What functions should a GCC start with before expanding scope?
Starting with functions that have clear, documented processes and measurable output makes it easier to demonstrate the GCC's value quickly and build trust with the parent organization. IT infrastructure support, application maintenance, finance and accounting shared services (accounts payable, general ledger, reporting), and customer support or back-office operations are common first waves because they transfer cleanly with well-established playbooks and SLAs.
Once the centre has 12 to 18 months of stable delivery and has built a credible local leadership team, most GCCs expand into higher-value, judgment-intensive work: product engineering and software development, data analytics and business intelligence, and eventually R&D or innovation functions. Trying to launch complex, ambiguous, or IP-sensitive work in the first wave — before the centre has established delivery credibility and the right talent — is one of the most common reasons GCC expansions stall or get scaled back.
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Sources and rules
The rules behind this topic are published by the authorities below. Laws and circulars change, so check the current text at the source before you act on any point on this page.
- DPIIT: Foreign Direct Investment policyFDI rules that apply to a captive entity
- Ministry of Electronics and Information TechnologyIT and data rules relevant to technology and service centres
- Income Tax Department: India (CBDT)Transfer pricing and safe harbour for captive service providers
- Ministry of Corporate Affairs: ActsCompanies Act, 2013