to a leading center of innovation and expansion.

Why professionals prefer direct employment

India’s leading professionals engineers, product managers, designers, and data scientists now seek roles where they can make significant contributions and develop alongside the organization. They desire:

• Employment directly with international brands, where their contributions are recognized and appreciated.
• Enduring professional trajectories, instead of short-term project-oriented tasks.
• Equal compensation, benefits, and acknowledgment compared to colleagues in different international offices.

This clarifies why outsourcing companies are having difficulty drawing in the top talent. Leading professionals perceive higher pride, stability, and growth opportunities in becoming part of companies directly instead of operating through a middleman.

What moving to India really means today

The significance of “moving to India” has experienced a dramatic change. Global companies are now forming direct connections with talent rather than depending on vendors for outsourcing, viewing India as a natural extension of their worldwide presence. This change transforms how companies create teams and expand globally.

Direct hiring becomes the new standard

An increasing number of businesses prefer to control their culture, career advancement, and performance criteria instead of delegating them to an outside entity. Rather than perceiving India merely as a budget-friendly outsourcing choice, they now regard it as a location to develop enduring, high-caliber teams.

This shift is just as appealing for employees. Employment directly with an international brand signifies:

• Increased acknowledgment for their efforts.
• Consistency in professional advancement.
• A genuine feeling of connection to the organization's worldwide purpose.

This explains why India’s top professionals are progressively drawn to direct models rather than vendor agreements.

Entity Setup vs. EOR-First Expansion

When businesses started moving to India, they usually encounter two options: establishing a company or utilizing an Employer of Record (EOR).

• Entity formation: Requires 6–12 months, incurs significant legal and administrative expenses, and is most appropriate for businesses already dedicated to extensive operations.
• EOR-first expansion: Allows for prompt, compliant recruitment with anticipated expenses and reduced risk. It’s adaptable, enabling companies to begin modestly, expand rapidly, and establish their own organization later if necessary.

This is the reason numerous international companies are now opting for the EOR-first approach; it merges rapid deployment, regulatory compliance, and access to elite talent, without the significant initial costs of establishing an entity.

How Kaamwork bridges the gap

Kaamwork has designed a model that fits perfectly with the new era of direct global hiring in India. Instead of relying on traditional outsourcing, Kaamwork enables companies to hire, scale, and retain top talent while staying fully compliant without the burden of setting up an entity right away.

Employer of Record-First model

Kaamwork serves as the official employer, overseeing payroll, taxes, compliance, and leave policies for you.

In the meantime, your organization retains full authority over recruitment, compensation, evaluations, and professional growth.

The outcome: you can concentrate on developing a top-notch team for your brand, while Kaamwork manages seamless operations in the background.

Building under your brand

Kaamwork serves as the official employer, overseeing payroll, taxes, compliance, and leave policies for you.

In the meantime, your organization retains full authority over recruitment, compensation, evaluations, and professional growth.

The outcome: you can concentrate on developing a top-notch team for your brand, while Kaamwork manages seamless operations in the background.

Transparent, market-driven pay

In contrast to outsourcing providers, Kaamwork functions with complete transparency.

No concealed charges or excessive price increases.

Compensation aligns with Indian market standards, providing equity for employees and reliability for employers.

Case studies: Global companies that built directly in India

TripAdvisor

TripAdvisor enhanced its analytics and engineering teams in India by utilizing Kaamwork. They could recruit elite talent in accordance with Indian regulations without establishing a local entity, while preserving complete oversight of culture and performance.

Thrasio

The e-commerce aggregator started with a pilot group in India and, in under a year, expanded to over 20 employees. Thrasio was able to grow quickly with Kaamwork’s assistance, alleviating concerns over compliance risks while maintaining a uniform culture across different regions.

SimpliSafe, Ideal Image, and Advance Auto Parts

SimpliSafe: Established a team of top-tier engineers in India.

Ideal Image and Advance Auto Parts: While not primarily technology-driven companies, they utilized India's vast reserve of data and tech expertise to drive their growth.

These examples demonstrate one fact: relocating to India is effective in various sectors, not solely in conventional IT or tech-centric businesses.

Why this shift benefits both companies and employees

Shifting from outsourcing to direct hiring is not unilateral; it results in mutual benefits. Businesses achieve rapid progress, oversight, and ecological responsibility, whereas workers obtain acknowledgment, security, and authentic professional advancement.

For businesses

Accelerated scaling with no delays in legal arrangements, enabling companies to form teams in weeks instead of months.

Reliable expenses with all compliance, payroll, and HR responsibilities managed, allowing leadership to concentrate on expansion rather than bureaucracy.

Access to premier Indian talent that might not otherwise engage with outsourcing firms, providing businesses a competitive advantage in quality and creativity.

Even significant non-tech companies are embracing this model. Retail behemoth Costco recently revealed its first GCC in India, aiming to recruit 1,000 staff members, a clear indication of the direction of global trends.

For employes

Equitable benefits and leave rights that align with international counterparts, guaranteeing justice and equality from the outset.

Immediate connection with international brands, fostering pride, enhancing identity, and providing long-lasting career growth prospects.

Levels of loyalty and retention significantly surpass typical outsourcing standards. Kaamwork clients indicate a voluntary attrition rate of less than 5%, contrasting with the vendor-led model average of over 30%.

The outcome: workers feel appreciated and dedicated, while organizations secure steady, enthusiastic groups that promote sustainable practices.

Practical steps for global companies moving to India

If you’re thinking about India for your next growth phase, it’s crucial to tackle it with a well-defined strategy. Achieving success in India isn't just about “hiring quickly”; it's about making careful choices regarding roles, frameworks, and culture:

Identify the roles most appropriate for India

The primary roles developed in India are software engineering, data science, analytics, design, and product development. Nevertheless, the chance now goes far beyond technology. Businesses in retail, healthcare, and manufacturing are utilizing India’s skilled workforce for essential roles such as operations, finance, and customer success.

Choose your model

The optimal way to start is with a Kaamwork EOR-first strategy. This enables you to evaluate the market, recruit instantly, and remain compliant from the very start. As your team expands, you can consistently evolve into your own entity if the volumes warrant the investment.

Emphasize culture from the very beginning.

The most sustainable teams are those regarded as integral members of the organization. Make certain that onboarding, branding, and benefits align with HQ standards, allowing employees to feel included in the global mission rather than as contractors.

This mix of transparency, adaptability, and culture guarantees adherence now and a long-term competitive advantage.

Moving to india without outsourcing: the smarter path forward

For decades, outsourcing has characterized India's narrative in the global talent arena. Throughout a significant portion of the 1990s and 2000s, India was seen mainly as a budget-friendly location where businesses could outsource projects to vendors and swiftly tap into pre-assembled teams. However, that period is now decisively in the past.

India as a center for global capability hubs

Today, India has grown into a pivotal center for growth. Over 1,700 Global Capability Centres (GCCs) currently function here, hiring millions of experts in roles that extend well beyond conventional IT.

Global companies like Costco, Sony, and Toyota are shifting away from outsourcing they are creating in-house teams under their own brands, emphasizing innovation, product development, and long-term capacity building. The dialogue has moved from cost advantages to value generation and strategic control.

How Kaamwork facilitates this transition

Kaamwork’s EOR-first strategy connects speed with sustainability. Businesses can swiftly enter India, recruit top talent without setbacks, and expand operations, all while maintaining complete ownership of culture, control, and compliance.

In other terms, entering the Indian market now is no longer focused on outsourcing. It's centred on creating your future team directly, sustainably, and under your brand.