Why set up GCC in India, and how to do it without the 12-month entity setup delay

Over the last ten years, India has established itself as the unquestionable center for Global Capability Centers (GCCs). By 2025, India will have more than 1,700 active GCCs, representing over 50% of the global GCC presence, with Bengaluru, Hyderabad, Pune, Chennai, NCR, and Mumbai at the forefront. The transition from cost-cutting back offices to AI-focused innovation hubs has prompted executives to pose an essential question: “Why to setup GCC in India now instead of elsewhere?”

India's dynamic government policies, extensive digital engineering expertise, and established compliance systems position the nation as the top preference for international companies. Nevertheless, leaders frequently face a 12-month delay in establishing an entity, which hinders recruitment and product rollout. This article discusses the current reasons for establishing GCC in India, details the limitations of conventional setups, and demonstrates how the EOR-first build-direct approach can enable you to begin within weeks rather than months.

What a GCC means in 2025?

India’s GCC environment has experienced a certain shift, evolving well past the notion of conventional back-office centers. To understand the importance of establishing GCC in India today, it is essential to examine how these centers have progressed over time, transitioning from cost-cutting units to strategic growth contributors that now create innovation and revenue influence. This development showcases the shifting demands of international companies and India's capacity to provide top-tier engineering expertise.

Transforming cost center into innovation engine

Ten years ago, the majority of GCCs in India mainly operated on a transactional basis, concentrating on IT services or customer support. By 2025, though, GCCs serve as key product-grade hubs offering AI/ML, cloud engineering, cybersecurity, DevSecOps, and advanced analytics. Top companies now utilize their Indian GCCs as Centers of Excellence (CoEs) to manage essential global product roadmaps.

This change highlights an essential reason for establishing GCC in India today: India’s GCCs have evolved from being support functions to becoming innovation drivers that influence fundamental business models.

Where they’re clustering

The density of tech talent in Bengaluru and Hyderabad, combined with robust infrastructure in Pune, Chennai, NCR, and Mumbai, has created deep hiring pools. Talent clustering means faster ramp-up and lower attrition because professionals can switch roles within the same city without relocation friction.

For firms weighing whether to set up GCC in India, this clustering advantage reduces both recruitment time and operational costs. Moreover, Tier-2 cities like Coimbatore and Jaipur are emerging as satellite hubs for specialized skill sets, giving companies a hub-and-spoke hiring strategy.

Why set up GCC in India now

Understanding the reasons for establishing GCC in India today necessitates a thorough examination of the elements contributing to its strategic benefit. Apart from cost-effectiveness, India provides unparalleled talent availability, favorable policies, and credibility in global markets. Analyzing scale, skills, supportive policies, and demand patterns, businesses can understand that taking swift steps to create a GCC in India offers both operational advantages and competitive gains.

• Scale and distribution of worldwide GCCs

India leads the global GCC market with over 50%, hosting more than 1,700 centers that employ over 2 million professionals and generate more than $65 billion annually. When global executives inquire about establishing GCCs in India, this scale and demonstrated delivery capability provide instant credibility.

• Engineering and digital talent depth

Bengaluru is home to one of the highest concentrations of mid-senior software engineers and cloud architects globally. India’s universities generate over 1.5 million STEM graduates each year, while skill enhancement initiatives in AI, data systems, and cybersecurity maintain a continuous flow of advanced talent.

The abundant supply of skilled experts is a crucial reason for establishing a GCC in India instead of competing areas such as Eastern Europe or Southeast Asia.

• Policy and state-level support

Multiple states like Andhra Pradesh (AP) with its GCC advisory panel, and Karnataka with its favorable tax policies for digital clusters, actively seek GCC investments. These government-supported initiatives, along with the national DPDP Act framework, establish a reliable and business-friendly compliance atmosphere.

• Worldwide demand trends

Japanese, European, and North American companies are still growing their GCC presence in India, showcasing not just cost advantages but also the availability of specialized talents in AI, product engineering, and embedded software. This trend further confirms the need to establish GCC in India now, ahead of competitors capturing the top talent.

Where traditional GCC setups stall

For leaders assessing the reasons to establish a GCC in India, it is essential to comprehend the obstacles in conventional models. Numerous companies launch into the market with bold hiring and delivery strategies, only to realize that local compliance and entity setup can considerably hinder their progress.

These operational constraints frequently lead to delays in execution, despite having a solid business justification for establishing operations in India. Understanding where these processes usually falter enables decision-makers to consider quicker, more flexible options that safeguard both time and opportunities.

Entity, sign-ups, and ordering

Conventional GCC arrangements frequently experience a 9–12 month lag because of entity formation, PAN/TAN/GST registrations, PF/ESI accounts, TDS setups, and local payroll systems. These processes are very sequential; one cannot start until the other is complete, resulting in inactive periods where hiring or operations cannot move forward.

Data protection readiness

According to the Digital Personal Data Protection (DPDP) Act, GCCs managing sensitive information must show privacy compliance from the outset. Failure to comply could result in fines, inquiries, or holdups in bringing on essential clients.

The opportunity cost

Each month wasted on paperwork results in lost hiring opportunities, top candidates opting out, and delays in internal product roadmaps. For numerous founders assessing the reasons to establish a GCC in India, this delay results in opportunity costs that greatly surpass the initial savings of a conventional entity-first approach.

The fast-track: Build-direct with EOR (Then transition to GCC)

When examining the reasons for establishing GCC in India, it is essential to balance speed and compliance. Conventional entity-driven frameworks slow down hiring and product development, whereas an EOR-first build-direct strategy enables quick access to India’s workforce, expedites team setup, and establishes a compliant basis for smooth future growth into a complete GCC.

How EOR functions in a GCC journey?

An Employer of Record (EOR) enables you to legally hire talent in India without needing to establish a local entity in advance. The EOR manages payroll, PF/ESI, tax withholdings, mandatory filings, and benefits, while your central team retains control over interviews, pay scales, performance indicators, and the product roadmap.

Reason this aligns with a GCC plan

Using EOR-first build-direct, businesses can begin with 5–20 engineers or data scientists under the EOR framework, assess talent and city compatibility, and then move into a formal GCC entity once headcount and stability warrant the investment.

This hybrid approach offers the advantages of a BOT (Build-Operate-Transfer) model without the extended vendor commitment. For decision-makers pondering why to setup GCC in India, the EOR option provides a swift initiation without compliance concerns.

What to expect from your EOR

• Local HR knowledge & compliance: Confirm that the EOR possesses an extensive understanding of India-specific HR laws, payroll systems, and regulatory submissions like PF, ESI, and TDS, managing all responsibilities precisely.
• Employer-branded onboarding & engagement: Supply offer letters, initiation programs, and cultural orientation to boost a solid feeling of belonging and connection with your organization from the very first day.
• Clear INR-Linked compensation: Build transparency and confidence through straightforward salary frameworks in INR, free from concealed charges or increases.
• Seamless shift to your entity: Provide a well-organised, effortless transition route for employees to join your own GCC entity as workforce and stability increase, preventing operational interruptions.

Kaamwork’s build-direct path

When examining the reasons for establishing GCC in India, businesses frequently discover that although there are robust talent pools and advantageous policies, the pace of execution is essential. Kaamwork’s build-direct method excels by providing a solution to avoid lengthy entity-setup waits while ensuring complete oversight of hiring standards and brand experience.

Here, this part explores how Kaamwork streamlines the GCC process for companies looking to launch operations in weeks instead of months.

Begin in weeks, not months

Kaamwork serves as a rapid-start GCC facilitator, assisting businesses in establishing productive pods within weeks rather than waiting for entity registration to finalize.

Brand-Centric recruitment and inclusion

Kaamwork’s strategy encompasses offer letters featuring the client's logo, tailored onboarding packages, and localized benefits that align with HQ standards, ensuring that premium candidates view themselves as members of your organization rather than a vendor pool.

For leaders considering why to setup GCC in India using an EOR, this brand-centric strategy aids in drawing top-tier talent that usually steers clear of third-party staffing arrangements.

Case examples to demonstrate the arc

Global firms like Tripadvisor have utilized Kaamwork to quickly fill positions in analytics, data engineering, and platform teams, demonstrating that the model is capable of handling intricate product-grade roles without operational issues.

Trending focus areas your India GCC should own first

To increase effectiveness, new GCCs should emphasize key strategic areas that promote innovation and global competitiveness. Understanding the reasons for establishing GCC in India requires choosing valuable technology pods, aligning talent strategies based on cities, and incorporating compliance from the start, guaranteeing teams are efficient, expandable, and poised to achieve results swiftly.

AI/ML, Data Platforms, Cloud, and Cybersecurity Teams

In 2025, GCCs emphasize customer analytics driven by AI, migrating to the cloud, implementing DevSecOps, and forming advanced threat intelligence teams. These specialized pods can propel essential transformation efforts for global headquarters.

Strategic approach for cities: Tier-1 vs Tier-2

For organizations considering reasons to establish a GCC in India, the best strategy is to base operations in Bengaluru or Hyderabad for leadership and specialized skills, while utilizing Tier-2 cities such as Coimbatore or Nagpur for extensive hiring in support roles.

Compliance plumbing since day one

Regardless of utilizing an EOR or your own organization, make certain that DPDP compliance, PF/ESI payroll systems, and audit-ready procedures are integrated from the outset. This will enable a smooth shift as you grow into a complete GCC framework.

A founder’s 90-Day plan to a GCC without waiting on the entity

For founders considering the establishment of GCC in India without undergoing a lengthy year-long entity registration, a clear action plan is essential. This 90-day framework provides a systematic method that speeds up the hiring process, sets compliance groundwork, and synchronizes brand culture from the very beginning using an EOR to prevent holdups.

• Weeks 1–2: Align positions, INR pay scales, and benefits offerings. Publish open positions under EOR and ensure a constant 24-hour candidate pipeline, maintaining interview processes aligned with HQ standards.
• Weeks 3–6: Recruit the essential group of engineers, data scientists, or analysts. Initiate payroll and benefits through the EOR. Execute onboarding for sprint readiness and incorporate HQ’s cultural practices.
• Weeks 7–12: Broaden into related areas, incorporate data-privacy reviews in line with DPDP, and record operational procedures to ensure that transitioning to your own entity later is a mere formality.

This 90-day strategic plan enables startups and enterprises to start producing results right away. For any executive pondering why to setup a GCC in India with an EOR-first approach, these steps illustrate rapid execution, compliance preparedness, and brand integrity.

Build in India now, formalize the GCC when you’re ready

India’s unmatched GCC ecosystem, characterized by over 1,700 centers, a vast digital workforce numbering in the millions, and robust state-level incentives, clearly answers the question, “Why setup GCC in India?”

The difficulty is in addressing delays caused by bureaucratic entities. Establishing direct teams under an EOR initially allows companies to access India’s top engineering talent, achieve product deadlines, and adhere to DPDP regulations before setting up a local entity.

Once the headcount exceeds a strategic limit, the shift to a completely owned GCC organization is smooth since payroll infrastructure, compliance mechanisms, and cultural fit are already established.

Executives considering the establishment of a GCC in India must understand that delaying the setup by 12 months could result in missing out on market opportunities and high-quality talent. The build-direct approach closes this gap, aligning rapidity with sustainable growth.