Quick answer: A Global Capability Center (GCC) is an offshore unit that a multinational owns and staffs to do its own work, from software and analytics to finance and R&D. In India it usually runs through a wholly owned subsidiary, bills the parent at cost plus a margin and follows Indian transfer pricing rules.
- India had 2,117 GCCs with 2.36 million professionals in FY2026, according to the Zinnov-NASSCOM India GCC report for 2026.
- Those centres generated US$98.4 billion in revenue in FY2026.
- From tax year 2026-27, an IT services GCC with eligible revenue up to ₹2,000 crore can opt for a 15.5% safe harbour margin on operating cost.
- IT and most services sectors allow 100% foreign investment under the automatic route, with no prior approval.
How is a GCC different from an ODC, a captive or a BOT?
Ownership decides it. Look at who owns the Indian entity and who employs the people.
| Model | Indian entity owned by | Team employed by | Your control |
|---|---|---|---|
| GCC | You, through a subsidiary | You | Full |
| Captive centre | You | You | Full, often a narrower brief |
| Offshore development centre | The vendor | The vendor | The work only |
| Build-operate-transfer | Vendor, then you | Vendor, then you | Grows at transfer |
| EOR-led GCC | The EOR | The EOR, until staff move | The work, then everything |
GCC is the newer label for what Indian finance teams long called a captive. The legal shape is the same. The name signals a wider mandate than back-office cost saving.
What does Indian law expect from a GCC?
Everything it expects from any Indian company that employs people and earns service income.
Pricing comes first. Your GCC charges the parent at arm’s length, and transfer pricing rules test the margin. The Income-tax Rules, 2026 folded software, ITeS, KPO and contract R&D into one IT services category, as KPMG’s safe harbour flash explains. The option runs for five tax years.
Keep sales authority with the parent. If GCC staff habitually conclude contracts for it, the parent risks a permanent establishment in India.
Location schemes matter less than they did. New SEZ units lost the old s.10AA tax holiday after 30 June 2020. STPI can still certify software export declarations.
Can you start a GCC through an EOR?
Yes. You can hire the first engineers on an employer of record while your subsidiary is still being incorporated.
The EOR is the legal employer in that phase. It runs payroll, PF and TDS, and your managers direct the work. Once the subsidiary exists and has reported its foreign capital, the team moves across through an EOR-to-entity transfer. Our guide to a GCC in India through the EOR model walks through each phase, and the GCC setup guide covers the entity itself.
How does Remunance help you launch a GCC in India?
Remunance employs your first GCC hires on its own Indian entity, Remunance Services Pvt Ltd in Kothrud, Pune, so work starts before your company exists on paper. When you are ready, we handle India subsidiary formation and move the EOR team onto your payroll. For a phased plan with costs, plan a GCC pilot with our India team.
What else do people ask about GCCs in India?
What does GCC stand for in IT?
Global Capability Center. It is a company’s own offshore unit, staffed by its own employees, doing work for the global business.
How many GCCs are there in India?
Zinnov and NASSCOM counted 2,117 in FY2026. Together they run 3,728 units and employ 2.36 million professionals.
Is a GCC the same as outsourcing?
No. With outsourcing, a vendor employs the team and owns the delivery. In a GCC, you employ the team and keep the capability in your group.