India now hosts 2,117 Global Capability Centres employing about 2.36 million professionals, according to Zinnov-Nasscom FY2026 research. Yet at a Reuters summit in Bengaluru, a Novo Nordisk executive said salaries in some tech roles are rising 40% to 50% a year, eroding the cost advantage many offshore plans relied on.
Both facts lead to the same decision. Choosing between a Global Capability Centre (GCC) and an Offshore Development Centre (ODC) is no longer a cost exercise. The offshore model you pick shapes how quickly you hire, how much control you keep over people and intellectual property, and how far your team can grow. The businesses that choose the model that fits their goals first will have the head start.
In this blog:
- Why the Offshore Conversation Has Moved Beyond Cost
- GCC and ODC: What Each Model Actually Means
- GCC vs ODC: A Side-by-Side Comparison
- The Challenges That Decide Success: Talent, Cost, Governance and IP
- When Each Model Makes Sense, and Where Hybrid Fits
- Five Decisions Before You Choose a Model
- From Decision to Delivery: Setting Up for Long-Term Value
- Frequently Asked Questions
1. Why the Offshore Conversation Has Moved Beyond Cost
India’s GCC landscape is large, growing and increasingly competitive for talent. With wages in some tech roles rising 40% to 50% a year, the lowest rate card no longer guarantees the lowest total cost. Companies are now asking what an offshore team can own and build, not only what it saves.
Metric | What the research found | What it means for your business |
India’s GCC base | 2,117 GCCs operating across 3,728 units in FY2026 | The model is proven at scale |
Workforce and revenue | About 2.36 million professionals and US$98.4 billion in revenue | Deep talent, but many employers compete for it |
Wage pressure | Salaries in some tech roles rising 40% to 50% a year, per a Novo Nordisk executive (Reuters) | Cost advantage needs active management |
Reuters describes a shift from cost to capability, with demand for AI and machine learning skills outstripping supply and fuelling wage inflation.
The momentum is global. Zinnov’s landscape research notes that the Americas lead GCC expansion in India, and UAE enterprises are following. DAMAC Group, for example, opened its second India GCC in Noida in November 2025.
So the real question has changed. It is not whether to build an offshore team, but what that team should own, and which model gives it the right mix of control, speed and flexibility.
Future Focus Infotech’s GCC solutions start with that question, so the model follows the mandate.
2. GCC and ODC: What Each Model Actually Means
In this newsletter, GCC means Global Capability Centre. Leaders often use GCC and ODC interchangeably, yet Zinnov separates them clearly.
- Global Capability Centre (GCC). Your company sets up its own legal entity offshore, hires its own employees and manages operations directly. Also called a captive centre.
- Offshore Development Centre (ODC). A dedicated team in another country working exclusively for one client, usually with a local partner supporting hiring, infrastructure and operations.
A hybrid GCC model blends an in-house centre with selective outsourcing.
Future Focus Infotech’s guide to setting up an Offshore Development Centre shows how a dedicated team can extend your business, while its GCC practice covers strategy, setup and scale-up.
3. GCC vs ODC: A Side-by-Side Comparison
Choosing between a GCC and an ODC comes down to what you want your India team to do for the business. Some companies want to build and own a long-term capability, while others need a dedicated team up and running quickly. The right model depends on which of the two is closer to your plans.
Consideration | GCC | ODC |
Who owns the centre | You, through your own Indian entity | Varies; a partner often supports operations |
Control and IP | Highest; know-how stays in-house | Strong when contracts and governance are clear |
Speed to launch | Slower; entity, leadership and hiring to build | Faster; partner infrastructure is in place |
Upfront commitment | Highest | Lower |
Best suited to | Long-term capability building | Focused delivery and specialist skills |
A GCC gives the most control and the strongest intellectual property protection, but asks for the most commitment; an ODC lowers starting risk and speeds up the ramp.
Neither is automatically better. The right GCC operating model depends on what the work is and how long you expect to need it.
4. The Challenges That Decide Success: Talent, Cost, Governance and IP
Whichever model you choose, four challenges decide whether it succeeds.
Talent and cost pull in the same direction. AI, data, cloud and cybersecurity professionals are in short supply, and with salaries rising fast the lowest rate card is rarely the lowest total cost. A sound global talent strategy covers today’s hires and next year’s demand.
Governance and IP decide how well the model holds up. Zinnov warns that a GCC without clear alignment to business strategy risks being seen as just another cost centre, so effective offshore team management and GCC governance define decision rights, KPIs and review cycles from day one. Owning the centre keeps data and processes in-house, and either way labour, tax and data protection rules must be built in early.
None of these challenges points to one model by default. They show how whichever model you choose has to be run.
Future Focus Infotech’s GCC services cover strategic planning, talent sourcing and governance, so these risks are designed for before the first hire. Its guide to choosing a cybersecurity partner for your GCC in India covers security.
5. When Each Model Makes Sense, and Where Hybrid Fits
A GCC tends to fit when you want to:
- Build a long-term, company-owned presence across functions such as engineering, data or AI.
- Keep direct control of critical technology, processes and intellectual property.
- Offer ownership and career growth that help attract and retain talent.
An ODC tends to fit when you want to build a dedicated team around a product, application or defined roadmap, access specialised skills quickly without opening a subsidiary, or scale capacity up or down as priorities change.
Hybrid fits when you want an ODC for focused delivery alongside a GCC for strategic functions. UAE teams work within about 90 minutes of India, while US teams usually plan structured overlap hours.
Because the choice is rarely permanent, the ability to move between models matters. Future Focus Infotech offers both ODC and GCC solutions.
6. Five Decisions Before You Choose a Model
Work through five decisions in order.
Decision 1: Define the mandate. What should the centre own in three years? Decide on capability, not only cost savings.
Decision 2: Select the operating model. How much control do you need, and how soon? Compare captive and hybrid options, and settle entity and tax structure early.
Decision 3: Choose the location. Match the city to the function, and weigh total cost across salary, attrition and leadership availability.
Decision 4: Design the team. Appoint leadership first and hire in phases against milestones.
Decision 5: Establish governance. Define what India decides and what headquarters decides, and track delivery, quality and attrition.
If the first three answers point to a long horizon and several functions, a GCC likely fits; if they point to defined delivery and flexibility, consider an ODC or hybrid.
These five decisions mirror how Future Focus Infotech approaches GCC strategy and setup.
7. From Decision to Delivery: Setting Up for Long-Term Value
A good decision still needs good execution. A practical sequence for GCC setup in India, or for any new offshore centre, looks like this:
Step 1: Build the case. Document the mandate, functions, KPIs and budget.
Step 2: Set the structure. Decide the entity and operating model, with legal and tax advisers involved early.
Step 3: Hire leadership and a core team. Phase hiring against milestones.
Step 4: Launch with governance. Have decision rights, reporting and security controls live from go-live.
Step 5: Measure and scale. Track time-to-hire, attrition, delivery quality and cost-to-value, then add functions.
A GCC set-up specialist with defined playbooks can overcome the usual hurdles in compliance, talent acquisition and cultural integration. For offshore technology operations of every kind, the aim is a centre that delivers today and can take on more tomorrow.
The businesses that get the most from offshore operations will not be those that move first or at the lowest cost, but those that match the structure to the mandate and review it as the centre matures.
FAQs
What is the difference between a GCC and an ODC?
A GCC is a company-owned centre set up through your own legal entity, with your own employees. An ODC is a dedicated offshore team for one client, usually supported by a local partner.
Is a GCC better than an ODC?
Not automatically. A GCC suits long-term, multi-function capability building and maximum control of intellectual property; an ODC suits focused delivery and flexible scaling.
How long does it take to set up a GCC in India?
It depends on the model and scale. A fully owned captive entity needs entity set-up, leadership, hiring and infrastructure, so it takes longer than a partner-supported ODC.
Can a business run a GCC and an ODC together?
Yes. A common approach is an ODC for focused delivery alongside a GCC for strategic functions, with clear governance to avoid overlap.
How can Future Focus Infotech help?
Future Focus Infotech offers GCC strategy and setup, talent sourcing, team structuring and governance, along with ODC solutions.
