Question 1

What is a Global Capability Center in India?

Accepted Answer

A Global Capability Center is a wholly owned unit that an international company sets up in India to run core business functions such as engineering, AI, data, and operations directly, rather than through a third-party vendor. It is also referred to as a Global In-house Center or captive center, and is distinct from a shared services center, which typically focuses on standardized transactional work.

Question 2

Why are so many international companies setting up GCCs in India?

Accepted Answer

India combines a large, deep talent pool across engineering and AI disciplines with cost advantages, a mature support ecosystem of advisors and real estate partners, and growing policy support, including a national framework announced in the Union Budget 2025-26 aimed at expanding GCC growth into Tier-2 cities.

Question 3

What do you actually need to set up a GCC in India?

Accepted Answer

At minimum, a defined business case and mandate, a decision on operating model, and a plan for compliance, technology infrastructure, and leadership. A captive entity additionally requires incorporation through the SPICe+ process, a registered office, banking setup, and FEMA and RBI compliance for cross-border transactions. A Build-Operate-Transfer or managed model shifts several of these requirements onto the partner instead.

Question 4

How much does it cost to set up a GCC in India?

Accepted Answer

There is no single universal figure. Cost depends on the city, talent seniority mix, chosen operating model, and technology or compliance requirements. A realistic estimate should account for compensation, recruitment, office or infrastructure, legal and compliance, technology and security spend, and partner fees if applicable, modeled against your own scenario rather than a generic industry number.

Question 5

How long does it take to launch a GCC in India?

Accepted Answer

A full captive entity generally takes longer once incorporation, RBI and FEMA filings, and infrastructure setup are accounted for. A Build-Operate-Transfer or managed engineering model can typically begin hiring and delivering sooner, since a partner handles the operational scaffolding while any entity decisions are worked through separately.

Question 6

Which Indian city is best for a Global Capability Center?

Accepted Answer

There is no single best city. Bengaluru leads for deep engineering and AI talent, Hyderabad is strong in analytics and large-scale delivery, Pune and Chennai suit enterprise systems and manufacturing-adjacent work, Mumbai and Delhi NCR fit SaaS and financial services mandates, and Tier-2 cities like Coimbatore or Ahmedabad offer lower cost and attrition for companies willing to weigh that against thinner senior talent depth.

Category: Global Capability Centers

Global Capability Centers in India: A Complete Guide for International Companies to Build and Scale