How do you set up a manufacturing GCC in India?
A manufacturing-focused Global Capability Center in India takes 3 to 6 months from incorporation decision to first engineer in a seat. Key steps: entity incorporation (private limited company, 4 to 8 weeks), office lease in a technology park (2 to 4 weeks, can run parallel), HR and payroll setup (2 weeks), and recruitment (6 to 12 weeks for the first 10 to 20 engineers). A 10-person manufacturing engineering team in Bengaluru runs at USD 180,000 to 280,000 per year all-in, including salaries, statutory benefits, office and management overhead. Source: Ajinkya Technologies GCC benchmarks, FY 2025-26.
Entity structure options for a US company
Three practical structures exist. A wholly owned subsidiary (private limited company under the Companies Act 2013) gives the most control and cleanest IP ownership. Requires two Indian resident directors (one can be the US parent nominee; one must be an Indian resident). Ongoing compliance: annual board meeting, statutory audit, ROC filings, TDS and PF for employees.
A liaison office is allowed for market research only and cannot sign contracts. It is the wrong structure for a GCC delivering engineering services.
A build-operate-transfer (BOT) model through a partner lets you operate under the partner entity for 12 to 24 months while you assess India before incorporating. IP is assigned to you under contract. The partner handles payroll, compliance and office. This is the lowest-risk entry model for a first GCC in India.
City selection: Bengaluru, Pune or Tier 2
Bengaluru (HSR Layout, Whitefield, Electronic City) is the default for software and AI engineering GCCs. Salary benchmarks are the highest in India: a mid-level Python or Java engineer earns INR 12 to 18 lakh per year in FY 2025-26. Talent pool is deep; attrition in year 1 can be 20 to 30 percent.
Pune (Hinjewadi, Kharadi) has strong automotive and embedded engineering talent and salaries 15 to 20 percent lower than Bengaluru. Preferred for automotive software, ADAS and embedded GCCs.
Tier 2 cities such as Belagavi and Coimbatore offer 30 to 40 percent lower costs than Bengaluru, below-12-percent annual attrition, and proximity to manufacturing belts. Less suitable for roles requiring deep ecosystem access.
Total cost of a 20-person GCC in Bengaluru
Indicative all-in annual cost for a 20-person manufacturing engineering team in Bengaluru, FY 2025-26: engineer salaries (15 engineers at INR 14 lakh average) INR 2.1 crore; lead engineers and architects (3 at INR 25 lakh) INR 75 lakh; manager and admin (2 at INR 20 lakh) INR 40 lakh; office (500 sq ft tech park) INR 24 lakh; statutory costs (PF, ESI, gratuity) 20 percent of salary INR 63 lakh; equipment INR 20 lakh one-time. Total: approximately INR 3.8 crore per year (USD 460,000 at INR 83 per USD). Source: Ajinkya Technologies GCC operations, FY 2025-26.
Related questions
Ajinkya Technologies operates a 200-person engineering centre from Belagavi and Bengaluru serving US and Middle East clients. We offer a build-operate-transfer GCC entry model for US manufacturers. Contact hello@ajinkyatechnologies.in.
Reviewed by Amey Kadle, Founder, Ajinkya Technologies. Last reviewed: 2026-09-08.