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Global Capability Centers
Legal, Regulatory and Tax Issues
May 28, 2025
In today’s interconnected and globalised world, where businesses aspire to be location-agnostic, there
is an increasing trend of entities developing multinational, cross-border capabilities, operating round-the-
clock and generating value across time zones. This paradigm shift has led to the rise of Global Capability
Centres (“GCC”), especially in emerging economies, which have helped drive business operations worldwide.
India has played a pivotal role in the growth and evolution of GCCs. Early breakthroughs in IT services,
offshoring, and R&D hubs earned the trust of leading global corporations, paving the way for Indian GCCs
to evolve into strategic nerve centres at the forefront of innovation, digital transformation, and enterprise
growth. Currently, GCCs contribute over 1% of India’s GDP and are projected to generate more than USD
100 billion in annual revenue by 2030.
With strategic investments in infrastructure, digital capabilities, and a growing pool of highly skilled
professionals, India is increasingly being seen as a global epicentre for technological and R&D services.
The country’s advantage is further enhanced by its rich ecosystem of start-ups, government-backed initiatives like “Make in India” and “Digital India,” and a time-zone benefit that facilitates 24/7 operations.
However, as the number and scope of GCCs grow, it becomes increasingly important to examine the legal,
regulatory, and policy landscape that governs these entities and their operations. Structuring and contracting GCCs in India involves navigating a complex web of laws, including corporate compliance, tax regulations, intellectual property rights, environmental laws, labour laws, and data protection frameworks. These legal considerations often present challenges, both for foreign companies establishing GCCs in India and for existing entities seeking to expand their operations.
This paper aims to provide a detailed overview of the GCC ecosystem in India, with a focus on the structural, contractual, and legal frameworks that impact their operations. It analyses the key legal areas and the obligations these regulations impose on GCCs. It further examines how these challenges can be addressed through targeted policy measures that encourage the continued development of GCCs in India.
Please click
here to access our paper.
Regards,
Ankit Mishra,
Pradyumn Sharma,
Morvi Chaturvedi,
Santosh Gangavati,
Hetal Pandya,
Aaron Kamath and
Huzefa Tavawalla
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