Build Your Next Growth Engine. Enable Your GCC in India.
A practical guide to what a Global Capability Centre in India takes to set up and run — the models, cities, people, technology and compliance behind the budget — with a calculator to model your own.
01 Cost drivers
What shapes the investment
No two centres cost the same. These are the decisions that move the budget most — settle them first, then put numbers on them.
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Headcount and role mix
In a people-led centre, salaries and employer costs tend to be the largest recurring line, so the number of roles and their mix matter more than any other input.
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Seniority and scarce skills
Senior engineers, AI/ML specialists and leadership hires cost more and take longer to fill than mid-level roles. Plan their hiring months realistically.
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Establishment model
Captive, managed, build-operate-transfer or hybrid decides who carries setup, operations and risk — and whether you pay upfront or through partner fees.
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City and office model
The city shapes talent access and salary levels; the office model decides between per-seat charges and rent, fit-out and deposits.
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Ramp-up speed
Hiring faster brings delivery forward but concentrates recruitment fees, hardware and onboarding costs in the first months.
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Technology and AI intensity
Cloud, GPU capacity, AI model usage and per-seat software grow with the team and with how much of the work is AI-assisted.
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Compliance footprint
Entity setup, tax filings, transfer pricing, labour law and data protection add advisory and recurring compliance costs.
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Shift pattern and working model
Extended or round-the-clock coverage adds shift allowances, transport and facility hours; hybrid work changes how many seats you need.
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Escalation and currency
Salary increments, rent escalation, technology growth and exchange-rate moves change the three-year picture more than year one.
Model it in the calculator
02 Establishment models
Captive, managed, build-operate-transfer or hybrid
The model decides who owns the entity, who runs operations and how cost is spread over time. Each suits a different appetite for control and risk.
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Captive
Your own Indian entity, team, office and operations from day one. Full control and full responsibility.
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Managed GCC
A partner's entity and operations host your dedicated team; you direct the work and pay a recurring fee.
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Build-operate-transfer (BOT)
A partner builds and runs the centre, then transfers the entity, people and assets to you on agreed terms.
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Hybrid
You own the core functions and partner for the rest — for example payroll, facilities or recruitment.
| Factor | Captive | Managed GCC | Build-operate-transfer | Hybrid |
|---|---|---|---|---|
| Control | Full and direct from day one | Shared: you direct the work, the partner runs the entity and operations | Grows over time; full at transfer | Full over core functions, shared over the rest |
| Speed to launch | Slowest: entity, office and leadership hires come first | Fastest: work starts inside the partner's entity and facilities | Fast start, with the transfer planned from the outset | Depends on which functions you set up yourself |
| Upfront investment | Highest: you fund setup, fit-out and leadership before delivery starts | Lowest upfront; partner fees sit in the recurring costs | Moderate upfront, plus transfer costs agreed in advance | In between, depending on the split |
| Operational burden on you | All of it: HR, payroll, compliance, facilities and vendors | Light: the partner carries day-to-day operations | Light at first, rising as you prepare to take over | Moderate: you run core functions, partners the rest |
| Transfer or exit | No transfer; exit means winding down or selling the entity | Contract terms govern notice and the transfer of people and assets | Transfer of entity, people and assets is part of the design | Per function, as agreed with each partner |
| Best for | Large, long-term centres holding core IP, run by a team ready to operate in India | Proving the India case quickly, or teams that prefer an operating partner | Owning the centre eventually while sharing the launch risk | Keeping core IP in-house while partnering for support functions |
03 City and office strategy
Where to locate, and how to house the team
Six cities host most new GCCs. Shortlist by the talent you need, then choose an office model that matches your ramp-up and commitment.
| City | Talent depth | Ecosystem | Office market notes |
|---|---|---|---|
| Bengaluru | Deep pool across software, product and AI/ML, including senior talent; competition for it can be intense | Dense start-up, product and multinational R&D community | Wide choice of Grade A, managed and coworking space; prime micro-markets carry a premium |
| Hyderabad | Broad engineering, data and enterprise technology talent | Large multinational technology and GCC presence; active state support for the sector | Extensive newer Grade A supply in planned technology corridors |
| Pune | Strong engineering, enterprise IT and engineering R&D talent | IT services, product and automotive and manufacturing technology companies; well-known universities | Established IT parks and SEZs; often considered a cost-conscious alternative to the largest metros |
| Chennai | Deep engineering, SaaS and operations talent, strong in support and finance functions | SaaS, manufacturing technology and financial services operations | IT corridors with campus-style parks |
| Noida | Large engineering and operations talent pool across the National Capital Region | IT services, product and digital companies near Delhi | Large IT/ITES parks and SEZs with newer infrastructure |
| Gurugram | Business, consulting, finance, product and engineering talent across the National Capital Region | Corporate headquarters, consulting and digital firms close to Delhi's international airport | Premium business districts alongside newer peripheral options |
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Coworking
Flexible desks or private cabins priced per seat, with internet, utilities and housekeeping included.
- Fastest to start
- Short commitments
- Limited branding and security control
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Managed office
A dedicated, branded floor fitted out and run by an operator for a per-seat fee over a fixed term.
- No fit-out capital
- Your own space and security
- Longer lock-in than coworking
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Leased office
You lease space, fit it out and run it, paying rent and building charges per square foot.
- Most control
- Fit-out, furniture and deposits upfront
- Multi-year commitment
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Dedicated facility
A built-to-suit building or campus for large, long-term centres with specific security or lab needs.
- Full control of the site
- Highest capital and lead time
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Remote-first
No central office: people work from home, with occasional meeting or coworking space.
- No rent or fit-out
- Higher spend on collaboration, equipment and travel
04 Compensation and workforce
The fully loaded cost of every hire
Gross salary is only the start. A planning budget adds employer contributions, provisions, benefits and the cost of hiring and replacing people.
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Gross salary
Annual cost-to-company by role and seniority, grown by yearly increments. Use current benchmarks for your city and skills.
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Employer provident fund
The employer contributes 12% of PF wages: 8.33% goes to the pension scheme (EPS) on wages capped at ₹15,000 a month, the rest to the provident fund (EPF), plus EDLI and administrative charges. Confirm with a qualified adviser.
EPFO contribution rates -
The Labour Codes
India's four Labour Codes took effect on 21 November 2025. "Wages" must be at least 50% of total remuneration, which affects the PF and gratuity base; state rules are still being notified. Confirm with a qualified adviser.
Littler: the Labour Codes in brief -
Gratuity provision
Gratuity is 15 days' wages per completed year of service — a monthly provision of about 4.81% of wages (15 ÷ 26 ÷ 12). Confirm with a qualified adviser.
Littler: the Labour Codes in brief -
Benefits and allowances
Health insurance and other benefits, plus shift allowances for extended or night coverage.
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Recruitment, attrition and ramp-up
Agency or referral fees on each hire, backfills for people who leave, and the months a team takes to reach full strength.
Model it in the calculator
05 AI and technology
AI, cloud, software, hardware and security
Technology cost behaves in three ways — fixed, variable and one-time — and AI usage is the most variable of all. Budget each the way it is billed.
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Per-million-token pricing
AI model APIs bill input tokens (what you send) and output tokens (what the model writes) separately, each priced per million tokens (MTok). Output usually costs several times more than input.
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Cached input
Repeated context — long instructions, documents, code — can be cached and re-read at a fraction of the normal input price.
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Batch pricing
Work that can wait for asynchronous processing can be sent in batches at a discount; Anthropic lists batch processing at 50% off.
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Example list prices
Anthropic API list prices, per million tokens (input / output / cached input): Claude Opus 5.5 $4 / $20 / $0.20; Claude Sonnet 5.5 $2 / $10 / $0.20; Claude Haiku 5.5 $0.10 / $0.50 / $0.01 for prompts up to 100K tokens. Checked 14 October 2026; prices change, so check the source.
Anthropic pricing
| Cost type | Examples | How it grows | How to plan it |
|---|---|---|---|
| Fixed | Per-seat subscriptions and licences, monitoring, VPN and network redundancy | With headcount and plan changes | Seats × price, reviewed at each renewal |
| Variable | AI model usage, cloud compute, GPU capacity, storage and backups | With usage, data and the share of work that is AI-assisted | A monthly budget, or token volumes × list price, with a growth rate |
| One-time | Laptops and devices, security tooling setup, network installation | With each new position, then a replacement cycle | Hardware per new hire, refreshed every few years |
06 Legal, tax and compliance
Entity setup, tax, HR and compliance
Plan for these from the start. This section lists what to budget for; it is not legal or tax advice, and every item needs review by qualified professionals.
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Entity incorporation
Choosing and registering the Indian entity (typically a private limited company or a branch structure), directors, registered office and registrations. Requires professional review for your structure and facts.
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FEMA and cross-border
Foreign investment, fund transfers and reporting under India's Foreign Exchange Management Act. Requires professional review for your structure and facts.
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Transfer pricing
Pricing and documenting services between the Indian centre and its parent on arm's-length terms. Requires professional review for your structure and facts.
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GST
Registration, invoicing and returns under the Goods and Services Tax, including how exported services are treated. Requires professional review for your structure and facts.
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Labour codes and HR
Employment contracts, policies, wage structures and registrations under the four Labour Codes and state rules. Requires professional review for your structure and facts.
Littler: the Labour Codes in brief -
Data protection
Handling personal data under India's Digital Personal Data Protection Act, 2023 and the laws of the countries whose data you process. Requires professional review for your structure and facts.
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Intellectual property
Assigning work product to the right entity, protecting confidential information and registering IP where needed. Requires professional review for your structure and facts.
07 Setup, running and deposits
One-time, recurring and refundable
Three kinds of money leave the bank. Keeping them apart answers two different questions: what the centre costs, and how much cash you need on day one.
- One-time
Setup costs
Paid once, mostly before or at launch.
- Entity incorporation and registrations
- Office fit-out, furniture and network
- Hardware for every new position
- Recruitment fees for the first hires
- Entry advisory: legal, tax and FEMA
- Security tooling setup fees
- Recurring
Operating expenses
Paid every month, quarter or year for as long as the centre runs.
- Salaries, statutory contributions and gratuity provision
- Rent or seat charges, building charges and utilities
- Cloud, AI usage, subscriptions and licences
- Accounting, payroll, audit and compliance retainers
- Facility services, travel and insurance
- Attrition backfill and hardware replacement
- Refundable
Deposits
Cash paid out but returned when the lease ends — part of the cash you need on day one, not a cost.
- Office security deposit, in months of rent or seat charges
- Other deposits a landlord or utility may ask for
The calculator keeps the three apart: cost totals exclude deposits, and the initial cash requirement adds them back.
08 Three-year planning
Scenarios, scaling and escalation
Plan three years, not one. Start from the scenario closest to your ambition, then adjust; every default in the calculator is an illustrative assumption to replace.
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Lean
About 25 people in coworking space, run with a managed model — a focused team to prove the case.
Open this scenario -
Standard
About 75 people across engineering, AI, product and support functions in a managed office.
Open this scenario -
Enterprise
About 200 people in leased space with a planned expansion and a full support organisation.
Open this scenario
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Salary inflation
Annual increments compound on the whole payroll; set your own rate per role or for the centre.
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Rent escalation
Leases and seat agreements usually escalate on a schedule; read the clause and enter it.
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Technology growth
Cloud and AI spend grows with usage, not only with headcount.
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Contingency
A percentage on setup and operating cost for what the plan cannot yet see.
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Exchange rates
Costs are incurred in rupees and reported in your currency; a moving rate changes the reported total. The calculator never invents a rate — you enter or fetch it.
09 FAQs and methodology
Questions, method and assumptions
What is a Global Capability Centre (GCC)?
A GCC is an offshore centre a company sets up to deliver work for its own business — engineering, AI, data, operations or support — rather than buying it as an outsourced service.
How much does it cost to set up a GCC in India?
It depends on headcount, roles, city, office model and establishment model, so this guide does not quote an average. The calculator builds an estimate from your own inputs; its defaults are illustrative assumptions you should replace with quotes and payroll data.
Which establishment model is the cheapest?
None is always cheapest. Captive centres carry more upfront cost and operational effort; managed and build-operate-transfer models spread cost through partner fees. Compare them over three years for your own scale.
Which statutory employer costs should I plan for?
Employer provident fund contributions, a gratuity provision and the wage definition under the Labour Codes in force since 21 November 2025, plus any state levies. The figures in this guide cite their sources; confirm them with a qualified adviser.
Does the calculator store or send my data?
Your estimate is saved only in your browser. Nothing is sent to Exyconn unless you choose to email it, share it or request a consultation.
How can Exyconn help?
Exyconn can support feasibility, location assessment, launch management, technology and AI enablement, recruitment coordination, HR and administration operations, and ongoing management of the centre. Services are quoted on request.
How the estimate is calculated: every amount is computed in Indian rupees month by month over 60 months, then totalled for the forecast window you choose and converted at the exchange rates you provide. One-time costs fall in the month they are due; recurring costs escalate on each anniversary; refundable deposits count towards the cash you need, never towards cost. Headcount ramps from each role’s hiring month, and attrition is replaced at a recruitment fee. Taxes are shown separately, before any input-tax credit, and contingency applies to pre-tax cost.
Disclaimer: this guide and the calculator give indicative planning information, not a quotation, an offer, or legal, tax or financial advice. Default values are illustrative assumptions unless a source is cited. Confirm legal, tax and statutory items with qualified professionals before you decide.
- Statutory rates: EPFO contribution rates and the Payment of Gratuity rules as carried into the Code on Social Security, 2020.
- Labour Codes in effect from 21 November 2025; state rules are still being notified.
- AI prices: Anthropic API list prices, checked 14 October 2026.
- Everything else — salaries, seat prices, rents, budgets and fees — is an illustrative assumption.
Plan your GCC in India with Exyconn
Bring your estimate to a consultation: we will review the assumptions, the model and the launch plan with you.