India GCC

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Frequently Asked Questions

1. Why should we consider setting up a GCC in India?

  • Access to a large, skilled talent pool across technology, finance, operations, analytics, payroll and more
  • Cost efficiency compared to Western markets
  • Mature ecosystem of IT infrastructure, startup innovation, and service providers
  • Time zone advantage for 24/7 support and follow-the-sun model
  • India’s proven track record in running global delivery and innovation centers

2. What kinds of work can a GCC in India take on?

  • IT & engineering (development, testing, support, automation, DevOps, etc)
  • Business process operations
  • Analytics & data science
  • Product R&D and innovation
  • Cybersecurity & risk management
  • Finance, HR, Payroll, legal shared services
  • AI/ML model development and automation

3. Is the goal only cost-saving, or can GCCs drive innovation?

GCCs today are moving beyond cost arbitrage. With access to domain experts, top-tier engineering talent, and proximity to startups, they are becoming hubs for:

  • Product co-creation
  • Customer experience design
  • Digital transformation
  • AI/ML innovation
  • Center of Excellence (CoE) initiatives

4. What are common GCC operating models?

  • Captive center: Fully owned and operated by the parent company
  • Build-Operate-Transfer (BOT): Third party sets up and runs initially, later transitions to the parent.
  • Managed GCC-as-a-Service: Partner-led turnkey solution with founder oversight. This model is well supported by Employnova to reduce the hassle for parent company and focus on growth / business.
  • Joint venture: Strategic partnership between global and local firms

5. What is the typical ROI timeline for a GCC?

  • Setup phase: 6–12 months
  • Stabilization & scaling: 12–24 months
  • ROI realization: 2.5–3 years (depending on complexity and size)
  • This is the area where Employnova plays vital role in reducing the above mentioned standard timelines by at least 50%.

Operational & Legal FAQs

6. What’s the cost of setting up a GCC in India?

Costs depend on location, size, and scope, but key components include:

  • Real estate (leased office or co-working)
  • Hiring & recruitment costs
  • Compliance & legal setup (company registration, licenses)
  • Technology infrastructure
  • Ongoing OPEX (salaries, utilities, services)
    Startup budgets may range from $500K to $2M for the first 12–18 months.

7. What legal entity structure is required?

  • Most GCCs register as a Private Limited Company (Pvt Ltd) in India.
  • Foreign Direct Investment (FDI) is allowed under the automatic route for most sectors.
  • Founders/investors should consult legal experts to comply with RBI, MCA, and tax norms.

8. How do we handle IP protection and data security?

  • India has strong IP and data laws; NDAs, contracts, and IT controls are critical.
  • Cybersecurity, ISO 27001, and SOC2 compliance should be embedded early.

9. What are key risks in setting up a GCC?

  • Talent attrition
  • Cultural misalignment with HQ
  • Inadequate process maturity in early stages
  • Regulatory complexity if not handled properly
    Mitigation: Use strong leadership, clear communication with HQ, and trusted local partners.

Talent & Culture FAQs

10. Is it easy to hire senior leadership locally?

Yes, India has a robust ecosystem of GCC leaders with global exposure. Cities like Bangalore, Hyderabad, Pune, and Gurgaon are hotspots for experienced tech and operations leaders.

11. How do we ensure cultural alignment with HQ?

  • Invest in training and cross-location onboarding
  • Periodic leadership travel between India and HQ
  • Embed company values and goals across locations

12. How competitive is the talent market?

Very Top talent is in high demand. Founders must offer compelling roles, growth paths, and a strong employer brand to attract and retain talent.

Exit & Growth FAQs

13. Can a GCC be spun off or converted into a P&L unit?

Yes, mature GCCs can evolve into global business units, innovation hubs, or even be spun off into product companies or subsidiaries.

14. What’s the investor play in a GCC model?

  • Build GCCs as assets and spin them off
  • Provide GCC-as-a-Service for global clients (especially in BOT or managed models)
  • Position India-based operations as part of a larger M&A story

15. Can GCCs attract local or global VC/PE funding?

Yes, especially if the GCC expands into a full-stack product or service line. The operational base in India adds scalability and margin leverage.