Trusted Partner for GCCs: Compliance & Advisory
MSA will guide you at every stage from planning, handling regulations, taxation and ongoing compliance - so that you can focus on building a scalable GCC in India
India's new growth engine for global enterprises: where global companies build scale, efficiency and strategic depth.
In today's interconnected and globalised world, what do global companies do if they want round-the-clock operations? And that too, without raising the cost.
That's when they build "Global Capacity Centres" (GCCs).
What is a Global Capacity Center?
In short, a Global Capacity Center or GCC is a wholly owned subsidiary of a parent company (a multinational company). And they are built to run important functions inside a business, such as finance, technology, analytics, R&D, HR and customer operations.
Once, these GCC were identified as "support units". Now in India, they have evolved into high-value digital and innovation hubs.
The following facts prove how much GCCs have grown in India over the last decade:
From factors such as cost-effectiveness to strategic transformation, GCCs are reshaping how global organisations operate. For international companies, India has become one of the world's most trusted hubs for setting up their offices.
Let us look at a particle view of how GCCs work, why they choose India and what compliance, tax and financial frameworks should they understand.
Factors to Consider While Setting Up Your GCC
Here are a few factors to consider before you set up your GCC in any country.
- Whether the GCC will genuinely support global teams and business goals
- How complex the legal, tax and compliance work will be
- If the chosen city has strong infrastructure and the right tech setup
- Whether the talent you need is available and easy to hire
- What government benefits or incentives can you use
- How well can your teams across countries work together
- How easily the center can grow or expand in the future
Why India?
A place where policy, talent, technology and economic stability converge.
We can see that India is rising as the world's leading destination for GCCs. It is the result of a combination of factors, including state-driven incentives, deep talent availability and the country's growing digital ecosystem, among others.
Unlike traditional outsourcing destinations, India has developed a growing GCC infrastructure, making it a preferred location for many multinational companies.
Now let us have a look at a few facts that keep India at the top among others:
1. Global Center of Enterprise Technology & Transformation
Over the last 5 years, GCC in India has taken a shift from support-oriented service delivery to engineering-intensive, product-driven and transformation-led work. We see that Engineering R&D GCC setups have grown 1.3 times faster than the overall GCC market average.
Companies are building:
- AI/ML labs
- Engineering R&D hubs
- Cloud & cybersecurity centres
- Product development pods
- Data, analytics & forecasting COEs
2. Have a Workforce Engineered for Scale
Unlike other countries, India offers unmatched depth and maturity in the global talent supply chain:
- 28% of the world's STEM workforce and 23% of global software engineering talent can be found in India. (Source)
- Have a fast-expanding pool of solution architects, product owners and engineering managers
- India has a projected growth of global GCC leadership roles from 6,500 today to 30,000+ by 2030. (Source)
Global corporations now rely on India not just for the execution part but also for building global leadership pipelines.
3. State-Level GCC Policies
Different from other countries, Indian states compete with each other to attract GCCs to their states. States introduce policy frameworks, fiscal incentives, CAPEX support etc., to attract GCCs.
State policies for GCCs:
Karnataka (Bengaluru)
2024-29 Karnataka GCC aims to position the state as a global GCC leader that has around 1000+ GCCs. And they also provide incentives that include 40% CAPEX support for innovation labs, property tax reimbursement, IP cost reimbursements and AI-focused Centres of Excellence.
Gujarat (Ahmedabad, GIFT City)
Gujarat International Finance Tec-Xity (GIFT city) have made a 2025-30 policy targeting 250 new GCCs to be set up in Gujarat in the coming years. This state provides you with employment-linked subsidies, electricity duty exemptions, interest support and many more benefits.
Telangana (Hyderabad)
Telangana hold around 15% of India's GCC ecosystem. And they have several GCC policies such as single-window GCC clearance, HITEC City expansion, Genome Valley for biotech R&D and proactive government-industry skill partnerships.
States like Uttar Pradesh, Tamil Nadu, Maharashtra and Andhra Pradesh
These states in India offer a mix of benefits such as:
- Subsidised infrastructure
- Skill development grants
- Operational subsidies
- Stamp-duty waivers
- Dedicated IT corridors and multi-city GCC clusters
4. Have a Multi-City Network That Reduces Risk
Now India's GCC presence is not limited to the Big 6 metro cities in India. Tier-2 cities like Coimbatore, Mysuru, Indore, Jaipur, Vadodara, Kochi, Bhubaneswar and Nagpur are emerging as new hubs due to:
- 25-40% lower operating costs
- Expanding university ecosystems
- Reduced attrition
- Government-led infrastructure upgrades
- Modern IT parks, SEZs and business districts
In the 2025 Union Budget, it was announced that a national framework will be formed to guide states in promoting Global Capability Centres in emerging tier-II cities.
5. GCCs Get Cost Advantage
India offers one of the world's most competitive operating cost structures across:
- Skilled workforce
- Real estate & infrastructure
- Technology operations
- Compliance & administrative functions
More importantly, India's value-to-cost ratio continues to improve:
- Higher productivity
- Stronger process ownership
- Movement into strategic and innovation-led work
And these factor makes India now lead the global shift from "captive cost centers" to "global value organisations."
Types of GCC Models
Not every Global Capacity Centre is built the same way. Here are the most common GCC models used by the global companies today:
1. Captive (Fully Owned) Model
In this model, global companies set up GCC on their own and run it end-to-end, keeping all the control to themselves.
2. Build-Operate-Transfer (BOT) Model
This is a local partnership kind of set up and runs the centre for a defined period. Once the company stabilises, it takes full ownership.
3. Hybrid or Co-Managed Model
Here, the company handles all the core functions, while the partner manages the support functions like hiring, admin or infrastructure.
4. Centre of Excellence (CoE) Model
In CoE, GCC is built around a specialised function like AI/ML, cloud engineering, finance, data analytics, cybersecurity, ER&D etc.
GCC Lifecycle
Setting up a Global Capacity Center is not a one-step move; it's a full cycle. Majority of the global businesses follow a clear lifecycle as they expand their capabilities globally. Each stage has its own risks and priorities - and requires proper guidance at every step to keep things compliant.
Below is a simple, three-phase view of how a GCC grows.
1. Build
Building the foundation for a successful GCC.
This is the stage where we get started with setting up your GCC in India. Right from choosing the right location to setting up your first team all comes under the building phase. This is the stage where you set the structure right so the centre can grow without friction later. At this stage, you should be focusing on:
- Deciding the right operating model (Captive / BOT / Hybrid)
- Entity formation and registrations
- Understanding tax and regulatory requirements
- Setting up basic finance, payroll and HR systems
- Building the first line of leadership
- Creating clear functional charters for each team
2. Operate
Once the building phase is done, the operating phase begins. Under the operating phase, we focus on the day-to-day activity efficiency. This includes:
- Managing your annual and quarterly compliance calendars
- Try to standardise your processes across your global and local teams
- Try to create a smooth payroll, vendor payments and cross-border transactions
- Keeping documentation, contracts and policies up to date
3. Scale
Once you have taken care of the foundational elements and the day-to-day activities, now time to look into the scaling part of your GCC. A mature GCC doesn't just "support the business"; it should also act as a strategic partner.
During the scale phase, companies typically:
- Try to add new functions to your services
- Try to expand into Tier-2 locations
- Build Centres of Excellence (CoEs)
- Try to optimise your transfer pricing and global cost allocation
- Strengthen governance frameworks for multi-country operations
Why Partner With Us
Because your GCC deserves more than a service provider, it needs a steady hand to help in each phase.
Setting up and running your GCC is not just about ticking off a checklist. It is about having someone who has a strong understanding of how global structures, Indian regulations and cross-border finance actually work.
And that's where our team at MSA comes into the picture. Not as accountants on the sidelines, but as partners who've handled complex GCC lifecycles from day one.
- We understand intercompany pricing, GST on your exports, FEMA and cross-border flows.
- From entity setup to TP documentation to annual audits, we keep your GCC clean and compliant.
- Our advice is grounded in real execution with MNCs.
- Whether you scale from 20 to 200 or expand into a new city with us your compliance stays strong.
Compliance Pillars for GCCs
Setting up your GCC is just the start; like we discussed above, keeping it compliant and audit-ready requires a strong set of foundations. Once you have all the basic elements in place, you can scale your GCC faster and stay fully in sync with your global headquarters.
Let us have a look at some core compliance areas every GCC must build from day one:
Entity Formation & Corporate Governance
First and foremost step for you will be choosing the right legal structure for your GCC. And then comes completing the incorporation process and aligning governance frameworks with global policies.
FEMA & Cross-Border Compliance
Since GCCs deal with cross-border funding, payments and remittances. You must follow FEMA rules, RBI reporting and documentation timelines.
Transfer Pricing & Intercompany Pricing
GCCs work closely with their parent companies, so it's essential to follow arm's-length rules, safe harbour norms, TP documentation and proper benchmarking.
GST & Indirect Tax
Most GCCs export services, which means GST refunds, LUT filings and avoiding the "intermediary risk" become essential.
Payroll, ESOPs & Employee Compliance
For a GCC, payroll accuracy is a non-negotiable factor. PF, ESIC, PT, TDS, expat taxes and ESOP rules all need to be tracked correctly to avoid employee dissatisfaction
Labour Law & HR Policy
When setting up your GCC in India, you must comply with the relevant laws, such as employment contracts, Shops & Establishments registration, gratuity, maternity leave and POSH guidelines. And this helps you build strong credibility among the workforce.
Audit, Controls & Documentation
Statutory audits, internal audits, SOX controls and financial documentation all help you stay transparent and audit-ready so you can avoid unnecessary penalties.
Plan Your GCC Requirements With MSA
Building a GCC in India is not just a business decision you make. It is like a long-term investment that you make in talent, technology and global growth. India gives you the right environment to do it and scale it. But the real difference takes place when you have the right partner to guide you in every phase of your GCC in India.
Ready to set up or scale your GCC in India?
Let us talk about what the right structure, compliance framework and tax strategy can do for your business. Book a consultation with our team today.