What CEOs and CFOs Need to Know Before GCC Expansion in India?

As the world recalibrates supply chains and operational resilience becomes non-negotiable, India has emerged as the strategic nucleus for global capability centres. For forward-looking CEOs and CFOs, the question is no longer ‘if’ India should be part of their global footprint but ‘how fast’ they can establish and scale operations here. With its unmatched talent pool, cost efficiency, regulatory reforms, and rising digital infrastructure, India offers an irresistible proposition. Yet, to set up a GCC in India demands more than ambition, it requires precision, foresight, and a nuanced understanding of the regulatory, cultural, and operational ecosystem.

From evaluating the optimal city based on talent availability, infrastructure readiness, and geopolitical stability, to navigating the complex landscape of government incentives, tax regimes, and regulatory frameworks, this guide serves as a comprehensive playbook for today’s C-suite leaders. It empowers CEOs, CFOs, and COOs with the strategic clarity and operational foresight needed to architect resilient, future-ready global capability centres in one of the world’s fastest-growing and most dynamic markets, that is, INDIA.

By aligning location strategy, compliance, cost efficiency, and innovation potential, enterprises can unlock long-term value while mitigating risks in an increasingly uncertain global environment. Read on to learn more.

Why India: A Strategic Imperative for Global Enterprise

India’s value proposition is built on a rare mix of talent, technology, and transformation. This unique trifecta enables global enterprises to drive innovation at scale, accelerate digital agendas, and build resilient operations. As the world pivots toward decentralized and agile delivery models, India stands out as both a growth engine and a strategic safeguard.

Talent at Scale: With a tech-savvy workforce of over 5 million STEM professionals, India remains the global leader in IT and business process outsourcing.
Cost Efficiency: GCCs in India deliver up to 45–60% savings in operational costs when compared to Western hubs.
Resilience & Continuity: In a volatile world, GCCs in Chennai, Hyderabad, and Bengaluru offer stable, round-the-clock operations and enterprise-grade disaster recovery setups.
Govt. Policies: Government-backed reforms like Digital India, Ease of Doing Business, and PLI schemes have made India a magnet for high-value investments. Beyond metro cities, emerging hubs in Tier-II and Tier-III regions are unlocking new frontiers for global capability centres.

https://inductusgcc.com/wp-content/uploads/2025/05/GCC-Image01-9.jpg

Choosing a Strategic Location

While Bengaluru, Hyderabad, Chennai, and Pune remain the top destinations for GCC expansion, Tier-II and Tier-III cities like Lucknow, Indore, Bhubaneswar, and Coimbatore are gaining momentum. These emerging hubs offer:

Lower attrition rates
Competitive real estate
Access to untapped talent pools
Tailored state incentives (e.g, Uttar Pradesh’s GCC Policy 2024)

C-suite executives must evaluate locations based on scalability potential, infrastructure readiness, and quality of life for expat executives and returnee talent.

Structuring GCC: Legal, Financial and Regulatory Essentials

Before you break ground, ensure a strong GCC compliance framework to be able to navigate the complex regulatory landscape. The key areas include:

Entity Setup: Most Western companies opt for a wholly owned subsidiary under India’s Companies Act.
Transfer Pricing: Ensure arm’s-length pricing mechanisms for intercompany transactions and India is strict on Base Erosion and Profit Shifting (BEPS).
Taxation: Take the best advantage of incentives under SEZs (Special Economic Zones), R&D credits, and state-specific (MP, benefits.
Labor Laws: India’s new labor codes offer more clarity but it is a good idea to consult a local legal advisor for accurate employment contracts and benefits.

Getting the structure right from the start is critical because missteps in legal, financial, or regulatory planning can lead to costly delays and compliance risks. A well-structured GCC with the help of GCC companies in Bengaluru, Delhi, or Mumbai lays the foundation for seamless scalability, operational efficiency, and long-term strategic value.

Digital Infrastructure & Cybersecurity Readiness

India offers world-class digital infrastructure through data centers, 5G networks, and cloud ecosystems. However, cybersecurity compliance is critical and here’s what must be done :

Adhere to India’s DPDP Act (Digital Personal Data Protection Act) for all customer and employee data to avoid legal complications.
Early implementation of ISO 27001 and SOC 2 Type II controls.
Conduct annual risk audits and penetration tests to stay on top of cybersecurity.

Ensuring robust digital infrastructure and cybersecurity readiness is not just a technical requirement but a critical pillar for safeguarding business continuity and data integrity. A proactive approach in these areas strengthens the foundation for sustainable growth and fosters trust with clients, partners, and regulators.

https://inductusgcc.com/wp-content/uploads/2025/05/GCC-Suggested-Read-2-1.jpg

Talent Strategy: Growing the Right Team

The real value of a GCC lies in talent transformation—not just cost savings. Successful GCCs shift from executing support functions to owning global products and IP.

Partner with top Indian universities (IITs, NITs, IIITs).
Build strong learning and development pipelines.
Offer employee stock ownership plans (ESOPs) to attract leadership.
Create an innovation culture and not just an execution engine.

Conclusion: Final Thoughts

India’s global capability centres are no longer peripheral cost-saving units, they are becoming core engines of enterprise transformation, resilience, and global value creation. In this evolution, the role of the CFO is undergoing a seismic shift. Today’s most effective CFOs aren’t just scrutinizing spreadsheets; they’re architecting ecosystems, designing GCCs that drive innovation, attract world-class talent, and de-risk global operations in an unpredictable geopolitical environment.

Cost savings may open the door, but strategic foresight is what builds the fortress. GCCs offer a once-in-a-generation opportunity to build future-ready, innovation-led institutions that anchor long-term competitive advantage.

https://inductusgcc.com/wp-content/uploads/2025/05/GCC-CTA01-2.jpg

By embracing bold thinking, investing early in governance and infrastructure, and empowering local leadership, CFOs can turn India-based GCCs into strategic powerhouses and not just operational satellites. The future of global enterprise is being built now. The question is not whether India fits into your cost model, it’s whether your GCC strategy is fit for the future.