From Zero to GCC in 12 Months: A Practical Playbook for Sub $1B Companies

Introduction

For decades, Global Capability Centres (GCCs) in India have driven Fortune 500 success stories by providing cost savings, world-class personnel, and breakthrough innovation. Now, the landscape is evolving. Today, sub-$1 billion companies, including SaaS disruptors, private equity-backed startups, and mid-market innovators, are quickly joining the eastward movement.

Nearly 35% of new Global Capability Centres (GCCs) launched in India in the previous two years have been founded by mid-market, sub-$1 billion enterprises, indicating a substantial change in the market. There are presently over 480 operating mid-market GCCs in India, with over 110 of them opening in the last five years alone.

Notable mid-market GCC entrants in recent years include Revolut (UK fintech), Papa John’s (global pizza chain), Raksul (Japanese B2B platform), Outbrain (US advertising tech),  , a US-based SaaS platform backed by Thomas Bravo, which opened its India GCC in 2024 to accelerate product development, strengthen technical operations, and serve global customers by leveraging India’s high-quality digital talent and cost efficiencies.

However, establishing a GCC isn’t a one-click formula, particularly for smaller enterprises with little India experience. Companies must traverse a complicated web of regulations, intellectual property management, labour laws, cultural integration, real estate options, and a competitive personnel market. The incorrect decision, whether in compliance, recruiting, or infrastructure, can result in lost investment and delayed market entrance.

This piece presents a proven, step-by-step blueprint for transitioning from zero to a fully functional GCC within 12 months, complete with real-world examples and best practices at each stage. It also demonstrates why working with a Build-Operate-Transfer specialist like Pratiti Tech may expedite the process by reducing risk, speeding up delivery and ensuring a seamless transition from build-out to operational excellence.

If success in global markets is the aim, a well-executed GCC in India is now a strategic essential for all companies, regardless of size.

Challenges:

1.Regulatory and legal hurdles

Setting up an Indian organisation necessitates negotiating the country’s complicated terrain of tax rules, labour laws, data protection frameworks such as the Personal Data Protection Bill (PDPB), and industry-specific requirements. Mistakes might result in costly delays or penalties, which disproportionately affect smaller businesses with limited local legal resources.

For example, fintech startups and healthcare analytics firms have reported significant delays and increased compliance costs as a result of India’s  PDPB, which requires local data storage and imposes complex restrictions on cross-border data flows.

To fulfil rising PDPB standards, private equity-backed cloud platform firms have had to rapidly invest in local data centres and compliance processes while maintaining global service levels.

These incidents highlight that without early, experienced legal and compliance preparation, smaller SaaS and IT enterprises risk project delays, cost overruns, and operational disruptions, making proactive data privacy architecture crucial for successful GCC expansion in India.

2.Talent Acquisition and Retention

The battle for digital skills is intensifying at the mid-market level, as smaller companies must compete with large multinationals for limited AI, cloud, and analytics expertise. Talent retention is an important and growing concern for GCCs in India, particularly for sub-$1 billion and mid-market technology companies.

According to a recent CIEL HR research, 51% of GCCs in India prioritise talent retention, owing to severe competition for expertise in sectors like AI, cloud, and software product development. According to the report, attrition rates are increasing, notably among early-career professionals (47.6%) and mid-level managers (42.9%), resulting in significant staff turnover and frequent project interruptions.

Smaller SaaS and fintech businesses operating in GCCs in India, such as Innovaccer and Chargebee, are confronting growing issues in personnel attraction and retention. The highly competitive Indian technology sector, with its vast pool of specialised engineers, data scientists, and AI specialists, is also a battleground where global IT behemoths and fast-growing startups compete fiercely for top talent. According to Techcircle (2025), Innovaccer has experienced substantial turnover pressures, notably among mid-level software engineers and analytics specialists, resulting in higher recruiting expenses and longer hiring cycles. Similarly, Chargebee has recognised that sustaining a stable staff demands constant investment in employee engagement and retention strategies to compete effectively for competent workers.

According to the Economic Times (2025), private equity-backed SaaS firms such as Chargebee are increasingly implementing flexible work policies, enhanced career development programs, and strategic employer branding campaigns aimed specifically at millennial and Gen Z tech workers in India. These efforts emphasise comprehensive employee experiences; balancing competitive remuneration with continuous learning, workplace flexibility, and purpose-driven work cultures, which are important for keeping talent despite the high turnover rates routinely reported in India’s GCC industry.

This trend highlights a critical strategic shift among mid-market technology companies: surviving and prospering in India’s talent market now necessitates proactive investment not just in hiring, but also in specialised retention tactics and continual employer value proposition improvement.

3.Cultural Integration:

Cultural integration remains a key barrier for GCCs with less than $1 billion in revenue, integrating Western agile, flat organisational cultures with the traditionally hierarchical and context-rich Indian workplace. According to a recent Times of India article, the majority of GCCs recognise that cultural fluency and alignment require more than just surface efforts, but also deep involvement through cross-cultural training and continuing exchange programs.

Mid-sized SaaS and IT organisations have explicitly acknowledged project delays and misalignment owing to differing expectations and communication styles between Indian workers and Western headquarters, emphasising the importance of specific integration programs.

To guarantee GCC success, for instance, innovation-driven mid-market companies with private equity backing, like those backed by KKR and Blackstone, have placed a high priority on cultural fluency by funding the development of Indian leaders and integrating global work practices early on.

Embedding cultural alignment activities across organisational levels is critical, as research indicates that 84% of GCCs view culture integration as a greater issue than regulatory compliance.

4.Complexity of Operations

Smaller businesses are disproportionately affected by hidden expenses, including complicated governance, unanticipated lease escalations, and duplicated IT systems. According to industry statistics from Inductus GCC and Everest Group, these unanticipated costs may, on average, increase operating budgets for smaller businesses establishing or growing GCCs in India by more than 15%, highlighting the necessity of strict cost planning and control.

5.The “Cost Centre” Dilemma

Due to their limited perception as “offshore cost centres,” mid-market GCC companies run the danger of being marginalised by their parent companies and subject to frequent budget cuts. According to industry evaluations, GCCs may find it difficult to defend continued investment in the absence of a distinct strategic value story. In order to obtain long-term finance and broaden their function beyond simple cost arbitrage, GCCs must aggressively present themselves as catalysts for innovation, product creation, and improved customer experiences, according to reports like those from Supersourcing.

The 12-Month GCC Playbook: Realistic Steps for Sub-$1B Companies

Phase 1: Strategy and Planning (Months 1–3)

Clearly state the GCC’s mission, whether it be as an innovation lab, cost-saving centre, or hybrid model. Evaluate potential locations with a focus on established Tier-1 hubs like Pune, Mumbai, Bengaluru, Hyderabad, which offer mature ecosystems, abundant skilled talent, and scalable infrastructure at competitive cost points attractive to mid-market companies. While   such as Coimbatore and Jaipur are gaining attention, Pune stands out as a strategic sweet spot that combines cost efficiency with proven market depth. Pratiti is uniquely positioned to enable GCCs in Pune, helping mid-market firms harness this balanced advantage to accelerate growth and innovation. Perform thorough legal due diligence that addresses data protection compliance, tax, labour, and entity structure.

Phase 2: Construction and Hiring (Months 3–6)

Assure backup power and internet connection by securing infrastructure early, ideally in existing IT parks or Special Economic Zones (SEZs). Hire executives and the first 50–100 workers who have the necessary abilities and represent the company culture. Create payroll, benefits, and HR systems that adhere to Indian standards for seamless onboarding.

Phase 3: Operate and Integrate (Months 6–9)

When pilot operations begin, targeted delivery teams should be reaching predetermined KPIs. To guarantee accountability and transparency, incorporate strong governance with frequent reporting and close HQ integration. Make cross-cultural seminars a priority to reduce the cultural divide between Indian and Western corporations and promote cooperation and understanding.

Phase 4: Transition & Scale (Months 9–12)

Increase the workforce to 200–300 full-time workers, depending on the demands of the company. To encourage independence and responsiveness, transfer leadership and governance to internal teams. To maintain growth, create the next phase strategy, whether it involves multi-city expansion, automation of fundamental procedures, or R&D scale-up.

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