introduction: why the GCC setup strategy is your next strategic imperative
The decision to establish a Global Capability Centre (GCC) is no longer a simple cost-saving exercise; it is now a high-stakes strategic move that requires meticulous planning. Today’s GCCs empower enterprises to own their digital transformation, build capabilities, strengthen intellectual property control, and access top-tier talent. This guide breaks down the complex journey into actionable phases that accelerate success and reduce risk.
GCC setup: the strategic rationale
A global capability centre empowers multinational corporations with greater control, agility, and innovation capability than traditional outsourcing ever could. Unlike third-party vendors, a GCC operates as a fully owned extension of the parent organisation, mirroring its culture, priorities, and long-term strategy. By bringing high-value strategic functions in-house, such as analytics, AI/ML development, R&D, finance, and HR, organisations gain direct access to world-class talent while retaining full ownership and control of enterprise IP. This strengthens process integration, accelerates innovation cycles, and delivers sustained returns on investment.
Today, India anchors the global GCC landscape, hosting over 53% of the world's global capability centres. This underscores India’s unmatched talent pool, robust digital infrastructure, and policy environment that nurtures large-scale transformation. As a result, the GCC model rooted in India’s ecosystem has become the preferred pathway to building resilient, future-ready operations for global enterprises.
phase 1: strategic planning and feasibility assessment
The foundation of a successful GCC begins long before companies lease offices or build systems. In this phase, organisations define the GCC’s strategic intent, align it with corporate objectives, and create a clear roadmap for execution.
defining the GCC mandate and operating model
The conceptualisation of every GCC implementation strategy begins with a well-defined mandate outlining its core purpose, functions, and measurable outcomes. Whether the focus is IT support, R&D, finance and accounting, or human resources, the operating model determines how the enterprise structures, governs, and scales the centre.
The three most common GCC operating models businesses can implement include:
- DIY (Do-It-Yourself): The parent company sets up and operates the GCC independently. This model offers complete ownership and control over operations, culture, and intellectual property. However, it demands substantial upfront capital, longer setup time, and deep local market knowledge. This approach is best suited for mature enterprises seeking long-term strategic presence.
- Build-Operate-Transfer (BOT): A professional partner establishes and manages the GCC during its initial phase, ensuring faster time-to-market and compliance readiness. After stabilisation, ownership transfers to the parent company. This approach balances speed, control, and risk management effectively.
- Hybrid or joint venture: This approach combines shared ownership and management responsibilities between the parent company and a local partner. It reduces financial exposure and enables local expertise but may involve complex governance structures.
Choice of the right model depends on an organisation’s risk tolerance, desired control level, and long-term strategic vision.
location strategy: why India remains the global hub
India remains the world’s most preferred destination for establishing a global capability centre. The country offers a unique mix of cost efficiency, digital infrastructure, and an unmatched talent pool to create a powerful business ecosystem.
Tier-1 cities like Bengaluru, Hyderabad, and Pune lead the GCC landscape with deep technology expertise, strong connectivity, and mature innovation networks. Tire-2 cities like Kochi, Coimbatore, and Jaipur offer more cost-effective alternatives with growing specialisations in niche areas such as data engineering, automation, and cybersecurity.
While other hubs like Poland and Mexico are gaining attention, India continues to dominate as a GCC powerhouse, hosting over half of all GCCs worldwide. Its combination of supportive government policies, a robust vendor ecosystem, and decades of technology-led growth continues to make India the preferred launchpad for global enterprises seeking scalability, innovation, and long-term strategic advantage.
phase 2: legal entity structuring and compliance
The second stage is often the most intricate, involving navigating regulatory frameworks, tax implications, and compliance with both local and international laws. The legal structure chosen at this stage determines how agile, compliant, and tax-efficient your GCC can be.
choosing the right legal entity in India
Choosing the correct legal structure is one of the most important decisions when setting up a GCC in India. The choice of legal entity determines how much control the parent company retains, how the GCC operates, and the level of regulatory oversight it faces. It also directly affects taxation, profit repatriation, and compliance obligations.
The table below compares the three main structures global enterprises typically use:
| Feature | Wholly Owned Subsidiary (WOS) | Branch Office (BO) | Limited Liability Partnership (LLP) |
| Ownership | 100% ownership of the parent company. | Extension of the parent; not a separate entity. | Multiple partners share ownership; can be a mix of foreign and local entities. |
| Control | Full operational and strategic control. | Parent company retains control but must operate under RBI rules. | Shared control among partners. |
| Liability | Limited to invested capital. | Liability extends to the parent company. | Limited to partner contributions. |
| Best suited for | Most GCCs; ideal for strategic operations and IP protection. | Temporary projects; not suited for full-scale GCCs. | Joint ventures; rare for large GCCs. |
When structuring the entity, organisations must also pay close attention to tax and transfer pricing regulations. Indian authorities require transactions between the parent company and the GCC to follow the arm’s-length principle, ensuring pricing aligns with market standards and minimises Permanent Establishment (PE) risks.
Several Indian states also offer government incentives to attract GCC investments. Benefits under the SEZ and STP schemes include tax exemptions, duty-free imports, and simplified compliance. Karnataka, Telangana, and Maharashtra are among the leading states actively promoting policies that support long-term GCC growth and innovation.
navigating regulatory and labour compliance
Organisations must navigate India’s regulatory framework carefully to build a compliant and future-ready GCC. Every setup requires adherence to key areas such as Foreign Direct Investment (FDI) approvals, labour laws, and data protection regulations that align with both Indian and international standards, including GDPR and HIPAA.
Labour compliance involves meeting requirements under the Code on Wages, Industrial Relations Code, and Occupational Safety and Health Code, ensuring fair employment practices and transparent operations. Data privacy frameworks demand secure handling of global data, especially for sectors handling sensitive or cross-border information.
Protecting intellectual property remains equally critical. Organisations must include IP assignment clauses in all employment and vendor contracts to safeguard proprietary technologies and innovations. By partnering with qualified local legal and compliance experts, enterprises can manage risks effectively and keep the GCC fully aligned with evolving regulatory expectations.
phase 3: infrastructure, technology, and operational setup
Once the legal groundwork is complete, focus shifts to building the physical and digital ecosystem that powers the GCC. This phase ensures operational readiness, security, and integration with global systems.
building the physical and digital backbone
A high-performing global capability centre relies on well-planned physical and digital infrastructure. At this stage, organisations must choose the right office location, design flexible and secure workspaces, and ensure reliable, high-speed connectivity. Modern GCCs must also support hybrid working models that enable seamless collaboration between global and local teams while maintaining strict data security.
The digital backbone drives the centre’s efficiency and innovation capacity. Companies need to build scalable cloud infrastructure, implement strong cybersecurity frameworks, and deploy enterprise-grade data management platforms to ensure stability and compliance. Integrating automation, AI, and analytics tools from day one helps teams optimise processes, improve decision-making, and deliver measurable value.
Governance forms the third pillar of operational readiness. Organisations must define clear IT standards, monitor performance, and enforce compliance to ensure business continuity. A well-structured technology environment enables the GCC to operate as a secure, agile, and innovation-driven extension of the global enterprise
phase 4: talent acquisition and cultural integration
People remain the true differentiator of a GCC. Attracting and retaining the right talent determines how well the GCC delivers on its strategic mandate.
building a high-impact talent ecosystem
A successful GCC combines technical expertise with leadership and innovation capability. Recruitment should prioritise specialised skills in AI, cloud computing, cybersecurity, and data science. Crafting a compelling Employee Value Proposition (EVP) helps attract top professionals who align with the organisation’s purpose.
Retention strategies must focus on long-term engagement through clear career progression, learning opportunities, and competitive compensation. Investing in continuous upskilling and leadership development reduces attrition and builds institutional strength.
fostering cultural alignment and collaboration
Bridging cultural and operational gaps between the headquarters and the GCC is critical. Shared vision, transparent communication, and leadership immersion programmes help establish a unified culture. Regular cross-border rotations, mentorship, and collaborative digital tools foster trust and inclusion, ensuring that the GCC truly operates as an extension of the global enterprise.
phase 5: operationalisation, scaling, and continuous transformation
After the global capability centre launches, the focus shifts to steady-state operations, governance, and continuous improvement. This phase turns the GCC from a delivery hub into a strategic engine that drives innovation and business value.
strengthening governance and measuring success
Robust governance enables a GCC to operate with accountability, transparency, and alignment with enterprise goals. This requires organisations to define roles and responsibilities clearly, establish reporting hierarchies, and implement standardised processes such as Lean Six Sigma to drive efficiency and consistency across functions. A structured governance model connects the GCC directly to the global headquarters.
Regular performance reviews, compliance audits, and communication protocols ensure the centre remains strategically aligned and responsive to business priorities. Measuring performance goes far beyond cost savings. Leading GCCs need to track innovation output, time-to-market, service quality, and talent retention to assess real business impact. Data-driven performance dashboards help leadership teams identify opportunities for continuous improvement and transformation.
By embedding robust governance and performance measurement from the start, enterprises can turn their GCCs into strategic engines that deliver sustained value, agility, and competitive advantage.
partnering with Infosys BPM for accelerated GCC setup
Setting up a global capability centre in India independently can be complex, as it demands significant time, investment, and cross-functional expertise. Enterprises often struggle with long setup cycles, high capital expenditure, and complex compliance requirements that delay value creation. Many struggle to coordinate vendors, manage legal approvals, and build operational maturity in unfamiliar markets. Infosys BPM simplifies this journey through its proven Build-Operate-Transfer (BOT) model, enabling enterprises to establish fully operational GCCs quickly, cost-effectively, and with minimal risk.
the Infosys BPM advantage: de-risking your GCC journey
Infosys BPM helps global enterprises build scalable, compliant, and high-performing GCCs that deliver value from day one. The model follows three clear phases designed to de-risk and accelerate every step of the setup process.
- Build: Infosys BPM establishes the GCC’s legal structure, physical and digital infrastructure, and governance framework. The setup aligns with the parent organisation’s culture, compliance standards, and business goals.
- Operate: Infosys BPM manages daily operations, talent acquisition, and cultural integration. It ensures smooth performance, robust governance, and continuous process optimisation through automation, AI, and BPM best practices.
- Transfer: Once the GCC reaches operational maturity, Infosys BPM transitions ownership seamlessly to the enterprise, leaving behind a self-sustaining, innovation-driven centre.
The key advantages this approach offers global enterprises include:
- Speed: Reduce setup time from six to eight months to as little as four to six weeks using the BOT model.
- Cost efficiency: Eliminate large upfront capital expenses with a No-Capex model.
- Expertise: Leverage deep domain knowledge in legal, compliance, HR, and technology.
- Transformation: Integrate automation, AI, and BPM excellence to create a strategic powerhouse that delivers continuous innovation.
This de-risked approach allows organisations to achieve faster time-to-value while focusing on their core business priorities.
conclusion
A well-designed global capability centre delivers more than operational savings; it creates a foundation for long-term strategic growth. When built on the right structure, technology, and talent strategy, a GCC becomes a driver of innovation, agility, and enterprise resilience. It enables organisations to consolidate capabilities, protect intellectual property, and accelerate transformation from within.
India’s mature ecosystem, vast talent pool, and digital-first environment make it the ideal destination for enterprises seeking sustainable global expansion. As businesses continue to evolve, a future-ready GCC in India positions them to lead with innovation, efficiency, and enduring competitive strength.
FAQs: quick answers on GCC setup
how long does it take to set up a GCC?
An independent GCC setup typically takes six to eight months. Partnering with an expert such as Infosys BPM can accelerate initial operations to four to six weeks through a Build-Operate-Transfer (BOT) model.
what is the estimated cost of setting up a GCC?
The setup and operational costs vary depending on the location, entity structure, and size of the GCC. An independent setup for 300–400 employees in India can range between $3–5 million annually. Partner-led models like Infosys BPM can help you eliminate large upfront capital expenditure through scalable engagement structures.
what is the difference between a WOS and a BOT model?
A Wholly Owned Subsidiary (WOS) is a legal entity structure granting full ownership to the parent company from day one. A Build-Operate-Transfer (BOT) model, on the other hand, allows a partner to establish and manage the GCC before transferring ownership, reducing setup risk and accelerating market readiness.
