Top 7 Mistakes Global Companies Make When Setting Up GCCs in India And How to Avoid Them

Introduction

As global enterprises seek to enhance efficiency, drive innovation, and access world-class talent, establishing a Global Capability Centre (GCC) in India has become a pivotal strategy. India offers a robust ecosystem for GCCs  abundant skilled workforce, competitive costs, advanced digital infrastructure, and growing support in Tier-1 and Tier-2 cities like Hyderabad, Pune, and Coimbatore.

However, many organizations still struggle during the setup phase and end up repeating common mistakes that slow down ROI, create inefficiencies, and dilute the long-term value of the GCC.

At Sansovi, we specialize in delivering comprehensive GCC solutions tailored to your business needs, from ideation to full-scale operations. This blog explores the top 7 mistakes companies make when setting up GCCs in India  and more importantly, how you can avoid them using proven strategies.

1. Mistaking the GCC for a Cost-Cutting Initiative

One of the most common missteps is treating the India GCC as a cost-reduction initiative rather than a strategic capability hub. When companies enter the Indian market solely to cut operational costs, they often end up limiting the scope of the GCC to low-value tasks.

This results in:

• Low employee engagement

• Poor innovation output

• Minimal business impact

• High attrition rates

How to Avoid It

• Start with a value-first mindset, not cost-first

• Define the strategic purpose of your GCC  product innovation, digital transformation, R&D, analytics, etc.

• Align your GCC goals with global enterprise strategy

• Invest in high-value capabilities and cross-functional collaboration

At Sansovi, we design your GCC in India with a strategic lens  ensuring it delivers value, agility, and global alignment right from day one.

2. Selecting a Location Based Solely on Cost

While cost-efficiency is one of India’s biggest draws, making location decisions purely based on expense can be a costly mistake in the long run. Some Tier-2 cities may offer lower wage structures, but if they lack the right talent pool, infrastructure, or industry ecosystem, your GCC will struggle to scale or innovate.

Take GCC in Hyderabad, for example  it strikes an ideal balance between cost, tech talent density, modern infrastructure, and a thriving innovation ecosystem. Cities like Hyderabad, Bengaluru, and Pune are increasingly becoming top destinations for high-impact GCCs.

How to Avoid It

• Evaluate locations based on a holistic framework: talent availability, industry depth, quality of life, retention rate, and scalability

• Don’t chase the cheapest location chase the best long-term value

• Consider hybrid models: Tier-1 for leadership & innovation, Tier-2 for support & scale

Sansovi offers data-driven site selection assistance to help you find the best location that matches your GCC vision.

3. Copy-Pasting HQ Operating Models

Many companies make the mistake of replicating their headquarters’ org structure, processes, and decision flows in India without adapting to the local ecosystem. This leads to:

• Cultural mismatch

• Operational inefficiencies

• Slow decision-making

• Frustration among local leadership

How to Avoid It

• Customize your GCC’s operating model based on local talent capabilities and delivery expectations

• Define India-specific roles, responsibilities, and decision rights

• Empower local leadership while ensuring alignment with global goals

At Sansovi, we co-design India-fit operating models that blend global standards with local agility and innovation.

4. Ignoring Regulatory, Legal & Compliance Requirements

India has a complex regulatory environment covering labor laws, foreign direct investment (FDI), data security, taxation, and entity structures. Skipping or underestimating this layer often leads to delays, penalties, or reputational risks.

How to Avoid It

• Engage with experienced compliance and legal partners during the planning phase

• Ensure correct entity setup (e.g., Private Limited, LLP, Branch Office)

• Implement data governance, cyber laws, HR policies, and tax frameworks from day one

Sansovi’s GCC solutions include complete legal setup, government approvals, labor law compliance, and regulatory advisory.

5. Misaligned Talent Strategy

Your GCC’s value is directly tied to the quality of talent you attract and retain. A narrow hiring focus  for example, recruiting only transactional roles or ignoring leadership development  severely limits your GCC’s long-term potential.

Especially for companies building a GCC in Hyderabad or similar Tier-1 tech hubs, hiring should focus on capability building, innovation potential, and long-term growth.

How to Avoid It

• Align talent strategy with business outcomes, not just staffing goals

• Invest in hiring across strategic domains like cloud, AI, cybersecurity, product engineering

• Build robust onboarding, training, and leadership programs

• Enable cross-border exposure, internal mobility, and clear career paths

At Sansovi, we provide talent acquisition, retention strategy, leadership hiring, and customized skilling programs tailored for your GCC in India.

6. Failing to Plan for Future Scalability

Many companies focus entirely on “launching” their GCC  without thinking about how the center will evolve. As a result, they lack a roadmap for scale, innovation, and capability upgrades.

This “short-term setup” mindset limits expansion into high-value functions like R&D, product development, or customer experience transformation.

How to Avoid It

• Design your GCC infrastructure and team with scalability in mind

• Plan a 2–3 year growth roadmap: Year 1 (support), Year 2 (core delivery), Year 3 (innovation)

• Adopt modular architecture (people, tech, and process) to enable scaling

• Build an internal culture of agility and continuous improvement

Sansovi offers growth-stage planning and expansion blueprints as part of our ongoing GCC support   ensuring your GCC is built to scale from day one.

7. Weak Governance and Integration With Global Teams

The last  and often most damaging  mistake is failing to establish strong governance structures and KPIs that align your India GCC with the parent organization.

This results in:

• Poor visibility

• Misaligned goals

• Fragmented collaboration

• Underperformance and missed expectations

How to Avoid It

• Create robust governance models: escalation paths, joint reviews, performance dashboards

• Define and track KPIs for your GCC aligned to business value  not just cost

• Integrate Indian teams with global workflows and decision-making

• Enable leadership exposure and global collaboration

Sansovi ensures governance, performance management, and stakeholder integration are embedded from the beginning  so your India GCC becomes a true extension of your global enterprise.

Why Choose Sansovi for Your GCC Setup in India?

At Sansovi, we go beyond just helping you establish a GCC we help you build a future-ready, innovation-driven capability center that delivers measurable business value.

Here’s What Sets Sansovi Apart:

• Strategy-Led Design: Define purpose, structure, and KPIs before execution

• End-to-End GCC Solutions: From location selection to operations setup and governance

• Tech & Talent Edge: Access to India’s top talent, leadership, and digital expertise

• Compliance-First Approach: Legal, tax, and data security handled seamlessly

• Scale & Growth Roadmaps: Built-in scalability and expansion plans

• Locations like GCC in Hyderabad: Expertise in high-performing Indian tech hubs

Ready to Launch or Scale Your GCC in India?

Whether you’re just beginning or looking to scale your existing GCC operations, Sansovi’s GCC-as-a-Service model simplifies every step of the journey  with agility, compliance, and strategic impact.

Conclusion

Setting up a Global Capability Centre in India presents a powerful opportunity for companies to innovate, transform, and grow. But to realize that potential, it’s critical to avoid the common mistakes that have derailed others.

By taking a strategic, well-structured, and future-ready approach and partnering with experts like Sansovi  you can unlock the full potential of your GCC in India.

Let’s build a high-impact GCC that delivers value far beyond cost savings.

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