India has become an important destination for global companies looking to build technology, engineering, finance, research and business operations teams. What started as a way to manage offshore business processes has evolved into a broader model where Global Capability Centres (GCCs) contribute directly to product development, innovation and global business operations.
For international companies, the opportunity is significant. However, hiring employees in India involves more than identifying suitable candidates and offering competitive salaries. Employers must also understand local employment requirements, payroll administration, statutory compliance and employee management.
For companies planning to establish or expand a GCC in India, having the right employment structure from the beginning can make a considerable difference.
Why Global Companies Are Expanding GCC Teams in India
India offers a combination of skilled professionals, established technology infrastructure and experience supporting international business operations. Companies across industries are building teams in India to strengthen their global capabilities.
According to the 2026 Nasscom-Zinnov GCC landscape report, India has 2,117 GCCs employing approximately 2.36 million professionals. These centres are increasingly moving beyond traditional support functions towards technology development, artificial intelligence, engineering and business transformation.
Several factors are contributing to this expansion:
- Access to specialised talent: Companies can recruit professionals across software engineering, cybersecurity, cloud computing, finance, analytics and other specialised functions.
- Established technology ecosystem: Cities such as Bengaluru, Hyderabad, Chennai, Pune and Delhi NCR offer mature business and technology environments.
- Operational flexibility: Businesses can build teams around specific projects, business functions and long-term growth plans.
- Innovation capabilities: Indian teams increasingly contribute to product development, research, automation and global technology initiatives.
As GCC operations become more specialised, managing employees and employment compliance becomes an important part of the expansion strategy.
Key Challenges of Hiring Employees for GCCs in India
Recruiting talent is only one part of establishing an Indian workforce. International employers must also consider how employees will be legally employed, paid and managed.
Some common challenges include:
Understanding Indian employment regulations
Employment requirements cover areas such as employment contracts, wages, working hours, leave, social security and workplace policies. Employers need to understand which requirements apply to their establishment and workforce.
Managing payroll accurately
Salary structures, statutory deductions, employee contributions and payroll timelines must be handled correctly. Inconsistent payroll administration can create employee dissatisfaction and compliance risks.
Managing employee onboarding
New employees require appropriate employment documentation, verification, appointment letters and onboarding processes. A consistent process helps companies create a professional employee experience.
Handling multi-state operations
Companies hiring across multiple Indian states may need to account for different state-level requirements, registrations, notifications and employment conditions.
These responsibilities should be considered before the first employee joins the organisation.
Employee Onboarding and Employment Contracts in India
A structured onboarding process establishes the employment relationship and helps employees understand their responsibilities.
International companies hiring in India should ensure that employment documentation is appropriate for the role, employment arrangement and applicable Indian requirements.
Important onboarding activities include:
- Preparing employment contracts and appointment letters.
- Collecting employee identity and relevant employment documentation.
- Defining job responsibilities, compensation and reporting arrangements.
- Completing applicable employee registrations.
- Communicating company policies, working arrangements and leave entitlements.
- Setting up payroll and employee records.
Employment contracts should clearly explain salary components, working hours, leave, confidentiality, termination provisions and other relevant employment terms.
A well-managed onboarding process also helps international employers maintain consistent employment practices as their Indian teams grow.
Payroll and Employee Benefits Management
Payroll administration is one of the most important responsibilities when managing a workforce in India.
Employers must ensure that employees receive accurate salary payments and that applicable statutory deductions and contributions are handled correctly.
Depending on the establishment and employee eligibility, payroll administration may involve:
- Salary calculation and monthly payroll processing.
- Provident Fund and Employees’ State Insurance contributions, where applicable.
- Professional Tax and other applicable deductions.
- Tax-related salary documentation.
- Gratuity and other statutory employee benefits.
- Leave and attendance administration.
- Payslip generation and payroll records.
Companies should also establish clear processes for salary revisions, employee reimbursements, bonuses and full-and-final settlements.
For international employers, working with an experienced India employment partner can simplify payroll administration and provide greater consistency across employee records and payment processes.
Understanding Labour Law and Statutory Compliance in India
Indian employment compliance requires attention to central legislation, state-specific rules and applicable notifications.
The four Labour Codes became effective on 21 November 2025, consolidating several existing central labour laws into four broader frameworks:
- Code on Wages, 2019.
- Industrial Relations Code, 2020.
- Code on Social Security, 2020.
- Occupational Safety, Health and Working Conditions Code, 2020.
The Central Rules were notified in May 2026. Employers must also monitor applicable state rules, notifications and implementation requirements.
For GCCs, relevant compliance areas may include minimum wages, timely payment of wages, social security, working conditions, employee records, workplace safety and statutory benefits.
Other applicable employment requirements may cover professional tax, gratuity, POSH compliance, holidays and statutory leave.
The specific obligations depend on factors such as the establishment, employee category, location and applicable legislation.
Companies operating in multiple states should not assume that one compliance approach will automatically cover every location. Regular reviews and accurate employment records are essential.
How Can Companies Hire in India Without Setting Up a Local Entity?
Establishing a legal entity in India is one option for international companies planning long-term operations. However, setting up an entity involves administrative, legal, financial and operational considerations.
Businesses that want to hire employees before establishing their own Indian entity may consider an Employer of Record (EOR) arrangement.
An Employer of Record is a third-party organisation that employs workers locally on behalf of another company, subject to the agreed employment structure and applicable law.
Under an EOR arrangement, the EOR typically manages employment administration, while the client company directs the employee’s day-to-day work and business responsibilities.
This arrangement can help international companies:
- Hire employees in India without immediately establishing their own local entity.
- Manage employment contracts and onboarding.
- Coordinate monthly payroll administration.
- Handle applicable statutory employment requirements.
- Maintain employee records and HR documentation.
- Expand teams with less administrative complexity.
The suitability of an EOR depends on the company’s business model, operational requirements and long-term plans in India.
EOR vs Setting Up Your Own GCC Entity
Both approaches can support business expansion, but they serve different operational needs.
Employer of Record
An EOR can be suitable for companies that want to hire an initial team, test the Indian market or build a workforce without immediately creating their own local employing entity.
Own Indian Entity
Establishing an Indian entity may be more appropriate for businesses planning substantial long-term operations, direct local commercial activities, independent infrastructure and greater control over their local corporate structure.
The right choice depends on the expected workforce size, business activities, investment plans and compliance responsibilities.
International companies should evaluate both options before deciding on an employment structure.
How Akross Helps Global Companies Hire in India
Hiring in India should not become an administrative burden for international businesses. Companies need a reliable employment partner that understands local requirements and can support employees throughout the employment lifecycle.
Akross provides India-focused Employer of Record services to help international companies employ and manage their workforce in India without establishing a local entity.
Whether a company is hiring its first employee in India or building a larger team, Akross helps simplify the employment administration involved in managing an Indian workforce.
Through its EOR services, Akross supports key employment activities, including:
- Employment contracts and employee onboarding.
- Monthly payroll administration.
- Statutory employment compliance.
- Employee benefits administration.
- HR documentation and employee lifecycle support.
Frequently Asked Questions
What is a Global Capability Centre (GCC) in India?
A Global Capability Centre is an offshore operation established by an international company to manage specialised business functions such as technology development, engineering, finance, analytics, research and business operations.
Can a foreign company hire employees in India without setting up an entity?
Yes. Depending on the business model and applicable legal requirements, a foreign company may use an Employer of Record to employ workers in India without immediately establishing its own local employing entity.
What employment compliances should GCCs consider in India?
GCC employers should assess applicable requirements relating to employment contracts, minimum wages, payroll, social security, working hours, leave, gratuity, workplace policies and statutory registrations.
How does an EOR support GCC hiring in India?
An EOR manages the local employment relationship and agreed employment administration, including employment documentation, onboarding, payroll and applicable statutory compliance. The client company generally manages the employee's day-to-day business responsibilities.
Is an EOR suitable for companies planning to expand their Indian workforce?
An EOR can be suitable for companies hiring an initial team or expanding their workforce without immediately establishing their own Indian entity. Companies should assess their long-term business and legal requirements before choosing this arrangement.
What is the difference between using an EOR and setting up a legal entity in India?
With an EOR, the provider acts as the legal employer in India and handles employment administration on the client's behalf. Setting up a legal entity means the company incorporates its own Indian subsidiary or branch and takes on the registrations, compliance filings and employer obligations directly.
Who is responsible for statutory compliance when hiring through an EOR in India?
The EOR, as the legal employer, generally manages employment-related statutory compliance within the agreed scope of services. The client company remains responsible for directing the employee's work and for providing accurate information so that payroll and compliance can be handled correctly.
